LABOR CASES- Tabas vs Calif Inc Co to Acedera vs ICTSI.doc

7/26/2019 LABOR CASES- Tabas vs Calif Inc Co to Acedera vs ICTSI.doc

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[G.R. No. 80680. January 26, 1989.]DANILO B. TABAS, EDUARDO A. BONDO,RA!ON !. BRIONES, EDUARDO R. ERIS"E, JOEL!ADRIAGA, ART#UR !. ES"INO, A!ARO BONA,$ERDINAND RU%, $EDERIO A. BELITA,ROBERTO ". ISLES, EL!ER AR!ADA, EDUARDOUDOG, "ETER TIANSING, !IGUELITA &UIA!BAO,NO!ER !ATAGA, 'IOL( ESTEBAN an) L(DIAORTEGA, *+--on+r, /. ALI$ORNIA!ANU$ATURING O!"AN(, IN., LIL( 'ITORIAA. A%ARON, NATIONAL LABOR RELATIONSO!!ISSION, an) #ON. E!ERSON . TU!ANON,r+*on)+n.

D E C I S I O NSARMIENTO, J p:On July 21, 1986, July 23, 1986, and July 28, 1986, thepett!ne"# pett!ned the Nat!nal $a%!" Relat!n#C!&&##!n '!" "en#tate&ent and pay&ent !' (a"!u# %ene)t#, n*ludn+ &n&u& a+e, !(e"t&epay, h!lday pay, th"teenth-&!nth pay, ande&e"+en*y *!#t !' l(n+ all!an*e pay, a+an#t the"e#p!ndent, the Cal'!"na Manu'a*tu"n+ C!&pany. 1On O*t!%e" /, 1986, a'te" the *a#e# had %een

*!n#!ldated, the Cal'!"na Manu'a*tu"n+ C!&pany0Cal'!"na )led a &!t!n t! d#&## a# ell a# ap!#t!n pape" denyn+ the e#ten*e !' an e&pl!ye"-e&pl!yee "elat!n %eteen the pett!ne"# and the*!&pany and, *!n#euently, any la%lty '!" pay&ent!' &!ney *la&#. 2 On &!t!n !' the pett!ne"#, $(Manp!e" Se"(*e#, In*. a# &pleaded a# a pa"ty-"e#p!ndent.It appea"# that the pett!ne"# e"e, p"!" t! the" #tntth Cal'!"na, e&pl!yee# !' $( Manp!e" Se"(*e#,In*. 0$(, h*h #u%#euently a##+ned the& t! !"4a# 5p"!&!t!nal &e"*hand#e"#5 3 '!" the '!"&e" )"&pu"#uant t! a &anp!e" #upply a+"ee&ent. A&!n+!the" thn+#, the a+"ee&ent p"!(ded that Cal'!"na5ha# n! *!nt"!l !" #upe"(#!n hat#!e(e" !(e" $(7#

!"4e"# th "e#pe*t t! h! they a**!&pl#h the"!"4 !" pe"'!"& Cal'!"na7# !%l+at!n5 the $( 5#an ndependent *!nt"a*t!" and n!thn+ he"en*!ntaned #hall %e *!n#t"ued a# *"eatn+ %eteenCal'!"na and $( . . . the "elat!n#hp !' p"n*pal-a+ent !" e&pl!ye"- e&pl!yee5 ; that 5t# he"e%y a+"eed that t # the #!le "e#p!n#%lty !' $( t! *!&ply th all e#tn+ a# ell a# 'utu"e la#,"ule# and "e+ulat!n# pe"tnent t! e&pl!y&ent !' la%!"5 6 and that 5Cal'!"na # '"ee and ha"&le##'"!& any la%lty a"#n+ '"!& #u*h la# !" '"!& anya**dent that &ay %e'all !"4e"# and e&pl!yee# !' $( hle n the pe"'!"&an*e !' the" dute# '!"Cal'!"na.5 /It a# 'u"the" ep"e##ly #tpulated that the

a##+n&ent !' !"4e"# t! Cal'!"na #hall %e !n a

5#ea#!nal and *!nt"a*tual %a##5 that 5*!#t !' l(n+ all!an*e and the 1< le+al h!lday# ll %e*ha"+ed d"e*tly t! Cal'!"na at *!#t7 and that5pay"!ll '!" the p"e*eedn+ #* ee4 #hall %edel(e"ed %y $( at Cal'!"na7# p"e&#e#.5 8 The pett!ne"# e"e then &ade t! #+n e&pl!y&ent*!nt"a*t# th du"at!n# !' # &!nth#, up!n theep"at!n !' h*h they #+ned ne a+"ee&ent# ththe #a&e pe"!d, and #! !n. =nl4e "e+ula" Cal'!"nae&pl!yee#, h! "e*e(ed n!t le## than >2,823.<< a&!nth n addt!n t! a h!#t !' '"n+e %ene)t# and%!nu#e#, they "e*e(ed >38.;6 plu# >1;.<< nall!an*e daly. Cdp" The pett!ne"# n! alle+e that they had %e*!&e"e+ula" Cal'!"na e&pl!yee# and de&and, a# a*!n#euen*e he"e!', #&la" %ene)t#. They l4e#e*la& that pendn+ 'u"the" p"!*eedn+# %el!, theye"e n!t)ed %y Cal'!"na that they !uld n!t %e"eh"ed. A# a "e#ult, they )led an a&ended *!&plant*ha"+n+ Cal'!"na th lle+al d#&##al.Cal'!"na ad&t# ha(n+ "e'u#ed t! a**ept thepett!ne"# %a*4 t! !"4 %ut deny la%lty the"e'!" '!"the "ea#!n that t # n!t, t! %e+n th, thepett!ne"#7 e&pl!ye" and that the 5"et"en*h&ent5

had %een '!"*ed %y %u#ne## l!##e# a# ell a#ep"at!n !' *!nt"a*t#. 9 It appea"# that the"ea'te",$( "ea%#!"%ed the& nt! t# la%!" p!!l !n a 5at-n!" #tand%y5 #tatu#. 1<A&d the#e 'a*tual ante*edent#, the C!u"t )nd# the#n+le &!#t &p!"tant ##ue t! %e: ?hethe" thepett!ne"# a"e Cal'!"na7# !" $(7# e&pl!yee#. The la%!" a"%te"7# de*#!n, 11 a de*#!n a@"&ed !nappeal, 12 "uled a+an#t the e#ten*e !' anye&pl!ye"-e&pl!yee "elat!n %eteen the pett!ne"#and Cal'!"na !#ten#%ly n the l+ht !' the &anp!e"#upply *!nt"a*t, #up"a, and *!n#euently, a+an#tthe latte"7# la%lty a# and '!" the &!ney *la&#de&anded. In the #a&e %"eath, h!e(e", the la%!"a"%te" a%#!l(ed $( '"!& any !%l+at!n %e*au#e the

5"et"en*h&ent5 n ue#t!n a# alle+edly 5%ey!nd t#*!nt"!l.5 13 e a##e##ed a+an#t the )"&,ne(e"thele##, #epa"at!n pay and att!"ney7# 'ee#.?e "e(e"#e. The e#ten*e !' an e&pl!ye"-e&pl!yee# "elat!n # aue#t!n !' la and %en+ #u*h, t *ann!t %e &adethe #u%Be*t !' a+"ee&ent. en*e, the 'a*t that the&anp!e" #upply a+"ee&ent %eteen $( andCal'!"na had #pe*)*ally de#+nated the '!"&e" a#the pett!ne"#7 e&pl!ye" and had a%#!l(ed the latte"'"!& any la%lty a# an e&pl!ye", ll n!t e"a#eethe" pa"ty7# !%l+at!n# a# an e&pl!ye", ' ane&pl!ye"-e&pl!yee "elat!n !the"#e e#t#%eteen the !"4e"# and ethe" )"&. At any "ate,#n*e the a+"ee&ent a# %eteen $( and Cal'!"na,

they al!ne a"e %!und %y t, and the pett!ne"#

*ann!t %e &ade t! #ue" '"!& t# ad(e"#e*!n#euen*e#. Th# C!u"t ha# *!n##tently "uled that thedete"&nat!n !' hethe" !" n!t the"e # an e&pl!ye"-e&pl!yee "elat!n depend# up!n '!u" #tanda"d#: 01the &anne" !' #ele*t!n and en+a+e&ent !' theputat(e e&pl!yee 02 the &!de !' pay&ent !' a+e# 03 the p"e#en*e !" a%#en*e !' a p!e" !' d#&##al and 0 the p"e#en*e !" a%#en*e !' a p!e"t! *!nt"!l the putat(e e&pl!yee7# *!ndu*t. 1 O' the'!u", the "+ht-!'-*!nt"!l te#t ha# %een held t! %e thede*#(e 'a*t!". 1;On the !the" hand, e ha(e l4e#e held, %a#ed !nA"t*le 1<6 !' the $a%!" C!de, he"en%el!"ep"!du*ed:ART. 1<6. C!nt"a*t!" !" #u%*!nt"a*t!". ?hene(e" an e&pl!yee ente"# nt! a *!nt"a*t than!the" pe"#!n '!" the pe"'!"&an*e !' the '!"&e"7#!"4, the e&pl!yee# !' the *!nt"a*t!" and !' thelatte"7# #u%*!nt"a*t!", ' any, #hall %e pad na**!"dan*e th the p"!(#!n# !' th# C!de.In the e(ent that the *!nt"a*t!" !" #u%*!nt"a*t!" 'al#t! pay a+e# !' h# e&pl!yee# n a**!"dan*e th th#C!de, the e&pl!ye" #hall %e B!ntly and #e(e"ally

la%le th h# *!nt"a*t!" !" #u%*!nt"a*t!" t! #u*he&pl!yee# t! the etent !' the !"4 pe"'!"&ed unde"the *!nt"a*t, n the #a&e &anne" and etent that he# la%le t! e&pl!yee# d"e*tly e&pl!yed %y h&. The Se*"eta"y !' $a%!" &ay, %y app"!p"ate"e+ulat!n#, "e#t"*t !" p"!h%t the *!nt"a*tn+ !ut !' la%!" t! p"!te*t the "+ht# !' !"4e"# e#ta%l#hedunde" th# C!de. In #! p"!h%tn+ !" "e#t"*tn+, he&ay &a4e app"!p"ate d#tn*t!n# %eteen la%!"-!nly*!nt"a*tn+ and B!% *!nt"a*tn+ a# ell a#de"entat!n# thn the#e type# !' *!nt"a*tn+ anddete"&ne h! a&!n+ the pa"te# n(!l(ed #hall %e*!n#de"ed the e&pl!ye" '!" pu"p!#e# !' th# C!de, t!p"e(ent any (!lat!n !" *"*u&(ent!n !' anyp"!(#!n# !' th# C!de. $$p"

The"e # 5la%!"-!nly5 *!nt"a*tn+ he"e the pe"#!n#upplyn+ !"4e"# t! an e&pl!ye" d!e# n!t ha(e#u%#tantal *aptal !" n(e#t&ent n the '!"& !' t!!l#,eup&ent, &a*hne"e#, !"4 p"e&#e#, a&!n+!the"#, and the !"4e"# "e*"uted and pla*ed %y #u*hpe"#!n a"e pe"'!"&n+ a*t(te# h*h a"e d"e*tly"elated t! the p"n*pal %u#ne## !' #u*h e&pl!ye". In#u*h *a#e#, the pe"#!n !" nte"&eda"y #hall %e*!n#de"ed &e"ely a# an a+ent !' the e&pl!ye" h!#hall %e "e#p!n#%le t! the !"4e"# n the #a&e&anne" and etent a# ' the latte" e"e d"e*tlye&pl!yed %y h&.that n!tth#tandn+ the a%#en*e !' a d"e*te&pl!ye"-e&pl!yee "elat!n#hp %eteen thee&pl!ye" n h!#e 'a(!" !"4 had %een *!nt"a*ted

!ut %y a 5la%!"-!nly5 *!nt"a*t!", and the e&pl!yee#,



the '!"&e" ha# the "e#p!n#%lty, t!+ethe" th the5la%!"-!nly5 *!nt"a*t!", '!" any (ald la%!" *la&#, 16%y !pe"at!n !' la. The "ea#!n, #! e held, # thatthe 5la%!"-!nly5 *!nt"a*t!" # *!n#de"ed 5&e"ely ana+ent !' the e&pl!ye",5 1/ and la%lty &u#t %e#h!ulde"ed %y ethe" !ne !" #ha"ed %y %!th. 18 The"e # n! d!u%t that n the *a#e at %a", $(pe"'!"&# 5&anp!e" #e"(*e#,5 19 &eann+ t! #ay, t*!nt"a*t# !ut la%!" n 'a(!" !' *lent#. ?e h!ld that t# !ne n!tth#tandn+ t# (ehe&ent *la&# t! the*!nt"a"y, and n!tth#tandn+ the p"!(#!n !' the*!nt"a*t that t # 5an ndependent *!nt"a*t!".5 2< Thenatu"e !' !ne7# %u#ne## # n!t dete"&ned %y #el'-#e"(n+ appellat!n# !ne atta*he# the"et! %ut %y thete#t# p"!(ded %y #tatute and p"e(aln+ *a#e la. 21 The %a"e 'a*t that $( &antan# a #epa"ate lne !' %u#ne## d!e# n!t etn+u#h the eual 'a*t that t ha#p"!(ded Cal'!"na th !"4e"# t! pu"#ue the latte"7#!n %u#ne##. In th# *!nne*t!n, e d! n!t a+"eethat the pett!ne"# had %een &ade t! pe"'!"&a*t(te# 5h*h a"e n!t d"e*tly "elated t! the+ene"al %u#ne## !' &anu'a*tu"n+,5 22 Cal'!"na7#pu"p!"ted 5p"n*pal !pe"at!n a*t(ty.5 23 Thepett!ne"# had %een *ha"+ed th 5&e"*handn+

#* p"!&!t!n !" #ale !' the p"!du*t# !' Cal'!"nan the de"ent #ale# !utlet# n Met"! Manla n*ludn+ta#4 and !**at!nal #* p"*e ta++n+,5 2 an a*t(tythat # d!u%tle##, an nte+"al pa"t !' the&anu'a*tu"n+ %u#ne##. It # n!t, then, a# ' $( had#e"(ed a# t# 0Cal'!"na7# p"!&!t!n# !" #ale# a"& !"a+ent, !" !the"#e, "ende"ed a pe*e !' !"4 t0Cal'!"na *!uld n!t ha(e t#el' d!ne $(, a# apla*e&ent a+en*y, had #&ply #uppled t th the&anp!e" ne*e##a"y t! *a""y !ut t# 0Cal'!"na7#&e"*hand#n+ a*t(te#, u#n+ t# 0Cal'!"na7#p"e&#e# and eup&ent. 2;Nethe" $( n!" Cal'!"na *an the"e'!"e e#*apela%lty, that #, a##u&n+ !ne e#t#. The 'a*t that the pett!ne"# ha(e alle+edly ad&tted

%en+ $(7# 5d"e*t e&pl!yee#5 26 n the" *!&plant## n!thn+ *!n*lu#(e. F!" !ne thn+, the 'a*t that thepett!ne"# e"e 0a"e, ll n!t a%#!l(e Cal'!"na #n*ela%lty ha# %een &p!#ed %y le+al !pe"at!n. F!"an!the", and a# e nd*ated, the "elat!n# !' pa"te#&u#t %e Bud+ed '"!& *a#e t! *a#e and the de*"ee !' la, and n!t %y de*la"at!n# !' pa"te#. The 'a*t that the pett!ne"# ha(e %een h"ed !n a5te&p!"a"y !" #ea#!nal5 %a## &e"ely # n! a"+u&entethe". A# e held n >h lppne Gan4 !' C!&&un*at!n# (. N$RC, 2/ a te&p!"a"y !" *a#uale&pl!yee, unde" A"t*le 218 !' the $a%!" C!de,%e*!&e# "e+ula" a'te" #e"(*e !' !ne yea", unle## heha# %een *!nt"a*ted '!" a #pe*)* p"!Be*t. And e*ann!t #ay that &e"*hand#n+ # a #pe*)* p"!Be*t '!"

the !%(!u# "ea#!n that t # an a*t(ty "elated t! theday-t!-day !pe"at!n# !' Cal'!"na.It !uld ha(e %een de"ent, e %ele(e, had $(%een d#*"etely a p"!&!t!n# )"&, and that Cal'!"nahad h"ed t t! pe"'!"& the latte"7# &e"*hand#n+a*t(te#. F!" then, $( !uld ha(e %een t"uly thee&pl!ye" !' t# e&pl!yee#, and Cal'!"na, t# *lent. The *lent, n that *a#e, !uld ha(e %een a &e"epat"!n, and n!t an e&pl!ye". The e&pl!yee# !uldn!t n that e(ent %e unl4e ate"#, h!, alth!u+h atthe #e"(*e !' *u#t!&e"#, a"e n!t the latte"7#e&pl!yee#, %ut !' the "e#tau"ant. A# e p!nted !utn the >hlppne Gan4 !' C!&&un*at!n# *a#e: . . . The unde"ta4n+ +(en %y CESI n 'a(!" !' the%an4 a# n!t the pe"'!"&an*e !' a #pe*)* B!% '!"n#tan*e, the *a""a+e and del(e"y !' d!*u&ent# andpa"*el# t! the add"e##e# the"e!'. The"e appea" t! %e&any *!&pane# t!day h*h pe"'!"& th# d#*"ete#e"(*e, *!&pane# th the" !n pe"#!nnel h!p*4 up d!*u&ent# and pa*4a+e# '"!& the !@*e# !' a *lent !" *u#t!&e", and h! del(e" #u*h &ate"al#utln+ the" !n del(e"y (an# !" &!t!"*y*le# t! theadd"e##ee#. In the p"e#ent *a#e, the unde"ta4n+ !'

CESI a# t! p"!(de t# *lent the %an4 th a *e"tannu&%e" !' pe"#!n# a%le t! *a""y !ut the !"4 !' &e##en+e"#. Su*h unde"ta4n+ !' CESI a# *!&pledth hen the "eu#te nu&%e" !' pe"#!n# e"ea##+ned !" #e*!nded t! the pett!ne" %an4. O"padautled the p"e&#e# and !@*e eup&ent !' the%an4 and n!t th!#e !' CESI. Me##en+e"al !"4 thedel(e"y !' d!*u&ent# t! de#+nated pe"#!n#hethe" thn !" th!ut the %an4 p"e&#e# # !' *!u"#e d"e*tly "elated t! the day-t!-day !pe"at!n#!' the %an4. Se*t!n 902 u!ted a%!(e d!e# n!t"eu"e '!" t# appl*a%lty that the pett!ne" &u#t%e en+a+ed n the del(e"y !' te&# a# a d#tn*t and#epa"ate lne !' %u#ne##.Su**n*tly put, CESI # n!t a pa"*el del(e"y *!&pany:

a# t# na&e nd*ate#, t # a "e*"ut&ent andpla*e&ent *!"p!"at!n pla*n+ %!de#, a# t e"e, nde"ent *lent *!&pane# '!" l!n+e" !" #h!"te"pe"!d# !' t&e, . . . 28In the *a#e at %a", $( # ad&ttedly an 5ndependent*!nt"a*t!" p"!(dn+ te&p!"a"y #e"(*e# !' &anp!e" t! t# *lent.5 29 ?hen t thu# p"!(dedCal'!"na th &anp!e", t #uppled Cal'!"na thpe"#!nnel, a# ' #u*h pe"#!nnel had %een d"e*tlyh"ed %y Cal'!"na. en*e, A"t*le 1<6 !' the C!deapple#. $$Bu" The C!u"t need n!t the"e'!"e *!n#de" hethe" t #$( !" Cal'!"na h*h ee"*#e# *!nt"!l !(e" thepett!ne" (#-a-(# the '!u" %a"!&ete"# "e'e""ed t!ea"le", #n*e %y )*t!n !' la, ethe" !" %!th #h!ulde"

"e#p!n#%lty.

It # n!t that %y d#&##n+ the te"&# and *!ndt!n# !' the &anp!e" #upply a+"ee&ent, e ha(e, hen*e,*!n#de"ed t lle+al. =nde" the $a%!" C!de, +enune B!% *!nt"a*t# a"e pe"&##%le, p"!(ded they a"e+enune B!% *!nt"a*t#. Gut, a# e held n >hlppneGan4 !' C!&&un*at!n#, #up"a, hen #u*ha""an+e&ent# a"e "e#!"ted t! 5n ant*pat!n !', and'!" the (e"y pu"p!#e !' &a4n+ p!##%le, the#e*!nd&ent 3< !' the e&pl!yee# '"!& the t"uee&pl!ye", the C!u"t ll %e Bu#t)ed n ep"e##n+ t#*!n*e"n. F!" then that !uld *!&p"!&#e the "+ht# !' the !"4e"#, e#pe*ally the" "+ht t! #e*u"ty !' tenu"e. Th# %"n+# u# t! the ue#t!n: ?hat # the la%lty !' ethe" $( !" Cal'!"naH The "e*!"d# #h! that the pett!ne"# had %een +(enan ntal #-&!nth *!nt"a*t, "eneed '!" an!the" #&!nth#. A**!"dn+ly, unde" A"t*le 281 !' the C!de,they had %e*!&e "e+ula" e&pl!yee# !' Cal'!"na and had a*u"ed a #e*u"e tenu"e. en*e, they*ann!t %e #epa"ated th!ut due p"!*e## !' la.Cal'!"na "e##t# "en#tate&ent !n the +"!und, )"#t,and a# e #ad, that the pett!ne"# a"e n!t t#e&pl!yee#, and #e*!nd, %y "ea#!n !' )nan*al

d#t"e## %"!u+ht a%!ut %y 5un'a(!"a%le p!lt*al ande*!n!&* at&!#phe"e,5 31 5*!upled %y the Fe%"ua"yRe(!lut!n.5 32 A# t! the )"#t !%Be*t!n, e "ete"atethat the pett!ne"# a"e t# e&pl!yee# and h!, %y("tue !' the "eu"ed !ne-yea" len+th-!'-#e"(*e, ha(ea*u"ed a "e+ula" #tatu#. A# t! the #e*!nd, e a"en!t *!n(n*ed that Cal'!"na ha# #h!n en!u+he(den*e, !the" than t# %a"e #ay-#!, that t had n 'a*t#ue"ed #e"!u# %u#ne## "e(e"#e# a# a "e#ult al!ne !' the p"e(aln+ p!lt*al and e*!n!&* *l&ate. ?e'u"the" )nd the att"%ut!n t! the Fe%"ua"y Re(!lut!na# a *au#e '!" t# alle+ed l!##e# t! %e +"atut!u# andth!ut %a## n 'a*t.Cal'!"na #h!uld %e a"ned that "et"en*h&ent !' !"4e"#, unle## *lea"ly a""anted, ha# #e"!u#

*!n#euen*e# n!t !nly !n the State7# ntat(e# t!&antan a #ta%le e&pl!y&ent "e*!"d '!" the *!unt"y,%ut &!"e #!, !n the !"4n+&an h&#el', a&d anen("!n&ent that # de#pe"ately #*a"*e n B!%#. And,the Nat!nal $a%!" Relat!n# C!&&##!n #h!uld ha(e4n!n %ette" than t! 'all '!" #u*h una""antede*u#e# and ne%ul!u# *la&#.?EREFORE, the pett!n # RANTED. Jud+&ent #he"e%y RENDERED: 01 SETTIN ASIDE the de*#!n,dated Ma"*h 2<, 198/, and the "e#!lut!n, datedAu+u#t 19, 198/ 02 ORDERIN the "e#p!ndent, theCal'!"na Manu'a*tu"n+ C!&pany, t! REINSTATE thepett!ne"# th 'ull #tatu# and "+ht# !' "e+ula"e&pl!yee# and 03 ORDERIN the "e#p!ndent, theCal'!"na Manu'a*tu"n+ C!&pany, and the

"e#p!ndent#, $( Manp!e" Se"(*e, In*. and!" $ly-



K*t!"a A. Aa"*!n, t! >AL, B!ntly and #e(e"ally, unt!the pett!ne"#: 0a %a*4a+e# and de"ental pay#ee*t(e a# and '"!& the t&e they had a*u"ed a"e+ula" #tatu# unde" the #e*!nd pa"a+"aph, !' Se*t!n281, !' the $a%!" C!de, %ut n!t t! e*eed th"ee 03yea"#, and 0% all #u*h !the" and 'u"the" %ene)t# a#&ay %e p"!(ded %y e#tn+ *!lle*t(e %a"+ann+a+"ee&ent0# !" !the" "elat!n#, !" %y la, %e+nnn+#u*h t&e and 0 ORDERIN the p"(ate "e#p!ndent#t! >AL unt! the pett!ne"# att!"ney7# 'ee# eu(alentt! ten 01< pe"*ent !' all &!ney *la&# he"e%yaa"ded, n addt!n t! th!#e &!ney *la&#. The p"(ate "e#p!ndent# a"e l4e#e ORDERED t! >ALthe *!#t# !' th# #ut.IT IS SO ORDERED.

[G.R. No. 1228. Auu 23, 1998.]OA4OLA Bo5+r, "-5., In7., *+--on+r, /.DEL$IN #ING"IT, GABRIEL $RANISO, JR.,

EILIO "INAR, JR., ABUNDIO BALATERO,

NARITO !ANLULU(O, SEERO %A!ORA,!EDARDO GABINES, ENRI&UE BANGALAO, JULITO A"AT, SOTERO "ANDAN, NELSON U!ALI,an) + NATIONAL LABOR RELATIONSO!!ISSION, r+*on)+n.

D E C I S I O NNARKASA, C .J p: The #pe*al *(l a*t!n !' *e"t!"a" at %a" *!n*e"n##e(en 0/ *a#e# a+an#t pett!ne" C!*a-C!la G!ttln+,>hl#., In*. n#ttuted n the Re+!nal A"%t"at!nG"an*h !' the Nat!nal $a%!" Relat!n# C!&&##!n nCe%u Cty !(e" a pe"!d !' '!u" yea"# !" #!, %y ele(en011 pe"#!n# *la&n+ t! %e e&pl!yee# !' the*!&pany7# Ta+%la"an Cty plant. The#e e"e: *d"ep01 RAG Ca#e N!. KII-</-12-<6;/-88 ntated !nAu+u#t 9, 1988 %y Del)n n+pt '!" 5lle+ald#&##al, %a*4 a+e# and da&a+e#502 RAG Ca#e N!. KII-<;-<398-89 )led !nFe%"ua"y 13, 1989 %y a%"el F"an*#*! '!" 5unBu#td#&##al, n!n-pay&ent !' !(e"t&e pay and #e"(*en*ent(e503 RAG Ca#e N!. KII-<2-<189-9< B!ntly )led !nFe%"ua"y /, 199< %y Nel#!n =&al, Meda"d! a%ne#,

En"ue Gan+ala!, Jult! Apat and S!te"! >andan '!"7lle+al d#&##al,5 5#epa"at!n pay,5 5#e"(*en*ent(e lea(e,5 and 5C!#t !' $(n+ All!an*e&andated %y la50 RAG Ca#e N!. KII-<2-<169-9< ntated %ySe(e"! a&!"a !n Fe%"ua"y 12, 199< '!" 5lle+ald#&##al,5 5#e"(*e n*ent(e lea(e,5 5"et"e&entpay,5 and 5#epa"at!n pay50; RAG Ca#e N!. KII-1<-<896-89 )led %y Ce*l!>na" !n Ma"*h 9, 1992 '!" 5unBu#t d#&##al5 and5#epa"at!n pay506 RAG Ca#e N!. KII-11-1<26-89 ntated %yA%und! Galate"! al#! !n Ma"*h 9, 1992 '!" 5unBu#td#&##al,5 5n!n-pay&ent !' !(e"t&e pay5 and5#epa"at!n pay5 and

0/ RAG Ca#e N!. KII-1<-<89/-89 *!&&en*ed%y Na"t! Manluluy!.In the )"#t t! 02 *a#e# RAG Ca#e N!. KII-</-12-<6;/-88 and RAG Ca#e N!. KII-<;-<398-89 the"e#p!ndent# &pleaded e"e C!*a-C!la G!ttln+,>hl#., In*. 0COCA-CO$A and t# Ta+%la"an G"an*hMana+e", !d!'"ed! Ga+a"e#. In the !the" )(e 0;,the "e#p!ndent# na&ed, a#de '"!& COCA-CO$A,e"e >!nee" Mult Se"(*e#, In*. and $pe"*!nSe"(*e#, In*.COCA-CO$A # a *!"p!"at!n duly !"+aned unde">hlppne la# th p"n*pal !@*e# at A*e Guldn+,$e+a#p Klla+e, Ma4at, Met"! Manla, en+a+ed n the%!ttln+, d#t"%ut!n and #ale !' #!'t d"n4 p"!du*t#. 1It &antan#, a&!n+ !the"#, a %!ttln+ plant n

Ta+%la"an Cty, th #ale# !@*e# and %!de+a# n

#t"ate+* pla*e# t! #e"(e the #u""!undn+ a"ea# nG!h!l >"!(n*e.>!nee" Mult-Se"(*e# C!. 0>IONEER and $pe"*!nSe"(*e#, In*. 0$I>ERCON, a"e &annn+ *!&pane#th h*h COCA CO$A #u**e##(ely ente"ed nt!*!nt"a*t# '!" the #upply !' the &anp!e" need# !' t#plant n Ta+%la"an. COCA-CO$A7# *!nt"a*t th>IONEER a# ee*uted !n May 28, 1983, and thatth $I>ERCON, )(e 0; yea"# late", !n De*e&%e" 1/,1988. The #e(en 0/ *a#e# a+an#t COCA CO$A e"e hea"dt!+ethe" a'te" ##ue# had %een B!ned and Bud+&entthe"e!n a# handed d!n %y the Ee*ut(e $a%!"A"%te" !n Fe%"ua"y /, 199;. 2 The Bud+&ent '!undthat *!&planant# e"e #uppled a# !"4e"# t! COCA-CO$A )"#t %y >IONEER, and late", %y $I>ERCON thathe"ea# $I>ERCON a# an ndependent *!nt"a*t!",>IONEER a# n!t that n any *a#e, 50hen $pe"*!nente"ed nt! the p*tu"e, . . . *!&planant# e"eal"eady "e+ula" e&pl!yee# !' the "e#p!ndent )"&,5and hen*e the #u%#euent 5*!&n+ n !' $pe"*!n ddn!t dep"(e . . . 0the& !' the "+ht t! *la& #epa"at!npay . . . a# "en#tate&ent # n! l!n+e" 'ea#%le.5 COCA-CO$A a# the"e'!"e #enten*ed 5t! pay the

*!&planant# the #u& !' Se(enty One Th!u#and Sund"ed F'ty S 0>/1,6;6.<< >e#!# n *!n*ept !' #epa"at!n pay5 n de"n+ a&!unt#. The *!&planta# d#&##ed a# "e+a"d# !d!'"ed! Ga+a"e# 0COCACO$A7# G"an*h Mana+e" at Ta+%la"an, h# la%lty n!tha(n+ %een e#ta%l#hed. The ele(en *!&planant# appealed '"!& the De*#!n!' the A"%te" &putn+ "e(e"#%le e""!" t! the latte"5hen he &e"ely aa"ded #epa"at!n pay n#tead !' "en#tate&ent th %a*4a+e#, de#pte h# )ndn+ !' lle+al d#&##al, th!ut e(en eplann+ n h#de*#!n hy *!&planant# *!uld n!t %e "en#tated.5 The appeal a# )led !nly %y n+pt h! "ep"e#entedthat he a# ta4n+ the appeal al#! n %ehal' !' the!the" *!&planant#. In t# De*#!n !' Fe%"ua"y 28,

