Gregorio V. Tongko v.The Manufacturers Life Insurance, Co., Inc. and Renato A.

Vergel de Dios | CASE FLOW

h Tongko’s gross earnings consisted of commissions,
July 1, 1977 SECOND PHASE: MANAGEMENT CONTRACT
persistency income and management override. Tongko
FIRST PHASE: AGENCY CONTRACT Manulife’s Sales Agency Org.
consistently declared himself self-employed in his income
Tongko and Manulife entered a career agent’s agreement. It
tax returns. Manulife withheld corresponding 10% tax on
stated that Tongko is an independent contractor and no 1983-Tongko was named Unit Manager
Tongko’s earnings
employer-employee shall be construed from such relationship. 1990-Tongko became a Branch Manager
That parties involved may terminate the agreement at any time 1996-Tongko became a Regional Sales Manager
without cause by giving to the other 15-days’ notice in writing.
Tongko additionally agreed to:
1. Comply with all regulations and requirements of 2001
November 6, 2001
Manulife Manulife instituted
FIRST ISSUE
2. Maintain a standard of knowledge and competency in Manpower Development
De Dios wrote Tongko a letter to confirm the items discussed in Metro North
the sa of products, satisfactory to Manulife and Programs at the Regional
Salaes Maanages meeting on concerns that were brought up during October 18
sufficient to meet the volume of new business, required Sales Management Level. In
Metro North Sales Managers Meeting.
by his Production Club membership increasing the number of
De Dios wrote that Kevin O’Connor (SVP-Agency) presented information that
agents to at least 1,000
Tongko’s Region was the lowest performer on a per Manager basis in terms of
SECOND ISSUE recruiting in 2000 and continues as one of the laggard areas.Series of one on
Tongko repeatedly raised the issue that “Some Managers are one meeting was made with Tongko to ensure that he and the management are
unhappy with their earnings and would want to revert to the in the same direction.
position of agents”
De Dios verify the validity of the issue, but none came forward December 18, 2001 TONGKO FILED AN LABOR ARBITER DISMISSED THE
from his Region’s Sales Managers. He also confirmed, Maluo TONGKO WAS TERMINATED ILLEGAL DISMISSAL COMPLAINT
Samson’s statement which was alleged by Tongko but Samson De dios wrote to Tongko that he is COMPLAINT with NLRC It decreed that no employer-employee
denied the allegation during the meeting. terminate Tongko’s services Arbitration Branch. relationship existed between parties.
YEARS OF SERVICE: 24

THIRD ISSUE
“Sales managers are doing what the company asks them to do but, in November 7, 2008 CA REVERSED NLRC’s
NLRC REVERSED THE ARBITER’S
the process, they earn less” SC REVERSED CA’S RULING DECISION
DECISION ON APPEAL
De dios wrote that he had checked Tongko’s record and found that he It found that an employment In petition for certiorari with
That there’s an employer-employee
had earned a lot more money in the year 2000 than in 1999. The letter relationship existed CA.. It ruled that NLRC gravely
relationship and Tongko was
contained that, de dios was worried of Tongk’'s ability to lead his abused its discretion, that no
illegally dismissed.
region in achieving Manulife’s goal as Tongko have not been proactive relationship existed.
with recruit to earn agency growth.
De Dios made changes in the interim: June 29, 2010 January 25, 2001
1. Tongko will hire at his expense a competent assistant to lessen SC GRANTED MANULIFE’S MOTION FOR SC DISMISSED TONGKO’S MOTION FOR
his load. RECONSIDERATION RECONSIDERATION
2. Kevin and the rest of the Agency operations will deal with the It found that Tongko failed to comply with the Tongko continued to be governed by the Agency
North Star Branch in Autonomous fashion. guidelines of de Dios’s letter as a ground for agreement from the star until the end of his
Tongko will still be responsible for meeting the objectives of the termination of Tongko’s agency, is a matter that relationship with Manulife. His agency status
remaining groups under Metro North, his central unit and the rest of NLRC cannot rule upon in the absence of an never changed except to the extent of a being a
the sales managers in Metro North employer-employee relationship lead agent.