Professional Documents
Culture Documents
Antonio Bautista was employed by Auto Bus Transport Systems, Inc. in May 1995. He wasassigned to the
Isabela-Manila route and he was paid by commission (7% of gross income per travel for twice a month).In January 2000,
while he was driving his bus he bumped another bus owned by Auto Bus. He claimed that he bumped the he
accidentally bumped the bus as he was so tired and that he has not slept for more than 24 hours because Auto Bus required
him to return to Isabela immediately after arriving at Manila. Damages were computed and 30% or P75,551.50 of it was
being charged to Bautista. Bautista refused payment.
Auto Bus terminated Bautista after due hearing as part of Auto Bus’ management prerogative.
Bautista sued Auto Bus for Illegal Dismissal. The Labor Arbiter Monroe Tabingan dismissedBautista’s petition but ruled that
Bautista is entitled to P78,1117.87 13th month pay payments and P13,788.05 for his unpaid service incentive leave pay. The
case was appealed before the National Labor Relations Commission. NLRC modified theLA’s ruling. It deleted the award for
13th Month pay. The court of Appeals affirmed the NLRC. Auto Bus averred that Bautista is a
commissioned employee and if that is not reason enough that Bautista is also a field personnel hence he is not
entitled to a service incentive leave. They invoke:
Art. 95
.
RIGHT TO SERVICE INCENTIVE LEAVE(a) Every employee who has rendered at least one year of service shall been titled to a
yearly service incentive leave of five days with pay.
B o o k I I I , R u l e V : S E R V I C E I N C E N T I V E L E A V E
SECTION 1
.
Coverage. ' This rule shall apply to all employees except:(d) Field personnel and other employees whose performance is
unsupervised by the employer including those who are engaged on task or contract basis, purely commission basis, or those
who are paid in a fixed amount for performing work irrespective of the time consumed in the performance thereof; . . .
ISSUE:
Whether or not Bautista is entitled to Service Incentive Leave. If he is, Whether or not the three (3)-year
prescriptive period provided under Article 291 of the Labor Code, as amended, is applicable to respondent's claim of service
incentive leave pay.
HELD:
Yes, Bautista is entitled to Service Incentive Leave. The Supreme Court emphasized that it does not mean that just because
an employee is paid on commission basis he is already barred to receive service incentive leave pay.
In other words, an employee who has served for one year is entitled to it.