1996, the F!u"th D(#!n !' the Nat!nal $a%!"Relat!n# C!&&##!n 0Ce%u Cty 5AFFIRMED thMODIFICATION5 the appealed Bud+&ent, *!&&andn+COCA-CO$A t! pay t! *!&planant# an In*"ea#eda&!unt !' >2,<22,</6.9 "ep"e#entn+ 'ull %a*4a+e# and 513th &!nth pay, h!lday pay, #e"(*en*ent(e lea(e pay, *!#t !' l(n+ all!an*e and "e#tday pay.5 3 G!th COCA-CO$A and the *!&planant#&!(ed '!" "e*!n#de"at!n !' the De*#!n. GyRe#!lut!n !' O*t!%e" 3, 1996, COCA-CO$A7# &!t!n'!" "e*!n#de"at!n a# dened, hle that !' the*!&planant# a# +"anted n the #en#e that COCA-CO$A a# addt!nally 5!"de"ed t! "en#tate . . .0the& t! the" '!"&e" p!#t!n th!ut l!## !' #en!"ty "+ht# and !the" p"(le+e#.5



COCA CO$A the"eup!n *!&&en*ed the p"e#ent*e"t!"a" a*t!n !n De*e&%e" 11, 1996 th"!u+h h*ht #ee4# the #ettn+ a#de !' the C!&&##!n7#De*#!n !' Fe%"ua"y 28, 1996 and t# Re#!lut!n !' O*t!%e" 3, 1996. The C!u"t "eu"ed the "e#p!ndent#t! *!&&ent !n the pett!n and, up!n a %!nd !' >2,<22,</6.9, ##ued a te&p!"a"y "e#t"ann+ !"de"#t!ppn+ ee*ut!n !' the C!&&##!n7# *hallen+edd#p!#t!n#. ;On Fe%"ua"y , 199/, a pleadn+ t"a(e"#n+ thepett!n, enttled 5C!&&ent#O%Be*t!n t! Te&p!"a"yRe#t"ann+ O"de",5 a# )led %y ten 01< !' the*!&planant# the&#el(e#: n+pt, F"an*#*!, >na",Manluluy!, a&!"a, a%ne#, Gan+ala!, Apat, >andan,=&al 6 and !n Fe%"ua"y 12, 199/, an!the" pleadn+,5>"(ate Re#p!ndent#7 Supple&ental C!&&ent,5 a##u%&tted %y the #a&e ten 01< pa"te#. / On Ma"*h26, 199/, a COMMENT !n %ehal' !' the Nat!nal $a%!"Relat!n# C!&&##!n a# )led %y the S!l*t!"ene"al7# O@*e. 8 On June 13, 199/, COCA CO$A )ledt# 5RE>$L 0t! >"(ate Re#p!ndent#7 Supple&entalC!&&ent,5 and !n Au+u#t 2/, 199/, t# 5RE>$L 0T!>u%l* Re#p!ndent7# C!&&ent.5It appea"# that all the *!&planant#, e*ept Del)n

n+pt and a%"el F"an*#*!, e"e !"+nally"e*"uted %y >IONEER h*h detaled the&, unde" t#*!nt"a*t th COCA CO$A, n the latte"7# Ta+%la"an>lant, #!&e %en+ a##+ned a# utlty !"4e"#, and!the"#, a# %!ttln+ *"e &e&%e"#. 9 Th"ee yea"#a'te"a"d#, they e"e a%#!"%ed %y $I>ERCON hen t"epla*ed >IONEER a# COCA-CO$A7# la%!" #upple".It appea"# that n+pt a# "e*"uted %y $I>ERCON '!"the Ta+%la"an COCA-CO$A plant, and )"#t a##+ned a#%!ttln+ *"e &e&%e" !n N!(e&%e" 2, 198.S!&et&e n 1988, n+pt, %en+ then n(!l(ed n ala%!" *a#e a+an#t h# e&pl!ye", #ent a lette" t! then>"e#dent C!"a!n C. Aun! a#4n+ that #he help h&!%tan pe"&anent e&pl!y&ent n COCA CO$A. Th#,%"!u+ht a%!ut a *!n*lat!n *!n'e"en*e n the G!h!l

$a%!" Eten#!n O@*e n Ta+%la"an Cty and the"e,an a+"ee&ent a# "ea*hed %eteen n+pt andCOCA CO$A, "ep"e#ented %y t# Ta+%la"an >e"#!nnelO@*e", M#. Suette !te"a. A**!"dn+ t! n+pt, 1<M#. !te"a had !e"ed h& 5the p!#t!n !' d"(e"-helpe" !" #e*u"ty +ua"d ' I p!##e## the ne*e##a"yual)*at!n# '!" the a'!"e#ad p!#t!n,5 and he had5a**epted he" !e" a# a t"u*4-helpe" n the &eant&ethat I ha(e n!t #e*u"ed a d"(e"7# l*en#e.5 On the%a## !' th# a&*a%le a+"ee&ent, and a'te" !%tann+a *lea"an*e '"!& $pe"*!n Se"(*e#, In*., n+pt a#h"ed %y COCA CO$A !n a p"!%at!na"y %a## '!" ape"!d !' # 06 &!nth# ee*t(e May 16, 1988.n+pt a# then "eu"ed, a&!n+ !the" thn+#, t!ta4e ea&nat!n# t! ual'y '!" pe"&anent pla*e&ent

and t! #u%&t a p!l*e *lea"an*e. e #u%&tted a

p!l*e *lea"an*e ##ued %y the Inte+"ated Nat!nal>!l*e C!&&and !' G!h!l h*h #tated that he a# a"e#dent !' Gatuan, G!h!l, and that he had n!*"&nal "e*!"d the"eat. =n'!"tunately '!" h&, n!t!nly dd he !%tan 'aln+ &a"4# n the ual'yn+ea&nat!n#, %ut the p!l*e *lea"an*e #u%&tted %yh& a# #h!"tly a'te"a"d# "e(ealed t! %e 'al#e,%eled %y a *e"t)*at!n !' the O@*e !' the Cty F#*al!' Ta+%la"an Cty t! the ee*t that he a# then'a*n+ *ha"+e# !' phy#*al nBu"e# n n! le## thanth"ee 03 *a#e#. A# a "e#ult, h# #e"(*e# *!n#de"ed te&p!"a"y !" p"!%at!na"y e"ete"&nated !n July 22, 1988, !n the +"!und that hehad 01 'aled t! &ea#u"e up t! the #tanda"d# !' the)"&, ha(n+ un4ed the "eu"ed ual'yn+ te#t#, and02 %een #h!n t! %e d#h!ne#t, '!" n!t d#*l!#n+that he had %een *ha"+ed th 3 *!unt# !' phy#*alnBu"e#. 11a%"el F"an*#*! !"+nally !"4ed a# %!ttln+ *"e&e&%e" !' San M+uel C!"p!"at!n at t# Ta+%la"an>lant '"!& 19/1 untl 19/6. e a# "e-e&pl!yed n19/9, and a##+ned t! the %ee" depa"t&ent !' COCA-CO$A. In 19/9, he a# h"ed %y >IONEER, h*h a#a'!"e#tated had *!n*luded a *!nt"a*t t! #upply

COCA-CO$A7# &anp!e" need#. e !"4ed unde"th# a""an+e&ent untl >IONEER a# "epla*ed %y$I>ERCON, n De*e&%e" 1986. e *!ntnued !"4n+a# %!ttln+ *"e &e&%e" untl he a# #epa"ated '"!&e&pl!y&ent !n De*e&%e" 1;, 1988. 12 The !the" *!&planant-e&pl!yee# Ce*l! >na", J".,A%und! Galate"!, Na"t! Manluluy!, Se*e"! a&!"a,Meda"d! a%ne#, En"ue Gan+ala!, Jult! Apat,S!te"! >andan, Nel#!n =&al e"e, a# al"eady#tated, '!und %y the $a%!" A"%te" t! ha(e %een )"#tpla*ed n the COCA CO$A Ta+%la"an plant %y the""e*"ute", >IONEER, and a'te" the latte"7# *!nt"a*tep"ed, e"e "e*"uted %y $I>ERCON and a+ana##+ned at the #a&e Ta+%la"an plant. The Ee*ut(e $a%!" A"%te"7# de*#!n !' Fe%"ua"y /,

199; 13 '!und that hle >IONEER a# a 5la%!" !nly*!nt"a*t!",5 1 $I>ERCON h*h had al#!unde"ta4en t! p"!(de COCA CO$A th &anp!e"'!" #u*h #e"(*e# a# the "epa" and &antenan*e !' &a*hne#, a*t(te# "elated t! p"!Be*t#, ya"d*leann+, utlty B!%# l!adn+ and unl!adn+ !' 'ulland e&pty %!ttle# 1; a# a le+t&ate la%!"*!nt"a*t!". It had #u%#tantal *aptal !' t# !n padt# "e*"uted e&pl!yee# "e+ula"ly e(en %e'!"e"e*e(n+ t# #tpulated 'ee# '"!& COCA CO$A had*!nt"!l !(e" *!&planant#-!"4e"# h! *!uld n!t +etn#de the p"e&#e# !' COCA CO$A th!ut t# "ttenauth!"ty attended t! p"!(dn+ "!ute helpe"# th"eu#t!n #lp# 4ept the #+ned daly t&e "e*!"d# !' t# "e*"uted e&pl!yee# &!nt!"ed the" h!u"# !'

!"4, and #a t! t that they e"e at the" pla*e# !'

!"4 at the app!nted h!u"# and *!uld "e*e(e, anda*t th )nalty !n, *!&plant# *!n*e"nn+ t#"e*"uted !"4e"# p"e#ented %y COCA CO$A7# "e+ula"e&pl!yee# !" #upe"(#!"#. 16 The Ee*ut(e $a%!" A"%te"7# de*#!n de*la"ed thathen the *!&planant# e"e d#*ha"+ed '"!&$I>ERCON, they #+ned d!*u&ent# !' ut*la& and"elea#e, a 'a*t 5n!t "e'uted5 %y the&. 1/C!n#euently, $I>ERCON a# a%#!l(ed '"!& la%lty. The Bud+&ent a# u*4 t! p!nt !ut, h!e(e", that5hen $I>ERCON ente"ed nt! the p*tu"e5 a'te" thelap#e !' COCA CO$A7# ea"le" *!nt"a*t th >IONEER #ad *!&planant# 5. . . e"e al"eady "e+ula" e&pl!yee# !' the"e#p!ndent )"& 0COCA CO$A.5 It# ent"y, e(en ' (eed a# a *!n#euen*e !' a le+t&ate %u#ne## !' a&anp!e" #e"(*n+ )"&, "e#ulted t! 0#* the lle+alte"&nat!n !' the *!&planant# h! at that p!nt nt&e had al"eady a*u"ed "e+ula" #tatu#. The *!&n+n !' $pe"*!n dd n!t dep"(e the *!&planant# !' the"+ht t! *la& #epa"at!n pay. The" #e(e"an*e '"!&"e#p!ndent )"&, t appea"#, a# '!"*ed up!n the&. It# !nly 'a", thu#, that they %e +(en the %ene)t# thatthey de#e"(e hle pla*ed unde" >!nee" Mult-

Se"(*e#, In*. C!n#de"n+ that the" te"&nat!n a#n!t le+al and (ald, they #h!uld %e pad !ne &!nthpay '!" e(e"y yea" !' #e"(*e a# "en#tate&ent # n!l!n+e" 'ea#%le.5 18F!" th# "ea#!n, COCA-CO$A a# #enten*ed 5t! paythe *!&planant# the #u& !' Se(enty One Th!u#andS und"ed F'ty S 0>/1,6;6.<< >e#!# n *!n*ept !' #epa"at!n pay5 n de"n+ a&!unt#.Re#p!ndent C!&&##!n #a the *a#e de"ently. It!pned that 01 $I>ERCON a# a la%!"-!nly, n!t anndependent la%!" *!nt"a*t!" and 02 COCA CO$A n!tha(n+ p"e#ented e(den*e t! e#ta%l#h any Bu#t *au#e'!" the te"&nat!n !' *!&planant#7 e&pl!y&ent,#u*h te"&nat!n &u#t %e held lle+al and ha(n+, a#ell, 'aled t! #u%&t the pay"!ll# *!""e#p!ndn+ t!

the *!&planant#, t# &!neta"y la%lty t! the&#h!uld %e n*"ea#ed. *da#aIn th# #pe*al *(l a*t!n !' *e"t!"a", COCA CO$A#u%&t# that "e#p!ndent C!&&##!n a*ted th+"a(e a%u#e !' d#*"et!n 1 n *!&pletely +n!"n+ the 'a*t that n+pthad n! *apa*ty t! ta4e an appeal n %ehal' !' the!the" *!&planant#2 n n!t "uln+ that the $a%!" A"%te"7# de*#!nhad l!n+ %e*!&e )nal and ee*ut!"y %e*au#e the*!&planant#, e*ept n+pt, had al"eady l!#t the""+ht !' appeal3 n d#"e+a"dn+ the $a%!" A"%te" 7# )ndn+#that *!&planant# e"e n!t "e+ula" e&pl!yee# !' COCA CO$A



e(en +"antn+ a"+uend! that *!&planant#e"e e&pl!yee# !' COCA CO$A, n "eu"n+ the latte"t! pay the '!"&e" e(en hen they dd n!thn+; n aa"dn+ *!&planant# 5"e#t day pay5de#pte the" ad&##!n that they dd n!t !"4 #e(enday# a ee46 n h!ldn+ *!&planant# t! %e enttled t!h!lday pay, #e"(*e n*ent(e lea(e pay, *!#t !' l(n+all!an*e, 13th &!nth pay, th!ut any 'a*tual %a##and *!nt"a"y t! the e(den*e !n "e*!"d/ n n!t al l!n+ n+pt t! "a#e the ##ue !' h# alle+ed e&pl!y&ent th COCA CO$A alth!u+hthe #a&e a# al"eady #u%Be*t !' a *!&p"!&#ea+"ee&ent and8 n n!t "ul n+ that n+pt had %een (aldlyd#&##ed, ha(n+ 'aled t! &eet the *!&pany#tanda"d# '!" a p"!%at!na"y e&pl!yee. The C!u"t ll deal th Del)n n+pt )"#t. It #ee&#'a"ly e(dent '"!& the "e*!"d that h# #e"(*e# e"e(aldly te"&nated. A# al"eady na""ated, !n the %a##!' h# *!&p"!&#e a+"ee&ent th the Ta+%la"an>e"#!nnel O@*e" !' COCA CO$A 0ente"ed nt! unde"the au#p*e# !' the G!h!l $a%!" Eten#!n O@*e, anda'te" !%tann+ a *lea"an*e '"!& $I>ERCON, n+pta# e&pl!yed %y COCA CO$A !n a p"!%at!na"y %a##'!" a pe"!d !' # 06 &!nth# ee*t(e May 16, 1988.!e(e", n+pt #u%#euently un4ed the ual'yn+ea&nat!n# '!" "e+ula" e&pl!y&ent, and a# late"d#*!(e"ed t! ha(e &#led COCA CO$A %y #u%&ttn+a p!l*e *lea"an*e *!nt"ad*ted %y the "e*!"d# !' theF#*al7# O@*e !' Ta+%la"an Cty #h!n+ that he a#then 'a*n+ th"ee 03 *ha"+e# !' phy#*al nBu"e#.=p!n the 'a*t#, the"e'!"e, the"e *an %e n! ue#t!n:)"#t, !' the p"!p"ety !' h# *!nt"a*t !' p"!%at!na"ye&pl!y&ent n!t !nly ee*uted %e'!"e $a%!"!@*al#, %ut al#! ad&tted %y h& a# '"eely and(!lunta"ly ente"ed nt! and #e*!nd, !' the 'a*t thathe had n!t !nly 'aled the ual'yn+ ea&nat!n#,%ut had al#! p"e#ented a 'al#e *lea"an*e. en*e, h#

#e"(*e# e"e p"!pe"ly te"&nated !n July 22, 1988,'!" 01 'aln+ t! ual'y '!" the B!%, and 02 '!"d#h!ne#ty. 19 Tu"nn+ t! an!the" p!nt, "e#p!ndent C!&&##!n"e(e"#ed the $a%!" A"%te"7# *!n*lu#!n that $I>ERCONa# an ndependent la%!" *!nt"a*t!". It de*la"ed tn#tead t! %e a &e"e 5la%!"-!nly5 *!nt"a*t!", a# thete"& # de)ned and de#*"%ed n the $a%!" C!de 2<and the O&n%u# Rule# I&ple&entn+ #ad C!de. 21On th# %a##, t held that *!&planant# e"e n!te&pl!yee# !' $I>ERCON, %ut !' COCA CO$A.In #! "uln+ "e#p!ndent C!&&##!n una**!unta%ly+n!"ed the e(den*e !n h*h the $a%!" A"%te" had%a#ed h# *!nt"a"y *!n*lu#!n. That e(den*e,*!n##tn+ *hey !' the te#t&!ny !' Fl!&ena

$e+a#p, ead !' $I>ERCON7# A**!untn+ D(#!n, ##u&&a"ed %y the A"%te" a# '!ll!#: 225The $pe"*!n ha# ndeed #u%#tantal *aptal !' t#!n # p"!(en %y the te#t&!ny !' t# pe"#!nnel-n-*ha"+e n Ta+%la"an Cty, Fl!&ena $e+a#p. $e+a#pa@"&ed the 'a*t that $pe"*!n pad t# e&pl!yee#0the *!&planant# he"en "e+ula"ly e(en %e'!"e t #pad !' t# %lln+ 0TSN, p. 9, Septe&%e" 2, 1992.She al#! te#t)ed that #he had *!nt"!l !(e" the*!&planant#. ?th!ut he" #+natu"e, they *ann!t +etn#de the p"e&#e# !' "e#p!ndent )"&. She #+nedthe" daly t&e "e*!"d# and &!nt!"ed the" h!u"# !' !"4. She #a t! t that they e"e n the" p!#t!n#and pla*e# !' !"4. And ' the "e+ula" e&pl!yee# !' CCG>I !" the" #upe"(#!"# *!&plan, they n!t'y andn'!"& he" !' the#e *!&plant#. ?th "e+a"d t! the"!ute helpe"#, the#e e"e *!(e"ed %y "eu#t!n #lp#0TSN, p. /, Sept. 2, 1992. In 'a*t, a'te" $pe"*!n7#*!nt"a*t th "e#p!ndent ep"ed n De*e&%e" 1988,t a# #he h! a##+ned #!&e !"4e"# l4e Ce*l!>na", J". and A%und! Galate"! t! SMC 0TSN, pp. 3,3;, 2-9, Septe&%e" 2, 1992. The pay"!ll# !' $pe"*!n 0Eh#. 717 and 727 '!" CCG>I and the"e#+nat!n lette" add"e##ed t! M#. >e"la CaPete0Eh. 77 %y a%"el F"an*#*!, J". p!nt# !ut that*!&planant# e"e ndeed e&pl!yee# !' $pe"*!n. The a'!"e*ted 'a*t# e"e n!t "e'uted %y the*!&planant#.5 5. . . $pe"*!n p"!(ed t! %e an ndependent*!nt"a*t!". A#de '"!& h"n+ t# !n e&pl!yee# andpayn+ the !"4e"# the" #ala"e#, t al#! ee"*#ed#upe"(#!n and *!nt"!l !(e" the& h*h # the &!#t&p!"tant a#pe*t n dete"&nn+ e&pl!ye"-e&pl!yee"elat!n# 0Ma)n*! T"adn+ C!"p. (. Ople, /< SCRA139 R!#a"! G"!the"# In*. (#. Ople, 131 SCRA /2. That t ndeed ha# #u%#tantal *aptal # p"!(en %y the'a*t that t dd n!t depend up!n t# %lln+ !n"e#p!ndent "e+a"dn+ pay&ent !' !"4e"#7 #ala"e#.

And hen *!&planant# e"e #epa"ated '"!&$pe"*!n, they #+ned ut*la& and "elea#ed!*u&ent#. . .5?hle t # thn "e#p!ndent C!&&##!n7#*!&peten*e, a# an appellate a+en*y "e(en+de*#!n# !' $a%!" A"%te"#, t! d#a+"ee th and #eta#de the latte"7# )ndn+#, t #tand# t! "ea#!n that t#h!uld #tate an a**epta%le *au#e the"e'!". It !uld!the"#e %e a h&#*al, *ap"*!u#, !pp"e##(e,ll!+*al, un"ea#!na%le ee"*#e !' ua#-Bud*alp"e"!+at(e, #u%Be*t t! n(aldat!n %y theet"a!"dna"y "t !' *e"t!"a".Gut that, "e+"etta%ly, # p"e*#ely hat "e#p!ndentC!&&##!n appea"# t! ha(e d!ne. It !(e"tu"ned the$a%!" A"%te"7# 'a*tual dete"&nat!n "e+a"dn+

$I>ERCON7# %en+ a le+t&ate ndependent

*!nt"a*t!" th!ut #tatn+ the "ea#!n the"e'!",th!ut any eplanat!n hate(e" a# t! hy theA"%te"7# e(denta"y p"e&#e# e"e n!t !"thy !' *"edt, !" hy the n'e"en*e# d"an the"e'"!& e"euna**epta%le, a# a &atte" !' la !" l!+*.Re#p!ndent C!&&##!n +"!unded t# "e(e"#al !' theA"%te"7# adBud+&ent #!lely !n a 1989 Bud+&ent !' th# C!u"t, ua"n et al. (. $pe"*!n 23 n h*h$I>ERCON had al#! %een n(!l(ed a# a la%!"*!nt"a*t!" !' an!the" *!&pany. 2 The"e, the C!u"theld $I>ERCON t! %e a 5la%!"-!nly5 *!nt"a*t!" andde*la"ed that the N$RC7# )ndn+ that t 5a# n!t a&e"e la%!"-!nly *!nt"a*t!" %e*au#e t ha# #u%#tantal*aptal !" n(e#t&ent n the '!"& !' t!!l#, eup&ent,&a*hne"e#, !"4 p"e&#e#, . . . a# 5%a#ed !nn#u%#tantal e(den*e, a# the N$RC 0had &e"elyp!nted !ut that 7t 0$I>ERCON *la&# t! %e p!##e##eda&!n+ !the"#, !' #u%#tantal *aptal and eup&ente##ental t! *a""y !ut t# %u#ne## a# a +ene"alndependent *!nt"a*t!"7 . . . , 5In !the" !"d#, nua"n, $I>ERCON a# held t! ha(e 'aled t!d#*ha"+e t# %u"den !' p"!!' that 5t ha# #u%#tantal*aptal, n(e#t&ent, t!!l#, et*.5N!t #! n the *a#e at %a". e"e, the"e # #u%#tantale(den*e, detaled %y the $a%!" A"%te", t! e#ta%l#h$I>ERCON7# *ha"a*te" a# an ndependent *!nt"a*t!" nthe "eal #en#e !' the !"d, 2; h*h &a4e# the $a%!"A"%te"7# "uln+ &!"e a**epta%le than "e#p!ndentC!&&##!n7# !n the #a&e &atte", %en+ '!unded#!lely !n an nappl*a%le p"e*edent. Al#! &!"ede#e"(n+ !' a##ent # #ad $a%!" A"%te"7# *!n*lu#!nthat the *!&planant#7 a**eptan*e !' e&pl!y&ent n$I>ERCON n De*e&%e", 1986 la#tn+ '!" a pe"!d !' #!&e t! yea"# ee*t(ely !pe"ated a# a *e##at!n!' the p"!" "elat!n#hp they had th >IONEER andCOCA CO$A n *!n#euen*e !' h*h they %e*a&eenttled t! #epa"at!n pay '"!& COCA CO$A, >IONEER%en+ &e"ely t# h"n+ a+ent. The e(den*e the"e'!"e #at#'a*t!"ly e#ta%l#he# that

*!&planant# e"e e&pl!yee# !' $I>ERCON. It a#$I>ERCON that te"&nated the" #e"(*e# at h*ht&e, a# '!und %y the $a%!" A"%te", the *!&planant#5#+ned ut*la& and "elea#e d!*u&ent#5 n 'a(!" !' $I>ERCON. COCA CO$A a# n!t p"(y ethe" t! thata*t !' e&pl!y&ent-te"&nat!n !" ee*ut!n !' 5ut*la& and "elea#e d!*u&ent#,5 !" t! the ea"le"a*t !' *"eat!n !' the e&pl!y&ent "elat!n#hp%eteen the *!&planant# and $I>ERCON. COCACO$A a# n n! p!#t!n t! nte"(ene n any &anne" nthe *"eat!n !" te"&nat!n !' the "elat!n#hp%eteen *!&planant# and $I>ERCON.It a# the"e'!"e e""!ne!u# '!" "e#p!ndent C!&&##!nt! de&and that COCA CO$A p"e#ent p"!!' !' Bu#t*au#e '!" the te"&nat!n !' the #e"(*e# !'

*!&planant#, the latte" n!t %en+ t# e&pl!yee#, %ut



$I>ERCON7#. F!" the #a&e "ea#!n, t a# e""!ne!u# '!"the N$RC t! epe*t COCA CO$A t! p"e#ent t# pay"!ll#t! #h! the #ala"e# and a+e# !' the *!&planant#alth!u+h, t &u#t %e &ent!ned, COCA CO$A dd*au#e p"e#entat!n !' $I>ERCON7# pay"!ll# "elat(e t!t# e&pl!yee#, n*ludn+ *!&planant#. And t a#+"a(e e""!" '!" "e#p!ndent C!&&##!n t! *!n*ludethat %e*au#e p"!!' !' Bu#t *au#e '!" *!&planant#7"e&!(al '"!& the" e&pl!y&ent n $I>ERCON a# n!tp"e#ented %y COCA CO$A, #ad *!&planant# had%een d#&##ed th!ut Bu#t *au#e and due p"!*e##.?hat ha# %een #ad &a4e# t unne*e##a"y t! add"e##the !the" #u%#tant(e ##ue# "a#ed %y COCA CO$A. 26And the adBe*t(e ##ue that t #et# up "e#pe*tn+the (aldty !' n+pt7# ha(n+ atte&pted t! appeal'"!& the $a%!" A"%te"7# de*#!n n %ehal' !' the !the"*!&planant# appea"# t! %e t!! un#u%#tantal t!&e"t *!n#de"at!n. All thn+# *!n#de"ed, and e*epta# "e+a"d# Del)n n+pt, the C!u"t # #at#)ed thatthe De*#!n !' the Ee*ut(e $a%!" A"%te" 'a"ly and"ea#!na%ly d#p!#ed !' the *!nt"!(e"#y, and # !"thy!' ad!pt!n a# the ult&ate adBud+&ent !' th# *a#e.?EREFORE, the pett!n '!" *e"t!"a" # RANTED,and the *hallen+ed De*#!n !' the F'th D(#!n !' the Nat!nal $a%!" Relat!n# C!&&##!n p"!&ul+ated!n Fe%"ua"y 28, 1996 # N=$$IFIED AND SET ASIDE. The De*#!n !' the Ee*ut(e $a%!" A"%te", Ce%uCty, dated Fe%"ua"y /, 199; # REINSTATED andhe"e%y AFFIRMED, th the #!le &!d)*at!n that the*!&plant !' DE$FIN IN>IT # d#&##ed, '!" la*4 !' &e"t. N! p"!n!un*e&ent a# t! *!#t#.SO ORDERED. Cdphl

G.R. No. L411824 A*r-5 16, 1988DR. ARLOS L. SE'ILLA an) LINA O.SE'ILLA, pett!ne"#-appellant#,(#.T#E OURT O$ A""EALS, TOURIST ORLDSER'IE, IN., ELISEO S.ANILAO, an)SEGUNDINA NOGUERA, "e#p!ndent#-appellee#.

SAR!IENTO , J.:

The pett!ne"# n(!4e the p"!(#!n# !n hu&an"elat!n# !' the C(l C!de n th# appeal %y *e"t!"a". The 'a*t# a"e %ey!nd d#pute:

On the #t"en+th !' a *!nt"a*t0Eh%t A '!" the appellant Eh%t 2'!" the appellee# ente"ed nt! !nO*t. 19, 196< %y and %eteen M"#.Se+undna N!+ue"a, pa"ty !' the)"#t pa"t the T!u"#t ?!"ld Se"(*e,In*., "ep"e#ented %y M". El#e!Canla! a# pa"ty !' the #e*!nd pa"t,and he"ena'te" "e'e""ed t! a#appellant#, the T!u"#t ?!"ld

Se"(*e, In*. lea#ed the p"e&#e#%el!n+n+ t! the pa"ty !' the )"#tpa"t at Ma%n St., Manla '!" the'!"&e"-# u#e a# a %"an*h !@*e. Inthe #ad *!nt"a*t the pa"ty !' theth"d pa"t held he"#el' #!lda"lyla%le th the pa"ty !' the pa"t '!"the p"!&pt pay&ent !' the &!nthly"ental a+"eed !n. ?hen the %"an*h!@*e a# !pened, the #a&e a#"un %y the he"en appellant =na <.Se(lla paya%le t! T!u"#t ?!"ldSe"(*e In*. %y any a"lne '!" any'a"e %"!u+ht n !n the e!"t# !' M"#.$na Se(lla, a# t! +! t! $na



Se(lla and 3 a# t! %e thheld%y the T!u"#t ?!"ld Se"(*e, In*.

On !" a%!ut N!(e&%e" 2, 19610Eh%t 16 the T!u"#t ?!"ldSe"(*e, In*. appea"# t! ha(e %eenn'!"&ed that $na Se(lla a#*!nne*ted th a "(al )"&, the>hlppne T"a(el Gu"eau, and, #n*e

the %"an*h !@*e a# anyh!l!#n+, the T!u"#t ?!"ld Se"(*e*!n#de"ed *l!#n+ d!n t# !@*e. Th# a# )"&ed up %y t!"e#!lut!n# !' the %!a"d !' d"e*t!"#!' T!u"#t ?!"ld Se"(*e, In*. datedDe*. 2, 1961 0Eh%t# 12 and 13,the )"#t a%!l#hn+ the !@*e !' the&ana+e" and (*e-p"e#dent !' the T!u"#t ?!"ld Se"(*e, In*., E"&taG"an*h, and the #e*!nd,auth!"n+the *!"p!"ate #e*"eta"y t! "e*e(ethe p"!pe"te# !' the T!u"#t ?!"ldSe"(*e then l!*ated at the #ad%"an*h !@*e. It 'u"the" appea"# that

!n Jan. 3, 1962, the *!nt"a*t ththe appellee# '!" the u#e !' theG"an*h O@*e p"e&#e# a#te"&nated and hle the ee*t(tythe"e!' a# Jan. 31, 1962, theappellee# n! l!n+e" u#ed t. A# a&atte" !' 'a*t appellant# u#ed t#n*e N!(. 1961. Ge*au#e !' th#,and t! *!&ply th the &andate !' the T!u"#t ?!"ld Se"(*e, the*!"p!"ate #e*"eta"y a%n! Canla!ent !(e" t! the %"an*h !@*e, and,)ndn+ the p"e&#e# l!*4ed, and,%en+ una%le t! *!nta*t $na Se(lla,he padl!*4ed the p"e&#e# !n June

, 1962 t! p"!te*t the nte"e#t# !' the T!u"#t ?!"ld Se"(*e. ?hennethe" the appellant $na Se(llan!" any !' he" e&pl!yee# *!uldente" the l!*4ed p"e&#e#, a*!&plant all )led %y the he"enappellant# a+an#t the appellee#th a p"aye" '!" the ##uan*e !' &andat!"y p"el&na"y nBun*t!n.G!th appellee# an#e"ed th*!unte"*la&#. F!" appa"ent la*4 !' nte"e#t !' the pa"te# the"en, thet"al *!u"t !"de"ed the d#&##al !' the *a#e th!ut p"eBud*e.

