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12)NITTO ENTERPRISES vs. NLRC and ROBERTO CAPILI Industries, Inc.

Industries, Inc. (Atlanta) and its President and Chief Operating Officer Robert Chan. Atlanta is
a domestic corporation engaged in the manufacture of steel pipes.
Petitioner Nitto Enterprises, a company engaged in the sale of glass and aluminum products,
hired Roberto Capili sometime in May 1990 as an apprentice machinist, molder and coremaker The complainants alleged that they had attained regular status as they were allowed to work
as evidenced by an apprenticeship agreement 2for a period of six (6) months from May 28, with Atlanta for more than six (6) months from the start of a purported apprenticeship
1990 to November 28, 1990 with a daily wage rate of P66.75 which was 75% of the agreement between them and the company. They claimed that they were illegally dismissed
applicable minimum wage. On August 2, 1990, Roberto Capili who was handling a piece of glass when the second apprenticeship agreement expired and that they were actually already
which he was working on, accidentally hit and injured the leg of an office secretary who was employees of Atlanta before they we put in the apprenticeship program.
treated at a nearby hospital. Further, Capili entered a workshop within the office premises
which was not his work station. There, he operated one of the power press machines without In defense, Atlanta and Chan argued that the workers were not entitled to regularization and
authority and in the process injured his left thumb. The following day he was asked to resign. to their money claims because they were engaged as apprentices under a government-
Three days after, , private respondent formally filed before the NLRC Arbitration Branch, approved apprenticeship program. The company offered to hire them as regular employees in
National Capital Region a complaint for illegal dismissal and payment of other monetary the event vacancies for regular positions occur in the section of the plant where they had
benefits. trained. They also claimed that their names did not appear in the list of employees (Master
List) prior to their engagement as apprentices.
The Labor Arbiter rendered his decision finding the termination of private respondent as valid
and dismissing the money claim for lack of merit. On appeal, NLRC issued an order reversing Subsequently a compromise agreement was entered into by the respondent with Atlanta, but
the decision of the Labor Arbiter. The NLRC declared that Capili was a regular employee the remaining respondents had refused to sign.
of Nitto Enterprises and not an apprentice. Consequently, Labor Arbiter issued a Writ of Issues: Whether or not the termination of the employees after the expiration of the
Execution ordering for the reinstatement of Capili and to collect his back wages. apprenticeship agreement was valid cause for dismissal
Petitioner, Nitto Enterprises filed a case to the Supreme Court.
Held: No.
ISSUE: Does the NLRC correctly rule that Capili is a regular employee and not an apprentice of
Nitto Enterprises? Ratio: Based on company operations at the time material to the case, Costales, Almoite,
Sebolino and Sagun were already rendering service to the company as employees before they
LAW: Article 280 of the Labor Code were made to undergo apprenticeship. The company itself recognized the respondents’ status
RULING: Yes. The apprenticeship agreement between petitioner and private respondent was through relevant operational records.
executed on May 28, 1990 allegedly employing the latter as an apprentice in the trade of "care The Master List (of employees) that the petitioners heavily rely upon as proof of their position
maker/molder. However, the apprenticeship Agreement was filed only on June 7, that the respondents were not Atlanta’s employees, at the time they were engaged as
1990.Notwithstanding the absence of approval by the Department of Labor and Employment, apprentices, is unreliable and does not inspire belief.
the apprenticeship agreement was enforced the day it was signed. The act of filing the
proposed apprenticeship program with the Department of Labor and Employment is a The fact that Costales, Almoite, Sebolino and Sagun were already rendering service to the
preliminary step towards its final approval and does not instantaneously give rise to an company when they were made to undergo apprenticeship (as established by the evidence)
employer-apprentice relationship. renders the apprenticeship agreements irrelevant as far as the four are concerned. The
respondents occupied positions such as machine operator, scaleman and extruder operator -
