JOSE SONZA versus ABS-CBN BROADCASTING CORPORATION

Facts:
1.) In May 1994, ABS-CBN signed an agreement with the Mel and Jay Management and Development
Corporation (MJMDC).
2.) ABS-CBN was represented by its corporate officers, while MJMDC was represented by Sonza, as
President and general manager, and Tiangco, as its EVP and treasurer.
3.) Referred to in the agreement as agent, MJMDC agreed to provide Sonza’s services exclusively to
ABS-CBN, as talent for radio and television. ABS-CBN agreed to pay Sonza, a monthly talent fee of
310,000 pesos, for the first year, and 317,000 pesos, for the second and third year.
4.) On April 1996, Sonza wrote a letter to ABS-CBN, where he irrevocably resigned in view of the
recent events concerning his program and career.
5.) After the said letter, Sonza filed with the Department of Labor and Employment, a complaint
alleging that, ABS-CBN did not pay his salaries, separation pay, service incentive pay, 13th month
pay, signing bonus, travel allowance, and amounts under the Employees Stock Option Plan (ESOP).
6.) ABS-CBN contended that, no employee-employer relationship existed between the parties.
7.) However, ABS-CBN continued to remit Sonza’s monthly talent fees, but opened another account
for the same purpose.
8.) The Labor Arbiter dismissed the complaint, and found that there is no employee-employer
relationship.
9.) NLRC affirmed the decision of the Labor Arbiter.
10.) CA also affirmed the decision of NLRC.

Issue:

Whether or not, there was employer-employee relationship between the parties.

Held:

1.) No. Case law has consistently held that, the elements of an employee-employer relationship are,
selection and engagement of the employee, the payment of wages, the power of dismissal, and
the employer’s power to control the employee on the means and methods, by which the work is
accomplished.
2.) The last element, the so-called "control test", is the most important element.
3.) Sonza’s services to cohost its television and radio programs, are because of his peculiar talents,
skills and celebrity status.
4.) Independent contractors, often present themselves to possess unique skills, expertise or talent,
to distinguish them from ordinary employees.
5.) The specific selection and hiring of SONZA, because of his unique skills, talent and celebrity status
not possessed by ordinary employees, is a circumstance indicative, but not conclusive, of an
independent contractual relationship.
6.) All the talent fees and benefits paid to SONZA, were the result of negotiations that led to the
Agreement.
7.) For violation of any provision of the Agreement, either party, may terminate their relationship.
8.) Applying the control test to the present case, we find that SONZA is not an employee but an
independent contractor.
9.) The control test, is the most important test, our courts apply in distinguishing an employee from
an independent contractor.
10.) This test is based on the extent of control the hirer exercises over a worker. The greater the
supervision and control the hirer exercises, the more likely the worker is deemed an employee.
11.) The converse holds true as well, the less control the hirer exercises, the more likely the worker is
considered an independent contractor.
12.) To perform his work, SONZA only needed his skills and talent. How SONZA delivered his lines,
appeared on television, and sounded on radio, were outside ABS-CBN’s control.
13.) ABS-CBN, did not instruct SONZA how to perform his job. ABS-CBN merely reserved the right, to
modify the program format and airtime schedule "for more effective programming."
14.) ABS-CBN’s sole concern was the quality of the shows and their standing in the ratings.
15.) A radio broadcast specialist who, works under minimal supervision, is an independent contractor.
16.) Clearly, ABS-CBN, did not exercise control over, the means and methods of performance of
Sonza’s work.
17.) Sonza’s work, as television and radio program host, required special skills and talent, which SONZA
admittedly possesses.
18.) ~end~