The appellee Se+undna N!+ue"a#!u+ht "e*!n#de"at!n !' the !"de"d#&##n+ he" *!unte"*la& h*hthe *!u"t a u!, n an !"de" dated June 8, 1963, +"anted pe"&ttn+he" t! p"e#ent e(den*e n #upp!"t!' he" *!unte"*la&.

On June 1/,1963, appellant $na

Se(lla "e)led he" *a#e a+an#t thehe"en appellee# and a'te" the##ue# e"e B!ned, the "en#tated*!unte"*la& !' Se+undnaN!+ue"a and the ne *!&plant !' appellant $na Se(lla e"e B!ntlyhea"d '!ll!n+ h*h the *!u"t au! !"de"ed %!th *a#e# d#&## '!"la*4 !' &e"t, !n the %a## !' h*ha# ele(ated the n#tant appeal !nthe '!ll!n+ a##+n&ent !' e""!"#:

I. TE $O?ER CO=RT ERRED EKENIN A>>RECIATIN TE NAT=RE OF>$AINTIFF-A>>E$$ANT MRS. $INA O.SEKI$$A7S COM>$AINT.

II. TE $O?ER CO=RT ERRED INO$DIN TAT A>>E$$ANT MRS.$INA <. SEKI$A7S ARRANEMENT0?IT A>>E$$EE TO=RIST ?OR$DSERKICE, INC. ?AS ONE MERE$LOF EM>$OLER-EM>$OLEE RE$ATIONAND IN FAI$IN TO O$D TAT TESAID ARRANEMENT ?AS ONE OF JOINT G=SINESS KENT=RE.

III. TE $O?ER CO=RT ERRED IN

R=$IN TAT >$AINTIFF-A>>E$$ANT MRS. $INA O. SEKI$$AIS ESTO>>ED FROM DENLIN TATSE ?AS A MERE EM>$OLEE OFDEFENDANT-A>>E$$EE TO=RIST?OR$D SERKICE, INC. EKEN ASAAINST TE $ATTER.

IK. TE $O?ER CO=RT ERRED INNOT O$DIN TAT A>>E$$EESAD NO RIT TO EKICTA>>E$$ANT MRS. $INA O. SEKI$$AFROM TE A. MAGINI OFFICE GL TAQIN TE $A? INTO TEIR O?NANDS.

K. TE $O?ER CO=RT ERRED INNOT CONSIDERIN AT .A$$A>>E$$EE NO=ERA7SRES>ONSIGI$ITL FOR A>>E$$ANT$INA O. SEKI$$A7S FORCIG$EDIS>OSSESSION OF TE A. MAGINI>REMISES.

KI. TE $O?ER CO=RT ERRED IN

FINDIN TAT A>>E$$ANTA>>E$$ANT MRS. $INA O. SEKI$$ASINED MERE$L AS =ARANTORFOR RENTA$S.

On the '!"e+!n+ 'a*t# and n the l+ht !' the e""!"#a#+ned the ##ue# t! %e "e#!l(ed a"e:

1. ?hethe" the appellee T!u"#t?!"ld Se"(*e unlate"ally d#*! theteleph!ne lne at the %"an*h !@*e!n E"&ta

2. ?hethe" !" n!t the padl!*4n+ !' the !@*e %y the T!u"#t ?!"ldSe"(*e a# a*t!na%le !" n!t and

3. ?hethe" !" n!t the le##ee t! the!@*e p"e&#e# %el!n+n+ t! theappellee N!+ue"a a# appellee# T?S !" T?S and the appellant.

In th# appeal, appealant $naSe(lla *la&# that a B!nt %u##ne##(entu"e a# ente"ed nt! %y and%eteen he" and appellee T?S th!@*e# at the E"&ta %"an*h !@*e

and that #he a# n!t an e&pl!yee!' the T?S t! the end that he""elat!n#hp th T?S a# !ne !' a B!nt %u#ne## (entu"e appellant&ade de*la"at!n# #h!n+:

1. Appellant M"#.$na <. Se(lla, ap"!&nent )+u"eand 'e !' ane&nent eye, ea"and n!#e#pe*al#t a# ella# a &edately*!lu&n#t had

%een n the t"a(el



%u#ne## p"!" t!the e#ta%l#h&ent!' the B!nt%u#ne## (entu"eth appellee T!u"#t ?!"ldSe"(*e, In*. andappellee El#e!Canla!, he"*!&pad"e, #he%en+ the+!d&!the" !' !ne!' h# *hld"en,th he" !n*lentele, *!&n+&!#tly '"!& he"!n #!*al *"*le0pp. 3-6 t#n.Fe%"ua"y16,196;.

2. Appellant M"#.Se(lla a##+nat!"y t! a

lea#e a+"ee&entdated 19 O*t!%e"196< 0Eh. 7A7*!(e"n+ thep"e&#e# at A.Ma%n St., #heep"e##lya""antn+ andh!ldn+ #*he"#el' 7#!lda"ly7la%le thappellee T!u"#t?!"ld Se"(*e, In*.'!" the p"!&ptpay&ent !' the

&!nthly "ental#the"e!' t! !the"appel lee M"#.N!+ue"a 0pp. 1-1;, t#n. Jan.18,196.

3. Appellant M"#.Se(l la dd n!t"e*e(e any #ala"y'"!& appellee T!u"#t ?!"ldSe"(*e, In*.,h*h had t# !n,

#epa"ate !@*e

l!*ated at the T"ade C!&&e"*eGuldn+ n!" a##he an e&pl!yeethe"e!', ha(n+n! pa"t*pat!nn n!" *!nne*t!nth #ad%u#ne## at the T"ade C!&&e"*eGuldn+ 0pp. 16-18 t#n Id.).

. Appellant M"#.Se(lla ea"ned*!&&##!n# '!"he" !npa##en+e"#, he"!n %!!4n+# he"!n %u#ne##0and n!t '!" any!' the %u#ne## !'

appellee T!u"#t?!"ld Se"(*e,In*. !%taned'"!& the a"lne*!&pane#. She#ha"ed the /*!&&##!n#+(en %y thea"lne *!&pane#+(n+ appellee T!u"#t ?!"ldSe"(*e, $*. 3the"e!' ad"etann+ '!"he"#el' 0pp. 18

t#n. Id.

;. Appellant M"#.Se(lla l4e#e#ha"ed n theepen#e# !' &antann+ theA. Ma%n St.!@*e, payn+ '!"the #ala"y !' an!@*e #e*"eta"y,M## O%eta, and!the" #und"yepen#e#, a#de

'"!& de#*!n the

!@*e 'u"ntu"eand #upplyn+#!&e !' )*e'u"n#hn+# 0pp.1;,18 t#n. Ap"l6,196;, appellee T!u"#t ?!"ldSe"(*e, In*.#h!ulde"n+ the"ental and !the"epen#e# n*!n#de"at!n '!"the 3 #plt n the*! p"!*u"ed %yappellant M"#.Se(lla 0p. 3; t#nFe%. 16,196;.

6. It a# theunde"#tandn+%eteen the&that appellantM"#. Se(lla !uld%e +(en the ttle

!' %"an*h&ana+e" '!"appea"an*e7# #a4e!nly 0p. 31 t#n.Id., appelleeEl#e! Canla!ad&t that t a# Bu#t a ttle '!"d+nty 0p. 36 t#n. June 18, 196;-te#t&!ny !' appellee El#e!Canla! pp. 38-39t#n Ap"l 6196;-te#t&!ny !'

*!"p!"ate#e*"eta"y a%n!Canla! 0pp- 2-;,Appellant#7 ReplyG"e'

=p!n the !the" hand, appellee T?S*!ntend that the appellant a# ane&pl!yee !' the appellee T!u"#t?!"ld Se"(*e, In*. and a# #u*h a#de#+nated &ana+e". 1



The t"al *!u"t 2 held '!" the p"(ate "e#p!ndent !n thep"e&#e that the p"(ate "e#p!ndent, T!u"#t ?!"ldSe"(*e, In*., %en+ the t"ue le##ee, t a# thn t#p"e"!+at(e t! te"&nate the lea#e and padl!*4 thep"e&#e#. It l4e#e '!und the pett!ne", $naSe(lla, t! %e a &e"e e&pl!yee !' #ad T!u"#t ?!"ldSe"(*e, In*. and a# #u*h, #he a# %!und %y the a*t#!' he" e&pl!ye". The "e#p!ndent C!u"t !' Appeal 3 "ende"ed an a@"&an*e.

The pett!ne"# n! *la& that the "e#p!ndent C!u"t,n #u#tann+ the l!e" *!u"t, e""ed. Spe*)*ally, they#tate:

I

TE CO=RT OF A>>EA$S ERRED ON A =ESTION OF$A? AND RAKE$L AG=SED ITS DISCRETION INO$DIN TAT 5TE >AD$OCQIN OF TE >REMISESGL TO=RIST ?OR$D SERKICE INC. ?ITO=T TEQNO?$EDE AND CONSENT OF TE A>>E$$ANT $INASEKI$$A ... ?ITO=T NOTIFLIN MRS. $INA O.SEKI$$A OR ANL OF ER EM>$OLEES AND ?ITO=T

INFORMIN CO=NSE$ FOR TE A>>E$$ANT 0SEKI$IA,?O IMMEDIATE$L GEFORE TE >AD$OCQININCIDENT, ?AS IN CONFERENCE ?IT TECOR>ORATE SECRETARL OF TO=RIST ?OR$D SERKICE0ADMITTED$L TE >ERSON ?O >AD$OCQED TESAID OFFICE, IN TEIR ATTEM> AMICAG$L SETT$E TE CONTROKERSL GET?EEN TE A>>E$$ANT0SEKI$$A AND TE TO=RIST ?OR$D SERKICE ... 0DIDNOT ENTIT$E TE $ATTER TO TE RE$IEF OFDAMAES5 0ANNE 5A5 >>. /,8 AND ANNE 5G5 >. 2DECISION AAINST D=E >ROCESS ?IC ADERES TO TE R=$E OF $A?.

II

TE CO=RT OF A>>EA$S ERRED ON A =ESTION OF$A? AND RAKE$L AG=SED ITS DISCRETION INDENLIN A>>E$$ANT SEKI$$A RE$IEF GECA=SE SEAD 5OFFERED TO ?ITDRA? ER COM> >ROKIDED TAT A$$ C$AIMS AND CO=NTERC$AIMS $ODED GLGOT A>>E$$EES ?ERE ?ITDRA?N.5 0ANNE 5A5 >.8

III

TE CO=RT OF A>>EA$S ERRED ON A =ESTION OF$A? AND RAKE$L AG=SED ITS DISCRETION INDENLIN-IN FACT NOT >ASSIN AND RESO$KIN-

A>>E$$ANT SEKI$$AS CA=SE OF ACTION FO=NDED

ON ARTIC$ES 19, 2< AND 21 OF TE CIKI$ CODE ONRE$ATIONS.

IK

TE CO=RT OF A>>EA$S ERRED ON A =ESTION OF$A? AND RAKE$L AG=SED ITS DISCRETION INDENLIN A>>EA$ A>>E$$ANT SEKI$$A RE$IEF LETNOT RESO$KIN ER C$AIM TAT SE ?AS IN JOINTKENT=RE ?IT TO=RIST ?OR$D SERKICE INC. OR AT$EAST ITS AENT CO=>$ED ?IT AN INTEREST?IC CO=$D NOT GE TERMINATED OR REKOQED=NI$ATERA$$L GL TO=RIST ?OR$D SERKICE INC. 6

A# a p"el&na"y nu"y, the C!u"t # a#4ed t! de*la"ethe t"ue natu"e !' the "elat!n %eteen $na Se(llaand T!u"#t ?!"ld Se"(*e, In*. The "e#p!ndent C!u"t!' #ee )t t! "ule !n the ue#t!n, the *"u*al ##ue, nt# !pn!n %en+ 5hethe" !" n!t the padl!*4n+ !' the p"e&#e# %y the T!u"#t ?!"ld Se"(*e, In*.th!ut the 4n!led+e and *!n#ent !' the appellant$na Se(lla enttled the latte" t! the "ele' !' da&a+e# p"ayed '!" and hethe" !" n!t the e(den*e

'!" the #ad appellant #upp!"t# the *!ntent!n thatthe appellee T!u"#t ?!"ld Se"(*e, In*. unlate"allyand th!ut the *!n#ent !' the appellantd#*!nne*ted the teleph!ne lne# !' the E"&ta%"an*h !@*e !' the appellee T!u"#t ?!"ld Se"(*e,In*. T!u"#t ?!"ld Se"(*e, In*., n##t#, !n the !the"hand, that $na SEKI$$A a# a &e"e e&pl!yee, %en+5%"an*h &ana+e"5 !' t# E"&ta 5%"an*h5 !@*e andthat n'e"entally, #he had n! #ay !n the lea#eee*uted th the p"(ate "e#p!ndent, Se+undnaN!+ue"a. The pett!ne"# *!ntend, h!e(e", that"elat!n %eteen the %eteen pa"te# a# !ne !' B!nt (entu"e, %ut *!n*ede that "whatever might have been the true relationship between Sevilla andTourist World Service," the Rule !' $a enB!ned

T!u"#t ?!"ld Se"(*e and Canla! '"!& ta4n+ the lant! the" !n hand#, 8 n "e'e"en*e t! the padl!*4n+n! ue#t!ned.

The C!u"t )nd# the "e#!lut!n !' the ##ue &ate"al,'!" ', a# the p"(ate "e#p!ndent, T!u"#t ?!"ldSe"(*e, In*., &antan#, that the "elat!n %eteenthe pa"te# a# n the *ha"a*te" !' e&pl!ye" ande&pl!yee, the *!u"t# !uld ha(e %een th!ut Bu"#d*t!n t! t"y the *a#e, la%!" d#pute# %en+ thee*lu#(e d!&an !' the C!u"t !' Indu#t"al Relat!n#,late", the Gu"eau O' $a%!" Relat!n#, pu"#uant t!#tatute# then n '!"*e. 9

In th# Bu"#d*t!n, the"e ha# %een n! un'!"& te#t t!dete"&ne the e(den*e !' an e&pl!ye"-e&pl!yee"elat!n. In +ene"al, e ha(e "eled !n the #!-*alled"+ht !' *!nt"!l te#t, 5he"e the pe"#!n '!" h!& the#e"(*e# a"e pe"'!"&ed "e#e"(e# a "+ht t! *!nt"!ln!t only the end t! %e a*he(ed but also the means t!%e u#ed n "ea*hn+ #u*h end.5 10 Su%#euently,h!e(e", e ha(e *!n#de"ed, n addt!n t! the#tanda"d !' "+ht-!' *!nt"!l, the e#tn+ e*!n!&**!ndt!n# p"e(aln+ %eteen the pa"te#, l4e then*lu#!n !' the e&pl!yee n the pay"!ll#, ndete"&nn+ the e#ten*e !' an e&pl!ye"-e&pl!yee"elat!n#hp. 11

The "e*!"d# ll #h! that the pett!ne", $na Se(lla,a# n!t #u%Be*t t! *!nt"!l %y the p"(ate "e#p!ndent T!u"#t ?!"ld Se"(*e, In*., ethe" a# t! the "e#ult !' the ente"p"#e !" a# t! the &ean# u#ed n *!nne*t!nthe"eth. In the )"#t pla*e, unde" the *!nt"a*t !' lea#e *!(e"n+ the T!u"#t ?!"ld# E"&ta !@*e, #hehad %!und he"#el' n soliduma# and '!" "entalpay&ent#, an a""an+e&ent that !uld %e l4e *la&#!' a &a#te"-#e"(ant "elat!n#hp. T"ue the "e#p!ndentC!u"t !uld late" &n&e he" pa"t*pat!n n the

lea#e a# !ne !' &e"e +ua"anty,12

that d!e# n!t &a4ehe" an e&pl!yee !' T!u"#t ?!"ld, #n*e n any *a#e, at"ue e&pl!yee *ann!t %e &ade t! pa"t th h# !n&!ney n pu"#uan*e !' h# e&pl!ye"7# %u#ne##, !"!the"#e, a##u&e any la%lty the"e!'. In that e(ent,the pa"te# &u#t %e %!und %y #!&e !the" "elat!n, %ut*e"tanly n!t e&pl!y&ent.

In the #e*!nd pla*e, and a# '!und %y the AppellateC!u"t, 7hen the %"an*h !@*e a# !pened, the#a&e a# "un %y the he"en appellant $na O. Se(llapaya%le t! T!u"#t ?!"ld Se"(*e, In*. %y any a"lne '!"any 'a"e %"!u+ht n !n the e!"t !' M"#. $naSe(lla. 1 =nde" the#e *"*u&#tan*e#, t *ann!t %e

#ad that Se(lla a# unde" the *!nt"!l !' T!u"#t ?!"ldSe"(*e, In*. 5a# t! the &ean# u#ed.5 Se(lla npu"#un+ the %u#ne##, !%(!u#ly "eled !n he" !n+'t# and *apa%lte#.

It # 'u"the" ad&tted that Se(lla a# n!t n the*!&pany7# pay"!ll. F!" he" e!"t#, #he "etaned n*!&&##!n# '"!& a"lne %!!4n+#, the "e&ann+ 3+!n+ t! T!u"#t ?!"ld. =nl4e an e&pl!yee then, h!ea"n# a )ed #ala"y u#ually, #he ea"ned *!&pen#at!nn u*tuatn+ a&!unt# dependn+ !n he" %!!4n+#u**e##e#.

The 'a*t that Se(lla had %een de#+nated 7%"an*h

&ana+e"5 d!e# n!t &a4e he", e"+!, T!u"#t ?!"ld7#



e&pl!yee. A# e #ad, e&pl!y&ent # dete"&ned %ythe "+ht-!'-*!nt"!l te#t and *e"tan e*!n!&*pa"a&ete"#. Gut ttle# a"e ea4 nd*at!"#.

In "eBe*tn+ T!u"#t ?!"ld Se"(*e, In*.7# a"+u&ent#h!e(e", e a"e n!t, a# a *!n#euen*e, a**eptn+$na Se(lla7# !n, that #, that the pa"te# hade&%a"4ed !n a B!nt (entu"e !" !the"#e, apa"tne"#hp. And appa"ently, Se(lla he"#el' dd n!t

"e*!+ne the e#ten*e !' #u*h a "elat!n. In he"lette" !' N!(e&%e" 28, 1961, #he ep"e##ly 7*!n*ede#y!u" T!u"#t ?!"ld Se"(*e, In*.7# "+ht t! #t!p the!pe"at!n !' y!u" %"an*h !@*e 1 n ee*t, a**eptn+ T!u"#t ?!"ld Se"(*e, In*.7# *!nt"!l !(e" the &anne"n h*h the %u#ne## a# "un. A B!nt (entu"e,n*ludn+ a pa"tne"#hp, p"e#upp!#e# +ene"ally a !' #tandn+ %eteen the B!nt *!-(entu"e"# !" pa"tne"#,n h*h ea*h pa"ty ha# an eual p"!p"eta"y nte"e#tn the *aptal !" p"!pe"ty *!nt"%uted 13 and he"eea*h pa"ty ee"*#e# eual "+ht# n the *!ndu*t !' the%u#ne##.16 'u"the"&!"e, the pa"te# dd n!t h!ldthe&#el(e# !ut a# pa"tne"#, and the %uldn+ t#el' a# e&%ell#hed th the ele*t"* #+n 5T!u"#t ?!"ldSe"(*e, In*. 1n leu !' a d#tn*t pa"tne"#hp na&e.

It # the C!u"t7# *!n#de"ed !pn!n, that hen thepett!ne", $na Se(lla, a+"eed t! 0!&an the p"(ate"e#p!ndent, T!u"#t ?!"ld Se"(*e, In*.7# E"&ta !@*e,#he &u#t ha(e d!ne #! pu"#uant t! a *!nt"a*t !' a+en*y. It # the e##en*e !' th# *!nt"a*t that thea+ent "ende"# #e"(*e# 5n "ep"e#entat!n !" !n %ehal' !' an!the". 18 In the *a#e at %a", Se(lla #!l*ted a"lne'a"e#, %ut #he dd #! '!" and !n %ehal' !' he" p"n*pal, T!u"#t ?!"ld Se"(*e, In*. A# *!&pen#at!n, #he"e*e(ed !' the p"!*eed# n the *!n*ept !' *!&&##!n#. And a# e #ad, Se(lla he"#el' %a#ed !nhe" lette" !' N!(e&%e" 28, 1961, p"e-a##u&ed he"p"n*pal7# auth!"ty a# !ne" !' the %u#ne##

unde"ta4n+. ?e a"e *!n(n*ed, *!n#de"n+ the*"*u&#tan*e# and '"!& the "e#p!ndent C!u"t7# "e*tal!' 'a*t#, that the te# had *!nte&plated a p"n*pala+ent "elat!n#hp, "athe" than a B!nt &ana+a&ent !"a pa"tne"#hp..

Gut unl4e #&ple +"ant# !' a p!e" !' att!"ney, thea+en*y that e he"e%y de*la"e t! %e *!&pat%le ththe ntent !' the pa"te#, *ann!t %e "e(!4ed at ll. The "ea#!n # that t # !ne *!upled th an nte"e#t,the a+en*y ha(n+ %een *"eated '!" &utual nte"e#t,!' the a+ent and the p"n*pal. 19 It appea"# that $naSe(lla # a bona fde t"a(el a+ent he"#el', and a##u*h, #he had a*u"ed an nte"e#t n the %u#ne##ent"u#ted t! he". M!"e!(e", #he had a##u&ed a

pe"#!nal !%l+at!n '!" the !pe"at!n the"e!', h!ldn+

he"#el' #!lda"ly la%le '!" the pay&ent !' "ental#.She *!ntnued the %u#ne##, u#n+ he" !n na&e,a'te" T!u"#t ?!"ld had #t!pped 'u"the" !pe"at!n#.e" nte"e#t, !%(!u#ly, # n!t t! the *!&&##!n# #heea"ned a# a "e#ult !' he" %u#ne## t"an#a*t!n#, %ut!ne that etend# t! the (e"y #u%Be*t &atte" !' thep!e" !' &ana+e&ent dele+ated t! he". It # ana+en*y that, a# e #ad, *ann!t %e "e(!4ed at theplea#u"e !' the p"n*pal. A**!"dn+ly, the "e(!*at!n*!&planed !' #h!uld enttle the pett!ne", $na

Se(lla, t! da&a+e#.

A# e ha(e #tated, the "e#p!ndent C!u"t a(!ded th###ue, *!n)nn+ t#el' t! the teleph!ne d#*!nne*t!nand padl!*4n+ n*dent#. Anent the d#*!nne*t!n##ue, t # the h!ldn+ !' the C!u"t !' Appeal# thatthe"e # 7n! e(den*e #h!n+ that the T!u"#t ?!"ldSe"(*e, In*. d#*!nne*ted the teleph!ne lne# at the%"an*h !@*e. 20 Let, hat *ann!t %e dened # the'a*t that T!u"#t ?!"ld Se"(*e, In*. dd n!t ta4e pan#t! ha(e the& "e*!nne*ted. A##u&n+, the"e'!"e, thatt had n! hand n the d#*!nne*t!n n! *!&planed!', t had *lea"ly *!nd!ned t, and a# !ne" !' theteleph!ne lne#, t &u#t #h!ulde" "e#p!n#%lty

the"e'!".

The C!u"t !' Appeal# &u#t l4e#e %e held t! %e ne""!" th "e#pe*t t! the padl!*4n+ n*dent. F!" the'a*t that T!u"#t ?!"ld Se"(*e, In*. a# the le##eena&ed n the lea#e *!n-t"a*t dd n!t a**!"d t anyauth!"ty t! te"&nate that *!nt"a*t th!ut n!t*e t!t# a*tual !**upant, and t! padl!*4 the p"e&#e# n#u*h 'a#h!n. A# th# C!u"t ha# "uled, the pett!ne",$na Se(lla, had a*u"ed a pe"#!nal #ta4e n the%u#ne## t#el', and ne*e##a"ly, n the eup&entpe"tann+ the"et!. Fu"the"&!"e, Se(lla a# n!t a#t"an+e" t! that *!nt"a*t ha(n+ %een epl*tlyna&ed the"en a# a th"d pa"ty n *ha"+e !' "ental

pay&ent# 0#!lda"ly th T!u"#t ?!"ld, In*.. She*!uld n!t %e !u#ted '"!& p!##e##!n a# #u&&a"ly a#!ne !uld eBe*t an nte"l!pe".

The C!u"t # #at#)ed that '"!& the *h"!n*le !' e(ent#, the"e a# ndeed #!&e &ale(!lent de#+n t!put the pett!ne", $na Se(lla, n a %ad l+ht'!ll!n+ d#*l!#u"e# that #he had !"4ed '!" a "(al)"&. T! %e #u"e, the "e#p!ndent *!u"t #pea4# !' alle+ed %u#ne## l!##e# t! Bu#t'y the *l!#u"e :21 %utthe"e # n! *lea" #h!n+ that T!u"#t ?!"ld E"&taG"an*h had n 'a*t #u#taned #u*h "e(e"#e#, let al!ne,the 'a*t that Se(lla had &!!nlt '!" an!the"*!&pany. ?hat the e(den*e d#*l!#e#, !n the !the"hand, # that '!ll!n+ #u*h an n'!"&at!n 0that

Se(lla a# !"4n+ '!" an!the" *!&pany, T!u"#t

?!"ld7# %!a"d !' d"e*t!"# ad!pted t! "e#!lut!n#a%!l#hn+ the !@*e !' 7&ana+e"5 and auth!"n+ the*!"p!"ate #e*"eta"y, the "e#p!ndent El#e! Canla!, t!ee*t the ta4e!(e" !' t# %"an*h !@*e p"!pe"te#. On Janua"y 3, 1962, the p"(ate "e#p!ndent# ended thelea#e !(e" the %"an*h !@*e p"e&#e#, n*dentally,th!ut n!t*e t! he".

It a# !nly !n June , 1962, and a'te" !@*e h!u"#

#+n)*antly, that the E"&ta !@*e a# padl!*4ed,pe"#!nally %y the "e#p!ndent Canla!, !n the p"etetthat t a# ne*e##a"y t! >"!te*t the nte"e#t# !' the T!u"#t ?!"ld Se"(*e. 522 It # #t"an+e ndeed that T!u"#t ?!"ld Se"(*e, In*. dd n!t )nd #u*h a needhen t *an*elled the lea#e )(e &!nth# ea"le". ?hle T!u"#t ?!"ld Se"(*e, In*. !uld n!t p"etend that t#!u+ht t! l!*ate Se(lla t! n'!"& he" !' the *l!#u"e,%ut #u"ely, t a# aa"e that a'te" !@*e h!u"#, #he*!uld n!t ha(e %een anyhe"e nea" the p"e&#e#.Cappn+ the#e #e"e# !' 5!en#(e#,5 t *ut the !@*e7#teleph!ne lne#, pa"alyn+ *!&pletely t# %u#ne##!pe"at!n#, and n the p"!*e##, dep"(n+ Se(llaa"t*pat!n the"en.

Th# *!ndu*t !n the pa"t !' T!u"#t ?!"ld Se"(*e, In*.%et"ay# a #n#te" e!"t t! pun#h Se(ll#a t hadpe"*e(ed t! %e d#l!yalty !n he" pa"t. It # !en#(e,n any e(ent, t! ele&enta"y n!"&# !' Bu#t*e and 'a"play.

?e "ule the"e'!"e, that '!" t# una""anted "e(!*at!n!' the *!nt"a*t !' a+en*y, the p"(ate "e#p!ndent, T!u"#t ?!"ld Se"(*e, In*., #h!uld %e #enten*ed t!pay da&a+e#. =nde" the C(l C!de, &!"al da&a+e#&ay %e aa"ded '!" 5%"ea*he# !' *!nt"a*t he"e thede'endant a*ted ... n %ad 'ath. 2

?e l4e#e *!nde&n T!u"#t ?!"ld Se"(*e, In*. t!pay 'u"the" da&a+e# '!" the &!"al nBu"y d!ne t! $naSe(lla '"!& t# %"aen *!ndu*t #u%#euent t! the*an*ellat!n !' the p!e" !' att!"ney +"anted t! he"!n the auth!"ty !' A"t*le 21 !' the C(l C!de, n"elat!n t! A"t*le 2219 01< the"e!'

ART. 21. Any pe"#!n h! l'ully*au#e# l!## !" nBu"y t! an!the" n a&anne" that # *!nt"a"y t! &!"al#,+!!d *u#t!&# !" pu%l* p!l*y #hall*!&pen#ate the latte" '!" theda&a+e. 2



ART. 2219. M!"al da&a+e# 23 &ay%e "e*!(e"ed n the '!ll!n+ andanal!+!u# *a#e#:

01< A*t# and a*t!n# "e'e"ed nt!a"t*le 21, 26, 2/, 28, 29, 3<, 32,3, and 3;.

The "e#p!ndent, El#e! Canla!, a# a B!nt t!"t'ea#!" #l4e#e he"e%y !"de"ed t! "e#p!nd '!" the #a&eda&a+e# n a #!lda"y *apa*ty.

In#!'a", h!e(e", a# the p"(ate "e#p!ndent,Se+undna N!+ue"a # *!n*e"ned, n! e(den*e ha#%een #h!n that #he had *!nn(ed th T!u"#t ?!"ldSe"(*e, In*. n the d#*!nne*t!n and padl!*4n+n*dent#. She *ann!t the"e'!"e %e held la%le a# a*!t!"t'ea#!".

The C!u"t *!n#de"# the #u&# !' >2;,<<<.<< a# and

'!" &!"al da&a+e#,2 >1<,<<<.<< a# ee&pla"yda&a+e#,23 and >;,<<<.<< a# n!&nal 26 and!"te&pe"ate 2 da&a+e#, t! %e Bu#t, 'a", and "ea#!na%leunde" the *"*u&#tan*e#.

