G.R. No.

147566 December 6, 2006

SAN MIGUEL CORPORATION, petitioner,
vs.
NATIONAL LABOR RELATIONS COMMISSION and RAFAEL MALIKSI, respondents.

Facts:
• This is a petition for review filed by San Miguel Corporation (SMC) seeking the reversal of the
CA decision which affirms the NLRC decision that private respondent Maliksi is its regular
employee.
• Maliksi filed a complaint against SMC and Philippine Services and Education Center
(PHILSSEC) to recognize him as a regular employee.
• It turns out that Maliksi had rendered service to Lipercon Services which assigned him to
SMC-Beer Division (1981 to 1982).
• Another contractor which is the Skillpower Inc. also assigned him as accounting clerk in SMC-
Magnolia Division (1983 to 1985). Skillpower also assigned him as acting clerk in SMC-
Magnolia Finance (1988 to 1990).
• PHILSSEC which is another contractor, assigned him as accounting clerk again to Magnolia
Finance (1989 to 1990).
• Maliksi claims that these three are merely labor-only contractors and hence, he is a regular
employee of SMC. Unfortunately, he was dismissed from his job and he argues that this was
illegal and only a retaliation for his filing for a complaint for regularization.
• SMC contends that Maliksi is not their regular employee because it was PHILSSEC which
exercised exclusive managerial prerogative over him, and that the payment of salary, dismissal,
and control of his work also falls under the discretion of PHILSSEC.
• LA declared Maliksi is an employee of PHILSSEC.
• Upon appeal, NLRC reversed this stating that SMC is the employer.
• SMC then appealed before the CA which declared Maliksi to be SMC’s employee. Hence, this
petition.

Issue:
• Whether or not Maliksi is a regular employee of SMC.

Ruling:
• Yes. Since Lipercon and Skillpower are labor-only contractors, the existence of employer-
employee relationship exists between Maliksi and SMC. Maliksi has served SMC for an
aggregate period of more than 3 years through employment contracts with different labor
contractors. Maliksi’s employment with SMC became permanent and regular after the statutory
period of 1 year of service through the different contractors.
• Maliksi was hired and re-hired by SMC to perform administrative and clerical work that is
necessary to SMC’s business. Such an act of hiring and re-hiring over a period of time without
considering him as regular employee evidences bad faith on the part of the employer.
• Maliksi was juggled from one employment contract to another in a continuous bid to
circumvent labor laws.