Nitto Enterprises did not comply with the requirements of the law. It is mandated that tasks that are usually necessary and desirable in Atlanta’s usual business or trade as
apprenticeship agreements entered into by the employer and apprentice shall be entered only manufacturer of plastic building materials. These tasks and their nature characterized the four
in accordance with the apprenticeship program duly approved by the Minister of Labor and as regular employees under Article 280 of the Labor Code. Thus, when they were dismissed
Employment. Thus, the apprenticeship agreement has no force and effect; and Capili is without just or authorized cause, without notice, and without the opportunity to be heard,
considered to be a regular employee of the company. their dismissal was illegal under the law.
13) Atlanta Industries vs Sebolino Even if we recognize the company’s need to train its employees through apprenticeship, we
Facts: Complainants Aprilito R. Sebolino, et.al., filed several complaints for illegal dismissal, can only consider the first apprenticeship agreement for the purpose. With the expiration of
regularization, underpayment, nonpayment of wages and other money claims, as well as the first agreement and the retention of the employees, Atlanta had, to all intents and
claims for moral and exemplary damages and attorney’s fees against the petitioners Atlanta purposes, recognized the completion of their training and their acquisition of a regular
employee status. To foist upon them the second apprenticeship agreement for a second skill
which was not even mentioned in the agreement itself, is a violation of the Labor Code’s necessary in petitioners business as a tuna and sardines factory. Under Article 280 of the Labor
implementing rules and is an act manifestly unfair to the employees, to say the least. Code, an employment is deemed 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.
14) CENTURY CANNING CORPORATION, vs COURT OF APPEALS and GLORIA C. PALAD 2)Under Article 279 of the Labor Code, an employer may terminate the services of an employee
15 July 1997, Century Canning Corporation (petitioner) hired Gloria C. Palad (Palad) as fish for just causes or for authorized causes. under Article 277(b) of the Labor Code, the employer
cleaner at petitioners tuna and sardines factory. Palad signed on 17 July 1997 an must send the employee who is about to be terminated, a written notice stating the causes for
apprenticeship agreement with petitioner. Palad received an apprentice allowance of P138.75 termination and must give the employee the opportunity to be heard and to defend himself.
daily. On 25 July 1997, petitioner submitted its apprenticeship program for approval to the Thus, to constitute valid dismissal from employment, two requisites must concur: (1) the
Technical Education and Skills Development Authority (TESDA) of the Department of Labor and dismissal must be for a just or authorized cause; and (2) the employee must be afforded an
Employment (DOLE). On 26 September 1997, the TESDA approved petitioners apprenticeship opportunity to be heard and to defend himself.
program. According to petitioner, a performance evaluation was conducted on 15 November Palad was not accorded due process. Even if petitioner did conduct a performance evaluation
1997, where petitioner gave Palad a rating ofN.I. or needs improvement since she scored on Palad, petitioner failed to warn Palad of her alleged poor performance. In fact, Palad denies
only27.75% based on a 100% performance indicator. Furthermore, according to the any knowledge of the performance evaluation conducted and of the result thereof. Petitioner
performance evaluation, Palad incurred numerous tardiness and absences. As a consequence, likewise admits that Palad did not receive the notice of termination because Palad allegedly
petitioner issued a termination notice dated 22 November 1997 to Palad, informing her of her stopped reporting for work. The records are bereft of evidence to show that petitioner ever
termination effective at the close of business hours of 28 November 1997. Palad then filed a gave Palad the opportunity to explain and defend herself. Clearly, the two requisites for a valid
complaint for illegal dismissal, underpayment of wages, and non-payment of pro-rated 13th dismissal are lacking in this case.
month pay for the year 1997.
15) Bernardo vs NLRC
ISSUES:
Petitioners numbering 43 are deaf–mutes who were hired on various periods from 1988 to
1)WHETHER OR NOT THE APPRENTICESHIP AGREEMENT WAS VALID AND BINDING BETWEEN 1993 by respondent Far East Bank and Trust Co. as Money Sorters and Counters through a
THE PARTIES uniformly worded agreement called ‘Employment Contract for Handicapped Workers.
2)WHETHER OR NOT PALAD WAS ILLEGALLY DISMISSED BY THE PETITIONER Subsequently, they are dismissed.