?EREFORE, the De*#!n p"!&ul+ated !n Janua"y23, 19/; a# ell a# the Re#!lut!n ##ued !n July 31,19/;, %y the "e#p!ndent C!u"t !' Appeal# # he"e%yREKERSED and SET ASIDE. The p"(ate "e#p!ndent, T!u"#t ?!"ld Se"(*e, In*., and El#e! Canla!, a"eORDERED B!ntly and #e(e"ally t! nde&n'y thepett!ne", $na Se(lla, the #u& !' 2;,<<.<< a# and '!"&!"al da&a+e#, the #u& !' >1<,<<<.<<, a# and '!"ee&pla"y da&a+e#, and the #u& !' >;,<<<.<<, a#and '!" n!&nal and!" te&pe"ate da&a+e#.

C!#t# a+an#t #ad p"(ate "e#p!ndent#.

SO ORDERED.

$IRST DI'ISION[G.R. No. 11990. !ar7 12, 1998.]INSULAR LI$E ASSURANE O., LTD., *+--on+r,/. NATIONAL LABOR RELATIONS O!!ISSION;$our D-/--on, +<u -y=, LABOR ARBITERNIASIO ". ANINON an) "ANTALEON DE LOSRE(ES, r+*on)+n.

Sy7-* Sa5a>ar #+rnan)+> an) Ga?a-an @or*+--on+r.T+ So5-7-or G+n+ra5 @or r+*on)+n.

D E C I S I O NGE$$OSI$$O, J p:On 1/ June 199 "e#p!ndent $a%!" A"%te" d#&##ed'!" la*4 !' Bu"#d*t!n N$RC RAG-KII Ca#e N!. <3-<3<9-9 )led %y p"(ate "e#p!ndent >antale!n de l!#Reye# a+an#t pett!ne" In#ula" $'e A##u"an*e C!.,$td. 0INS=$AR $IFE, '!" lle+al d#&##al andn!npay&ent !' #ala"e# and %a*4 a+e# a'te" )ndn+n! e&pl!ye"-e&pl!yee "elat!n#hp %eteen De l!#Reye# and pett!ne" INS=$AR $IFE. 1 On appeal %yp"(ate "e#p!ndent, the !"de" !' d#&##al a#"e(e"#ed %y the Nat!nal $a%!" Relat!n# C!&&##!n0N$RC h*h "uled that "e#p!ndent De l!# Reye# a#an e&pl!yee !' pett!ne". 2 >ett!ne"7# &!t!n '!""e*!n#de"at!n ha(n+ %een dened, the N$RC"e&anded the *a#e t! the $a%!" A"%te" '!" hea"n+!n the &e"t#. *dtaSee4n+ "ele' th"!u+h th# #pe*al *(l a*t!n '!"*e"t!"a" th p"aye" '!" a "e#t"ann+ !"de" and!"p"el&na"y nBun*t!n, pett!ne" n! *!&e# t! u#p"ayn+ '!" annul&ent !' the de*#!n !' "e#p!ndentN$RC dated 3 Ma"*h 199; and t# O"de" dated 6 Ap"l199; denyn+ the &!t!n '!" "e*!n#de"at!n !' thede*#!n. It 'ault# N$RC '!" a*tn+ th!ut Bu"#d*t!nand!" th +"a(e a%u#e !' d#*"et!n hen, *!nt"a"yt! e#ta%l#hed 'a*t# and pe"tnent la and Bu"#p"uden*e, t "e(e"#ed the de*#!n !' the $a%!"A"%te" and held n#tead that the *!&plant a#p"!pe"ly )led a# an e&pl!ye"-e&pl!yee "elat!n#hpe#ted %eteen pett!ne" and p"(ate "e#p!ndent.>ett!ne" "ep"#e# the #tand t a##u&ed %el! that tne(e" had any e&pl!ye"-e&pl!yee "elat!n#hp thp"(ate "e#p!ndent, th# %en+ an ep"e## a+"ee&ent%eteen the& n the a+en*y *!nt"a*t#, pa"t*ula"ly"en'!"*ed %y the #tpulat!n the"en that De l!#Reye# a# all!ed d#*"et!n t! de(#e ay# and&ean# t! 'ul)ll h# !%l+at!n# a# a+ent and !uld %epad *!&&##!n 'ee# %a#ed !n h# a*tual !utput. It'u"the" n##t# that the natu"e !' th# !"4 #tatu# a#de#*"%ed n the *!nt"a*t# had al"eady %een #ua"ely

"e#!l(ed %y the C!u"t n the ea"le" *a#e !' In#ula"

$'e A##u"an*e C!., $td. (. N$RC and Ga#a! 3 he"ethe *!&planant the"en, Mele*! Ga#a!, a# #&la"ly#tuated a# "e#p!ndent De l!# Reye# n that he a#app!nted )"#t a# an a+ent and then p"!&!ted a#a+en*y &ana+e", and the *!nt"a*t# unde" h*h hea# app!nted *!ntaned te"&# and *!ndt!n#dent*al t! th!#e !' De l!# Reye#. >ett!ne"*!n*lude# that #n*e Ga#a! a# de*la"ed %y theC!u"t t! %e an ndependent *!nt"a*t!" and n!t ane&pl!yee !' pett!ne", the"e #h!uld %e n! "ea#!n

hy the #tatu# !' De l!# Reye# he"en (#-a-(#pett!ne" #h!uld n!t %e #&la"ly dete"&ned.?e "eBe*t the #u%&##!n# !' pett!ne" and h!ld that"e#p!ndent N$RC a*ted app"!p"ately thn the%!und# !' the la. The "e*!"d# !' the *a#e a"e "epleteth telltale nd*at!"# !' an e#tn+ e&pl!ye"-e&pl!yee "elat!n#hp %eteen the t! pa"te#de#pte "tten *!nt"a*tual d#a(!al#. The#e 'a*t# a"e und#puted: !n 21 Au+u#t 1992pett!ne" ente"ed nt! an a+en*y *!nt"a*t th"e#p!ndent >antale!n de l!# Reye# auth!"n+ thelatte" t! #!l*t thn the >hlppne# appl*at!n# '!"l'e n#u"an*e and annute# '!" h*h he !uld %epad *!&pen#at!n n the '!"& !' *!&&##!n#. The*!nt"a*t a# p"epa"ed %y pett!ne" n t# ent"ety andDe l!# Reye# &e"ely #+ned h# *!n'!"&ty the"et!. It*!ntaned the #tpulat!n that n! e&pl!ye"-e&pl!yee"elat!n#hp #hall %e *"eated %eteen the pa"te# andthat the a+ent #hall %e '"ee t! ee"*#e h# !n Bud+&ent a# t! t&e, pla*e and &ean# !' #!l*tn+n#u"an*e. De l!# Reye# h!e(e" a# p"!h%ted %ypett!ne" '"!& !"4n+ '!" any !the" l'e n#u"an*e*!&pany, and (!lat!n !' th# #tpulat!n a##u@*ent +"!und '!" te"&nat!n !' the *!nt"a*t. A#de'"!& #!l*tn+ n#u"an*e '!" the pett!ne", p"(ate"e#p!ndent a# "eu"ed t! #u%&t t! the '!"&e" all*!&pleted appl*at!n# '!" n#u"an*e thn nnety09< *!n#e*ut(e day#, del(e" p!l*e#, "e*e(e and*!lle*t ntal p"e&u&# and %alan*e# !' )"#t yea"p"e&u&#, "eneal p"e&u&#, dep!#t# !nappl*at!n# and pay&ent# !n p!l*y l!an#. >"(ate"e#p!ndent a# al#! %!und t! tu"n !(e" t! the*!&pany &&edately any and all #u&# !' &!ney*!lle*ted %y h&. In a "tten *!&&un*at!n %ypett!ne" t! "e#p!ndent De l!# Reye#, the latte" a#u"+ed t! "e+#te" th the S!*al Se*u"ty Sy#te& a# a#el'-e&pl!yed nd(dual a# p"!(ded unde" >D N!.1636. ;On 1 Ma"*h 1993 pett!ne" and p"(ate "e#p!ndentente"ed nt! an!the" *!nt"a*t 6 he"e the latte" a#app!nted a# A*tn+ =nt Mana+e" unde" t# !@*e the Ce%u DSO K 01;/. A# #u*h, the dute# and"e#p!n#%lte# !' De l!# Reye# n*luded the"e*"ut&ent, t"ann+, !"+anat!n and de(el!p&ent

thn h# de#+nated te""t!"y !' a #u@*ent nu&%e"



!' ual)ed, *!&petent and t"u#t!"thy unde""te"#,and t! #upe"(#e and *!!"dnate the #ale# e!"t# !' the unde""te"# n the a*t(e #!l*tat!n !' ne%u#ne## and n the 'u"the"an*e !' the a+en*y7#a##+ned +!al#. It a# #&la"ly p"!(ded n the&ana+e&ent *!nt"a*t that the "elat!n !' the a*tn+unt &ana+e" and!" the a+ent# !' h# unt t! the*!&pany #hall %e that !' ndependent *!nt"a*t!". I' the app!nt&ent a# te"&nated '!" any "ea#!n !the"than '!" *au#e, the a*tn+ unt &ana+e" !uld %e

"e(e"ted t! a+ent #tatu# and a##+ned t! any unt. A#n the p"e(!u# a+en*y *!nt"a*t, De l!# Reye#t!+ethe" th h# unt '!"*e a# +"anted '"eed!& t!ee"*#e Bud+&ent a# t! t&e, pla*e and &ean# !' #!l*tn+ n#u"an*e. A#de '"!& %en+ +"anted!(e""de *!&&##!n#, the a*tn+ unt &ana+e" a#+(en p"!du*t!n %!nu#, de(el!p&ent all!an*e anda unt de(el!p&ent )nan*n+ #*he&e euphe&#t*allyte"&ed 5)nan*al a###tan*e5 *!n##tn+ !' pay&entt! h& !' a '"ee p!"t!n !' >3<<.<< pe" &!nth and a(aldate p!"t!n !' >1,2<<.<<. ?hle the latte" a&!unta# dee&ed a# an ad(an*e a+an#t epe*ted*!&&##!n#, the '!"&e" a# n!t and !uld %e '"eely+(en t! the unt &ana+e" %y the *!&pany !nly up!n'ul)ll&ent %y h& !' *e"tan &anp!e" and p"e&u&u!ta "eu"e&ent#. The a+ent# and unde""te"#"e*"uted and t"aned %y the a*tn+ unt &ana+e"!uld %e atta*hed t! the unt %ut pett!ne" "e#e"(edthe "+ht t! dete"&ne ' #u*h a##+n&ent !uld %e,&ade !", '!" any "ea#!n, t! "ea##+n the& el#ehe"e.A#de '"!& #!l*tn+ n#u"an*e, De l!# Reye# a# al#!ep"e##ly !%l+ed t! pa"t*pate n the *!&pany7#*!n#e"(at!n p"!+"a&, .e., p"e#e"(at!n and&antenan*e !' e#tn+ n#u"an*e p!l*e#, and t!a**ept &!ney# duly "e*epted !n a+ent7# "e*ept#p"!(ded the #a&e e"e tu"ned !(e" t! the *!&pany.A# l!n+ a# he a# unt &ana+e" n an a*tn+ *apa*ty,De l!# Reye# a# p"!h%ted '"!& !"4n+ '!" !the"l'e n#u"an*e *!&pane# !" th the +!(e"n&ent. e*!uld n!t al#! a**ept a &ana+e"al !" #upe"(#!"yp!#t!n n any )"& d!n+ %u#ne## n the >hlppne#th!ut the "tten *!n#ent !' pett!ne".>"(ate "e#p!ndent !"4ed *!n*u""ently a# a+ent andA*tn+ =nt Mana+e" untl he a# n!t)ed %ypett!ne" !n 18 N!(e&%e" 1993 that h# #e"(*e#e"e te"&nated ee*t(e 18 De*e&%e" 1993. On /Ma"*h 199 he )led a *!&plant %e'!"e the $a%!"A"%te" !n the +"!und that he a# lle+ally d#&##edand that he a# n!t pad h# #ala"e# and #epa"at!npay.>ett!ne" )led a &!t!n t! d#&## the *!&plant !' De l!# Reye# '!" la*4 !' Bu"#d*t!n, *tn+ thea%#en*e !' e&pl!ye"-e&pl!yee "elat!n#hp. It"ea#!ned !ut that %a#ed !n the *"te"a '!"

dete"&nn+ the e#ten*e !' #u*h "elat!n#hp !" the

#!-*alled 5'!u"-'!ld te#t,5 .e., 0a #ele*t!n anden+a+e&ent !' e&pl!yee, 0% pay&ent !' a+e#, 0*p!e" !' d#&##al, and, 0d p!e" !' *!nt"!l, De l!#Reye# a# n!t an e&pl!yee %ut an ndependent*!nt"a*t!".On 1/ June 199 the &!t!n !' pett!ne" a#+"anted %y the $a%!" A"%te" and the *a#e a#d#&##ed !n the +"!und that the ele&ent !' *!nt"!la# n!t #u@*ently e#ta%l#hed #n*e the "ule# and+udelne# #et %y pett!ne" n t# a+en*y a+"ee&ent

th "e#p!ndent De l!# Reye# e"e '!"&ulated !nlyt! a*he(e the de#"ed "e#ult th!ut d*tatn+ the&ean# !" &eth!d# !' attann+ t.Re#p!ndent N$RC h!e(e" app"e*ated the e(den*e'"!& a de"ent pe"#pe*t(e. It dete"&ned that"e#p!ndent De l!# Reye# a# unde" the ee*t(e*!nt"!l !' pett!ne" n the *"t*al and &!#t&p!"tant a#pe*t# !' h# !"4 a# =nt Mana+e". Th#*!n*lu#!n a# de"(ed '"!& the p"!(#!n# n the*!nt"a*t h*h app!nted p"(ate "e#p!ndent a#A*tn+ =nt Mana+e", t! t: 0a De l!# Reye# a# t!#e"(e e*lu#(ely the *!&pany, the"e'!"e, he a# n!tan ndependent *!nt"a*t!" 0% he a# "eu"ed t!&eet *e"tan &anp!e" and p"!du*t!n u!ta and,0* pett!ne" *!nt"!lled the a##+n&ent t! and"e&!(al !' #!l*tn+ a+ent# '"!& h# unt. The N$RC al#! t!!4 nt! a**!unt !the" *"*u&#tan*e##h!n+ that pett!ne" ee"*#ed e&pl!ye"7#p"e"!+at(e# !(e" De l!# Reye#, e.+., 0a l&tn+ the!"4 !' "e#p!ndent De l!# Reye# t! #elln+ a l'en#u"an*e p!l*y 4n!n a# 5Sala"y Dedu*t!nIn#u"an*e5, !nly t! &e&%e"# !' the >hlppneNat!nal >!l*e, pu%l* and p"(ate #*h!!l tea*he"#and !the" e&pl!yee# !' p"(ate *!&pane# 0%a##+nn+ p"(ate "e#p!ndent t! a pa"t*ula" pla*eand ta%le he"e he !"4ed hene(e" he a# n!t nthe )eld 0* payn+ p"(ate "e#p!ndent du"n+ thepe"!d !' tel(e 012 &!nth# !' h# app!nt&ent a#A*tn+ =nt Mana+e" the a&!unt !' >1,;<<.<< a# =ntDe(el!p&ent Fnan*n+ !' h*h 2< '!"&ed h##ala"y and the "e#t, .e., 8<, a# ad(an*e !' h#epe*ted *!&&##!n# and, 0d p"!&#n+ that up!n*!&plet!n !' *e"tan "eu"e&ent#, he !uld %ep"!&!ted t! =nt Mana+e" th the "+ht !' pett!ne"t! "e(e"t h& t! a+ent #tatu# hen a""anted.>a"enthet*ally, %!th pett!ne" and "e#p!ndent N$RCt"eated the a+en*y *!nt"a*t and the &ana+e&ent*!nt"a*t ente"ed nt! %eteen pett!ne" and De l!#Reye# a# *!nt"a*t# !' a+en*y. ?e h!e(e" h!ld!the"#e. =nue#t!na%ly the"e e#t &aB!"d#tn*t!n# %eteen the t! a+"ee&ent#. ?hle the)"#t ha# the ea"&a"4# !' an a+en*y *!nt"a*t, the#e*!nd # 'a" "e&!(ed '"!& the *!n*ept !' a+en*y nthat p"!(ded the"en a"e *!ndt!nalte# that

nd*ate an e&pl!ye"-e&pl!yee "elat!n#hp. The

N$RC the"e'!"e a# *!""e*t n )ndn+ that p"(ate"e#p!ndent a# an e&pl!yee !' pett!ne", %ut th#h!ld# t"ue !nly n#!'a" a# the &ana+e&ent *!nt"a*t #*!n*e"ned. In (e the"e!', the $a%!" A"%te" ha# Bu"#d*t!n !(e" the *a#e.It # a!&at* that the e#ten*e !' an e&pl!ye"-e&pl!yee "elat!n#hp *ann!t %e ne+ated %yep"e##ly "epudatn+ t n the &ana+e&ent *!nt"a*tand p"!(dn+ the"en that the 5e&pl!yee5 # anndependent *!nt"a*t!" hen the te"&# !' the

a+"ee&ent *lea"ly #h! !the"#e. F!", thee&pl!y&ent #tatu# !' a pe"#!n # de)ned andp"e#*"%ed %y la and n!t %y hat the pa"te# #ay t#h!uld %e. / In dete"&nn+ the #tatu# !' the&ana+e&ent *!nt"a*t, the 5'!u"-'!ld te#t5 !ne&pl!y&ent ea"le" &ent!ned ha# t! %e appled.>ett!ne" *!ntend# that De l!# Reye# a# ne(e""eu"ed t! +! th"!u+h the p"e-e&pl!y&entp"!*edu"e# and that the p"!%at!na"y e&pl!y&ent#tatu# a# "e#e"(ed !nly t! e&pl!yee# !' pett!ne".On th# #*!"e, t n##t# that the )"#t "eu"e&ent !' #ele*t!n and en+a+e&ent !' the e&pl!yee a# n!t&et. *dtaA l!!4 at the p"!(#!n# !' the *!nt"a*t #h!# thatp"(ate "e#p!ndent a# app!nted a# A*tn+ =ntMana+e" !nly up!n "e*!&&endat!n !' the D#t"*tMana+e". 8 Th# nd*ate# that p"(ate "e#p!ndent a#h"ed %y pett!ne" %e*au#e !' the 'a(!"a%leend!"#e&ent !' t# duly auth!"ed !@*e". Gut, th#app"!%at!n *!uld !nly ha(e %een %a#ed !n thepe"'!"&an*e !' De l!# Reye# a# a+ent unde" thea+en*y *!nt"a*t #! that the"e *an %e n! !the"*!n*lu#!n a""(ed unde" th# p"e&#e than the 'a*tthat the a+en*y !" unde""te" pha#e !' the"elat!n#hp !' De l!# Reye# th pett!ne" a#n!thn+ &!"e than a t"al !" p"!%at!na"y pe"!d '!"h# e(entual app!nt&ent a# A*tn+ =nt Mana+e" !' pett!ne". Then, a+an, the (e"y de#+nat!n !' theapp!nt&ent !' p"(ate "e#p!ndent a# 5a*tn+5 unt&ana+e" !%(!u#ly &ple# a te&p!"a"y e&pl!y&ent#tatu# h*h &ay %e &ade pe"&anent !nly up!n*!&plan*e th *!&pany #tanda"d# #u*h a# th!#eenu&e"ated unde" Se*. 6 !' the &ana+e&ent*!nt"a*t. 9On the &atte" !' pay&ent !' a+e#, pett!ne" p!nt#!ut that "e#p!ndent a# *!&pen#ated #t"*tly !n*!&&##!n %a##, the a&!unt !' h*h a# t!tallydependent !n h# t!tal !utput. Gut, the &ana+e"7#*!nt"a*t, #pea4# de"ently. Thu# . >e"'!"&an*e Reu"e&ent#. T! &antany!u" app!nt&ent a# A*tn+ =nt Mana+e" y!u &u#t&eet the '!ll!n+ &anp!e" and p"!du*t!n"eu"e&ent#:ua"te" A*t(e Calenda" Lea"

>"!du*t!n A+ent# Cu&ulat(e FL>



>"!du*t!n1#t 2 >12;,<<<2nd 3 2;<,<<<3"d 3/;,<<<th ; ;<<,<<<;.. =nt De(el!p&ent Fnan*n+ 0=DF. A# anA*tn+ =nt Mana+e" y!u #hall %e +(en du"n+ the)"#t 12 &!nth# !' y!u" app!nt&ent a )nan*ala###tan*e h*h # *!&p!#ed !' t! pa"t#:;..1 F"ee >!"t!n a&!untn+ t! >3<< pe" &!nth,

#u%Be*t t! y!u" &eetn+ p"e#*"%ed &n&u&pe"'!"&an*e "eu"e&ent !n &anp!e" and p"e&u&p"!du*t!n. The '"ee p!"t!n # n!t paya%le %y y!u.;..2 Kaldate >!"t!n a&!untn+ t! >1,2<< pe"&!nth, al#! #u%Be*t t! &eetn+ the #a&e p"e#*"%ed&n&u& pe"'!"&an*e "eu"e&ent# !n &anp!e"and p"e&u& p"!du*t!n. The (aldated p!"t!n # anad(an*e a+an#t epe*ted *!&pen#at!n du"n+ the=DF pe"!d and the"ea'te" a# &ay %e ne*e##a"y. The a%!(e p"!(#!n# unue#t!na%ly de&!n#t"atethat the pe"'!"&an*e "eu"e&ent &p!#ed !n De l!#Reye# a# appl*a%le ua"te"ly hle h# enttle&entt! the '"ee p!"t!n 0>3<< and the (aldated p!"t!n0>1,2<< a# &!nthly #ta"tn+ !n the )"#t &!nth !' the tel(e 012 &!nth# !' the app!nt&ent. Thu#, tha# t! %e ad&tted that e(en %e'!"e the end !' the)"#t ua"te" and p"!" t! the #!-*alled ua"te"lype"'!"&an*e e(aluat!n, p"(ate "e#p!ndent a#al"eady enttled t! %e pad %!th the '"ee and (aldatedp!"t!n# !' the =DF e(e"y &!nth %e*au#e h#p"!du*t!n pe"'!"&an*e *!uld n!t %e dete"&neduntl a'te" the lap#e !' the ua"te" n(!l(ed. Th#nd*ate# ute *lea"ly that the unt &ana+e"7#ua"te"ly pe"'!"&an*e had n! %ea"n+ at all !n h#enttle&ent at lea#t t! the '"ee p!"t!n !' the =DFh*h '!" all ntent# and pu"p!#e# *!&p"#ed the#ala"y "e+ula"ly pad t! h& %y pett!ne". Thu# t*ann!t %e (aldly *la&ed that the )nan*al a###tan*e*!n##tn+ !' the '"ee p!"t!n !' the =DF a# pu"elydependent !n the p"e&u& p"!du*t!n !' the a+ent.Ge that a# t &ay, t # !"th *!n#de"n+ that thepay&ent !' *!&pen#at!n %y ay !' *!&&##!n d!e#n!t &ltate a+an#t the *!n*lu#!n that p"(ate"e#p!ndent a# an e&pl!yee !' pett!ne". =nde" A"t.9/ !' the $a%!" C!de, 5a+e5 #hall &ean 5h!e(e"de#+nated, *apa%le !' %en+ ep"e##ed n te"&# !' &!ney, hethe" )ed !" a#*e"taned !n a t&e, ta#4,p"*e !" *!&&##!n %a## . . . 5 1<A# t! the &atte" n(!l(n+ the p!e" !' d#&##al and*!nt"!l %y the e&pl!ye", the latte" !' h*h # the&!#t &p!"tant !' the te#t, pett!ne" a##e"t# that t#te"&nat!n !' De l!# Reye# a# %ut an ee"*#e !' t#nhe"ent "+ht a# p"n*pal unde" the *!nt"a*t# andthat the "ule# and +udelne# t #et '!"th n the

*!nt"a*t *ann!t, %y any #t"et*h !' the &a+nat!n, %e

dee&ed a# an ee"*#e !' *!nt"!l !(e" the p"(ate"e#p!ndent a# the#e e"e &e"ely d"e*t(e# that)ed the de#"ed "e#ult th!ut d*tatn+ the &ean#!" &eth!d t! %e e&pl!yed n attann+ t. The'!ll!n+ 'a*tual )ndn+# !' the N$RC 11 h!e(e"*!nt"ad*t #u*h *la&#:A pe"u#al !' the app!nt&ent !' *!&planant a#A*tn+ =nt Mana+e" "e(eal# that:1. C!&planant a# t! 5e*lu#(ely5 #e"(e"e#p!ndent *!&pany. Thu# t # p"!(ded: . . . /../

Othe" *au#e# !' Te"&nat!n: Th# app!nt&ent &ayl4e#e %e te"&nated '!" any !' the '!ll!n+*au#e#: . . . /../..2. L!u" ente"n+ the #e"(*e !' the+!(e"n&ent !" an!the" l'e n#u"an*e *!&pany/../..3. L!u" a**eptn+ a &ana+e"al !" #upe"(#!"yp!#t!n n any )"& d!n+ %u#ne## n the >hlppne#th!ut the "tten *!n#ent !' the C!&pany . . .2. C!&planant a# "eu"ed t! &eet *e"tan&anp!e" and p"!du*t!n u!ta#.3. Re#p!ndent 0he"en pett !ne" *!nt"!lledthe a##+n&ent and "e&!(al !' #!l*tn+ a+ent# t!and '"!& *!&planant7# unt, thu#: . . . /..2.A##+n&ent !' A+ent#: A+ent# "e*"uted and t"aned%y y!u #hall %e atta*hed t! y!u" unt unle## '!""ea#!n# !' C!&pany p!l*y, n! #u*h a##+n&ent#h!uld %e &ade. The C!&pany "etan# the e*lu#(e"+ht t! a##+n ne #!l*tn+ a+ent# t! the unt. It #a+"eed that the C!&pany &ay "e&!(e !" t"an#'e"any #!l*tn+ a+ent# app!nted and a##+ned t! the#ad unt . . .

It !uld n!t %e a&## t! #tate that "e#p!ndent7# dutyt! *!lle*t the *!&pany7# p"e&u&# u#n+ *!&pany"e*ept# unde" Se*. /. !' the &ana+e&ent *!nt"a*t# 'u"the" e(den*e !' pett!ne"7# *!nt"!l !(e""e#p!ndent, thu#: /.. A**eptan*e and Re&ttan*e !' >"e&u&#. . . . the C!&pany he"e%y auth!"e# y!u t! a**eptand t! "e*e(e #u&# !' &!ney n pay&ent !' p"e&u&#, l!an#, dep!#t# !n appl*at!n#, th !"th!ut nte"e#t, due '"!& p!l*yh!lde"# andappl*ant# '!" n#u"an*e, and the l4e, #pe*ally '"!&p!l*yh!lde"# !' %u#ne## #!l*ted and #!ld %y thea+ent# atta*hed t! y!u" unt p"!(ded h!e(e", thatall #u*h pay&ent# #hall %e duly "e*epted %y y!u !nthe *!""e#p!ndn+ C!&pany7# 5A+ent#7 Re*ept5 t! %ep"!(ded y!u '!" th# pu"p!#e and t! %e *!(e"ed %y#u*h "ule# and a**!untn+ "e+ulat!n# the C!&pany&ay ##ue '"!& t&e t! t&e !n the &atte". >ay&ent#"e*e(ed %y y!u #hall %e tu"ned !(e" t! theC!&pany7# de#+nated D#t"*t !" Se"(*e O@*e *le"4!" d"e*tly t! the !&e O@*e n!t late" than the net!"4n+ day '"!& "e*ept the"e!' . . .

>ett!ne" !uld ha(e u# apply !u" "uln+ n In#ula"$'e A##u"an*e C!., $td. (. N$RC and Ga#a! 12 t! then#tant *a#e unde" the d!*t"ne !' #ta"e de*##,p!#tulatn+ that %!th *a#e# n(!l(e pa"te# #&la"ly#tuated and 'a*t# h*h a"e al&!#t dent*al.Gut e a"e n!t *!n(n*ed that the *ted *a#e # !n all'!u"# th the *a#e at %a". In Ga#a!, the a+ent a#app!nted A+en*y Mana+e" unde" an A+en*y Mana+e"C!nt"a*t. T! &ple&ent h# end !' the a+"ee&ent,Mele*! Ga#a! !"+aned an a+en*y !@*e t! h*h

he +a(e the na&e M. Ga#a! and A##!*ate#. TheA+en*y Mana+e" C!nt"a*t p"a*t*ally *!ntaned the#a&e te"&# and *!ndt!n# a# the A+en*y C!nt"a*tea"le" ente"ed nt!, and the C!u"t !%#e"(ed that5d"an '"!& the te"&# !' the *!nt"a*t they hadente"ed nt!, 0h*h ethe" ep"e##ly !" %y ne*e##a"y&pl*at!n, Ga#a! 0a# &ade the &a#te" !' h# !nt&e and #elln+ &eth!d#, le't t! h# !n Bud+&entthe t&e, pla*e and &ean# !' #!l*tn+ n#u"an*e, #etn! a**!&pl#h&ent u!ta# and *!&pen#ated h& !nthe %a#e# !' "e#ult# !%taned. e a# n!t %!und t!!%#e"(e any #*hedule !' !"4n+ h!u"# !" "ep!"t t!any "e+ula" #tat!n he *!uld #ee4 and !"4 !n h#p"!#pe*t# anyhe"e and at anyt&e he *h!#e t! anda# '"ee t! ad!pt the #elln+ &eth!d# he dee&ed&!#t ee*t(e.5 =p!n the#e p"e&#e#, Ga#a! a#*!n#de"ed a# a+ent an ndependent *!nt"a*t!" !' pett!ne" INS=$AR $IFE.=nl4e Ga#a!, he"en "e#p!ndent De l!# Reye# a#app!nted A*tn+ =nt Mana+e", n!t a+en*y &ana+e". The"e # n! e(den*e that t! &ple&ent h# !%l+at!n#unde" the &ana+e&ent *!nt"a*t, De l!# Reye# had!"+aned an !@*e. >ett!ne" n 'a*t ha# ad&ttedthat t p"!(ded De l!# Reye# a pla*e and a ta%le at t#!@*e he"e he "ep!"ted '!" and !"4ed hene(e" hea# n!t !ut n the )eld. >la*ed unde" pett!ne"7#Ce%u D#t"*t Se"(*e O@*e, the unt a# +(en ana&e %y pett!ne" De l!# Reye# and A##!*ate# and a##+ned C!de N!. 11/;3 and Re*"ut&ent N!.1<9398. =nde" the &ana+e"#hp *!nt"a*t, De l!#Reye# a# !%l+ed t! !"4 e*lu#(ely '!" pett!ne" nl'e n#u"an*e #!l*tat!n and a# &p!#ed p"e&u&p"!du*t!n u!ta#. O' *!u"#e, the a*tn+ unt &ana+e"*!uld n!t unde""te !the" lne# !' n#u"an*e %e*au#eh# >e"&anent Ce"t)*ate !' Auth!"ty a# '!" l'en#u"an*e !nly and '!" n! !the". e a# p"!#*"%ed'"!& a**eptn+ a &ana+e"al !" #upe"(#!"y p!#t!nn any !the" !@*e n*ludn+ the +!(e"n&ent th!utthe "tten *!n#ent !' pett!ne". De l!# Reye# *!uld!nly %e p"!&!ted t! pe"&anent unt &ana+e" ' he&et *e"tan "eu"e&ent# and h# p"!&!t!n a#"e*!&&ended %y the pett!ne"7# D#t"*t Mana+e"and Re+!nal Mana+e" and app"!(ed %y t# D(#!nMana+e". A# A*tn+ =nt Mana+e", De l!# Reye#

pe"'!"&ed 'un*t!n# %ey!nd &e"e #!l*tat!n !'



n#u"an*e %u#ne## '!" pett!ne". A# '!und %y theN$RC, he ee"*#ed ad&n#t"at(e 'un*t!n# h*he"e ne*e##a"y and %ene)*al t! the %u#ne## !' INS=$AR $IFE.In "eat >a*)* $'e In#u"an*e C!&pany (. N$RC 13h*h # *l!#e" n appl*at!n than Ga#a! t! th#p"e#ent *!nt"!(e"#y, e '!und that 5the "elat!n#hp#!' the Ru %"!the"# and "epal'e e"e th!#e !' e&pl!ye"-e&pl!yee. F"#t, the" !"4 at the t&e !' the" d#&##al a# !ne #upe"(#!" and d#t"*t

&ana+e" a# ne*e##a"y and de#"a%le t! the u#ual%u#ne## !' the n#u"an*e *!&pany. They e"eent"u#ted th #upe"(#!"y, #ale# and !the" 'un*t!n#t! +ua"d "epal'e7# %u#ne## nte"e#t# and t! %"n+ n&!"e *lent# t! the *!&pany, and e(en thad&n#t"at(e 'un*t!n# t! en#u"e that all *!lle*t!n#,"ep!"t# and data a"e 'ath'ully %"!u+ht t! the*!&pany . . . A *u"#!"y "eadn+ !' the" "e#pe*t(e'un*t!n# a# enu&e"ated n the" *!nt"a*t# "e(eal#that the *!&pany p"a*t*ally d*tate# the &anne" %yh*h the" B!%# a"e t! %e *a""ed !ut . . . 5 ?e needela%!"ate n! 'u"the".E*lu#(ty !' #e"(*e, *!nt"!l !' a##+n&ent# and"e&!(al !' a+ent# unde" p"(ate "e#p!ndent7# unt,*!lle*t!n !' p"e&u&#, 'u"n#hn+ !' *!&pany'a*lte# and &ate"al# a# ell a# *aptal de#*"%ed a#=nt De(el!p&ent Fund a"e %ut hall&a"4# !' the&ana+e&ent #y#te& n h*h he"en p"(ate"e#p!ndent !"4ed. Th# !%tann+, the"e # n!e#*apn+ the *!n*lu#!n that p"(ate "e#p!ndent>antale!n de l!# Reye# a# an e&pl!yee !' he"enpett!ne".?EREFORE, the pett!n !' In#ula" $'e A##u"an*eC!&pany, $td., # DENIED and the De*#!n !' theNat!nal $a%!" Relat!n# C!&&##!n dated 3 Ma"*h199; and t# O"de" !' 6 Ap"l 1996 #u#tann+ t a"eAFFIRMED. $et th# *a#e %e REMANDED t! the $a%!"A"%te" a u! h! # d"e*ted t! hea" and d#p!#e !' th# *a#e th del%e"ate d#pat*h n l+ht !' the (e#ep"e##ed he"en. *daSO ORDERED.

