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NLRC Philippine National Red Cross is a government

corporation with anoriginal charter, having been
G.R. No. 129049 August 6, 1999 created by Republic Act No. 95.

FACTS: Petitioner filed an appeal but the NLRC denied

the petition and upheld Labor arbiters decision
Petitioner was employed with the PNRC since that dismissed petitioners complaint for lack of
1980, and until his early retirement on jurisdiction.
December 15, 1995. He was administrator of the
Surigao del Norte Chapter. ISSUE:
On July, 1995, a field auditor of thePNRC
conducted an audit of the books of account of Whether the Philippine National Red Cross (PNRC
the Surigao del Norte Chapter headed by for short) is a government owned and controlled
petitioner and found him short in the total sum corporation or it has been impliedly converted to
of P109,000.00. a private organization?

Dr. Celso Samson, Secretary General of the PNRC HELD:

wrote petitioner requiring him to restitute within
seventy two hours from notice, the totalsum of Philippine National Red Cross (PNRC) is a
P135,927.78 representing cash shortage, government owned and controlled corporation,
technical shortage and unremittedcollections. with an original charter under Republic Act No.
95, as amended. The test to determine whether
Upon filing his early retirement, he wrote a letter a corporation is government owned or
to Dr. Samson requesting for a re-audit by an controlled, or private in nature is simple. Is it
independent auditor of his accounts. However, created by its own charter for the exercise of a
Dr.Samson denied the request. public function, or by incorporation under the
general corporation law? Those with special
Because of denying his request petitioner filed charters are government corporations subject to
with the National Labor Relations Commission a its provisions, and its employees are under the
complaint for illegal dismissal, damages and jurisdiction of the Civil Service Commission,
underpayment of wages against the Philippine and are compulsory members of the
National Red Cross and its keyofficials. Government Service Insurance System.

Respondent Philippine National Red Cross filed The PNRC was not "impliedly converted to a
with the Surigao del Norte provincial office, private corporation" simply because its charter
Department of Labor and Employment, a motion was amended to vest in it the authority to
todismiss the complaint for lack of jurisdiction secure loans, be exempted from payment of all
over the subject matter of the case because the duties, taxes, fees and other charges.
PNRC is a government corporation whose
employees are members of the Government Having served in the Philippine National Red
Service Insurance System, and embraced within Cross for a number of years since his initial
the Civil ServiceLaw and regulations. employment, he must know that it is a
government corporation with its own charter and
Petitioner filed an opposition to the Motion to that he was covered by compulsory membership
Dismiss arguing that there was between the in the Government Service Insurance System,
PNRC and its duly appointed paid staff, an which is why he could apply, as he did, for
employer-employee relationship governed by the "early" retirement from the service under
Labor Code. Presidential Decree No. 1146 or Republic Act No.
The Labor Arbiter issued an order dismissing the
complaint for lack of jurisdiction, finding that the