HELD: Petitioners maintain that they should be considered regular employees, because their task as
money sorters and counters was necessary and desirable to the business of respondent bank.
1)The Court held that the apprenticeship agreement which Palad signed was not valid and They further allege that their contracts served merely to preclude the application of Article
binding because it was executed more than two months before the TESDA approved 280 and to bar them from becoming regular employees.
petitioners apprenticeship program.
Private respondent, on the other hand, submits that petitioners were hired only as “special
The Court cited Nitto Enterprises v. National Labor Relations Commission, where it was held workers and should not in any way be considered as part of the regular complement of the
that an apprenticeship program should first be approved by the DOLE before an apprentice Bank.”[12] Rather, they were “special” workers under Article 80 of the Labor Code.
may be hired, otherwise the person hired will be considered a regular employee. It is mandated
that apprenticeship agreements entered into by the employer and apprentice shall be entered Issue: WON petitioners have become regular employees.
only in accordance with the apprenticeship program duly approved by the Minister of Labor Held: The uniform employment contracts of the petitioners stipulated that they shall be
and Employment. Prior approval by the Department of Labor and Employment of the trained for a period of one month, after which the employer shall determine whether or not
proposed apprenticeship program is, therefore, a condition sine qua non before an they should be allowed to finish the 6-month term of the contract. Furthermore, the employer
apprenticeship agreement can be validly entered into. The Labor Code defines an apprentice may terminate the contract at any time for a just and reasonable cause. Unless renewed in
as a worker who is covered by a written apprenticeship agreement with an employer. writing by the employer, the contract shall automatically expire at the end of the term.
Since Palad is not considered an apprentice because the apprenticeship agreement was
enforced before the TESDAs approval of petitioners apprenticeship program, Palad is deemed
a regular employee performing the job of a fish cleaner. Clearly, the job of a fish cleaner is
Respondent bank entered into the aforesaid contract with a total of 56 handicapped workers 16) MARIWASA MANUFACTURING, INC., and ANGEL T. DAZO, petitioners, vs. HON. VICENTE
and renewed the contracts of 37 of them. In fact, two of them worked from 1988 to 1993. LEOGARDO, JR., in his capacity as Deputy Minister of Ministry of Labor and Employment
Verily, the renewal of the contracts of the handicapped workers and the hiring of others lead judgment, and JOAQUIN A. DEQUILA, respondents.
to the conclusion that their tasks were beneficial and necessary to the bank. More important,
these facts show that they were qualified to perform the responsibilities of their positions. In Joaquin A. Dequila (or Dequilla) was hired on probation by Mariwasa Manufacturing, Inc. as a
other words, their disability did not render them unqualified or unfit for the tasks assigned to general utility worker on January 10, 1979. After 6 months, he was informed that his work was
them. unsatisfactory and had failed to meet the required standards. To give him another chance, and
with Dequila’s written consent, Mariwasa extended Dequila’s probationary period for another
In this light, the Magna Carta for Disabled Persons mandates that a qualified disabled three months: from July 10 to October 9, 1979. Dequila’s performance, however, did not
employee should be given the same terms and conditions of employment as a qualified able- improve and Mariwasa terminated his employment at the end of the extended period.
bodied person. Section 5 of the Magna Carta provides:
Dequila filed a complaint for illegal dismissal against Mariwasa and its VP for Administration,
“Section 5. Equal Opportunity for Employment.—No disabled person shall be denied access to Angel T. Dazo, and violation of Presidential Decrees Nos. 928 and 1389.
opportunities for suitable employment. A qualified disabled employee shall be subject to the
same terms and conditions of employment and the same compensation, privileges, benefits, DIRECTOR OF MINISTRY OF LABOR: Complaint is dismissed. Termination is justified. Thus,
fringe benefits, incentives or allowances as a qualified able bodied person.” Dequila appeals to the Minister of Labor.