[G.R. No. 1008. Auu 1, 2006.]ANGELINA $RANISO, *+--on+r, /. NATIONALLABOR RELATIONS O!!ISSION, ASEIOR"ORATION, SEII#IRO TAA#AS#I, TI!OTEOAEDO, DEL$IN LI%A, IRENE BALLESTEROS,TRINIDAD LI%A an) RA!ON ESUETA,r+*on)+n.

D E C I S I O N LNARES-SANTIAO, J p: Th# pett!n '!" "e(e !n *e"t!"a" unde" Rule ; !' the Rule# !' C!u"t #ee4# t! annul and #et a#de theDe*#!n and Re#!lut!n !' the C!u"t !' Appeal# datedO*t!%e" 29, 2<< 1 and O*t!%e" /, 2<<;, 2"e#pe*t(ely, n CA-.R. S> N!. /8;1; d#&##n+ the*!&plant '!" *!n#t"u*t(e d#&##al )led %y he"enpett!ne" An+elna F"an*#*!. The appellate *!u"t"e(e"#ed and #et a#de the De*#!n !' the Nat!nal$a%!" Relat!n# C!&&##!n 0N$RC dated Ap"l 1;,2<<3, 3 n N$RC NCR CA N!. <32/66-<2 h*ha@"&ed th &!d)*at!n the de*#!n !' the $a%!"A"%te" dated July 31, 2<<2, n N$RC-NCR Ca#e N!.3<-1<-<-89-<1, )ndn+ that p"(ate "e#p!ndent# e"ela%le '!" *!n#t"u*t(e d#&##al. I*DaTIn 199;, pett!ne" a# h"ed %y Qa#e C!"p!"at!ndu"n+ t# n*!"p!"at!n #ta+e. She a# de#+nated a#A**!untant and C!"p!"ate Se*"eta"y and a#a##+ned t! handle all the a**!untn+ need# !' the*!&pany. She a# al#! de#+nated a# $a#!n O@*e"t! the Cty !' Ma4at t! #e*u"e %u#ne## pe"&t#,*!n#t"u*t!n pe"&t# and !the" l*en#e# '!" the ntal!pe"at!n !' the *!&pany. ;Alth!u+h #he a# de#+nated a# C!"p!"ate Se*"eta"y,#he a# n!t ent"u#ted th the *!"p!"ate d!*u&ent#nethe" dd #he attend any %!a"d &eetn+ n!""eu"ed t! d! #!. She ne(e" p"epa"ed any le+ald!*u&ent and ne(e" "ep"e#ented the *!&pany a# t#C!"p!"ate Se*"eta"y. !e(e", !n #!&e !**a#!n#,#he a# p"e(aled up!n t! #+n d!*u&entat!n '!" the

*!&pany. 6



In 1996, pett!ne" a# de#+nated A*tn+ Mana+e". The *!"p!"at!n al#! h"ed e""y Nn! a# a**!untantn leu !' pett!ne". A# A*tn+ Mana+e", pett!ne" a#a##+ned t! handle "e*"ut&ent !' all e&pl!yee# andpe"'!"& &ana+e&ent ad&n#t"at!n 'un*t!n#"ep"e#ent the *!&pany n all dealn+# th+!(e"n&ent a+en*e#, e#pe*ally th the Gu"eau !' Inte"nal Re(enue 0GIR, S!*al Se*u"ty Sy#te& 0SSSand n the *ty +!(e"n&ent !' Ma4at and t!ad&n#te" all !the" &atte"# pe"tann+ t! the

!pe"at!n !' Qa#e Re#tau"ant h*h # !ned and!pe"ated %y Qa#e C!"p!"at!n. /F!" )(e yea"#, pett!ne" pe"'!"&ed the dute# !' A*tn+ Mana+e". A# !' De*e&%e" 31, 2<<< he" #ala"ya# >2/,;<<.<< plu# >3,<<<.<< h!u#n+ all!an*eand a 1< #ha"e n the p"!)t !' Qa#e C!"p!"at!n. 8In Janua"y 2<<1, pett!ne" a# "epla*ed %y $a R.Fuente# a# Mana+e". >ett!ne" alle+ed that #he a#"eu"ed t! #+n a p"epa"ed "e#!lut!n '!" he""epla*e&ent %ut #he a# a##u"ed that #he !uld #tll%e *!nne*ted th Qa#e C!"p!"at!n. T&!te! A*ed!,the de#+nated T"ea#u"e", *!n(ened a &eetn+ !' alle&pl!yee# !' Qa#e C!"p!"at!n and ann!un*ed thatn!thn+ had *han+ed and that pett!ne" a# #tll*!nne*ted th Qa#e C!"p!"at!n a# Te*hn*alA###tant t! SeB Qa&u"a and n *ha"+e !' all GIR&atte"#. 9 The"ea'te", Qa#e C!"p!"at!n "edu*ed he" #ala"y %y>2,;<<.<< a &!nth %e+nnn+ Janua"y up t!Septe&%e" 2<<1 '!" a t!tal "edu*t!n !' >22,;<<.<<a# !' Septe&%e" 2<<1. >ett!ne" a# n!t pad he"&d-yea" %!nu# alle+edly %e*au#e the *!&pany a#n!t ea"nn+ ell. On O*t!%e" 2<<1, pett!ne" dd n!t"e*e(e he" #ala"y '"!& the *!&pany. She &ade"epeated '!ll!-up# th the *!&pany *a#he" %ut #hea# ad(#ed that the *!&pany a# n!t ea"nn+ ell.1<On O*t!%e" 1;, 2<<1, pett!ne" a#4ed '!" he" #ala"y'"!& A*ed! and the "e#t !' the !@*e"# %ut #he a#n'!"&ed that #he # n! l!n+e" *!nne*ted th the*!&pany. 11Sn*e #he a# n! l!n+e" pad he" #ala"y, pett!ne" ddn!t "ep!"t '!" !"4 and )led an a*t!n '!" *!n#t"u*t(ed#&##al %e'!"e the la%!" a"%te". EASaD>"(ate "e#p!ndent# a(e""ed that pett!ne" # n!t ane&pl!yee !' Qa#e C!"p!"at!n. They alle+ed thatpett!ne" a# h"ed n 199; a# !ne !' t# te*hn*al*!n#ultant# !n a**!untn+ &atte"# and a*t*!n*u""ently a# C!"p!"ate Se*"eta"y. A# te*hn*al*!n#ultant, pett!ne" pe"'!"&ed he" !"4 at he" !nd#*"et!n th!ut *!nt"!l and #upe"(#!n !' Qa#eC!"p!"at!n. >ett!ne" had n! daly t&e "e*!"d and#he *a&e t! the !@*e any t&e #he anted. The*!&pany ne(e" nte"'e"ed th he" !"4 e*ept that

'"!& t&e t! t&e, the &ana+e&ent !uld a#4 he"

!pn!n !n &atte"# "elatn+ t! he" p"!'e##!n.>ett!ne" dd n!t +! th"!u+h the u#ual p"!*edu"e !' #ele*t!n !' e&pl!yee#, %ut he" #e"(*e# e"een+a+ed th"!u+h a G!a"d Re#!lut!n de#+natn+ he"a# te*hn*al *!n#ultant. The &!ney "e*e(ed %ypett!ne" '"!& the *!"p!"at!n a# he" p"!'e##!nal'ee #u%Be*t t! the 1< epanded thh!ldn+ ta !np"!'e##!nal#, and that #he a# n!t !ne !' th!#e"ep!"ted t! the GIR !" SSS a# !ne !' the *!&pany7#e&pl!yee#. 12

>ett!ne"7# de#+nat!n a# te*hn*al *!n#ultantdepended #!lely up!n the ll !' &ana+e&ent. A##u*h, he" *!n#ultan*y &ay %e te"&nated any t&e*!n#de"n+ that he" #e"(*e# e"e !nly te&p!"a"y nnatu"e and dependent !n the need# !' the*!"p!"at!n. T! p"!(e that pett!ne" a# n!t an e&pl!yee !' the*!"p!"at!n, p"(ate "e#p!ndent# #u%&tted a l#t !' e&pl!yee# '!" the yea"# 1999 and 2<<< duly"e*e(ed %y the GIR #h!n+ that pett!ne" a# n!ta&!n+ the e&pl!yee# "ep!"ted t! the GIR, a# ell a#a l#t !' payee# #u%Be*t t! epanded thh!ldn+ tah*h n*luded pett!ne". SSS "e*!"d# e"e al#!#u%&tted #h!n+ that pett!ne"7# late#t e&pl!ye"a# SeB C!"p!"at!n. 13 The $a%!" A"%te" '!und that pett!ne" a# lle+allyd#&##ed, thu#:?EREFORE, p"e&#e# *!n#de"ed, Bud+&ent #he"e%y "ende"ed a# '!ll!#:1. )ndn+ *!&planant an e&pl!yee !' "e#p!ndent *!"p!"at!n2. de*la"n+ *!&planant7# d#&##al a# lle+al3. !"de"n+ "e#p!ndent# t! "en#tate*!&planant t! he" '!"&e" p!#t!n th!ut l!## !' #en!"ty "+ht# and B!ntly and #e(e"ally pay*!&planant he" &!ney *la&# n a**!"dan*e ththe '!ll!n+ *!&putat!n:a. Ga*4a+e# 1<2<<1 </2<<2

2/;,<<<.<<02/,;<< 1< &!#.

%. Sala"y De"ental# 0<12<<1 <92<<122,;<<.<<

*. !u#n+ A ll!an*e 0<12<<1 </2<<2;/,<<<.<<

d. Mdyea" G!nu# 2<<1 2/,;<<.<<e. 13th M!nth >ay 2/,;<<.<<'. 1< #ha"e n the p"!)t# !' Qa#e

C!"p. '"!& 1996-2<<1 361,1/;.<<+. M!"al and ee&pla"y da&a+e#

1<<,<<<.<<h. 1< Att!"ney7# 'ee# 8/,</6.;<

>9;/,/2.;<I' "en#tate&ent # n! l!n+e" 'ea#%le, "e#p!ndent#a"e !"de"ed t! pay *!&planant #epa"at!n pay th

addt!nal %a*4a+e# that !uld a**"ue up t! a*tualpay&ent !' #epa"at!n pay. *IECTSO ORDERED. 1On Ap" l 1;, 2<<3, the N$RC a@"&ed th&!d)*at!n the De*#!n !' the $a%!" A"%te", thed#p!#t(e p!"t!n !' h*h "ead#:>REMISES CONSIDERED, the De*#!n !' July 31, 2<<2# he"e%y MODIFIED a# '!ll!#:1 Re#p!ndent# a"e d"e*ted t! pay *!&planant#epa"at!n pay *!&puted at !ne &!nth pe" yea" !'

#e"(*e n addt!n t! 'ull %a*4a+e# '"!& O*t!%e"2<<1 t! July 31, 2<<22 The aa"d# "ep"e#entn+ &!"al andee&pla"y da&a+e# and 1< #ha"e n p"!)t n the"e#pe*t(e a**!unt# !' >1<<,<<<.<< and >361,1/;.<<a"e deleted3 The aa"d !' 1< att!"ney7# 'ee# #hal l %e%a#ed !n #ala"y de"ental aa"d !nly The aa"d# "ep"e#entn+ #ala"y de"ental#,h!u#n+ all!an*e, &d yea" %!nu# and 13th &!nthpay a"e AFFIRMED.SO ORDERED. 1;On appeal, the C!u"t !' Appeal# "e(e"#ed the N$RCde*#!n, thu#:?EREFORE, the n#tant pett!n # he"e%y RANTED. The de*#!n !' the Nat!nal $a%!" Relat!n#C!&&##!n# dated Ap"l 1;, 2<<3 # he"e%yREKERSED and SET ASIDE and a ne !ne # he"e%y"ende"ed d#&##n+ the *!&plant )led %y p"(ate"e#p!ndent a+an#t Qa#e C!"p!"at!n, et al. '!"*!n#t"u*t(e d#&##al.SO ORDERED. 16 The appellate *!u"t dened pett!ne"7# &!t!n '!""e*!n#de"at!n, hen*e, the p"e#ent "e*!u"#e. The *!"e ##ue# t! %e "e#!l(ed n th# *a#e a"e 01hethe" the"e a# an e&pl!ye"-e&pl!yee"elat!n#hp %eteen pett!ne" and p"(ate"e#p!ndent Qa#e C!"p!"at!n and ' n thea@"&at(e, 02 hethe" pett!ne" a# lle+allyd#&##ed.C!n#de"n+ the *!n*tn+ )ndn+# %y the $a%!"A"%te" and the Nat!nal $a%!" Relat!n# C!&&##!n!n !ne hand, and the C!u"t !' Appeal# !n the !the",the"e # a need t! "eea&ne the "e*!"d# t! dete"&neh*h !' the p"!p!#t!n# e#p!u#ed %y the *!ntendn+pa"te# # #upp!"ted %y #u%#tantal e(den*e. 1/?e held n Se(lla (. C!u"t !' Appeal# 18 that n th# Bu"#d*t!n, the"e ha# %een n! un'!"& te#t t!dete"&ne the e#ten*e !' an e&pl!ye"-e&pl!yee"elat!n. ene"ally, *!u"t# ha(e "eled !n the #!-*alled"+ht !' *!nt"!l te#t he"e the pe"#!n '!" h!& the#e"(*e# a"e pe"'!"&ed "e#e"(e# a "+ht t! *!nt"!l n!t!nly the end t! %e a*he(ed %ut al#! the &ean# t! %eu#ed n "ea*hn+ #u*h end. In addt!n t! the #tanda"d

!' "+ht-!'-*!nt"!l, the e#tn+ e*!n!&* *!ndt!n#



p"e(aln+ %eteen the pa"te#, l4e the n*lu#!n !' the e&pl!yee n the pay"!ll#, *an help n dete"&nn+the e#ten*e !' an e&pl!ye"-e&pl!yee "elat!n#hp.!e(e", n *e"tan *a#e# the *!nt"!l te#t # n!t#u@*ent t! +(e a *!&plete p*tu"e !' the"elat!n#hp %eteen the pa"te#, !n+ t! the*!&plety !' #u*h a "elat!n#hp he"e #e(e"alp!#t!n# ha(e %een held %y the !"4e". The"e a"en#tan*e# hen, a#de '"!& the e&pl!ye"7# p!e" t!*!nt"!l the e&pl!yee th "e#pe*t t! the &ean# and

&eth!d# %y h*h the !"4 # t! %e a**!&pl#hed,e*!n!&* "ealte# !' the e&pl!y&ent "elat!n# helpp"!(de a *!&p"ehen#(e analy## !' the t"ue*la##)*at!n !' the nd(dual, hethe" a# e&pl!yee,ndependent *!nt"a*t!", *!"p!"ate !@*e" !" #!&e!the" *apa*ty. *aIEAD The %ette" app"!a*h !uld the"e'!"e %e t! ad!pt at!-te"ed te#t n(!l(n+: 01 the putat(e e&pl!ye"7#p!e" t! *!nt"!l the e&pl!yee th "e#pe*t t! the&ean# and &eth!d# %y h*h the !"4 # t! %ea**!&pl#hed and 02 the unde"lyn+ e*!n!&*"ealte# !' the a*t(ty !" "elat!n#hp. Th# t!-te"ed te#t !uld p"!(de u# th a'"a&e!"4 !' analy##, h*h !uld ta4e nt!*!n#de"at!n the t!talty !' *"*u&#tan*e##u""!undn+ the t"ue natu"e !' the "elat!n#hp%eteen the pa"te#. Th# # e#pe*ally app"!p"ate nth# *a#e he"e the"e # n! "tten a+"ee&ent !"te"&# !' "e'e"en*e t! %a#e the "elat!n#hp !n anddue t! the *!&plety !' the "elat!n#hp %a#ed !n the(a"!u# p!#t!n# and "e#p!n#%lte# +(en t! the!"4e" !(e" the pe"!d !' the latte"7# e&pl!y&ent. The *!nt"!l te#t ntally '!und appl*at!n n the *a#e!' KaPa (. Al-$a+adan and >+a, 19 and lately n$e!na"d! (. C!u"t !' Appeal#, 2< he"e e held thatthe"e # an e&pl!ye"-e&pl!yee "elat!n#hp hen thepe"#!n '!" h!& the #e"(*e# a"e pe"'!"&ed "e#e"(e#the "+ht t! *!nt"!l n!t !nly the end a*he(ed %ut al#!the &anne" and &ean# u#ed t! a*he(e that end.In Se(lla (. C!u"t !' Appeal#, 21 e !%#e"(ed theneed t! *!n#de" the e#tn+ e*!n!&* *!ndt!n#p"e(aln+ %eteen the pa"te#, n addt!n t! the#tanda"d !' "+ht-!'-*!nt"!l l4e the n*lu#!n !' thee&pl!yee n the pay"!ll#, t! +(e a *lea"e" p*tu"e ndete"&nn+ the e#ten*e !' an e&pl!ye"-e&pl!yee"elat!n#hp %a#ed !n an analy## !' the t!talty !' e*!n!&* *"*u&#tan*e# !' the !"4e". Thu#, the dete"&nat!n !' the "elat!n#hp %eteene&pl!ye" and e&pl!yee depend# up!n the*"*u&#tan*e# !' the h!le e*!n!&* a*t(ty, 22#u*h a#: 01 the etent t! h*h the #e"(*e#pe"'!"&ed a"e an nte+"al pa"t !' the e&pl!ye"7#%u#ne## 02 the etent !' the !"4e"7# n(e#t&ent neup&ent and 'a*lte# 03 the natu"e and de+"ee !'

*!nt"!l ee"*#ed %y the e&pl!ye" 0 the !"4e"7#

!pp!"tunty '!" p"!)t and l!## 0; the a&!unt !' ntat(e, #4ll, Bud+&ent !" '!"e#+ht "eu"ed '!" the#u**e## !' the *la&ed ndependent ente"p"#e 06the pe"&anen*y and du"at!n !' the "elat!n#hp%eteen the !"4e" and the e&pl!ye" and 0/ thede+"ee !' dependen*y !' the !"4e" up!n thee&pl!ye" '!" h# *!ntnued e&pl!y&ent n that lne!' %u#ne##. 23 The p"!pe" #tanda"d !' e*!n!&* dependen*e #hethe" the !"4e" # dependent !n the alle+ed

e&pl!ye" '!" h# *!ntnued e&pl!y&ent n that lne!' %u#ne##. 2 In the =nted State#, the t!u*h#t!ne!' e*!n!&* "ealty n analyn+ p!##%le e&pl!y&ent"elat!n#hp# '!" pu"p!#e# !' the Fede"al $a%!"Standa"d# A*t # dependen*y. 2; Gy anal!+y, the%en*h&a"4 !' e*!n!&* "ealty n analyn+ p!##%lee&pl!y&ent "elat!n#hp# '!" pu"p!#e# !' the $a%!"C!de !u+ht t! %e the e*!n!&* dependen*e !' the!"4e" !n h# e&pl!ye".Gy applyn+ the *!nt"!l te#t, the"e # n! d!u%t thatpett!ne" # an e&pl!yee !' Qa#e C!"p!"at!n%e*au#e #he a# unde" the d"e*t *!nt"!l and#upe"(#!n !' SeB Qa&u"a, the *!"p!"at!n7# Te*hn*al C!n#ultant. She "ep!"ted '!" !"4 "e+ula"lyand #e"(ed n (a"!u# *apa*te# a# A**!untant,$a#!n O@*e", Te*hn*al C!n#ultant, A*tn+ Mana+e"and C!"p!"ate Se*"eta"y, th #u%#tantally the #a&e B!% 'un*t!n#, that #, "ende"n+ a**!untn+ and ta#e"(*e# t! the *!&pany and pe"'!"&n+ 'un*t!n#ne*e##a"y and de#"a%le '!" the p"!pe" !pe"at!n !' the *!"p!"at!n #u*h a# #e*u"n+ %u#ne## pe"&t#and !the" l*en#e# !(e" an nde)nte pe"!d !' en+a+e&ent. CTD*E=nde" the %"!ade" e*!n!&* "ealty te#t, thepett!ne" *an l4e#e %e #ad t! %e an e&pl!yee !' "e#p!ndent *!"p!"at!n %e*au#e #he had #e"(ed the*!&pany '!" # yea"# %e'!"e he" d#&##al, "e*e(n+*he*4 (!u*he"# nd*atn+ he" #ala"e#a+e#,%ene)t#, 13th &!nth pay, %!nu#e# and all!an*e#,a# ell a# dedu*t!n# and S!*al Se*u"ty*!nt"%ut!n# '"!& Au+u#t 1, 1999 t! De*e&%e" 18,2<<<. 26 ?hen pett!ne" a# de#+nated ene"alMana+e", "e#p!ndent *!"p!"at!n &ade a "ep!"t t!the SSS #+ned %y I"ene Galle#te"!#. >ett!ne"7#&e&%e"#hp n the SSS a# &an'e#ted %y a *!py !' the SSS #pe*&en #+natu"e *a"d h*h a# #+ned%y the >"e#dent !' Qa#e C!"p!"at!n and then*lu#!n !' he" na&e n the !n-lne nu"y #y#te& !' the SSS e(n*e# the e#ten*e !' an e&pl!ye"-e&pl!yee "elat!n#hp %eteen pett!ne" and"e#p!ndent *!"p!"at!n. 2/It # the"e'!"e appa"ent that pett!ne" #e*!n!&*ally dependent !n "e#p!ndent *!"p!"at!n'!" he" *!ntnued e&pl!y&ent n the latte"7# lne !'

%u#ne##.

In D!&a#+ (. Nat!nal $a%!" Relat!n# C!&&##!n,28 e held that n a %u#ne## e#ta%l#h&ent, andent)*at!n *a"d # p"!(ded n!t !nly a# a #e*u"ty&ea#u"e %ut &anly t! dent'y the h!lde" the"e!' a# a%!na )de e&pl!yee !' the )"& that ##ue# t. T!+ethe"th the *a#h (!u*he"# *!(e"n+ pett!ne"7# #ala"e#'!" the &!nth# #tated the"en, the#e &atte"#*!n#ttute #u%#tantal e(den*e adeuate t! #upp!"t a*!n*lu#!n that pett!ne" a# an e&pl!yee !' p"(ate"e#p!ndent.

?e l4e#e "uled n Fl!"e# (. Nue#t"! 29 that a*!"p!"at!n h! "e+#te"# t# !"4e"# th the SSS #p"!!' that the latte" e"e the '!"&e"7# e&pl!yee#. The *!(e"a+e !' S!*al Se*u"ty $a # p"ed*ated !nthe e#ten*e !' an e&pl!ye"-e&pl!yee "elat!n#hp.Fu"the"&!"e, the a@da(t !' SeB Qa&u"a datedDe*e&%e" ;, 2<<1 ha# *lea"ly e#ta%l#hed thatpett!ne" ne(e" a*ted a# C!"p!"ate Se*"eta"y andthat he" de#+nat!n a# #u*h a# !nly '!"*!n(enen*e. The a*tual natu"e !' pett!ne"7# B!% a#a# Qa&u"a7# d"e*t a###tant th the duty !' a*tn+ a#$a#!n O@*e" n "ep"e#entn+ the *!&pany t! #e*u"e*!n#t"u*t!n pe"&t#, l*en#e t! !pe"ate and !the""eu"e&ent# &p!#ed %y +!(e"n&ent a+en*e#.>ett!ne" a# ne(e" ent"u#ted th *!"p!"ated!*u&ent# !' the *!&pany, n!" "eu"ed t! attendthe &eetn+ !' the *!"p!"at!n. She a# ne(e" p"(yt! the p"epa"at!n !' any d!*u&ent '!" the*!"p!"at!n, alth!u+h !n*e n a hle #he a#"eu"ed t! #+n p"epa"ed d!*u&entat!n '!" the*!&pany. 3< The #e*!nd a@da(t !' Qa&u"a dated Ma"*h /, 2<<2h*h "epudated the De*e&%e" ;, 2<<1 a@da(t ha#%een alle+edly thd"an %y Qa&u"a h&#el' '"!& the"e*!"d# !' the *a#e. 31 Re+a"dle## !' th# 'a*t, e a"e*!n(n*ed that the alle+at!n# n the )"#t a@da(t a"e#u@*ent t! e#ta%l#h that pett!ne" # an e&pl!yee!' Qa#e C!"p!"at!n."antn+ a"+uend!, that the #e*!nd a@da(t (aldly"epudated the )"#t !ne, *!u"t# d! n!t +ene"ally l!!4th 'a(!" !n any "et"a*t!n !" "e*anted te#t&!ny, '!"t *!uld ha(e %een #e*u"ed %y *!n#de"at!n# !the"than t! tell the t"uth and !uld &a4e #!le&n t"al# a&!*4e"y and pla*e the n(e#t+at!n !' the t"uth atthe &e"*y !' un#*"upul!u# tne##e#. 32 A"e*antat!n d!e# n!t ne*e##a"ly *an*el an ea"le"de*la"at!n, %ut l4e any !the" te#t&!ny the #a&e ##u%Be*t t! the te#t !' *"ed%lty and #h!uld %e"e*e(ed th *aut!n. 33Ga#ed !n the '!"e+!n+, the"e *an %e n! !the"*!n*lu#!n that pett!ne" # an e&pl!yee !' "e#p!ndent Qa#e C!"p!"at!n. She a# #ele*ted anden+a+ed %y the *!&pany '!" *!&pen#at!n, and #e*!n!&*ally dependent up!n "e#p!ndent '!" he"

*!ntnued e&pl!y&ent n that lne !' %u#ne##. e"



&an B!% 'un*t!n n(!l(ed a**!untn+ and ta#e"(*e# "ende"ed t! "e#p!ndent *!"p!"at!n !n a"e+ula" %a## !(e" an nde)nte pe" !d !' en+a+e&ent. Re#p!ndent *!"p!"at!n h"ed anden+a+ed pett!ne" '!" *!&pen#at!n, th the p!e"t! d#&## he" '!" *au#e. M!"e &p!"tantly,"e#p!ndent *!"p!"at!n had the p!e" t! *!nt"!lpett!ne" th the &ean# and &eth!d# %y h*h the!"4 # t! %e a**!&pl#hed. aTEIA The *!"p!"at!n *!n#t"u*t(ely d#&##ed pett!ne"

hen t "edu*ed he" #ala"y %y >2,;<< a &!nth '"!& Janua"y t! Septe&%e" 2<<1. Th# a&!unt# t! an lle+alte"&nat!n !' e&pl!y&ent, he"e the pett!ne" #enttled t! 'ull %a*4a+e#. Sn*e the p!#t!n !' pett!ne" a# a**!untant # !ne !' t"u#t and*!n)den*e, and unde" the p"n*ple !' #t"aned"elat!n#, pett!ne" # 'u"the" enttled t! #epa"at!npay, n leu !' "en#tate&ent. 3A d&nut!n !' pay # p"eBud*al t! the e&pl!yee anda&!unt# t! *!n#t"u*t(e d#&##al. C!n#t"u*t(ed#&##al # an n(!lunta"y "e#+nat!n "e#ultn+ n*e##at!n !' !"4 "e#!"ted t! hen *!ntnuede&pl!y&ent %e*!&e# &p!##%le, un"ea#!na%le !"unl4ely hen the"e # a de&!t!n n "an4 !" ad&nut!n n pay !" hen a *lea" d#*"&nat!n,

n#en#%lty !" d#dan %y an e&pl!ye" %e*!&e#un%ea"a%le t! an e&pl!yee. 3; In l!%e Tele*!&, In*.(. Fl!"end!-Fl!"e#, 36 e "uled that he"e ane&pl!yee *ea#e# t! !"4 due t! a de&!t!n !' "an4!" a d&nut!n !' pay, an un"ea#!na%le #tuat!na"#e# h*h *"eate# an ad(e"#e !"4n+ en("!n&ent"ende"n+ t &p!##%le '!" #u*h e&pl!yee t! *!ntnue!"4n+ '!" he" e&pl!ye". en*e, he" #e(e"an*e '"!&the *!&pany a# n!t !' he" !n &a4n+ andthe"e'!"e a&!unted t! an lle+al te"&nat!n !' e&pl!y&ent.In a!"dn+ 'ull p"!te*t!n t! la%!", th# C!u"t &u#ten#u"e eual !"4 !pp!"tunte# "e+a"dle## !' #e,"a*e !" *"eed. E(en a# e, n e(e"y *a#e, atte&pt t!*a"e'ully %alan*e the '"a+le "elat!n#hp %eteene&pl!yee# and e&pl!ye"#, e a"e &nd'ul !' the 'a*tthat the p!l*y !' the la # t! apply the $a%!" C!de t!a +"eate" nu&%e" !' e&pl!yee#. Th# !uld ena%lee&pl!yee# t! a(al !' the %ene)t# a**!"ded t! the&%y la, n lne th the *!n#ttut!nal &andate +(n+&a&u& ad and p"!te*t!n t! la%!", p"!&!tn+ the"el'a"e and "ea@"&n+ t a# a p"&a"y #!*ale*!n!&* '!"*e n 'u"the"an*e !' #!*al Bu#t*e andnat!nal de(el!p&ent.?EREFORE, the pett!n # RANTED. The De*#!nand Re#!lut!n !' the C!u"t !' Appeal# dated O*t!%e"29, 2<< and O*t!%e" /, 2<<;, "e#pe*t(ely, n CA-.R. S> N!. /8;1; a"e ANN=$$ED and SET ASIDE. TheDe*#!n !' the Nat!nal $a%!" Relat!n# C!&&##!n

dated Ap"l 1;, 2<<3 n N$RC NCR CA N!. <32/66-<2,

# REINSTATED. The *a#e # REMANDED t! the $a%!"A"%te" '!" the "e*!&putat!n !' pett!ne" An+elnaF"an*#*!7# 'ull %a*4a+e# '"!& the t&e #he a#lle+ally te"&nated untl the date !' )nalty !' th#de*#!n, and #epa"at!n pay "ep"e#entn+ !ne-hal' &!nth pay '!" e(e"y yea" !' #e"(*e, he"e a '"a*t!n!' at lea#t # &!nth# #hall %e *!n#de"ed a# !neh!le yea".SO ORDERED.



