[2] ABS-CBN BROADCASTING CORP v.
NAZARENO
GR No. 164156 | September 26, 2006 | A. Elements of the Employment
Relationship | Irish
Petitioner: ABS-CBN BROADCASTING CORPORATION
Respondents: MARLYN NAZARENO, MERLOU GERZON, JENNIFER
DEIPARINE, and JOSEPHINE LERASAN
Recit-Ready Facts: ABS-CBN employed respondents Nazareno, Gerzon,
Deiparine, and Lerasan as production assistants (PAs), where they were
assigned at the news and public affairs for various radio programs in the Cebu
Broadcasting Station. When ABS-CBN and the ABS-CBN Rank-and-File
Employees executed a Collective Bargaining Agreement (CBA), ABS-CBN
refused to recognize PAs as part of the bargaining unit so they were not
included in the CBA.
Respondents then filed a Complaint for Recognition of Regular Employment
Status, etc. before the NLRC. They are alleging that they were engaged by
ABS-CBN as regular and full-time employees for a continuous period of more
than 5 years and were petitioning to be declared as regular and permanent
employees of ABS-CBN as a condition precedent for their admission into the
existing union and CBA.
The Labor Arbiter ruled in favor of the respondents, and declared that they
were regular employees of petitioner as such, they were awarded monetary
benefits. NLRC affirmed the decision of the Labor Arbiter. CA dismissed ABS-
CBN’s Rule 65 petition.
Doctrine: The respondents are regular employees of ABS-CBN. It is
considered a regular employment when a person has rendered at least 1 year
of service, regardless of the nature of the activity performed, or where the work
is continuous or intermittent as long as the activity exists.
There are 2 kinds of employees under the law: (1) those engaged to perform
activities which are necessary or desirable in the usual business or trade of
the employer; and (2) those casual employees who have rendered at least
one year of service, whether continuous or broken, with respect to the
activities in which they are employed.
Application to the case: In determining whether one is a regular employee,
the primary standard is the reasonable connection between the particular
activity performed by the employee in relation to the usual business or
trade of the employer. This can be assessed by looking into the nature of the
services rendered and its relation to the general scheme under which the
business or trade is pursued in the usual course.
Also, if the employee has been performing the job for at least a year, even if
the performance is not continuous and merely intermittent, it is deemed
regular with respect to such activity and while such activity exists.
[SEE RATIO PART FOR THIS CASE’S COMPARISON WITH SONZA CASE]
FACTS:
1. ABS-CBN Broadcasting Corporation (ABS-CBN) is engaged in the
broadcasting business and owns a network of television and radio
stations.
2. ABS-CBN employed the respondents as production assistants (PAs)
on different dates. They were assigned at the news and public
affairs, for various radio programs in the Cebu Broadcasting Station,
with a monthly compensation of P4,000. They were issued ABS-CBN
employees' IDs and were required to work for a minimum of eight
hours a day, including Sundays and holidays. They were under the
control and supervision of Assistant Station Manager Dante Luzon,
and News Manager Leo Lastimosa.
3. ABS-CBN and the ABS-CBN Rank-and-File Employees then
executed a Collective Bargaining Agreement (CBA). Since ABS-CBN
refused to recognize PAs as part of the bargaining unit, they were
not included to the CBA.
4. ABS-CBN, through Dante Luzon, issued a Memorandum informing
the PAs that they would be assigned to non-drama programs.
5. Respondents then filed a Complaint against ABS-CBN before the
NLRC.
 For Recognition of Regular Employment Status, Underpayment
of Overtime Pay, Holiday Pay, Premium Pay, Service Incentive
Pay, Sick Leave Pay, and 13th Month Pay with Damages.
Contentious Points/Arguments
 7. NLRC: It rendered judgment modifying the decision of the Labor
Petitioner – ABS-CBN Respondent – Nazareno, et al
Broadcasting Corp Arbiter. Although the respondents were not parties to the CBA, it
granted monetary benefits based on the CBA because the
○The Respondents were PAs who ○They were engaged by ABS-CBN respondents were regular employees who contributed to the
basically assist in the conduct of a as regular and full-time employees profits of petitioner through their labor. It also ruled that the Labor
particular program ran by an for a continuous period of more than Arbiter had jurisdiction over the complaint of the respondents
anchor or talent. 5 years with a monthly salary rate of because they acted in their individual capacities and not as members
○They are considered in the P4,000 pesos beginning 1995.
of the union.
industry as "program employees,” ○They belonged to a "work pool"
as they are basically engaged by from which ABS-CBN chose persons 8. CA (Rule 65 petition): Dismissed ABS-CBN’s petition. Respondents
the station for a particular or to be given specific assignments at are regular employees who perform tasks necessary and desirable in
specific program broadcasted by its discretion. Thus, they were under the usual trade and business of petitioner and not just its project
the radio station. ABS-CBN’s direct supervision and employees.
