CASE TITLE: Philippine National Oil Company – Energy Development Corporation

(PNOC-EDC) v. Leogardo

FACTS OF THE CASE: In this case, Petitioner PNOC-EDC filed with the Ministry of
Labor and Employment (MOLE) a clearance application to dismiss the services of
Vicente Ellelina, a contractual employee, for allegedly committing the crime of
Alarm or Public Scandal. The clearance was initially granted but later revoked, and
petitioner was ordered to reinstate Ellelina to his former position. Petitioner
appealed to the Ministry of Labor but it only affirmed the order. Petitioner filed
with the Supreme Court, arguing that, among other issues, the Ministry of Labor
and Employment has no jurisdiction over petitioner as it is a government-owned
or controlled corporation

ISSUE: Whether or not petitioner is governed by the Labor Code

RULING: Yes, petitioner is governed by the Labor Code. The doctrine in the
present Constitution is that the Civil Service Law governs, among other bodies,
government corporations created by special charter. Petitioner PNOC-EDC was
incorporated under the general Corporation Law, and is therefore a government-
owned or controlled corporation subject to the provisions of the Labor Code.

DOCTRINE:
Sec. 2(1), Art. IX-B, 1987 Constitution: The Civil Service embraces, all branches,
subdivisions, instrumentalities and agencies of the Government, including
government-owned or controlled corporations with original charters.