The fact that the employees were qualified disabled persons necessarily removes the MINISTER OF LABOR: Deputy Minister Vicente Leogardo, Jr. held that Dequila was already a
employment contracts from the ambit of Article 80. Since the Magna Carta accords them the regular employee at the time of his dismissal, thus, he was illegally dismissed. (Initial order:
rights of qualified able-bodied persons, they are thus covered by Article 280 of the Labor Code, Reinstatement with full backwages. Later amended to direct payment of Dequila’s backwages
which provides: from the date of his dismissal to December 20, 1982 only.)

“ART. 280. Regular and Casual Employment. — The provisions of written agreement to the ISSUE: WON employer and employee may, by agreement, extend the probationary period of
contrary notwithstanding and regardless of the oral agreement of the parties, an employment RULING: YES, agreements stipulating longer probationary periods may constitute lawful
shall be deemed to be regular where the employee has been engaged to perform activities exceptions to the statutory prescription limiting such periods to six months.
which are usually necessary or desirable in the usual business or trade of the employer, x x x”
The SC in its decision in Buiser vs. Leogardo, Jr. (1984) said that “Generally, the probationary
“The primary standard, therefore, of determining regular employment is the reasonable period of employment is limited to six (6) months. The exception to this general rule is when
connection between the particular activity performed by the employee in relation to the usual the parties to an employment contract may agree otherwise, such as when the same is
trade or business of the employer. The test is whether the former is usually necessary or established by company policy or when the same is required by the nature of work to be
desirable in the usual business or trade of the employer. The connection can be determined performed by the employee. In the latter case, there is recognition of the exercise of
by considering the nature of the work performed and its relation to the scheme of the managerial prerogatives in requiring a longer period of probationary employment, such as in
particular business or trade in its entirety. Also if the employee has been performing the job the present case where the probationary period was set for eighteen (18) months, i.e. from
for at least one year, even if the performance is not continuous and merely intermittent, the May, 1980 to October, 1981 inclusive, especially where the employee must learn a particular
law deems repeated and continuing need for its performance as sufficient evidence of the kind of work such as selling, or when the job requires certain qualifications, skills experience
necessity if not indispensability of that activity to the business. Hence, the employment is or training.” In this case, the extension given to Dequila could not have been pre-arranged to
considered regular, but only with respect to such activity, and while such activity exists.” avoid the legal consequences of a probationary period satisfactorily completed. In fact, it was
Respondent bank entered into the aforesaid contract with a total of 56 handicapped workers ex gratia, an act of liberality on the part of his employer affording him a second chance to make
and renewed the contracts of 37 of them. In fact, two of them worked from 1988 to 1993. good after having initially failed to prove his worth as an employee. Such an act cannot now
Verily, the renewal of the contracts of the handicapped workers and the hiring of others lead unjustly be turned against said employer’s account to compel it to keep on its payroll one who
to the conclusion that their tasks were beneficial and necessary to the bank. More important, could not perform according to its work standards. By voluntarily agreeing to an extension of
these facts show that they were qualified to perform the responsibilities of their positions. In the probationary period, Dequila in effect waived any benefit attaching to the completion of
other words, their disability did not render them unqualified or unfit for the tasks assigned to said period if he still failed to make the grade during the period of extension. By reasonably
them. Without a doubt, the task of counting and sorting bills is necessary and desirable to the extending the period of probation, the questioned agreement actually improved the
business of respondent bank. With the exception of sixteen of them, petitioners performed probationary employee’s prospects of demonstrating his fitness for regular employment.
these tasks for more than six months. Petition granted. Petition granted. Order of Deputy Minister Leogardo reversed.
1) NITTO ENTERPRISES v. NLRC 2) The first and second apprenticeship agreements were DEFECTIVE as they were executed in
violation of the law and the rules.
Apprenticeship agreemet
a) no indication of the trade or occupation in which the apprentice would be trained.
Roberto Capili
b) not approved by TESDA
a) accidentally hit and injured the leg of an office secretary
3) The POSITIONS occupied by the respondents are usually necessary and desirable in the
b) injured his left thumb after entering a workshop which was not his work station and manufacture of plastic building materials, and the company's business.
operating one of the power press machines without authority.
4) The COMPROMISE AGREEMENT WAS NOT BINDING on Costales and Almoite because they
Capili filed for ILLEGAL DISMISSAL and payment of other monetary benefits DID NOT SIGN the agreement. They admitted that they were initially planned to be a part of
LABOR ARBITER:The termination of private respondent is valid and money claim for lack of the compromise agreement, but their employment has been REGULARIZED as early as January
merit shall be dismissed. 11, 2006.