[G.R. No. L421212. S+*+?<+r 2, 1966.]ITI%ENS LEAGUE O$ $REEORERS ANDORBALBINO E"IS, NIOLAS ROJO, ET AL.,*+--on+r, /. #ON. !AA"ANTON ABBAS, Ju)+ o@ + our o@ $-r Inan7+ o@ Da/aoan) TEO$ILO GERONI!O an) E!ERITA !ENDE%,r+*on)+n.. Do?-nu+>, Jr. @or *+--on+r.. L. N-orr+)a @or r+*on)+n.

D E C I S I O NDION, J p:>ett!n '!" *e"t!"a" th a p"aye" '!" the ##uan*e !' a "t !' p"el&na"y nBun*t!n )led %y the Cten#7$ea+ue !' F"ee!"4e"#, a le+t&ate la%!"!"+anat!n, he"ena'te" "e'e""ed t! a# the =n!n and t# &e&%e"# a+an#t the #p!u#e# Te!)l!e"!n&! and E&e"ta Mende, and the !n.Ma*apant!n A%%a#, a# Bud+e !' the C!u"t !' F"#tIn#tan*e !' Da(a!. It# pu"p!#e # t! #et a#de the "t!' p"el&na"y nBun*t!n ##ued %y the latte" n C(lCa#e N!. 3966 and "e#t"an h& '"!& p"!*eedn+ ththe *a#e, !n the +"!und that the *!nt"!(e"#y n(!l(e#a la%!" d#pute and #, the"e'!"e, thn the e*lu#(e Bu"#d*t!n !' the C!u"t !' Indu#t"al Relat!n#.It appea"# that !n Ma"*h 11, 1963, "e#p!ndent#-#p!u#e#, !ne"# and !pe"at!"# !' aut!-*ale#a# n

Da(a! Cty, )led a *!&plant th the C!u"t !' F"#tIn#tan*e !' Da(a! 0C(l Ca#e N!. 3966 t! "e#t"anthe =n!n and t# &e&%e"#, h! e"e d"(e"# !' the#p!u#e# n #ad %u#ne##, '"!& nte"'e"n+ th t#!pe"at!n, '"!& *!&&ttn+ *e"tan a*t# *!&planed!' n *!nne*t!n the"eth, and t! "e*!(e" da&a+e#. The *!&plant alle+ed that the de'endant# na&edthe"en u#ed t! lea#e the aut! *ale#a# !' the #p!u#e#!n a daly "ental %a## that, una%le t! +et the#p!u#e# t! "e*!+ne #ad de'endant# a# e&pl!yee#

n#tead !' le##ee# and t! %a"+an th t !n that%a##, the =n!n de*la"ed a #t"4e !n Fe%"ua"y 2<,1963 and #n*e then had pa"alyed plant#7%u#ne## !pe"at!n# th"!u+h th"eat#, nt&dat!n and(!len*e. The *!&plant al#! p"ayed '!" the ##uan*e!' a "t !' p"el&na"y nBun*t!n e-pa"te "e#t"ann+de'endant# the"en '"!& *!&&ttn+ #ad a*t# !' (!len*e and nt&dat!n du"n+ the penden*y !' the*a#e.On Ma"*h 11, 1963 the "e#p!ndent Bud+e +"anted the"t p"ayed '!", hle de'e""n+ a*t!n !n pett!ne"#7&!t!n t! d##!l(e #ad "t t! Ma"*h 2< !' the #a&eyea".Meanhle, !n Ma"*h 12, 1963, pett!ne"# )led a*!&plant '!" un'a" la%!" p"a*t*e a+an#t the

"e#p!ndent#-#p!u#e# th the C!u"t !' Indu#t"alRelat!n# !n the +"!und, a&!n+ !the"#, !' the latte"7#"e'u#al t! %a"+an th the&.On Ma"*h 18, 1963, pett!ne"# )led a &!t!n t!de*la"e the "t !' p"el&na"y nBun*t!n (!d !n the+"!und that the #a&e had ep"ed %y ("tue !' Se*t!n 9 0d !' Repu%l* A*t 8/;. In h# !"de" !' Ma"*h 21, 1963, h!e(e", the "e#p!ndent Bud+edened #ad &!t!n !n the +"!und that the"e a# n!e&pl!ye"-e&pl!yee "elat!n#hp %eteen"e#p!ndent#-#p!u#e# and the nd(dual pett!ne"#he"en and that, *!n#euently, the Rule# !' C!u"t andn!t Repu%l* A*t N!. 8/; appled t! the &atte" !' nBun*t!n. The"eup!n the pett!n unde"*!n#de"at!n a# )led.In the *a#e !' I#a%el! D!*e (#. ?!"4&en7#C!&pen#at!n C!&&##!n et al. 01< >hl., 96,up!n a #&la" ' n!t an alt!+ethe" dent*al #et !' 'a*t#, ?e held:5Th# *a#e 'all# #ua"ely thn !u" "uln+ n Nat!nal$a%!" =n!n (#. Dn+la#an, 98 >hl., 69 ;2 O. a.,N!. , 1933, he"en th# C!u"t held that a d"(e" !' a Beep h! !pe"ate# the #a&e unde" the %!unda"y#y#te& # *!n#de"ed an e&pl!yee thn the&eann+ !' the la and a# #u*h the *a#e *!&e#unde" the Bu"#d*t!n !' the C!u"t !' Indu#t"alRelat!n#. In that *a#e, Gened*t! Dn+la#an a# the!ne" and !pe"at!" !' T>= Beepney# h*h e"ed"(en %y pett!ne" unde" (e"%al *!nt"a*t# that theyll pay >/.;< '!" 1< h!u"# u#e unde" the #!-*alled

7%!unda"y #y#te&.7 The d"(e"# dd n!t "e*e(e#ala"e# !" a+e# '"!& the !ne". The" day7#ea"nn+# e"e the e*e## !(e" the >/.;< they pad '!"the u#e !' the Beepney#. In the e(ent that they dd n!tea"n &!"e, the !ne" dd n!t ha(e t! pay the&anythn+. In h!ldn+ that the e&pl!ye"-e&pl!yee"elat!n#hp e#ted %eteen the !ne" !' the Beepney# and the d"(e"# e(en ' the latte" !"4edunde" the %!unda"y #y#te&, th# C!u"t #ad:7The !nly 'eatu"e# that !uld &a4e the "elat!n#hp !'

le##!" and le##ee %eteen the "e#p!ndent# !ne" !' the Beep#, and the d"(e"#, &e&%e"# !' the pett!ne"un!n, a"e the 'a*t that he d!e# n!t pay the& any)ed a+e %ut the" *!&pen#at!n # the e*e## !' the t!tal a&!unt !' 'a"e# ea"ned !" *!lle*ted %y the&!(e" and a%!(e the a&!unt !' >/.;< h*h theya+"eed t! pay t! the "e#p!ndent, and the 'a*t that the+a#!lne %u"ned %y the Beep# # '!" the a**!unt !' thed"(e"#. The#e t! 'eatu"e# a"e n!t, h!e(e",#u@*ent t! thd"a the "elat!n#hp, %eteen the&'"!& that !' e&pl!ye"-e&pl!yee, %e*au#e thee#t&ated ea"nn+# '!" 'a"e# &u#t %e !(e" and a%!(ethe a&!unt they a+"eed t! pay t! the "e#p!ndent '!"a ten-h!u" #h't !" ten-h!u" a day !pe"at!n !' the Beep#. N!t ha(n+ any nte"e#t n the %u#ne##

%e*au#e they dd n!t n(e#t anythn+ n thea*u#t!n !' the Beep# and dd n!t pa"t*pate n the&ana+e&ent the"e!', the" #e"(*e a# d"(e"# !' the Beep# %en+ the" !nly *!nt"%ut!n t! the %u#ne##,the "elat!n#hp !' le##!" and le##ee *ann!t %e#u#taned.75E(en a##u&n+, a"+uend!, that the "e#p!ndent *!u"thad Bu"#d*t!n t! ##ue the a%!(e&ent!ned "t !' p"el&na"y nBun*t!n n C(l Ca#e N!. 3966 at thet&e t a# ##ued, ?e a"e !' the !pn!n, and #! h!ld,that t e""ed n denyn+ pett!ne"#7 &!t!n t! #eta#de #ad "t up!n ep"at!n !' the pe"!d !' th"tyday# '"!& t# ##uan*e, up!n the "!n+ +"!und thatthe"e a# n! la%!" d#pute %eteen the pa"te# andthat, the"e'!"e, the p"!(#!n# !' Repu%l* A*t N!. 8/;dd n!t apply t! the *a#e. A# #tated he"et!'!"e, the"ea# a la%!" d#pute %eteen the pa"te# '"!& the%e+nnn+.M!"e!(e", up!n the )ln+ !' the un'a" la%!" p"a*t*e*a#e !n Ma"*h 12, 1963, the C!u"t !' Indu#t"alRelat!n# a*u"ed *!&plete Bu"#d*t!n !(e" thela%!" d#pute and the lea#t that *!uld %e d!ne n C(lCa#e N!. 3966 # ethe" t! d#&## t !" #u#pendp"!*eedn+# the"en untl the )nal "e#!lut!n !' the'!"&e".?he"e'!"e, Bud+&ent # he"e%y "ende"ed #ettn+ a#dethe "t !' p"el&na"y nBun*t!n ##ued %y the"e#p!ndent Bud+e n C(l Ca#e N!. 3966 !' the C!u"t!' F"#t In#tan*e !' Da(a!, th *!#t#.



$IRST DI'ISION[G.R. No. 163881. A*r-5 19, 2006.]OSAR 'ILLA!ARIA, JR., *+--on+r, /. OURTO$ A""EALS an) JERR( '. BUSTA!ANTE,r+*on)+n.

D E C I S I O NCA$$EJO, SR., J p:

Ge'!"e u# # a >ett!n '!" Re(e !n Ce"t!"a" unde"Rule 6; !' the Re(#ed Rule# !' C!u"t a##aln+ theDe*#!n 1 and Re#!lut!n 2 !' the C!u"t !' Appeal#0CA n CA-.R. S> N!. /8/2< h*h #et a#de theRe#!lut!n 3 !' the Nat!nal $a%!" Relat!n#C!&&##!n 0N$RC n NCR-3<-<8-<32/-<<, h*h ntu"n a@"&ed the De*#!n !' the $a%!" A"%te"d#&##n+ the *!&plant )led %y "e#p!ndent Je""y K.Gu#ta&ante. aETAS*>ett!ne" O#*a" Klla&a"a, J". a# the !ne" !'

Klla&a"a M!t!"#, a #!le p"!p"et!"#hp en+a+ed na##e&%ln+ pa##en+e" Beepney# th a pu%l* utlty'"an*h#e t! !pe"ate al!n+ the Ga*la"an-Su*at "!ute.Gy 199;, Klla&a"a #t!pped a##e&%ln+ Beepney#and "etaned !nly nne, '!u" !' h*h he !pe"ated %ye&pl!yn+ d"(e"# !n a 5%!unda"y %a##.5 One !' th!#e d"(e"# a# "e#p!ndent Gu#ta&ante h! d"!(ethe Beepney th >late N!. >K=-66<. Gu#ta&ante"e&tted >;<.<< a day t! Klla&a"a a# %!unda"yand 4ept the "e#due !' h# daly ea"nn+# a#*!&pen#at!n '!" d"(n+ the (eh*le. In Au+u#t 199/,Klla&a"a (e"%ally a+"eed t! #ell the Beepney t!Gu#ta&ante unde" the 5%!unda"y-hul!+ #*he&e,5he"e Gu#ta&ante !uld "e&t t! Klla"a&a >;;<.<<a day '!" a pe"!d !' '!u" yea"# Gu#ta&ante !uld

then %e*!&e the !ne" !' the (eh*le and *!ntnuet! d"(e the #a&e unde" Klla&a"a7# '"an*h#e. It a#al#! a+"eed that Gu#ta&ante !uld &a4e ad!npay&ent !' >1<,<<<.<<.On Au+u#t /, 199/, Klla&a"a ee*uted a *!nt"a*tenttled 5Qa#unduan n+ Glhan n+ Sa#a4yan #a>a&a&a+tan n+ G!unda"y-ul!+5 ; !(e" thepa##en+e" Beepney th >late N!. >K=-66<, Cha###N!. EKER9;-38168-C and M!t!" N!. S$-266/. Thepa"te# a+"eed that ' Gu#ta&ante 'aled t! pay the%!unda"y-hul!+ '!" th"ee day#, Klla&a"a M!t!"#!uld h!ld !n t! the (eh*le untl Gu#ta&ante padh# a""ea"#, n*ludn+ a penalty !' >;<.<< a day n*a#e Gu#ta&ante 'aled t! "e&t the daly %!unda"y-hul!+ '!" a pe"!d !' !ne ee4, the Qa#unduan !uld*ea#e t! ha(e le+al ee*t and Gu#ta&ante !uldha(e t! "etu"n the (eh*le t! Klla&a"a M!t!"#.=nde" the Qa#unduan, Gu#ta&ante a# p"!h%ted'"!& d"(n+ the (eh*le th!ut p"!" auth!"ty '"!&Klla&a"a M!t!"#. Thu#, Gu#ta&ante a# auth!"edt! !pe"ate the (eh*le t! t"an#p!"t pa##en+e"# !nlyand n!t '!" !the" pu"p!#e#. e a# al#! "eu"ed t!d#play an dent)*at!n *a"d n '"!nt !' thend#held !' the (eh*le n *a#e !' 'alu"e t! d! #!,any )ne that &ay %e &p!#ed %y +!(e"n&entauth!"te# !uld %e *ha"+ed a+an#t h# a**!unt.Gu#ta&ante 'u"the" !%l+ed h&#el' t! pay '!" the*!#t !' "epla*n+ any pa"t# !' the (eh*le that !uld%e l!#t !" da&a+ed due t! h# ne+l+en*e. In *a#e the(eh*le #u#taned #e"!u# da&a+e, Gu#ta&ante a#

!%l+ed t! n!t'y Kl la&a"a M!t!"# %e'!"e*!&&en*n+ "epa"#. Gu#ta&ante a# n!t all!ed t!ea" #lppe"#, #h!"t pant# !" unde"#h"t# hle d"(n+.e a# "eu"ed t! %e p!lte and "e#pe*t'ul t!a"d#the pa##en+e"#. e a# al#! !%l+ed t! n!t'yKlla&a"a M!t!"# n *a#e the (eh*le a# lea#ed '!"t! !" &!"e day# and a# "eu"ed t! attend any&eetn+# h*h &ay %e *alled '"!& t&e t! t&e.A#de '"!& the %!unda"y-hul!+, Gu#ta&ante a# al#!!%l+ed t! pay '!" the annual "e+#t"at!n 'ee# !' the

(eh*le and the p"e&u& '!" the (eh*le7#*!&p"ehen#(e n#u"an*e. Gu#ta&ante p"!&#ed t!#t"*tly *!&ply th the "ule# and "e+ulat!n# &p!#ed%y Klla&a"a '!" the up4eep and &antenan*e !' the Beepney. CTDa*AGu#ta&ante *!ntnued d"(n+ the Beepney unde" the#upe"(#!n and *!nt"!l !' Klla&a"a. A# a+"eed up!n,he &ade daly "e&ttan*e# !' >;;<.<< n pay&ent !' the pu"*ha#e p"*e !' the (eh*le. Gu#ta&ante 'aledt! pay '!" the annual "e+#t"at!n 'ee# !' the (eh*le,%ut Klla&a"a all!ed h& t! *!ntnue d"(n+ the Beepney.In 1999, Gu#ta&ante and !the" d"(e"# h! al#! hadthe #a&e a""an+e&ent th Klla&a"a M!t!"# 'aledt! pay the" "e#pe*t(e %!unda"y-hul!+. Th#

p"!&pted Klla&a"a t! #e"(e a 5>aalala,5 6 "e&ndn+the& that unde" the Qa#unduan, 'alu"e t! pay thedaly %!unda"y-hul!+ '!" !ne ee4, !uld &ean the""e#pe*t(e Beepney# !uld %e "etu"ned t! h& th!utany *!&plant#. e a"ned the d"(e"# that theQa#unduan !uld hen*e'!"th %e #t"*tly en'!"*ed andu"+ed the& t! *!&ply th the" !%l+at!n t! a(!dlt+at!n.On July 2, 2<<<, Klla&a"a t!!4 %a*4 the Beepneyd"(en %y Gu#ta&ante and %a""ed the latte" '"!&d"(n+ the (eh*le.On Au+u#t 1;, 2<<<, Gu#ta&ante )led a C!&plant /'!" Ille+al D#&##al a+an#t Klla&a"a and h# 'e Te"e#ta. In h# >!#t!n >ape", 8 Gu#ta&ante alle+edthat he a# e&pl!yed %y Klla&a"a n July 1996unde" the %!unda"y #y#te&, he"e he a# "eu"ed t!"e&t >;<.<< a day. A'te" !ne yea" !' *!ntnu!u#ly!"4n+ '!" the&, the #p!u#e# Klla&a"a p"e#entedthe Qa#unduan '!" h# #+natu"e, th the a##u"an*ethat he 0Gu#ta&ante !uld !n the Beepney %yMa"*h 2<<1 a'te" payn+ >;;<.<< n daly n#tall&ent#and that he !uld the"ea'te" *!ntnue d"(n+ the(eh*le al!n+ the #a&e "!ute unde" the #a&e'"an*h#e. e 'u"the" na""ated that n July 2<<<, hen'!"&ed the Klla&a"a #p!u#e# that the #u"plu#en+ne !' the Beepney needed t! %e "epla*ed, and a#a##u"ed that t !uld %e d!ne. !e(e", he a# late"a""e#ted and h# d"(e"7# l*en#e a# *!n)#*ated%e*au#e appa"ently, the "epla*e&ent en+ne that a#n#talled a# ta4en '"!& a #t!len (eh*le. Due t!



ne+!tat!n# th the app"ehendn+ auth!"te#, the Beepney a# n!t &p!unded. The Klla&a"a #p!u#e#t!!4 the Beepney '"!& h& !n July 2, 2<<<, and hea# n! l!n+e" all!ed t! d"(e the (eh*le #n*e thenunle## he pad the& >/<,<<<.<<. DTSaIGu#ta&ante p"ayed that Bud+&ent %e "ende"ed n h#'a(!", thu#:?EREFORE, n the l+ht !' the '!"e+!n+, t # &!#t"e#pe*t'ully p"ayed that Bud+&ent %e "ende"ed!"de"n+ the "e#p!ndent#, B!ntly and #e(e"ally, the

'!ll!n+:1. Ren#tate *!&planant t! h# '!"&e" p!#t!nth!ut l!## !' #en!"ty "+ht# and ee*ute a Deed !' Sale n 'a(!" !' the *!&planant "elat(e t! the >=Jth >late N!. >K=-66<2. O"de"n+ the "e#p!ndent# t! pay %a*4a+e#n the a&!unt !' ><<.<< a day and !the" %ene)t#*!&puted '"!& July 2, 2<<< up t! the t&e !' h#a*tual "en#tate&ent3. O"de"n+ "e#p!ndent# t! "etu"n the a&!unt!' >1<,<<<.<< and >18<,<<<.<< '!" the epen#e#n*u""ed %y the *!&planant n the "epa" and&antenan*e !' the #u%Be*t Beep. O"de"n+ the "e#p!ndent# t! "e'und thea&!unt !' One und"ed 0>1<<.<< >e#!# pe" day

*!unted '"!& Au+u#t /, 199/ up t! June 2<<< !" at!tal !' >91,2<<.<<;. T! pay &!"al and ee&pla"y da&a+e# !' n!tle## than >2<<,<<<.<<6. Att!"ney7# 'ee# !' n!t le## than 1< !' the&!neta"y aa"d.Othe" Bu#t and euta%le "ele'# unde" the p"e&#e#a"e al#! %en+ p"ayed '!". 9In the" >!#t!n >ape", 1< the #p!u#e# Klla&a"aad&tted the e#ten*e !' the Qa#unduan, %ut alle+edthat Gu#ta&ante 'aled t! pay the >1<,<<<.<<d!npay&ent and the (eh*le7# annual "e+#t"at!n'ee#. They 'u"the" alle+ed that Gu#ta&ante e(entually'aled t! "e&t the "eu#te %!unda"y-hul!+ !' >;;<.<< a day, h*h p"!&pted the& t! ##ue the>aalaala. In#tead !' *!&plyn+ th h# !%l+at!n#,Gu#ta&ante #t!pped &a4n+ h# "e&ttan*e# de#pteh# daly t"p# and e(en %"!u+ht the Beepney t! thep"!(n*e th!ut pe"&##!n. ?!"#e, the Beepney)+u"ed n an a**dent and t# l*en#e plate a#*!n)#*ated Gu#ta&ante e(en a%and!ned the (eh*len a +a#!lne #tat!n n Su*at, >a"aPaue Cty '!" t!ee4#. ?hen the #e*u"ty +ua"d at the +a#!lne#tat!n "eue#ted that the (eh*le %e "et"e(ed and Te"e#ta Klla&a"a a#4ed Gu#ta&ante '!" the 4ey#,Gu#ta&ante t!ld he": 5D 4unn nny!.5 ?hen the(eh*le a# )nally "et"e(ed, the t"e# e"e !"n, thealte"nat!" a# +!ne, and the %atte"y a# n! l!n+e"!"4n+. *IEAC

Ctn+ the *a#e# !' Cathed"al S*h!!l !' Te*hn!l!+y (.N$RC 11 and Canlu%an+ Se*u"ty A+en*y C!"p!"at!n(. N$RC, 12 the #p!u#e# Klla&a"a a"+ued thatGu#ta&ante a# n!t lle+ally d#&##ed #n*e theQa#unduan ee*uted !n Au+u#t /, 199/ t"an#'!"&edthe e&pl!ye"-e&pl!yee "elat!n#hp nt! that !' (end!"-(endee. en*e, the #p!u#e# *!n*luded, the"ea# n! le+al %a## t! h!ld the& la%le '!" lle+ald#&##al. They p"ayed that the *a#e %e d#&##ed '!"la*4 !' Bu"#d*t!n and patent la*4 !' &e"t.

In h# Reply, 13 Gu#ta&ante *la&ed that Klla&a"aee"*#ed *!nt"!l and #upe"(#!n !(e" the *!ndu*t !' h# e&pl!y&ent. e &antaned that the "uln+# !' the C!u"t n Nat!nal $a%!" =n!n (. Dn+la#an, 1Ma+%!! (. Ge"na"d!, 1; and Cten7# $ea+ue !' F"ee?!"4e"# (. A%%a# 16 a"e +e"&ane t! the ##ue a#they de)ne the natu"e !' the !ne"!pe"at!"-d"(e""elat!n#hp unde" the %!unda"y #y#te&. e 'u"the""ete"ated that t a# the Klla&a"a #p!u#e# h!p"e#ented the Qa#unduan t! h& and that he*!n'!"&ed the"et! !nly up!n the" "ep"e#entat!nthat he !uld !n the (eh*le a'te" '!u" yea"#.M!"e!(e", t appea"ed that the >aalala a# duly"e*e(ed %y h&, a# he, t!+ethe" th !the" d"(e"#,a# &ade t! a@ h# #+natu"e !n a %lan4 pe*e !'

pape" pu"p!"tn+ t! %e an 5attendan*e #heet.5On Ma"*h 1;, 2<<2, the $a%!" A"%te" "ende"ed Bud+&ent 1/ n 'a(!" !' the #p!u#e# Klla&a"a and!"de"ed the *!&plant d#&##ed !n the '!ll!n+"at!*nat!n:Re#p!ndent# p"e#ented the *!nt"a*t !' G!unda"y-ul!+, a# ell a# the >AA$A$A, t! p"!(e the" *la&that *!&planant (!lated the te"&# !' the" *!nt"a*tand a'te"a"d# a%and!ned the (eh*le a##+ned t!h&. A# a+an#t the '!"e+!n+, the *!&plant7# 0#*&e"e alle+at!n# t! the *!nt"a"y *ann!t p"e(al.N!t ha(n+ %een lle+ally d#&##ed, *!&planant #n!t enttled t! da&a+e# and att!"ney7# 'ee#. 18Gu#ta&ante appealed the de*#!n t! the N$RC, 19n##tn+ that the Qa#unduan dd n!t etn+u#h thee&pl!ye"-e&pl!yee "elat!n#hp %eteen h& andKlla&a"a. ?hle he dd n!t "e*e(e )ed a+e#, he4ept !nly the e*e## !' the %!unda"y-hul!+ h*h hea# "eu"ed t! "e&t daly t! Klla&a"a unde" thea+"ee&ent. Gu#ta&ante &antaned that he"e&aned an e&pl!yee %e*au#e he a# en+a+ed t!pe"'!"& a*t(te# h*h e"e ne*e##a"y !" de#"a%let! Klla&a"a7# t"ade !" %u#ne##. CSE*a The N$RC "ende"ed Bud+&ent 2< d#&##n+ theappeal '!" la*4 !' &e"t, thu#:?EREFORE, p"e&#e# *!n#de"ed, *!&planant7#appeal # he"e%y DISMISSED '!" "ea#!n# n!t #tated nthe $a%!" A"%te"7# de*#!n %ut &anly !n a Bu"#d*t!nal ##ue, the"e %en+ n!ne !(e" the #u%Be*t&atte" !' the *!nt"!(e"#y. 21

The N$RC "uled that unde" the Qa#unduan, the Bu"d*al "elat!n#hp %eteen Gu#ta&ante andKlla&a"a a# that !' (end!" and (endee, hen*e, the$a%!" A"%te" had n! Bu"#d*t!n !(e" the *!&plant.Gu#ta&ante )led a M!t!n '!" Re*!n#de"at!n, h*hthe N$RC "e#!l(ed t! deny !n May 3<, 2<<3. 22Gu#ta&ante ele(ated the &atte" t! the CA (a >ett!n'!" Ce"t!"a", alle+n+ that the N$RC e""edIIN DISMISSIN >ETITIONER7S A>>EA$ 5FOR REASON

NOT STATED IN TE $AGOR ARGITER7S DECISION, G=TMAIN$L ON J=RISDICTIONA$ ISS=E5IIIN DISREARDIN TE $A? AND >REKAI$IN J=RIS>R=DENCE ?EN IT DEC$ARED TAT TERE$ATIONSI> ?IC ?AS ESTAG$ISED GET?EEN>ETITIONER AND TE >RIKATE RES>ONDENT ?ASDEFINITE$L A MATTER ?IC IS GELOND TE>ROTECTIKE MANT$E OF O=R $AGOR $A?S. 23Gu#ta&ante n##ted that de#pte the Qa#unduan, the"elat!n#hp %eteen h& and Klla&a"a *!ntnued t!%e that !' e&pl!ye"-e&pl!yee and a# #u*h, the $a%!"A"%te" had Bu"#d*t!n !(e" h# *!&plant. e 'u"the"alle+ed that t # *!&&!n 4n!led+e that !pe"at!"# !' pa##en+e" Beepney# 0n*ludn+ ta# pay the" d"(e"#

n!t !n a "e+ula" &!nthly %a## %ut !n *!&&##!n !"%!unda"y %a##, !" e(en the %!unda"y-hul!+ #y#te&.Gu#ta&ante a##e"ted that he a# d#&##ed '"!&e&pl!y&ent th!ut any la'ul !" Bu#t *au#e andth!ut due n!t*e. ST*DIEF!" h# pa"t, Klla&a"a a(e""ed that Gu#ta&ante 'aledt! addu*e p"!!' !' the" e&pl!ye"-e&pl!yee"elat!n#hp. e 'u"the" p!nted !ut that the Dn+la#an*a#e pe"tan# t! the %!unda"y #y#te& and n!t the%!unda"y-hul!+ #y#te&, hen*e nappl*a%le n then#tant *a#e. e a"+ued that up!n the ee*ut!n !' the Qa#unduan, the Bu"d*al te %eteen h& andGu#ta&ante a# t"an#'!"&ed nt! a (end!"-(endee"elat!n#hp. N!tn+ that he a# en+a+ed n the&anu'a*tu"e and #ale !' Beepney# and n!t n the%u#ne## !' t"an#p!"tn+ pa##en+e"# '!" *!n#de"at!n,Klla&a"a *!ntended that the daly 'ee# h*hGu#t&ante pad e"e a*tually pe"!d* n#tall&ent#'!" the (eh*le and e"e n!t the #a&e 'ee# a#unde"#t!!d n the %!unda"y #y#te&. e added thatthe %!unda"y-hul!+ plan a# %a#*ally a #*he&e t!help the d"(e"-%uye" ea"n &!ney and e(entually pay'!" the unt n 'ull, and '!" the !ne" t! p"!)t n!t '"!&the daly ea"nn+# !' the d"(e"-%uye" %ut '"!& thepu"*ha#e p"*e !' the unt #!ld. Klla&a"a 'u"the"a##e"ted that the appa"ently "e#t"*t(e *!ndt!n# nthe Qa#unduan dd n!t &ean that the &ean# and&eth!d !' d"(e"-%uye"7# *!ndu*t a# *!nt"!lled, %ute"e &e"e ay# t! p"e#e"(e the (eh*le '!" the%ene)t !' %!th pa"te#: Klla&a"a !uld %e a%le t!



