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LABOR LAW / b Employees of Government Owned or …

B employees of government owned or 쇱

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(b) Employees of Government-Owned or Controlled

Corporations (GOCC) with original charters pursuant to Art. IX-B, 2 (1) of
the 1987 Constitution. Like the regular government employees, they are
covered by Civil Service laws rules and regulations.

1. However, in Philippine National Oil Company (PNOC) - Energy

Development Corporation vs. Leogardo, 222 SCRA 831 (1993), it was held
by the Supreme Court that employees of government-owned or controlled
corporations organized under the general incorporation law are covered
and within the Labor Code of the Philippines and its implementing rules
and regulations.

2 . Other Related Supreme Court Cases.

2.1. In connection with the 1987 Constitution, particularly Art. IX-B, 2

(1) thereof, the Court ruling in the case of National Housing Corporation
(NHC) vs. Juco, 134 SCRA 172 (1985) is no longer applicable because in
said decision, it was ruled therein that the Civil Service Law and not the

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Labor Code applies to all government-owned or controlled corporations

irrespective whether their creation was by virtue of special law or
incorporation with the Securities and Exchange Commission (SEC).

2.2. In another case, National Service Corporation vs. NLRC, 29

March 1988, the Court rendered a ruling therein, which is summarized as
follows:

(1) In the case of Government-Owned or Controlled Corporations

(GOCC), with original charters, the Civil Service laws, rules and regulations
shall apply and cover its employees.

(2) Without an original charter, as when a GOCC is registered with

the Securities and Exchange Commission (SEC), the Labor Code
provisions apply and cover its employees.

2.3. The Labor Code likewise is not appli-cable where employment

relationship does not exist, like in the case of a resident physician whose
training program in a hospital was duly approved by the Department of
Health and the DOLE (Sec. 15. Rule X, Book IV, Implementing Rules) as
held in the case of and to a working student as held in FILAMER Christian
Institute vs. The Intermediate Appellate Court, 212 SCRA 637 (1992); or
similarly in the case of a casual employment under Sec. 8, (j) (3) of the
Social Security Law (Rep. Act. NO. 1161, as amended Rep. Act No. 8282).

2.4. In Juco vs. NLRC, G. R. No. 98107, 18 August 1997, the Court
ruled in connection with a case filed with the Civil Service Commission by
a project engineer of the National Housing Corporation(NHC) which was
dismissed by the former agency for lack of jurisdiction. Thereafter, the
jurisdiction over the case was assumed by the Labor Arbiter who ruled in
favor of the complainant engineer. On appeal, the NLRC Division
reversed the labor arbiter's decision and dismissed the case on the ground
of lack of jurisdiction. On appeal, the Court ruled that the NHC having been
incorporated under the Corporation Law, its relations with its personnel are
governed by the Labor Code and comes under the jurisdiction of the
National Labor Relations Commission(NLRC). This is so, because the Civil
Service Commission now covers only government-owned or controlled
corporations with original charters.

(c) Corporate Officers. By and large, these are officers whose

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TERM PROFESSOR
Summer '16 Atty. Lorenzo

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Law, Labor Law, The Bible, Supreme Court Of The United
States

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