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Republic of the Philippines

NATIONAL LABOR RELATIONS COMMISSION
National Capital Region
Quezon City

RAYMOND V. PARUNGAO,
Complainants,

-versus- NLRC-NCR Case No. 09-00213-

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4TH DIMENSION MULTI-PURPOSE COOPERATIVE, ET AL

Respondents.
X----------------------------------------------------------x

POSITION PAPER

RESPONDENT 4th Dimension Multi-Purpose Cooperative (“4th

Dimension”), by the undersigned, unto this Honorable Office, most
respectfully alleges the following:

PREFATORY STATEMENT

This has reference to the order dated 26 October 2021 by the

Honorable Labor Arbiter Julio R. Gayaman, directing the herein
respondents to submit its Position Paper on the attached complaint filed by
the Complainant.

STATEMENT OF FACTS AND OF THE CASE

4th Dimension was organized in accordance with the Cooperative

Code of the Philippines, and is registered with the Cooperative
Development Authority (CDA). It is authorized by law to engage in the
business of providing various manpower services to individuals,
corporations, partnerships and other entities.
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A copy of 4th Dimension’s Certificate of Registration duly issued by

the CDA is attached as Annex 1.
4TH Dimension is a legitimate independent contractor and satisfies all
the requirements under the law, providing entities and companies various
work services that it and its members can offer and render. Pursuant
thereto, the Department of Labor and Employment (DOLE) issued a
Certificate of Registration in favor of 4 th Dimension stating that the latter
has “complied with the requirements as provided for under the Labor Code,
as amended, and its Implementing Rules.” The implementing rules
referred to therein is Department Order No. 174, Series of 2017 entitled
Rules Implementing Articles 106 to 109 of the Labor Code, as amended.

The copy of the said Certificate of Registration is attached as Annex

“2”.

The respondent cooperative was also issued a Business Permit by the

Office of the Mayor, carries on a distinct and independent business, the
copy of which is attached as Annex “3”.

Respondent 4th Dimension possesses substantial capital or

investment to actually perform the job, work or services on its own
account and responsibility. Proof of this is the Bank Certificate issued by
RCBC, and the same is attached and marked as Annex “4”.

4th DIMENSION enters into a Service Agreement with clients,

ensuring compliance with all the rights and benefits under labor laws.

The copy of the Service Contract entered into by and between 4 th

Dimension and its client BENBY ENTERPRISES INC.,( BENBY, for brevity)
is attached and marked as Annex “5” series.

Pursuant to the said Service Contract, 4th Dimension assigned its

members/employees to BENBY ENTERPRISES INC.,

Accordingly, the Complainant Raymond Valleser Parungao (Parungao,

for brevity) signed and entered into a Membership Agreement with 4 th
Dimension simultaneously with the signing of the employment contract,
copies of which are attached and marked as Annex “6” series.

With the execution of the above-mentioned Employment contract,

Parungao became a regular employee of 4th Dimension. This is
substantiated by the remittance of his government benefits, log sheets,
payroll, time records, Incident reports, Memos, copies of which are
attached and marked as Annex “7” series.
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Members assigned in BENBY were under the supervision of 4 th

Dimension’s Account Supervisor Floriza B. Suaiso (FLOR, for brevity). As
the Account Supervisor of 4th Dimension assigned in BENBY, FLOR is
responsible to supervise and monitor the employees assigned in BENBY in
the performance of their assigned tasks.

To substantiate the same, 4th Dimension presents the Affidavit of Ms

Floriza B. Suaiso, specifying her duties as Account Supervisor assigned in
BENBY, copy of which is hereto attached and marked as Annex “8”.

On 17 March 2021, 4th Dimension has received a report from its

Account Supervisor that Parungao has committed numerous violations on
the safety and health protocols implemented within the work premises. The
Notice to explain stating the details of Parungao’s numerous violations and
the proof of notice and incident reports are attached as “Annex 9” series.,

Despite commission of numerous offenses in violation of the client’s

safety and health protocols and 4th Dimension’s Code of Conduct, still a
thorough investigation has been made and Parungao was given the
opportunity to be heard. This was evidence by the issuance of the Notice
to Explain informing him of his violations and why he should not be meted
with the appropriate penalty. This also prompt 4 th Dimension to transfer
Parungao to another client. To substantiate the same, the copy of the
letter and the proof of notice is attached as “Annex 10” series.,

Parungao was referred to various clients of 4 th Dimension for possible

transfer, the copies of the endorsement notice with the client’s of 4 th
Dimension for possible assignment is attached as “Annex 11” series

ISSUE

1. Whether or not the Complainant was actually dismissed.

2. Whether or not the Complainant is entitled to Separation Pay.

DISCUSSIONS

First Issue : (Complainant was not actually dismissed)

The Memo provides that as a penalty for his violation, he will be

transferred to another client.

