PEPSI-COLA BOTTLING COMPANY

VS.
MARTINEZ
G.R. No. L-58877 March 15, 1982
Facts:

Tumala was a salesman of a company in Davao City from 1977 to 1980. In the annual
“Sumakwel” contest, a contest held by the company, he was declared the winner of the
“Lapu-Lapu Award” for his performance as top salesman of the year, which entitled him to
a prize of a house and lot. However, despite demands, herein petitioner have unjustly
refused to deliver the said prize.

In 1980, the petitioner company allegedly terminated Tumala’s employment arbitrarily and
illegally. Hence, Tumala filed a complain in CFI Davao and prayed that petitioner be
ordered to deliver his prize of house and lot or its equivalent, and to pay his back salaries
and separation benefits.

Petitioner moved to dismisss the complaint on grounds of lack of jurisdiction. Tumala

maintains that the controversy is triable exclusively by the court of general jurisdiction.
Issue:

Which tribunal has exclusive jurisdiction over action filed by an employee against
his employer for recovery of unpaid salaries, separation benefits and damages – the
court of general jurisdiction or the Labor Arbiter of NLRC?
Ruling:

The Labor Arbiter of the NLRC has exclusive jurisdiction over the case. Jurisdiction
over the subject matter is conferred by the sovereign authority which organizes the
court; and it is given by law.
“Article 217. Jurisdiction of Labor Arbiters and the Commission. — (a) The Labor Arbiters shall have the original and
exclusive jurisdiction to hear and decide the following cases involving all workers, whether agricultural or non-agricultural:

1. Unfair labor practice cases;

2. Unresolved issues in collective bargaining, including those that involve wages, hours of work and other terms and conditions
of employment;

3. All money claims of workers, including those based on non-payment or underpayment of wages, overtime compensation,
separation pay and other benefits provided by law or appropriate agreement, except claims for employees compensation, social
security, medicare and maternity benefits;

4. Cases involving household services; and

5. All other claims arising from employer-employee relations, unless expressly excluded by this Code.

(b) The Commission shall have exclusive appellate-jurisdiction over all cases decided by Labor Arbiters, compulsory
arbitrators, and voluntary arbitrators in appropriate cases provided in Article 263 of this Code.”