NLRC: reversed decision of Labor Arbiter. Directed to reinstate complainant to his work last PETITION DENIED.
performed with backwages. Capili was found to be a regular employee. 3)CENTURY CANNING CORP V. CA
Petitioner filed a MOTION for RECON but was denied. Hence, the instant petition for certiorari. Gloria Palad- fish cleaner at Petitioner's tuna and sardines factory
1) ART 61 of the LABOR CODE- Appreneticeship agreements may be entered into only in PERFORMANCE EVALUATION- NEEDS IMPROVEMENT
accordance with appretinceship program duly approved by the Minister of Labor and
Employment. a) she scored only 27.75% based on a 100% performance indicator

In the case, the agreement was executed on May 28, 1990 and submitted to DOLE on the same b) incurred numerous tardiness and absences
dat but it was filed only on June 6, 1990.
Petition issued a TERMINATION NOTICE
2) ART 280- REGULAR AND CASUAL EMPLOYMENT- The provisions of written agreement to the
contrary notwithstanding and regardless of the oral agreement of the parties, an employment Palad filed for illegal dismissal, underpayment of wages, and non-payment of pro-rated 13th
shall be deemed to be REGULAR where the employee has been engaged to perform activities month pay for 1997.
which are usually necessary or desirable in the usual business or trade of the employer. LABOR ARBITER: DISMISSED
DECISION AFFIRMED. There is NO ABUSE OF DISCRETION committed by NLRC. 1,632- last salary
2) ATLANTA INDUSTRIES INC. v. APRILITO SEBOLINO ET AL 7,228- prorated 13th month pay
manufacturer of steel pipes NLRC: AFFIRMED with MODIFICATION the LABOR ARBITER'S DECISION. additional backwages
Sebolino et al filed several complaints for illegal dismissal, regularization, underpayment, for 2 months - 7176
nonpayment of wages and other money claims from Atlanta. CA: 1) the apprenticeship agreement which Palad signed was NOT VALID and BINDING because
The complainants (Sebolino) alleged that they had attained regular status as they were allowed it was executed more than 2 months BEFORE the TESDA APPROVED petitioner's apprenticeship
to work with Atlanta for MORE THAN 6 MONTHS from the start of a purported apprenticeship program.
agreement. They claimed that they were illegally dismissed when the apprenticeship NITTO ENT V. NLRC- where it was held that PRIOR APPROVAL by the DOLE of the proposed
agreement expired. apprenticeship program is a CONDITION sine qua non before an apprenticeship agreement can
CA: be validly entered into.

1) The respondents were ALREADY EMPLOYEES of the company before they entered into the 2) Petitioner ILLEGALLY DISMISSED Palad.
first and second apprenticeship agreements. a) no showing that Palad was properly apprised of the required standard of performance
b) no due process - no notice and hearing. e) Palad did not receive a NOTICE OF DISMISSAL

SC: f) Palad NOT GIVEN the CHANCE TO EXPLAIN

1) REGISTRATION and APPROVAAL by the TESDA of Apprenticeship Program Required Before DECISION of CA AFFIRMED.
Hiring of Apprentices
15) BERNARDO V. NLRC
SEC 60- EMPLOYMENT OF APPRENTICES
deaf-mutes hired bt Far East Bank and Trust Co. as Money Sorters and Counters through
ART 61- CONTENTS OF APPRENTICESHIP AGREEMENTS Employment Contract for Handicapped Workers

RA 7796- TESDA has transferred the authority over apprenticeship programs from Bureau of NLRC: Herein petitioners could NOT be deemed REGULAR EMPLOYEES under ART 280 of the
Local Employment of DOLE to TESDA Labor Code.