*!lle*t the a+"eed pu"*ha#e p"*e, hle Gu#ta&ante!uld %e a##u"ed that the (eh*le !uld #tll %e n+!!d "unnn+ *!ndt!n e(en a'te" '!u" yea"#.M!"e!(e", the "+ht !' (end!" t! &p!#e *e"tan*!ndt!n# !n the %uye" #h!uld %e "e#pe*ted untl 'ull!ne"#hp !' the p"!pe"ty # (e#ted !n the latte".Klla&a"a n##ted that the pa"allel *"*u&#tan*e#!%tann+ n Sn+e" Sen+ Ma*hne C!&pany (.D"l!n 2 ha# anal!+!u# appl*at!n t! the n#tant##ue.

In t# De*#!n 2; dated Au+u#t 3<, 2<<, the CA"e(e"#ed and #et a#de the N$RC de*#!n. The 'all! !' the de*#!n "ead#:=>ON TE KIE? ?E TAQE IN TIS CASE, T=S, the&pu+ned "e#!lut!n# !' the N$RC &u#t %e, a# theya"e he"e%y a"e, REKERSED AND SET ASIDE, and Bud+&ent ente"ed n 'a(!" !' pett!ne":1. Senten*n+ p"(ate "e#p!ndent O#*a"Klla&a"a, J". t! pay pett!ne" Je""y Gu#ta&ante#epa"at!n pay *!&puted '"!& the t&e !' h#e&pl!y&ent up t! the t&e !' te"&nat!n %a#ed !nthe p"e(aln+ &n&u& a+e at the t&e !' te"&nat!n and, DET*A2. C!nde&nn+ p"(ate "e#p!ndent O#*a"Klla&a"a, J". t! pay pett!ne" Je""y Gu#ta&ante %a*4

a+e# *!&puted '"!& the t&e !' h# d#&##al up t!Ma"*h 2<<1 %a#ed !n the p"e(aln+ &n&u& a+eat the t&e !' h# d#&##al.?th!ut C!#t#.SO ORDERED. 26 The appellate *!u"t "uled that the $a%!" A"%te" had Bu"#d*t!n !(e" Gu#ta&ante7# *!&plant. =nde" theQa#unduan, the "elat!n#hp %eteen h& andKlla&a"a a# dual: that !' (end!"-(endee ande&pl!ye"-e&pl!yee. The CA "at!*nated thatKlla&a"a7# ee"*#e !' *!nt"!l !(e" Gu#ta&ante7#*!ndu*t n !pe"atn+ the Beepney # n*!n##tent ththe '!"&e"7# *la& that he a# n!t en+a+ed n thet"an#p!"tat!n %u#ne##. The"e a# n! e(den*e thatpett!ne" a# all!ed t! let #!&e !the" pe"#!n d"(ethe Beepney. The CA 'u"the" held that, hle the p!e" t! d#&##a# n!t &ent!ned n the Qa#unduan, t dd n!t &eanthat Klla&a"a *!uld n!t ee"*#e t. It eplaned thatthe e#ten*e !' an e&pl!y&ent "elat!n#hp dd n!tdepend !n h! the !"4e" a# pad %ut !n thep"e#en*e !" a%#en*e !' *!nt"!l !(e" the &ean# and&eth!d !' the e&pl!yee7# !"4. In th# *a#e,Klla&a"a7# d"e*t(e# 0t! d"(e *a"e'ully, ea" andent)*at!n *a"d, d!n de*ent att"e, pa"4 the (eh*len h# +a"a+e, and t! n'!"& h& a%!ut p"!(n*al t"p#,et*. a# a &ean# t! *!nt"!l the ay n h*hGu#ta&ante a# t! +! a%!ut h# !"4. In (e !' Klla&a"a7# #upe"(#!n and *!nt"!l a# e&pl!ye", the'a*t that the 5%!unda"y5 "ep"e#ented n#tall&ent

pay&ent# !' the pu"*ha#e p"*e !n the Beepney ddn!t "e&!(e the pa"te#7 e&pl!ye"-e&pl!yee"elat!n#hp.?hle the appellate *!u"t "e*!+ned that a ee47#de'ault n payn+ the %!unda"y-hul!+ *!n#ttuted anaddt!nal *au#e '!" te"&natn+ Gu#ta&ante7#e&pl!y&ent, t held that the latte" a# lle+allyd#&##ed. A**!"dn+ t! the CA, a##u&n+ thatGu#ta&ante 'aled t! &a4e the "eu"ed pay&ent# a#*la&ed %y Klla&a"a, the latte" ne(e"thele## 'aled

t! ta4e #tep# t! "e*!(e" the unt and ated '!"Gu#ta&ante t! a%and!n t. It al#! p!nted !ut thatKlla&a"a nethe" #u%&tted any p!l*e "ep!"t t!#upp!"t h# *la& that the (eh*le )+u"ed n a &#hapn!" p"e#ented the a@da(t !' the +a# #tat!n +ua"dt! #u%#tantate the *la& that Gu#ta&antea%and!ned the unt. SDTIaEKlla&a"a "e*e(ed a *!py !' the de*#!n !nSepte&%e" 8, 2<<, and )led, !n Septe&%e" 1/,2<<, a &!t!n '!" "e*!n#de"at!n the"e!'. The CAdened the &!t!n n a Re#!lut!n 2/ datedN!(e&%e" 2, 2<<, and Klla&a"a "e*e(ed a *!pythe"e!' !n N!(e&%e" 8, 2<<.Klla&a"a, n! pett!ne", #ee4# "ele' '"!& th#C!u"t (a pett!n '!" "e(e !n *e"t!"a" unde" Rule

6; !' the Rule# !' C!u"t, alle+n+ that the CA*!&&tted +"a(e a%u#e !' t# d#*"et!n a&!untn+ t!e*e## !" la*4 !' Bu"#d*t!n n "e(e"#n+ the de*#!n!' the $a%!" A"%te" and the N$RC. e *la&# that theCA e""ed n "uln+ that the Bu"d*al "elat!n#hp%eteen h& and "e#p!ndent unde" the Qa#unduana# a *!&%nat!n !' e&pl!ye"-e&pl!yee and(end!"-(endee "elat!n#hp#. The te"&# and*!ndt!n# !' the Qa#unduan *lea"ly #tate that he and"e#p!ndent Gu#ta&ante had ente"ed nt! a*!ndt!nal deed !' #ale !(e" the Beepney a# #u*h,the" e&pl!ye"-e&pl!yee "elat!n#hp had %eent"an#'!"&ed nt! that !' (end!"-(endee. >ett!ne"n##t# that he had the "+ht t! "e#e"(e h# ttle !n the Beepney untl a'te" the pu"*ha#e p"*e the"e!' had%een pad n 'ull.In h# C!&&ent !n the pett!n, "e#p!ndent a(e"#that the app"!p"ate "e&edy !' pett!ne" a# anappeal (a a pett!n '!" "e(e !n *e"t!"a" unde"Rule ; !' the Rule# !' C!u"t and n!t a #pe*al *(la*t!n !' *e"t!"a" unde" Rule 6;. e a"+ue# thatpett!ne" 'aled t! e#ta%l#h that the CA *!&&tted+"a(e a%u#e !' t# d#*"et!n a&!untn+ t! e*e## !"la*4 !' Bu"#d*t!n n t# de*#!n, a# the #ad "uln+ #n a**!"d th la and the e(den*e !n "e*!"d.Re#p!ndent 'u"the" a##e"t# that the Qa#unduanp"e#ented t! h& %y pett!ne" h*h p"!(de# '!" a%!unda"y-hul!+ #*he&e a# a de(!u# *"*u&(ent!n!' the $a%!" C!de !' the >hlppne#. Re#p!ndentn##t# that h# Bu"d*al "elat!n#hp th pett!ne" #

that !' e&pl!ye"-e&pl!yee %e*au#e he a# en+a+edt! pe"'!"& a*t(te# h*h e"e ne*e##a"y !"de#"a%le n the u#ual %u#ne## !' pett!ne", h#e&pl!ye". aIDETIn h# Reply, pett!ne" a(e"# that the Rule# !' >"!*edu"e #h!uld %e l%e"ally *!n#t"ued n h# 'a(!"hen*e, t %eh!!(e# the C!u"t t! "e#!l(e the &e"t# !' h# pett!n.?e a+"ee th "e#p!ndent7# *!ntent!n that the"e&edy !' pett!ne" '"!& the CA de*#!n a# t! )le

a pett!n '!" "e(e !n *e"t!"a" unde" Rule ; !' theRule# !' C!u"t and n!t the ndependent a*t!n !' *e"t!"a" unde" Rule 6;. >ett!ne" had 1; day# '"!&"e*ept !' the CA "e#!lut!n denyn+ h# &!t!n '!" the"e*!n#de"at!n thn h*h t! )le the pett!n unde"Rule ;. 28 Gut n#tead !' d!n+ #!, he )led a pett!n'!" *e"t!"a" unde" Rule 6; !n N!(e&%e" 22, 2<<,h*h dd n!t, h!e(e", #u#pend the "unnn+ !' the1;-day "e+le&enta"y pe"!d *!n#euently, the CAde*#!n %e*a&e )nal and ee*ut!"y up!n the lap#e!' the "e+le&enta"y pe"!d '!" appeal. Thu#, !n th#p"!*edu"al lap#e, the n#tant pett!n #tand# t! %ed#&##ed. 29It &u#t %e #t"e##ed that the "e*!u"#e t! a #pe*al *(la*t!n unde" Rule 6; !' the Rule# !' C!u"t #

p"!#*"%ed %y the "e&edy !' appeal unde" Rule ;. A#the C!u"t ela%!"ated n T!&a# Claud! Me&!"alC!lle+e, In*. (. C!u"t !' Appeal#: 3<?e a+"ee that the "e&edy !' the a++"e(ed pa"ty '"!&a de*#!n !" )nal "e#!lut!n !' the CA # t! )le apett!n '!" "e(e !n *e"t!"a" unde" Rule ; !' theRule# !' C!u"t, a# a&ended, !n ue#t!n# !' 'a*t# !"##ue# !' la thn )'teen day# '"!& n!t*e !' the#ad "e#!lut!n. Othe"#e, the de*#!n !' the CA #hall%e*!&e )nal and ee*ut!"y. The "e&edy unde" Rule; !' the Rule# !' C!u"t # a &!de !' appeal t! th#C!u"t '"!& the de*#!n !' the CA. It # a *!ntnuat!n!' the appellate p"!*e## !(e" the !"+nal *a#e. A"e(e # n!t a &atte" !' "+ht %ut # a &atte" !' Bud*al d#*"et!n. The a++"e(ed pa"ty &ay, h!e(e",a##al the de*#!n !' the CA (a a pett!n '!"*e"t!"a" unde" Rule 6; !' the Rule# !' C!u"t thn#ty day# '"!& n!t*e !' the de*#!n !' the CA !" t#"e#!lut!n denyn+ the &!t!n '!" "e*!n#de"at!n !' the #a&e. Th# # %a#ed !n the p"e&#e that n ##un+the a##aled de*#!n and "e#!lut!n, the CA a*tedth +"a(e a%u#e !' d#*"et!n, a&!untn+ t! e*e##!" la*4 !' Bu"#d*t!n and the"e # n! plan, #peedyand adeuate "e&edy n the !"dna"y *!u"#e !' la. A"e&edy # *!n#de"ed plan, #peedy and adeuate ' tll p"!&ptly "ele(e the pett!ne" '"!& the nBu"!u#ee*t !' the Bud+&ent and the a*t# !' the l!e" *!u"t.SDEC* The a++"e(ed pa"ty # p"!#*"%ed '"!& )ln+ apett!n '!" *e"t!"a" ' appeal # a(ala%le, '!" the



"e&ede# !' appeal and *e"t!"a" a"e &utuallye*lu#(e and n!t alte"nat(e !" #u**e##(e. Thea++"e(ed pa"ty #, l4e#e, %a""ed '"!& )ln+ apett!n '!" *e"t!"a" ' the "e&edy !' appeal # l!#tth"!u+h h# ne+l+en*e. A pett!n '!" *e"t!"a" # an!"+nal a*t!n and d!e# n!t nte""upt the *!u"#e !' the p"n*pal *a#e unle## a te&p!"a"y "e#t"ann+!"de" !" a "t !' p"el&na"y nBun*t!n ha# %een##ued a+an#t the pu%l* "e#p!ndent '"!& 'u"the"p"!*eedn+. A pett!n '!" *e"t!"a" &u#t %e %a#ed !n

Bu"#d*t!nal +"!und# %e*au#e, a# l!n+ a# the"e#p!ndent *!u"t a*ted thn t# Bu"#d*t!n, anye""!" *!&&tted %y t ll a&!unt t! n!thn+ &!"ethan an e""!" !' Bud+&ent h*h &ay %e *!""e*ted !""e(eed !nly %y appeal. 31!e(e", e ha(e al#! "uled that a pett!n '!"*e"t!"a" unde" Rule 6; &ay %e *!n#de"ed a# )ledunde" Rule ;, *!n'!"&a%ly th the p"n*ple that"ule# !' p"!*edu"e a"e t! %e *!n#t"ued l%e"ally,p"!(ded that the pett!n # )led thn the"e+le&enta"y pe"!d unde" Se*t!n 2, Rule ; !' theRule# !' C!u"t, and he"e (ald and *!&pelln+*"*u&#tan*e# a""ant that the pett!n %e "e#!l(ed!n t# &e"t#. 32 In th# *a#e, the pett!n a# )ledthn the "e+le&enta"y pe"!d and pett!ne" ha#

"a#ed an ##ue !' #u%#tan*e: hethe" the e#ten*e !' a %!unda"y-hul!+ a+"ee&ent ne+ate# the e&pl!ye"-e&pl!yee "elat!n#hp %eteen the (end!" and(endee, and, a# a *!"!lla"y, hethe" the $a%!" A"%te"ha# Bu"#d*t!n !(e" a *!&plant '!" lle+al d#&##aln #u*h *a#e.?e "e#!l(e the#e ##ue# n the a@"&at(e. The "ule # that, the natu"e !' an a*t!n and the#u%Be*t &atte" the"e!', a# ell a#, h*h *!u"t !"a+en*y !' the +!(e"n&ent ha# Bu"#d*t!n !(e" the#a&e, a"e dete"&ned %y the &ate"al alle+at!n# !' the *!&plant n "elat!n t! the la n(!l(ed and the*ha"a*te" !' the "ele'# p"ayed '!", hethe" !" n!t the*!&planantplant # enttled t! any !" all !' #u*h"ele'#. 33 A p"aye" !" de&and '!" "ele' # n!t pa"t !' the pett!n !' the *au#e !' a*t!n n!" d!e# t enla"+ethe *au#e !' a*t!n #tated !" *han+e the le+al ee*t!' hat # alle+ed. 3 In dete"&nn+ h*h %!dy ha# Bu"#d*t!n !(e" a *a#e, the %ette" p!l*y # t!*!n#de" n!t !nly the #tatu# !" "elat!n#hp !' thepa"te# %ut al#! the natu"e !' the a*t!n that # the#u%Be*t !' the" *!nt"!(e"#y. 3;A"t*le 21/ !' the $a%!" C!de, a# a&ended, (e#t# !nthe $a%!" A"%te" e*lu#(e !"+nal Bu"#d*t!n !nly!(e" the '!ll!n+:. . . 0a E*ept a# !the"#e p"!(ded unde" th# C!de,the $a%!" A"%te"# #hall ha(e !"+nal and e*lu#(e Bu"#d*t!n t! hea" and de*de, thn th"ty 03<*alenda" day# a'te" the #u%&##!n !' the *a#e %y thepa"te# '!" de*#!n th!ut eten#!n, e(en n the

a%#en*e !' #ten!+"aph* n!te#, the '!ll!n+ *a#e#n(!l(n+ all !"4e"#, hethe" a+"*ultu"al !" n!n-a+"*ultu"al:1. =n'a" la%!" p"a*t*e *a#e# EDCSI2. Te"&nat!n d#pute#3. I' a**!&paned th a *la& '!""en#tate&ent, th!#e *a#e# that !"4e"# &ay )len(!l(n+ a+e, "ate# !' pay, h!u"# !' !"4, and!the" te"&# and *!ndt!n# !' e&pl!y&ent. Cla&# '!" a*tual, &!"al, ee&pla"y and

!the" '!"&# !' da&a+e# a"#n+ '"!& the e&pl!ye"-e&pl!yee "elat!n#;. Ca#e# a"#n+ '"!& (!lat!n !' A"t*le 26 !' th# C!de, n*ludn+ ue#t!n# n(!l(n+ the le+alty!' #t"4e# and l!*4!ut# and6. E*ept *la&# '!" E&pl!yee# C!&pen#at!n,S!*al Se*u"ty, Med*a"e and &ate"nty %ene)t#, all!the" *la&#, a"#n+ '"!& e&pl!ye"-e&pl!yee"elat!n#hp, n*ludn+ th!#e !' pe"#!n# n d!&e#t*!" h!u#eh!ld #e"(*e, n(!l(n+ an a&!unt e*eedn+)(e th!u#and pe#!# 0>;,<<<.<< "e+a"dle## !' hethe" a**!&paned th a *la& '!" "en#tate&ent.0% The C!&&##!n #hall ha(e e*lu#(eappellate Bu"#d*t!n !(e" all *a#e# de*ded %y $a%!"A"%te"#.

0* Ca#e# a"# n+ '"!& the nte"p"etat!n !"&ple&entat!n !' *!lle*t(e %a"+ann+ a+"ee&ent#,and th!#e a"#n+ '"!& the nte"p"etat!n !"en'!"*e&ent !' *!&pany pe"#!nnel p!l*e# #hall %ed#p!#ed !' %y the $a%!" A"%te" %y "e'e""n+ the#a&e t! the +"e(an*e &a*hne"y and (!lunta"ya"%t"at!n a# &ay %e p"!(ded n #ad a+"ee&ent#.In the '!"e+!n+ *a#e#, an e&pl!ye"-e&pl!yee"elat!n#hp # an nd#pen#a%le Bu"#d*t!nal"eu#te. 36 The Bu"#d*t!n !' $a%!" A"%te"# andthe N$RC unde" A"t*le 21/ !' the $a%!" C!de #l&ted t! d#pute# a"#n+ '"!& an e&pl!ye"-e&pl!yee "elat!n#hp h*h *an !nly %e "e#!l(ed %y"e'e"en*e t! the $a%!" C!de, !the" la%!" #tatute# !"the" *!lle*t(e %a"+ann+ a+"ee&ent. 3/ N!t e(e"yd#pute %eteen an e&pl!ye" and e&pl!yee n(!l(e#&atte"# that !nly the $a%!" A"%te" and the N$RC *an"e#!l(e n the ee"*#e !' the" adBud*at!"y !" ua#- Bud*al p!e"#. A*t!n# %eteen e&pl!ye"# ande&pl!yee# he"e the e&pl!ye"-e&pl!yee"elat!n#hp # &e"ely n*dental # thn thee*lu#(e !"+nal Bu"#d*t!n !' the "e+ula" *!u"t#. 38?hen the p"n*pal "ele' # t! %e +"anted unde" la%!"le+#lat!n !" a *!lle*t(e %a"+ann+ a+"ee&ent, the*a#e 'all# thn the e*lu#(e Bu"#d*t!n !' the$a%!" A"%te" and the N$RC e(en th!u+h a *la& '!"da&a+e# &+ht %e a##e"ted a# an n*dent t! #u*h*la&. 39?e a+"ee th the "uln+ !' the CA that, unde" the%!unda"y-hul!+ #*he&e n*!"p!"ated n the

Qa#unduan, a dual Bu"d*al "elat!n#hp a# *"eated%eteen pett!ne" and "e#p!ndent: that !' e&pl!ye"-e&pl!yee and (end!"-(endee. The Qa#unduan dd n!tetn+u#h the e&pl!ye"-e&pl!yee "elat!n#hp !' thepa"te# etant %e'!"e the ee*ut!n !' #ad deed.*SIaAA# ea"ly a# 19;6, the C!u"t "uled n Nat!nal $a%!"=n!n (. D n+la#an < that the Beepney!ne"!pe"at!"-d"(e" "elat!n#hp unde" the%!unda"y #y#te& # that !' e&pl!ye"-e&pl!yee and

n!t le##!"-le##ee. Th# d!*t"ne a# a@"&ed, unde"#&la" 'a*tual #ettn+#, n Ma+%!! (. Ge"na"d! 1 and$anta*!, S". (. $la&a#, 2 and a# anal!+!u#lyappled t! +!(e"n the "elat!n#hp# %eteen aut!-*ale#a !ne"!pe"at!" and d"(e", 3 %u#!ne"!pe"at!" and *!ndu*t!", and ta!ne"!pe"at!" and d"(e". ; The %!unda"y #y#te& # a #*he&e %y an!ne"!pe"at!" en+a+ed n t"an#p!"tn+ pa##en+e"#a# a *!&&!n *a""e" t! p"&a"ly +!(e"n the*!&pen#at!n !' the d"(e", that #, the latte"7# dalyea"nn+# a"e "e&tted t! the !ne"!pe"at!" le## thee*e## !' the %!unda"y h*h "ep"e#ent# the d"(e"7#*!&pen#at!n. =nde" th# #y#te&, the !ne"!pe"at!"ee"*#e# *!nt"!l and #upe"(#!n !(e" the d"(e". It #

unl4e n lea#e !' *hattel# he"e the le##!" l!#e#*!&plete *!nt"!l !(e" the *hattel lea#ed %ut thele##ee # #tll ult&ately "e#p!n#%le '!" the*!n#euen*e# !' t# u#e. The &ana+e&ent !' the%u#ne## # #tll n the hand# !' the !ne"!pe"at!",h!, %en+ the h!lde" !' the *e"t)*ate !' pu%l**!n(enen*e, &u#t #ee t! t that the d"(e" '!ll!# the"!ute p"e#*"%ed %y the '"an*h#n+ and "e+ulat!"yauth!"ty, and the "ule# p"!&ul+ated th "e+a"d t!the %u#ne## !pe"at!n#. The 'a*t that the d"(e" d!e#n!t "e*e(e )ed a+e# %ut !nly the e*e## !' the5%!unda"y5 +(en t! the !ne"!pe"at!" # n!t#u@*ent t! *han+e the "elat!n#hp %eteen the&.Indu%ta%ly, the d"(e" pe"'!"&# a*t(te# h*h a"eu#ually ne*e##a"y !" de#"a%le n the u#ual %u#ne##!" t"ade !' the !ne"!pe"at!". 6=nde" the Qa#unduan, "e#p!ndent a# "eu"ed t!"e&t >;;<.<< daly t! pett!ne", an a&!unt h*h"ep"e#ented the %!unda"y !' pett!ne" a# ell a#"e#p!ndent7# pa"tal pay&ent 0hul!+ !' the pu"*ha#ep"*e !' the Beepney. Re#p!ndent a# enttled t! 4eepthe e*e## !' h# daly ea"nn+# a# h# daly a+e. Thu#, the daly "e&ttan*e# al#! had a dual pu"p!#e:that !' pett!ne"7# %!unda"y and "e#p!ndent7# pa"talpay&ent 0hul!+ '!" the (eh*le. Th# dual pu"p!#ea# ep"e##ly #tated n the Qa#unduan. The ell-#ettled "ule # that an !%l+at!n # n!t n!(ated %y ann#t"u&ent that ep"e##ly "e*!+ne# the !ld !ne,*han+e# !nly the te"&# !' pay&ent, and add# !the"!%l+at!n# n!t n*!&pat%le th the !ld p"!(#!n# !"



he"e the ne *!nt"a*t &e"ely #upple&ent# thep"e(!u# !ne. / The t! !%l+at!n# !' the"e#p!ndent t! "e&t t! pett!ne" the %!unda"y-hul!+*an #tand t!+ethe". STaA*CIn "e#!l(n+ an ##ue %a#ed !n *!nt"a*t, th# C!u"t&u#t )"#t ea&ne the *!nt"a*t t#el', 4eepn+ n &ndthat hen the te"&# !' the a+"ee&ent a"e *lea" andlea(e n! d!u%t a# t! the ntent!n !' the *!nt"a*tn+pa"te#, the lte"al &eann+ !' t# #tpulat!n# #hallp"e(al. 8 The ntent!n !' the *!nt"a*tn+ pa"te#

#h!uld %e a#*e"taned %y l!!4n+ at the !"d# u#ed t!p"!Be*t the" ntent!n, that #, all the !"d#, n!t Bu#t apa"t*ula" !"d !" t! !" &!"e !"d# #tandn+ al!ne. The (a"!u# #tpulat!n# !' a *!nt"a*t #hall %ente"p"eted t!+ethe", att"%utn+ t! the d!u%t'ul !ne#that #en#e h*h &ay "e#ult '"!& all !' the& ta4en B!ntly. 9 The pa"t# and *lau#e# &u#t %e nte"p"etedn "elat!n t! !ne an!the" t! +(e ee*t t! the h!le. The le+al ee*t !' a *!nt"a*t # t! %e dete"&ned '"!&the h!le "ead t!+ethe". ;<=nde" the Qa#unduan, pett!ne" "etaned #upe"(#!nand *!nt"!l !(e" the *!ndu*t !' the "e#p!ndent a#d"(e" !' the Beepney, thu#:An+ &+a pata4a"an, 4au+nay n+ %lhan+ t! #apa&a&a+tan n+ %!unda"y hul!+ ay an+ &+a

#u&u#un!d:1. >an+an+ala+aan at pa+-n+atan n+ TA=ANN IQA$A?AN >ANI an+ #a#a4yan pna+4atala #a4anya n+ TA=AN N =NAN >ANI.2. Na an+ #a#a4yan na%an++t ay +a+a&tnla&an+ n+ TA=AN N IQA$A?AN >ANI #apa+hahanap%uhay %lan+ pa&pa#ada !pan+an+ala4al #a &aln# at &aay!# na pa&a&a"aan.3. Na an+ #a#a4yan na%an++t ay hnd+a+a&tn n+ TA=AN N IQA$A?AN >ANI #a &+a%a+ay na &a4apa+dudul!t n+ 4ahhyan, 4a#"aan !panana+utan #a TA=AN N =NAN >ANI.. Na hnd t! &a&aneh!hn n+ hndat!"#ad! n+ !p#na n+ =NAN >ANI.;. Na an+ TA=AN N IQA$A?AN >ANI ay

4na4alan+an+ &a+la+ay n+ ID Ca"d #a ha"ap n+nd#held upan+ #a pa&a&a+tan nt! ay &adalan+&ala&an 4un+ an+ na+&a&aneh! ay at!"#ad! n+KI$$AMARIA MOTORS ! hnd. A*ISTE6. Na #a#a+utn n+ TA=AN N IQA$A?AN>ANI an+ hala+a n+ &ulta 4un+ #a4aln+ &ahulan+ #a#a4yan+ t! na hnd na4a4a%t an+ ID *a"d #aa#t!n+ lu+a" ! anu&an 4a#alanan ! 4apa%ayaan./. Na #a#a+utn dn n+ TA=AN N IQA$A?AN>ANI an+ &ate"yale# ! pye#a na papaltan n+ na#"a! naala t! dahl #a 4anyan+ 4apa%ayaan.8. Qalan+an #a KI$$AMARIA MOTORS pa "n an++a"ahe ha%an+ hnuhulu+an pa "n n+ TA=AN NIQA$A?AN >ANI an+ na#a%n+ #a#a4yan.