Members are constantly reminded that as a member - owner of 4 th

Dimension - they are expected to properly behave and comply cooperative
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Values as MAGALANG, MASIPAG, and MATULUNGIN at

MAPAGKAKATIWALAAN, to maintain good relationship with the client. With
the numerous violations committed by PARUNGAO, he certainly did not
comply with the cooperative values as well as the client’s safety rules and
regulations.

4th Dimension, through the Account Supervisor, maintains

efficient and effective discipline over its employees assigned to every
client and ensures that they report promptly and are ready to
render services during workdays and observe regular office hours.
The Account Supervisor regularly reports to 4th Dimension which report
will be the basis for the payment of the salaries and other benefits
including the imposition of any disciplinary action, if necessary.
Employees may then be recalled, transferred, terminated or
reassigned or re-deployed to other clients. Definitely, 4 th Dimension has
the ultimate say on the said concerns.

The Account Supervisor additionally determines whether the

workers are committing gross negligence, indifference, disobedience,
arbitrary conduct,or any act detrimental to their job or in their daily
routine.

In the instant case, there is no actual dismissal. The Memo clearly

provides that Parungao will be transferred to another client. This has
rooted by his continuous violations with the previous client.

It is the Code of Conduct of 4 th Dimension duly signed by its

employees, that is the basis of imposing disciplinary actions against erring
employees. In the exercise of its management prerogative, it can validly
formulate and implement rules and regulations which must be followed by
its employees.

Second Issue: (Complainant is not entitled to Separation Pay)

Separation pay is given to employees separated due to authorized

causes as stipulated in Article 298 and 299 of the Labor Code.

In the instant case, Parungao is not terminated, but intended to be

transferred to another client due to his commission of numerous violations
to his previous clients.

The employees deployed to the various establishments are regular

employees of 4TH DIMENSION--
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The employees of 4th Dimension assigned to its clients are regular

employees of 4TH Dimension. It assumes full responsibility for its
compliance with all labor laws and regulations and implements the
following:

1) The hiring and employment of the workers supplied to its clients.

This is never done by the clients.

2) Determines the particular employees to be deployed to the clients

after entering into a Service Agreement.

3) Pays the salaries, wages and all benefits of the workers in

accordance with laws, rules and regulations. This includes the
manner, mode and terms of payment.

This can be easily substantiated by verifying the

remittances of 4th Dimension of certain benefits of the
assigned personnel with the Social Security System,
Philhealth and Pag Ibig (Annex “7”)

4) Has the power to terminate, re-assign or transfer, recall the workers

deployed.

5) 4th Dimension possesses substantial capital or

investment.

PRAYER

WHEREFORE, premises considered, it is most respectfully

prayed of this Honorable Office the dismissal of the complaint based on
the above considerations.

For Quezon City, 22 November 2021.

MARICEL PADIERNOS
General Manager
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4th Dimension Multi-Purpose Cooperative

#27-B Benitez Street, Brgy Horseshoe
Village Cubao, Quezon City

VERIFICATION WITH CERTIFICATION

OF NON-FORUM SHOPPING

I, MARICEL PADIERNOS, of legal age, Filipino citizen, after having

been duly sworn to in accordance with law hereby depose and state that:

1. I am the General Manager of 4 th Dimension Multi-Purpose

Cooperative.
2. I have caused the preparation of the foregoing Position Paper.
3. I have read and understood the contents thereof;
4. The same are true and correct to the best of my knowledge and
belief;
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5. I have not commenced any other court action or proceedings

involving the same issues in the Supreme Court, the Court of Appeals, or
any other tribunal or agency; to the best of my knowledge, no such action
or proceeding is pending in the Supreme Court, Court of Appeals or any
other tribunal or agency. If I should learn thereafter that a similar action
or proceedings has been filed or is pending, I undertake to report the same
fact within five (5) days therefrom to the court or agency wherein the
original pleading and sworn certification contemplated herein have been
filed.

IN WITNESS WHEREOF, I have hereunto affixed my signature this

08 day of November 2021, at Quezon City.
th

MARICEL PADIERNOS
Affiant

SUBSCRIBED AND SWORN to before me this 22th day of

November 2021 at Quezon City. Affiant exhibited to me her SSS ID No.
33-4773458-6.

NOTARY PUBLIC

Doc. No. ______

Page No. ______
Book No. ______
Series of 2021
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