National Housing Corporation vs.

Benjamin Juco and the National

Labor Relations Commission
G.R. No. L-64313
January 17, 1985

Topic Query: Are employees of Government-Owned and Controlled Corporations

covered by the Labor Code or the Civil Service Commission?

Facts

Benjamin Juco was a project engineer for the National Housing Corporation when he
was implicated in a case of theft and/or malversation of public funds. Subsequently, he
was terminated by NHC. He filed a case for illegal dismissal against the NHC before the
DOLE, contending that the criminal charges imputed against him are merely a
fabrication made to harass him, as he has previously stood as witness in the theft case
filed against certain officials of NHC.  The NLRC certified the complaint for arbitration.
However, NHC contended that the tribunal does not have jurisdiction over the case,
considering that the former is a government-owned and controlled corporation. The
NLRC however countered that the (then 1973) constitution contemplates only those
GOCCs that are created by special charters, which is not the case for NHC.

Issue(s)

Who has jurisdiction over the case?

Ruling

Civil Service law governs all matters pertaining to employees of government-owned and
controlled corporations, regardless of whether it was created by special charter or
otherwise. Indeed, the inclusion of GOCCs within the embrace of the civil service shows
a deliberate intent and effort to plug an earlier loophole which allowed certain
government instrumentalities to avoid the all-encompassing coverage of the civil service
system. Simultaneously, this has also prevented crafty government employees from
calling to their defense the more workforce-friendly provisions of the Labor Code. With
the creation of the Civil Service Commission, all government offices, without exemption,
fall within its purview.