○PAs, reporters, anchors and control regardless of nomenclature.
talents occasionally “sideline” for ○To be declared as regular and ISSUES: WoN the respondents are regular employees and not mere project
other programs they produce, such permanent employees of ABS-CBN
employees or independent contractors. – YES.
as drama talents in other as a condition precedent for their
productions. admission into the existing union and
○As program employees, a PA's CBA. RATIO:
engagement is coterminous with
the completion of the program, and IT IS CONSIDERED A REGULAR EMPLOYMENT WHEN A PERSON HAS
may be extended/renewed RENDERED AT LEAST 1 YEAR OF SERVICE, REGARDLESS OF THE
provided that the program is on- NATURE OF THE ACTIVITY PERFORMED, OR WHERE THE WORK IS
going. They may be assigned to CONTINUOUS OR INTERMITTENT AS LONG AS THE ACTIVITY EXISTS.
new programs upon the
A customary appointment is not indispensable before one may be formally
cancellation of one program. Their
compensation is computed on a declared as having attained regular status.
program basis, a fixed amount for
performance services irrespective Relevant Laws/Rules
of the time consumed. Art. 280 of the Labor Code provides:
○Respondents were paid all ART. 280. REGULAR AND CASUAL EMPLOYMENT. — The provisions of
salaries and benefits due them written agreement to the contrary notwithstanding and regardless of the oral
under the law agreement of the parties, an employment shall be deemed to be regular
○Labor Arbiter has no jurisdiction where the employee has been engaged to perform activities which are
to involve the CBA and interpret it, usually necessary or desirable in the usual business or trade of the employer
since respondents were not except where the employment has been fixed for a specific project or
covered by the CBA. undertaking the completion or termination of which has been determined at
the time of the engagement of the employee or where the work or services to
6. Labor Arbiter: Ruled in favor of the respondents, and declared that be performed is seasonal in nature and the employment is for the duration of
they were regular employees of petitioner. As such, they were the season.
awarded monetary benefits. It did not award money benefits as
provided in the CBA since he had no jurisdiction to interpret and Disposition of the Court
apply the agreement, as it is within the jurisdiction of the Voluntary In determining whether one is a regular employee, the primary standard is
Arbitrator. the reasonable connection between the particular activity performed by
the employee in relation to the usual business or trade of the employer.
This can be assessed by looking into the nature of the services rendered and
its relation to the general scheme under which the business or trade is
pursued in the usual course.
Also, if the employee has been performing the job for at least a year, even
if the performance is not continuous and merely intermittent, it is deemed
regular with respect to such activity and while such activity exists.
It does not matter even if ABS-CBN hired the respondents as “talents.” They
cannot be considered "talents" because they are not actors or actresses or
radio specialists or mere clerks or utility employees. They are regular
employees who perform several different duties under the control and
direction of ABS-CBN executives and supervisors.
There are 2 kinds of employees under the law: (1) those engaged to perform
activities which are necessary or desirable in the usual business or trade of
the employer; and (2) those casual employees who have rendered at least
one year of service, whether continuous or broken, with respect to the
activities in which they are employed.
What determines whether a certain employment is regular or otherwise is not
the will or word of the employer or the procedure of hiring the employee or
the manner of paying the salary or the actual time spent at work. It is the
character of the activities performed in relation to the particular trade or
business taking into account all the circumstances, and in some cases
the length of time of its performance and its continued existence.
Hence, one year after they were employed by ABS-CBN, respondents
became regular employees by operation of law.
The respondents cannot be considered as project or program employees
because no evidence was presented to show that the duration and scope of
the project were determined or specified at the time of their engagement. The
principal test is whether or not the project employees were assigned to carry
out a specific project or undertaking, the duration and scope of which were
specified at the time the employees were engaged for that project. In this
case, the respondents had continuously performed the same activities
for an average of 5 years.
Comparison with Sonza ruling:
In the case of Sonza,
 Jose Sonza, a well-known TV and radio personality, was
declared an independent contractor and not a regular employee.
ABS-CBN engaged Sonza’s services because of his peculiar
skills, talent and celebrity status.
 Sonza was paid by ABS-CBN his monthly talent fees which were
the result of negotiations. Whatever benefits he enjoyed from
contract and not because of an employer-employee relationship
In the case at bar, there is an employer-employee relationship.
 There is no peculiar or unique skill, talent or celebrity status was
required from the respondents because they were merely hired
just like any ordinary employee.
 The so-called "talent fees" of respondents correspond to wages
given as a result of an employer-employee relationship.
Respondents did not have the power to bargain for huge talent
fees, a circumstance negating independent contractual
relationship.
 ABS-CBN could always discharge respondents should it find
their work unsatisfactory, and respondents are highly dependent
on the petitioner for continued work.
 The degree of control and supervision exercised by ABS-CBN
over respondents through its supervisors negates the allegation
that respondents are independent contractors.
The presumption is that when the work done is an integral part of the
regular business of the employer and when the worker, relative to the
employer, does not furnish an independent business or professional
service, such work is a regular employment of such employee and not
an independent contractor.
Therefore, the respondents are entitled to the benefits provided for in the
existing CBA between petitioner and its rank-and-file employees. As regular
employees, respondents are entitled to the benefits granted to all other
regular employees of petitioner under the CBA.