A Prime Security Services, Inc. v. NLRC [G.R.

107320, January 10, 2000]

Wednesday, January 21, 2009 Posted by Coffeeholic Writes 
Labels: Case Digests, Labor Law

FACTS: PR had been working for a year as a security guard with the Sugarland Security
Services, Inc., a sister company of petitioner. He was hired on January 1, 1988 as he was among
those absorbed by petitioner when it took over the security contract of its sister company,
Sugarland, with the U.S. Embassy. He was forced by the petitioner to sign a
new probationary contract for 6 mos; and on August 1, 1998, his employment was terminated.
Labor Arbiter for the petitioner.

ISSUES:
1. Whether PR’s employment with A’ Prime Securities was just a continuation of his
employment with Sugarland.
2. Whether PR is a regular employee and thereby illegally dismissed.

HELD:
1. Yes. The allegations of respondent that Sugarland and A’ Prime were sister companies were
never denied nor controverted by petitioner before the Labor Arbiter. It belatedly contended
that they were distinct juridical entities, but such fact lacks any legal basis. The Court
cannot sanction the practice of companies that affects the transfer of its employees to another
entity whose owners are the same, in order to deprive subject employees of the benefits he
is entitled to under the law.

2. Yes. PR became a regular employee upon competition of his six-month period of probation.
He started working on January 30, 1988; and the end of the period of probation was on July
27, 1988. When he was dismissed on August 1, he was already a regular employee with
security tenure. PR’s alleged violations of sleeping on post and quarrelling with a worker
were first infractions and do not amount to valid grounds for terminating employment.
Reference: http://cofferette.blogspot.com/2009/01/prime-security-services-inc-v-nlrc-gr.html