ABS-CBN vs Nazareno (2006) G.R.

164156

Facts:

ABS-CBN employed respondents Nazareno, Gerzon, Deiparine, and Lerasan as

production assistants (PAs) on different dates. They were assigned at the news and
public affairs, for various radio programs in the Cebu Broadcasting Station, with a
monthly compensation of P4,000. They were issued ABS-CBN employees identification
cards and were required to work for a minimum of eight hours a day, including Sundays
and holidays. They were made to: a) Prepare, arrange airing of commercial
broadcasting based on the daily operations log and digicart of respondent ABS-CBN; b)
Coordinate, arrange personalities for air interviews; c) Coordinate, prepare schedule of
reporters for scheduled news reporting and lead-in or incoming reports; d) Facilitate,
prepare and arrange airtime schedule for public service announcement and complaints;
e) Assist, anchor program interview, etc; and f) Record, log clerical reports, man based
control radio.

Petitioner and the ABS-CBN Rank-and-File Employees executed a Collective Bargaining

Agreement (CBA) to be effective during the period from Dec 11, 1996 to Dec 11, 1999.
However, since petitioner refused to recognize PAs as part of the bargaining unit,
respondents were not included to the CBA.

Due to a memorandum assigning PAs to non-drama programs, and that the DYAB studio
operations would be handled by the studio technician. There was a revision of the
schedule and assignments and that respondent Gerzon was assigned as the full-time PA
of the TV News Department reporting directly to Leo Lastimosa.

On Oct 12, 2000, respondents filed a Complaint for Recognition of Regular Employment
Status, Underpayment of Overtime Pay, Holiday Pay, Premium Pay, Service Incentive
Pay, Sick Leave Pay, and 13th Month Pay with Damages against the petitioner before the
NLRC.

Issue: WON the respondents are regular employees?

Held: Respondents are considered regular employees of ABS-CBN and are entitled to
the benefits granted to all regular employees.

Where a person has rendered at least one year of service, regardless of the nature of
the activity performed, or where the work is continuous or intermittent, the employment
is considered regular as long as the activity exists. The reason being that a customary
appointment is not indispensable before one may be formally declared as having
attained regular status. Article 280 of the Labor Code provides:
REGULAR AND CASUAL EMPLOYMENT.The provisions of written agreement to
the contrary notwithstanding and regardless of the oral agreement of the parties, an
employment shall be deemed to be regular where the employee has been engaged
to perform activities which are usually necessary or desirable in the usual business or
trade of the employer except where the employment has been fixed for a specific
project or undertaking the completion or termination of which has been determined
at the time of the engagement of the employee or where the work or services to be
performed is seasonal in nature and the employment is for the duration of the
season.
Any employee who has rendered at least one year of service, whether continuous or
intermittent, is deemed regular with respect to the activity performed and while such
activity actually exists. The fact that respondents received pre-agreed talent fees
instead of salaries, that they did not observe the required office hours, and that they
were permitted to join other productions during their free time are not conclusive of the
nature of their employment. They are regular employees who perform several different
duties under the control and direction of ABS-CBN executives and supervisors.

There are two kinds of regular employees under the law: (1) those engaged to
perform activities which are necessary or desirable in the usual business or trade of
the employer; and (2) those casual employees who have rendered at least one year
of service, whether continuous or broken, with respect to the activities in which they
are employed.

What determines whether a certain employment is regular or otherwise is the character

of the activities performed in relation to the particular trade or business taking into
account all the circumstances, and in some cases the length of time of its performance
and its continued existence.

The employer-employee relationship between petitioner and respondents has been

proven by the ff:

First. In the selection and engagement of respondents, no peculiar or unique skill,

talent or celebrity status was required from them because they were merely
hired through petitioners personnel department just like any ordinary employee.

Second. The so-called talent fees of respondents correspond to wages given as

a result of an employer-employee relationship. Respondents did not have the
power to bargain for huge talent fees, a circumstance negating independent
contractual relationship.

Third. Petitioner could always discharge respondents should it find their work
unsatisfactory, and respondents are highly dependent on the petitioner for
continued work.

Fourth. The degree of control and supervision exercised by petitioner over

respondents through its supervisors negates the allegation that respondents are
independent contractors.

The presumption is that when the work done is an integral part of the regular
business of the employer and when the worker, relative to the employer, does
not furnish an independent business or professional service, such work is a
regular employment of such employee and not an independent contractor.