The apprenticeship program was only apprioved on Sept 26, 1996 but the apprenticeship SC: -ARE PETITIONERS REGULAR EMPLOYEES?
started on
1) The RENEWEAL OF THE CONTRACTS of the handicapped workers and the HIRING of others
It is to ensure that only EMPLOYERS in the HIGHLY TECHNICAL INDUSTRIES may employ lead to the conclusion that their TASKS were BENEFICIAL and NECESSARY to the bank.
apprentices and only in APPRENTICEABLE OCCUPATIONS.
SEC 5 of MAGNA CARTA for DISABLED PERSONS- a QUALIFIED DISABLED EMPLOYEE should be
ART 280- an employment is deemed RGEULAR where the employee has been engaged to given the SAME TERMS and CONDITIONS of employment as a QUALIFIED ABLE-BODIED
perform activities which are usually necessary or desirable in the usual business or trade of the PERSON as provided by ART 280- REGULAR and CASUAL EMPLOYMENT
employer.
The PRIMARY STANDARD of DETERMINING REGULAR EMPLOYMENT is the REASONABLE
2) ILLEGAL TERMINATION OF PALAD CONNECTION between the PARTICULAR ACTIVITY performed by the EMPLOYEE in relation to
the USUAL TRADE or BUSINESS of the EMPLOYER.
ART 279- an employer may terminate the services of an employee for just causes or for
authorized causes. With the exception of 16 of the petitioners, they performed these tasks for MORE THAN 6
MONTHS.
ART 277 (b)- two requisites for VALID DISMISSAL:
When the bank RENEWED the contract after the lapse of the 6-month probationary period, the
1) the dismissal must be for a JUST or AUTHORIZED CAUSE employees thereby became REGULAR employees who are entitled to SECURITY of TENURE-
2) the employee must be afforded an OPPORTUNITY to BE HEARD and to DEFEND himself. services may be terminated only for a JUST or AUTHORIZED CAUSE.

NO CLEAR and SUFFICIENT EVIDENCE exist to warrant her dismissal as an apprentice during the They are entitled to BACK WAGES and REINSTATEMENT without LOSS OF SENIORITY RIGHTS
agreed period. and OTHER PRIVILEGES. They are also awarded SEPARATION PAY because the job was no long
available after it has been assigned back to the tellers to whom it originally belonged.
a) absence of any written warnings

b) indecipherable or unauthenticated xerox of the performance evaluation


-BRENT RULING- upheld the validity of an employment contract with a fixed term, argues that
* It was made belatedly, specifically, after the filing of the case and during the progress in the the parties entered into the contract on EQUAL FOOTING.
Arbitral level.
Parties are NOT AT LIBERTY to INSULATE themselves and their relationships from the impact
ART 227- the EMPLOYER has the BURDEN of PROVING that the termination was for a VALID or of LABOR LAWS and REGULATIONS by simply CONTRACTING with each other.
AUTHORIZED CAUSE.
The NIGHTTIME sorting and counting of money is NOT a justification for the termination
c) Palad had NO KNOWLEDGE of the performance evaluation because it involves RISKS TO HANDICAPPED and ABLE-BODIED PERSONS alike.

d) Palad NOT INFORMED of the RESULT of the alleged performance evaluation -OTHER GROUNDS:
1) An employee is regular because of the nature of work and the length of service, not because
of the mode or even the reason for hiring them.

2) The character of employment is determined NOT by the stipulations in the contract, but by
the nature of the work performed.

* The noble objectives of Magna Carta for Disable Persons are NOT based merely on charity or
aaccommodation, but on justice and the equal treatment of qualified persons, disabled or not.

PETITION GRANTED.* Only the employees, who WORKED for MORE THAN 6 MONTHS and
whose CONTRACTS were RENEWED are deemed REGULAR.

16) MARIWASA v. HON. LEOAGARDO, JR.

Joaaquin Dequila was HIRED ON PROBATION by Mariwasa as "general utility worker"

He was informed that his work had proved UNSATISFACTORY and had FAILED to meet the
required standards.

Mariwasa extended his probation period for ANOTHER 3 months. His performance, however,
did NOR IMPROVE and on that account Mariwasa TERMINATED his employment at the end of
the extended period.

MINISTRY OF LABOR: complaint for illegal dismissal DISMISSED.

Appeal to the OFFICE of the MINISTER: REVERSED decision of ML. Deputy Minister Vicente
Leogardo, Jr. held that Dequila was ALREADY A REGULAR EMPLOYEE at the time of his
dismissal, therefore, could not have been lawfully dismissed for failure to meet company
standards as a probationary worker.

SC: ART 282- PROBATIONARY EMPLOYMENT- Generally, the probationary period of


employment is limited to 6 motnhs. The exception is when the parties to an EMPLOYMENT
CONTRACT may AGREE OTHERWISE, such as when the same is established by company policy
or when the same is required by the nature of work to be performed by the employee.

Dequila's probation was EX GRATIA, an act of liberality on the part of his employer to give him
a second chance to prove his worth. Dequila in effect waived any benefit attaching to the
commpletion of said period if he still failed to maake the frade during the period of extension.

PETITION GRANTED.

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