9. Na 4un+ &a+4a"!!n n+ &a%+at na 4a#"aanan+ #a#a4yan+ pna+4al!!% n+ TA=AN N =NAN>ANI, an+ TA=AN N IQA$A?AN >ANI ay!%l+ad!n+ taa+ t! &una #a KI$$AMARIA MOTORS%a+! pa+aa #a aln &an+ M!t!" Sh!p naat!"#ad! n+ KI$$AMARIA MOTORS.1<. Na hnd pahhntulutan n+ TA=AN NIQA$A?AN >ANI #a panah!n n+ pa&a&a#ada naan+ na+&a&aneh! ay na4a-t#nela#, na4a #h!"tpant# at na4a#and! la&an+. Dapat an+

na+&a&aneh! ay la+n+ na#a &aay!# an+ 4a#u!tanupan+ +alan+ n+ &+a pa#ahe"!.11. Na an+ TA=AN N IQA$A?AN >ANI !an+ at!"#ad! nyan+ d"(e" ay &a+papa4ta n+&a+andan+ a#al #a &+a pa#ahe"!# at hnd dapat&a+#a#alta n+ &a#a&a 4un+ #a4al &an &aypa#ahe"!n+ pl!#!p! upan+ &aa#an an+ anu&an+4a+uluhan na &aaa"n+ 4a#an+4utan.12. Na 4un+ #a4aln+ hnd &a4apa+%+ay n+GO=NDARL =$O an+ TA=AN N IQA$A?AN>ANI #a l!!% n+ tatl!n+ 03 a"a ay an+ !p#na n+KI$$AMARIA MOTORS an+ &ay 4a"apatan+&an+a#a n+ na#a%n+ #a#a4yan han++an+&atu+unan an+ lahat n+ "e#p!n#%ldad. An+hala+an+ dapat %aya"an #a !p#na ay &ay

4a"a+da+an+ &ulta n+ >;<.<< #a a"a-a"a na t! ayna#a pan+an+a#a n+ KI$$AMARIA MOTORS.ST*ADa13. Na 4un+ an+ TA=AN N IQA$A?AN >ANIay hnd &a4apa+%+ay n+ GO=NDARL =$O #a l!!%n+ #an+ ln++! ay nan+an+ahulu+an na an+4a#unduan+ t! ay ala n+ %#a at 4u#an+ %a%al4 n+ TA=AN N IQA$A?AN >ANI an+ na#a%n+#a#a4yan #a TA=AN N =NAN >ANI.1. Sa#a+utn n+ TA=AN N IQA$A?AN >ANIan+ %ayad #a "eh#t"!, *!&p"ehen#(e n#u"an*eta!n-ta!n at 4aht an!n+ u" n+ a4#dente ha%an+ t!ay hnuhulu+an pa #a TA=AN N =NAN >ANI.1;. Na an+ TA=AN N IQA$A?AN >ANI ay!%l+ad!n+ du&al! #a pan+4alahatan+ pa+pupul!n+

n+ KI$$AMARIA MOTORS #a tun+ tataa+ an+ &+ata+apan+a#a nt! upan+ &apaa%!t an+ anu&an+&un+4ah #a 4a#u#ul!n+ n+ #a&ahan.16. Na an+ TA=AN N IQA$A?AN >ANI ay&a44#a #a lahat n+ &+a pata4a"an na&a+4a4a"!!n n+ pa+%a%a+! ! 4a"a+da+an #a &+ada"atn+ na panah!n at hnd &a++n+ hadlan+ #alahat n+ &+a %ala4n n+ KI$$AMARIA MOTORS #a lal!pan+ pa+tata+u&pay at 4a4at%ay n+ Sa&ahan.1/. Na an+ TA=AN N IQA$A?AN >ANI ayhnd &a++n+ %uaya #a pa#ahe"! upan+ hnd4an#an n+ 4apa d"(e" at &aa#an an+pa+4a4a#an+4!t #a anu&an+ +ul!.18. An+ na#a%n+ #a#a4yan ay hnd4all&utan+ #ya#atn an+ 4ala+ayan lal! na #a

u&a+a %a+! pu&a#ada, at #a hap!n ! +a% na&an ay##4apn &apanatl an+ 4aln#an nt!.19. Na 4un+ #a4aln+ an+ na#a%n+ #a#a4yan ay&aaa"4la at aa%utn n+ dalaa ! h+t pan+ a"a #alala+an ay dapat la&an+ na pa+%+ay ala& &unat! #a KI$$AMARIA MOTORS upan+ &aa#an an+ &+aanu&an+ #ul"ann.2<. Na an+ TA=AN N IQA$A?AN >ANI aya#an an+ pa44pa+-unahan #a 4annu&an+#a#a4yan upan+ &aa#an an+ a4#dente. ASaTI

21. Na 4un+ an+ TA=AN N IQA$A?AN >ANIay &ay"!!n #a#a%hn #a KI$$AMARIA MOTORS &a%ut&an !" &a#a&a ay pa"atn+ a+ad t! #a 4nauu4ulanat a#an na pa"atn+ t! 4un+ 4an-4ann! la&an+upan+ &aa#an an+ anu&an+ u#apn. Ma+#adyaa+ad #a !p#na n+ KI$$AMARIA MOTORS.22. An+ &+a na#a#aad #a QAS=ND=AN t! ay%u!n+ +alan+ at pu#! 4!n+ #na#an+-ayunan at %u!n+#4ap na pan+an+ala+aan n+ TA=AN N IQA$A?AN>ANI an+ na#a%n+ #a#a4yan at +a+a&tn la&an+t! #a pa+hahanap%uhay at ala nan+ %a pa. ;1 The pa"te# ep"e##ly a+"eed that pett!ne", a#(end!", and "e#p!ndent, a# (endee, ente"ed nt! a*!nt"a*t t! #ell the Beepney !n a daly n#tall&ent%a## !' >;;<.<< paya%le n '!u" yea"# and that

pett!ne" !uld the"ea'te" %e*!&e t# !ne". A*!nt"a*t # !ne !' *!ndt!nal #ale, !'tent&e# "e'e""edt! a# *!nt"a*t t! #ell, ' the !ne"#hp !" ttle !(e" thep"!pe"ty #!ld # "etaned %y the (end!", and # n!tpa##ed t! the (endee unle## and untl the"e # 'ullpay&ent !' the pu"*ha#e p"*e and!" up!n 'ath'ul*!&plan*e th the !the" te"&# and *!ndt!n# that&ay la'ully %e #tpulated. ;2 Su*h pay&ent !"#at#'a*t!n !' !the" p"e*!ndt!n#, a# the *a#e &ay%e, # a p!#t(e #u#pen#(e *!ndt!n, the 'alu"e !' h*h # n!t a %"ea*h !' *!nt"a*t, *a#ual !" #e"!u#,%ut #&ply an e(ent that !uld p"e(ent the !%l+at!n!' the (end!" t! *!n(ey ttle '"!& a*u"n+ %ndn+'!"*e. ;3 Stated de"ently, the e@*a*y !" !%l+at!"y'!"*e !' the (end!"7# !%l+at!n t! t"an#'e" ttle #

#u%!"dnated t! the happenn+ !' a 'utu"e andun*e"tan e(ent #! that ' the #u#pen#(e *!ndt!nd!e# n!t ta4e pla*e, the pa"te# !uld #tand a# ' the*!ndt!nal !%l+at!n had ne(e" e#ted. ; The(end!" &ay et"aBud*ally te"&nate the !pe"at!n !' the *!nt"a*t, "e'u#e *!n(eyan*e, and "etan the #u&#!" n#tall&ent# al"eady "e*e(ed, he"e #u*h "+ht#a"e ep"e##ly p"!(ded '!". ;;=nde" the %!unda"y-hul!+ #*he&e, pett!ne""etaned !ne"#hp !' the Beepney alth!u+h t#&ate"al p!##e##!n a# (e#ted n "e#p!ndent a# t#d"(e". In *a#e "e#p!ndent 'aled t! &a4e h# >;;<.<<daly n#tall&ent pay&ent '!" a ee4, the a+"ee&ent!uld %e !' n! '!"*e and ee*t and "e#p!ndent !uldha(e t! "etu"n the Beepney t! pett!ne" the



e&pl!ye"-e&pl!yee "elat!n#hp !uld l4e#e %ete"&nated unle## pett!ne" !uld all! "e#p!ndentt! *!ntnue d"(n+ the Beepney !n a %!unda"y %a##!' >;;<.<< daly de#pte the te"&nat!n !' the"(end!"-(endee "elat!n#hp. AETIC The Bu"d*al "elat!n#hp !' e&pl!ye"-e&pl!yee%eteen pett!ne" and "e#p!ndent a# n!t ne+ated%y the '!"e+!n+ #tpulat!n n the Qa#unduan,*!n#de"n+ that pett!ne" "etaned *!nt"!l !' "e#p!ndent7# *!ndu*t a# d"(e" !' the (eh*le. A#

*!""e*tly "uled %y the CA: The ee"*#e !' *!nt"!l %y p"(ate "e#p!ndent !(e"pett!ne"7# *!ndu*t n !pe"atn+ the Beepney he a#d"(n+ # n*!n##tent th p"(ate "e#p!ndent7# *la&that he #, !" a#, n!t en+a+ed n the t"an#p!"tat!n%u#ne## that, e(en ' pett!ne" a# all!ed t! let#!&e !the" pe"#!n d"(e the unt, t a# n!t #h!nthat he dd #! that the e#ten*e !' an e&pl!y&ent"elat!n # n!t dependent !n h! the !"4e" # pad%ut !n the p"e#en*e !" a%#en*e !' *!nt"!l !(e" the&ean# and &eth!d !' the !"4 that the a&!untea"ned n e*e## !' the 5%!unda"y hul!+5 #eu(alent t! a+e# and that the 'a*t that the p!e"!' d#&##al a# n!t &ent!ned n the Qa#unduan ddn!t &ean that p"(ate "e#p!ndent ne(e" ee"*#ed

#u*h p!e", !" *!uld n!t ee"*#e #u*h p!e".M!"e!(e", "eu"n+ pett!ne" t! d"(e the unt '!"*!&&e"*al u#e, !" t! ea" an dent)*at!n *a"d, !"t! d!n a de*ent att"e, !" t! pa"4 the (eh*le nKlla&a"a M!t!"# +a"a+e, !" t! n'!"& Klla&a"aM!t!"# a%!ut the 'a*t that the unt !uld %e +!n+ !utt! the p"!(n*e '!" t! day# !' &!"e, !" t! d"(e theunt *a"e'ully, et*. ne*e##a"ly "elated t! *!nt"!l !(e"the &ean# %y h*h the pett!ne" a# t! +! a%!ut h#!"4 that the "uln+ appl*a%le he"e # n!t Sn+e"Sen+ Ma*hne %ut Nat!nal $a%!" =n!n #n*e thelatte" *a#e n(!l(ed Beepney !ne"#!pe"at!"# and Beepney d"(e"#, and that the 'a*t that the 5%!unda"y5he"e "ep"e#ented n#tall&ent pay&ent !' thepu"*ha#e p"*e !n the Beepney dd n!t thd"a the

"elat!n#hp '"!& that !' e&pl!ye"-e&pl!yee, n (e!' the !(e"t p"e#en*e !' #upe"(#!n and *!nt"!l %ythe e&pl!ye". ;6Nethe" # #u*h Bu"d*al "elat!n#hp ne+ated %ypett!ne"7# *la& that the te"&# and *!ndt!n# n theQa#unduan "elat(e t! "e#p!ndent7# %eha(!" anddep!"t&ent a# d"(e" a# '!" h# and "e#p!ndent7#%ene)t: t! n#u"e that "e#p!ndent !uld %e a%le t!pay the "eu#te daly n#tall&ent !' >;;<.<<, andthat the (eh*le !uld #tll %e n +!!d *!ndt!nde#pte the lap#e !' '!u" yea"#. ?hat # p"&!"dal #that pett!ne" "etaned *!nt"!l !(e" the *!ndu*t !' the "e#p!ndent a# d"(e" !' the Beepney. D*EAaIndeed, pett!ne", a# the !ne" !' the (eh*le and theh!lde" !' the '"an*h#e, # enttled t! ee"*#e

#upe"(#!n and *!nt"!l !(e" the "e#p!ndent, %y#een+ t! t that the "!ute p"!(ded n h# '"an*h#e,and the "ule# and "e+ulat!n# !' the $and T"an#p!"tat!n Re+ulat!"y G!a"d a"e duly *!&pledth. M!"e!(e", n a %u#ne## e#ta%l#h&ent, andent)*at!n *a"d # u#ually p"!(ded n!t Bu#t a# a#e*u"ty &ea#u"e %ut t! &anly dent'y the h!lde"the"e!' a# a %!na )de e&pl!yee !' the )"& h!##ue# t. ;/A# "e#p!ndent7# e&pl!ye", t a# the %u"den !'

pett!ne" t! p"!(e that "e#p!ndent7# te"&nat!n'"!& e&pl!y&ent a# '!" a la'ul !" Bu#t *au#e, !",at the (e"y lea#t, that "e#p!ndent 'aled t! &a4e h#daly "e&ttan*e# !' >;;<.<< a# %!unda"y. !e(e",pett!ne" 'aled t! d! #!. A# *!""e*tly "uled %y theappellate *!u"t:It # %a#* !' *!u"#e that te"&nat!n !' e&pl!y&ent&u#t %e ee*ted n a**!"dan*e th la. The Bu#tand auth!"ed *au#e# '!" te"&nat!n !' e&pl!y&ent a"e enu&e"ated unde" A"t*le# 282, 283and 28 !' the $a%!" C!de.>a"enthet*ally, +(en the pe*ula"ty !' the #tuat!n!' the pa"te# he"e, the de'ault n the "e&ttan*e !' the %!unda"y hul!+ '!" !ne ee4 !" l!n+e" &ay %e*!n#de"ed an addt!nal *au#e '!" te"&nat!n !'

e&pl!y&ent. The "ea#!n # %e*au#e the Qa#unduan!uld %e !' n! '!"*e and ee*t n the e(ent that thepu"*ha#e" 'aled t! "e&t the %!unda"y hul!+ '!" !neee4. The Qa#unduan n th# *a#e pe"tnently#tpulate#:13. Na 4un+ an+ TA=AN N IQA$A?AN >ANIay hnd &a4apa+%+ay n+ GO=NDARL =$O #a l!!%n+ #an+ ln++! ay NANANA=$=AN na an+4a#unduan+ t! ay ala n+ %#a at 4u#an+ %a%al4 n+ TA=AN N IQA$A?AN >ANI an+ na#a%n+#a#a4yan #a TA=AN N =NAN >ANI na ala n+pa+haha%!l pa. Ca*EISM!"e!(e", ell-#ettled # the "ule that, the e&pl!ye"ha# the %u"den !' p"!(n+ that the d#&##al !' ane&pl!yee # '!" a Bu#t *au#e. The 'alu"e !' the

e&pl!ye" t! d#*ha"+e th# %u"den &ean# that thed#&##al # n!t Bu#t)ed and that the e&pl!yee #enttled t! "en#tate&ent and %a*4 a+e#.In the *a#e at %en*h, p"(ate "e#p!ndent n h#p!#t!n pape" %e'!"e the $a%!" A"%te", alle+ed thatpett!ne" 'aled t! pay the &#*ellane!u# 'ee !' >1<,<<<.<< and the yea"ly "e+#t"at!n !' the untthat pett!ne" al#! #t!pped "e&ttn+ the 5%!unda"yhul!+,5 p"!&ptn+ h& 0p"(ate "e#p!ndent t! ##uea 5>aalala,5 h*h pett!ne" h!e(e" +n!"ed thatpett!ne" e(en %"!u+ht the unt t! h# 0pett!ne"7#p"!(n*e th!ut n'!"&n+ h& 0p"(ate "e#p!ndenta%!ut t and that pett!ne" e(entually a%and!nedthe (eh*le at a +a#!lne #tat!n a'te" )+u"n+ n ana**dent. Gut p"(ate "e#p!ndent 'aled t!

#u%#tantate the#e alle+at!n# th #!ld, #u@*entp"!!'. N!ta%ly, p"(ate "e#p!ndent7# alle+at!n (,that he "et"e(ed the (eh*le '"!& the +a# #tat!n,he"e pett!ne" a%and!ned t, *!nt"ad*ted h##tate&ent n the >aalala that he !uld en'!"*e thep"!(#!n 0n the Qa#unduan t! the ee*t that de'aultn the "e&ttan*e !' the %!unda"y hul!+ '!" !ne ee4!uld "e#ult n the '!"'etu"e !' the unt. The >aalala"ead# a# '!ll!#:5Sa lahat n+ &+a 4u&u4uha n+ #a#a4yan

5Sa pa&a&a+tan n+ UGO=NDARL =$O75Na# 4! p!n+ paalala #a ny! an+ Qa#unduan nany!n+ pn"&ahan pa"t*ula" na an+ pa"a+"ap! 13 nana+#a#aad na 4un+ hnd 4ay! &a4apa+%+ay n+G!unda"y ul!+ #a l!!% n+ #an+ ln++! ay 4u#anny!n+ %a%al4 and na#a%n+ #a#a4yan na ny!n+hnuhulu+an n+ ala n+ pa+haha%!l pa.5Mula p! #a a"a n+ ny!n+ pa+4atan++ap n+ >aalalana t! ay a4n na p!n+ patutupad an+ na#a%n+Qa#unduan 4aya7t a4n+ pnaaalala #a ny!n+ lahat natupa"n natn an+ na4ala+ay #a 4a#unduan upan+&aa#an natn t!. IDCTE5nhln+ 4! na #u&un!d 4ay! #a hnhn+ n+paalalan+ t! upan+ hnd na tay! &a4aa%!t pa #a4!"te 4un+ #a4aln+ hnd nny! #a#aul an+ ny!n+

#a#a4yan na hnuhulu+an na an+ &+a &a+a+a#t!# ay4ay! pa an+ &a+%a%ayad #apa+4at an+ hnd nny!pa+tupad #a 4a#unduan an+ na+n+ dahlan n+pa+#a&pa n+ 4a#!.5Su&a#any!5Attendan*e: 82/9950The S+natu"e# appea"n+ he"enn*lude 0#* that !' pett!ne"7# 0S+d.

OSCAR KI$$AMARIA, JR.5I' t e"e t"ue that pett!ne" dd n!t "e&t the%!unda"y hul!+ '!" !ne ee4 !" &!"e, hy dd p"(ate"e#p!ndent n!t '!"thth ta4e #tep# t! "e*!(e" theunt, and hy dd he ha(e t! at '!" pett!ne" t!a%and!n tHOn an!the" p!nt, p"(ate "e#p!ndent dd n!t #u%&t

any p!l*e "ep!"t t! #upp!"t h# *la& that pett!ne""eally )+u"ed n a (eh*ula" &#hap. Nethe" dd hep"e#ent the a@da(t !' the +ua"d '"!& the +a# #tat!nt! #u%#tantate h# *la& that pett!ne" a%and!nedthe unt the"e. ;8>ett!ne"7# *la& that he !pted n!t t! te"&nate thee&pl!y&ent !' "e#p!ndent %e*au#e !' &a+nan&ty# ne+ated %y h# 0pett!ne"7# !n e(den*e that het!!4 the Beepney '"!& the "e#p!ndent !nly !n July 2,2<<<.IN $IT OF A$$ TE FOREOIN, the pett!n #DENIED. The de*#!n !' the C!u"t !' Appeal# n CA-.R. S> N!. /8/2< # AFFIRMED. C!#t# a+an#tpett!ne". *ETDIASO ORDERED.



T#IRD DI'ISION[G.R. No. 880481. No/+?<+r 13, 1989.]!AATI #ABERDAS#ER(, IN., JORGE LEDES!Aan) EILIO G. INOENIO, *+--on+r, /.NATIONAL LABOR RELATIONS O!!ISSION,E$ERINA J. DIOSANA ;La<or Ar<-+r,D+*ar?+n o@ La<or an) E?*5oy?+n, Na-ona5a*-a5 R+-on=, SANDIGAN NG!ANGGAGAANG "ILI"INO ;SANDIGAN= 4 TU"an) - ?+?<+r, JAINTO GARIANO, AL$REDO. BASO, 'ITORIO (. LAURETO, ESTERNAR'AE%, EUGENIO L. ROBLES, BELEN N. 'ISTA,ALEJANDRO A. ESTRABO, 'E'ENIO TIRO,ASI!IRO %A"ATA, GLORIA ESTRABO, LEONORA

!ENDO%A, !AARIA G. DI!"AS, !ERIL(N A.'IRA(, LIL( O"INA, JANET SANGDANG, JOSE$INAALOEBA an) !ARIA ANGELES, r+*on)+n.

D E C I S I O NFERNAN, C.J p: Th# pett!n '!" *e"t!"a" n(!l(n+ t! #epa"ate*a#e# )led %y p"(ate "e#p!ndent# a+an#t he"enpett!ne"# a##al# the de*#!n !' "e#p!ndent Nat!nal$a%!" Relat!n# C!&&##!n n N$RC CASE N!. /-26<3-8 enttled 5Sand+an N+ Man++a+aan+>lpn! 0SANDIAN T=C> et*., et al. (. Ma4ata%e"da#he"y and!" T!ppe"# Ma4at, et al.5 and N$RCCASE N!. 2-28-8; enttled 5Sand+an N+Man++a+aan+ >lpn! 0SANDIAN T=C> et*., et

al. (. T!ppe"# Ma4at, et al.5, a@"&n+ the de*#!n !' the $a%!" A"%te" h! B!ntly hea"d and de*deda'!"e#ad *a#e#, )ndn+: 0a pett!ne"# +ulty !' lle+al d#&##al and !"de"n+ the& t! "en#tate thed#&##ed !"4e"# and 0% the e#ten*e !' e&pl!ye"-e&pl!yee "elat!n#hp and +"antn+ "e#p!ndent!"4e"# %y "ea#!n the"e!' the" (a"!u# &!neta"y*la&#. p"$$ The und#puted 'a*t# a"e a# '!ll!#:Ind(dual *!&planant#, p"(ate "e#p!ndent# he"en,

ha(e %een !"4n+ '!" pett !ne" Ma4ata%e"da#he"y, In*. a# tal!"#, #ea&#t"e##, #ee"#,%a#te"# 0&anlllp and 5plant#ad!"a#5. They a"e pad!n a pe*e-"ate %a## e*ept Ma"a An+ele# and$e!nla Se"a)na h! a"e pad !n a &!nthly %a##. Inaddt!n t! the" pe*e-"ate, they a"e +(en a dalyall!an*e !' th"ee 0>3.<< pe#!# p"!(ded they"ep!"t '!" !"4 %e'!"e 9:3< a.&. e(e"yday.>"(ate "e#p!ndent# a"e "eu"ed t! !"4 '"!& !"%e'!"e 9:3< a.&. up t! 6:<< !" /:<< p.&. '"!&M!nday t! Satu"day and du"n+ pea4 pe"!d# e(en !nSunday# and h!lday#.On July 2<, 198, the Sand+an n+ Man++a+aan+>lpn!, a la%!" !"+anat!n !' the "e#p!ndent!"4e"#, )led a *!&plant d!*4eted a# N$RC NCR

Ca#e N!. /-26<3-8 '!" 0a unde"pay&ent !' the%a#* a+e 0% unde"pay&ent !' l(n+ all!an*e 0*n!n-pay&ent !' !(e"t&e !"4 0d n!n-pay&ent !' h!lday pay 0e n!n-pay&ent !' #e"(*e n*ent(epay 0' 13th &!nth pay and 0+ %ene)t# p"!(ded '!"unde" ?a+e O"de"# N!#. 1, 2, 3, and ;. 1Du"n+ the penden*y !' N$RC NCR Ca#e N!. /-26<3-8, p"(ate "e#p!ndent D!#*!"! >el!%ell! le't thSal(ad!" R(e"a, a #ale#&an !' pett!ne"a%e"da#he"y, an !pen pa*4a+e h*h a#d#*!(e"ed t! *!ntan a 5Bu#5 %a"!n+ ta+al!+. ?hen*!n'"!nted, >el!%ell! "epled that the #a&e a#!"de"ed %y "e#p!ndent Ca#&"! apata '!" h#*u#t!&e". apata alle+edly ad&tted that he *!pedthe de#+n !' pett!ne" a%e"da#he"y. Gut n the

a'te"n!!n, hen a+an ue#t!ned a%!ut #ad %a"!n+,>el!%ell! and apata dened !ne"#hp !' the #a&e.C!n#euently a &e&!"andu& a# ##ued t! ea*h !' the& t! eplan !n !" %e'!"e Fe%"ua"y , 198; hyn! a*t!n #h!uld %e ta4en a+an#t the& '!" a**eptn+a B!% !"de" h*h # p"eBud*al and n d"e*t*!&pett!n th the %u#ne## !' the *!&pany. 2 G!th"e#p!ndent# alle+edly dd n!t #u%&t the"eplanat!n and dd n!t "ep!"t '!" !"4. 3 en*e,they e"e d#&##ed %y pett!ne"# !n Fe%"ua"y ,198;. They *!unte"ed %y )ln+ a *!&plant '!" lle+ald#&##al d!*4eted a# N$RC NCR Ca#e N!. 2-28-8;!n Fe%"ua"y ;, 198;.

On June 1<, 1986, $a%!" A"%te" Ce'e"na J. D!#ana"ende"ed Bud+&ent, the d#p!#t(e p!"t!n !' h*h"ead#: p"*d5?EREFORE, Bud+&ent # he"e%y "ende"ed n N$RCNCR Ca#e N!. 2-28-8; )ndn+ "e#p!ndent# +ulty !' lle+al d#&##al and !"de"n+ the& t! "en#tateD!#*!"! >el!%ell! and Ca#&"! apata t! the""e#pe*t(e !" #&la" p!#t!n# th!ut l!## !' #en!"ty"+ht#, th 'ull %a*4a+e# '"!& July , 198; up t!a*tual "en#tate&ent. The *ha"+e !' un'a" la%!"

p"a*t*e # d#&##ed '!" la*4 !' &e"t.5In N$RC NCR Ca#e N!. /-26<3<-8, the *!&planant#7*la&# '!" unde"pay&ent "e (!lat!n !' the &n&u&a+e la # he"e%y !"de"ed d#&##ed '!" la*4 !' &e"t.5Re#p!ndent# a"e he"e%y '!und t! ha(e (!lated thede*"ee# !n the *!#t !' l(n+ all!an*e, #e"(*en*ent(e lea(e pay and the 13th M!nth >ay. In (ethe"e!', the e*!n!&* analy#t !' the C!&&##!n #d"e*ted t! *!&pute the &!neta"y aa"d# due ea*h*!&planant %a#ed !n the a(ala%le "e*!"d# !' the"e#p!ndent# "et"!a*t(e a# !' th"ee yea"# p"!" t! the)ln+ !' the n#tant *a#e.5SO ORDERED.5 ;F"!& the '!"e+!n+ de*#!n, pett!ne"# appealed t!

the N$RC. The latte" !n Ma"*h 3<, 1988 a@"&ed #adde*#!n %ut l&ted the %a*4a+e# aa"ded theD!#*!"! >el!%ell! and Ca#&"! apata t! !nly !ne01 yea". 6A'te" the" &!t!n '!" "e*!n#de"at!n a# dened,pett!ne"# )led the n#tant pett!n "a#n+ the'!ll!n+ ##ue#:I TE S=GJECT DECISIONS ERRONEO=S$L CONC$=DED TAT AN EM>$OLER-EM>$OLEE RE$ATIONSI> EISTSGET?EEN >ETITIONER AGERDASERL ANDRES>ONDENTS ?ORQERS.II TE S=GJECT DECISIONS ERRONEO=S$L CONC$=DED TAT RES>ONDENTS ?ORQERS ARE ENTIT$ED TO

MONETARL C$AIMS DES>ITE TE FINDIN TAT TELARE NOT ENTIT$ED TO MINIM=M ?AE.III TE S=GJECT DECISIONS ERRONEO=S$L CONC$=DED TAT RES>ONDENTS >E$OGE$$O AND A>ATA ?EREI$$EA$$L DISMISSED. / The )"#t ##ue h*h # the p(!tal ##ue n th# *a#e #"e#!l(ed n 'a(!" !' p"(ate "e#p!ndent#. ?e ha(e"epeatedly held n *!untle## de*#!n# that the te#t !' e&pl!ye"-e&pl!yee "elat!n#hp # '!u"-'!ld: 01 the#ele*t!n and en+a+e&ent !' the e&pl!yee 02 thepay&ent !' a+e# 03 the p!e" !' d#&##al and 0the p!e" t! *!nt"!l the e&pl!yee7# *!ndu*t. It # the#!-*alled 5*!nt"!l te#t5 that # the &!#t &p!"tantele&ent. 8 Th# #&ply &ean# the dete"&nat!n !'



hethe" the e&pl!ye" *!nt"!l# !" ha# "e#e"(ed the"+ht t! *!nt"!l the e&pl!yee n!t !nly a# t! the "e#ult!' the !"4 %ut al#! a# t! the &ean# and &eth!d %yh*h the #a&e # t! %e a**!&pl#hed. 9 The 'a*t# at %a" ndu%ta%ly "e(eal that the &!#t&p!"tant "eu#te !' *!nt"!l # p"e#ent. A# +leaned'"!& the !pe"at!n# !' pett!ne", hen a *u#t!&e"ente"# nt! a *!nt"a*t th the ha%e"da#he"y !" t#p"!p"et!", the latte" d"e*t# an e&pl!yee h! &ay %ea tal!", patte"n &a4e", #ee" !" 5plant#ad!"a5 t! ta4e

the *u#t!&e"7# &ea#u"e&ent#, and t! #a the pant#,*!at !" #h"t a# #pe*)ed %y the *u#t!&e". Supe"(#!n# a*t(ely &an'e#ted n all the#e a#pe*t# the&anne" and ualty !' *uttn+, #en+ and "!nn+.*d"epFu"the"&!"e, the p"e#en*e !' *!nt"!l # &&edatelye(dent n th# &e&!"andu& ##ued %y A###tantMana+e" Ce*l! G. In!*en*!, J". dated May 3<, 1981add"e##ed t! T!ppe"7# Ma4at Tal!"# h*h "ead# npa"t:5. Ee*t(e &&edately, ne p"!*edu"e# #hall%e '!ll!ed:5A. T! '!ll! n#t"u*t!n and !"de"# '"!& theunde"#+ned, R!+e" Kalde"a&a, Ru%en Del!# Reye#and O'el Gaut#ta. Othe" than th# pe"#!n 0#* &u#t

a#4 pe"&##!n t! the a%!(e &ent!ned %e'!"e +(n+!"de"# !" n#t"u*t!n# t! the tal!"#.5G. Ge'!"e a**eptn+ the B!% !"de"# tal!"# &u#t*he*4 the &ate"al#, B!% !"de"#, due date# and !the"thn+# t! &a&e the e@*en*y !' !u" p"!du*t!n. The &ate"al# #h!uld %e *he*4 0#* ' t # &at*h 0#*th the #a&ple, t!+ethe" th the nu&%e" !' the B!%!"de".5C. Ee*t(e &&edately all B!% !"de"# &u#t %e)n#hed !ne day %e'!"e the due date. Th# *an %ed!ne %y p"!pe" #*heduln+ !' B!% !"de" and ' y!u ll*!!pe"ate th y!u" #upe"(#!"#. I' y!u ha(e &anydue date# '!" *e"tan day, ad(#e Ru%en !" O'el at!n*e #! that they *an &a4e ne*e##a"y adBu#t&ent !ndue date#.

5D. Alte"at!n Ge'!"e a**eptn+ alte"at!npe"#!n attendn+ !n *u#t!&# 0#* &u#t a#4 )"#t !"&u#t ad(#e the tal!"# "e+a"dn+ the due date# #!that e *an el&nate hat e *all 7Gtn7.5E. I' the"e # any p"!%le& "e+a"dn+ #upe"(#!"#!" *!-tal!" n#de !u" #h!p, *!n#ult th &e at !n*e#ettle the p"!%le&. F+htn+ n#de the #h!p # #t"*tlyp"!h%ted. Any tal!" (!latn+ th# &e&!"andu& ll%e #u%Be*t t! d#*plna"y a*t!n.5F!" #t"*t *!&plan*e.5 1<F"!& th# &e&!"andu& al!ne, t # e(dent thatpett!ne" ha# "e#e"(ed the "+ht t! *!nt"!l t#e&pl!yee# n!t !nly a# t! the "e#ult %ut al#! the&ean# and &eth!d# %y h*h the #a&e a"e t! %ea**!&pl#hed. That p"(ate "e#p!ndent# a"e "e+ula"

e&pl!yee# # 'u"the" p"!(en %y the 'a*t that theyha(e t! "ep!"t '!" !"4 "e+ula"ly '"!& 9:3< a.&. t!6:<< !" /:<< p.&. and a"e pad an addt!nalall!an*e !' >3.<< daly ' they "ep!"t '!" !"4 %e'!"e9:3< a.&. and h*h # '!"'eted hen they a""(e at!" a'te" 9:3< a.&. 11Sn*e p"(ate "e#p!ndent# a"e "e+ula" e&pl!yee#,ne*e##a"ly the a"+u&ent that they a"e ndependent*!nt"a*t!"# &u#t 'al. A# e#ta%l#hed n the p"e*edn+pa"a+"aph#, p"(ate "e#p!ndent# dd n!t ee"*#e

ndependen*e n the" !n &eth!d#, %ut !n the*!nt"a"y e"e #u%Be*t t! the *!nt"!l !' pett!ne"#'"!& the %e+nnn+ !' the" ta#4# t! the" *!&plet!n.=nl4e ndependent *!nt"a*t!"# h! +ene"ally "ely !nthe" !n "e#!u"*e#, the eup&ent, t!!l#,a**e##!"e#, and pa"aphe"nala u#ed %y p"(ate"e#p!ndent# a"e #uppled and !ned %y pett!ne"#.>"(ate "e#p!ndent# a"e t!tally dependent !npett!ne"# n all the#e a#pe*t#.C!&n+ n! t! the #e*!nd ##ue, the"e # n! d#putethat p"(ate "e#p!ndent# a"e enttled t! the Mn&u&?a+e a# &andated %y Se*t!n 20+ !' $ette" !' In#t"u*t!n N!. 829, Rule# I&ple&entn+ >"e#dentalDe*"ee N!. 161 and "ete"ated n Se*t!n 30', Rule#I&ple&entn+ >"e#dental De*"ee 1/13 h*h

epl*tly #tate# that, 5All e&pl!yee# pad %y the"e#ult #hall "e*e(e n!t le## than the appl*a%le ne&n&u& a+e "ate# '!" e+ht 08 h!u"# !"4 a day,e*ept he"e a pay&ent %y "e#ult "ate ha# %eene#ta%l#hed %y the Se*"eta"y !' $a%!" . . .5 12 N!#u*h "ate ha# %een e#ta%l#hed n th# *a#e.Gut all the#e n!tth#tandn+, the ue#t!n a# t!hethe" !" n!t the"e # n 'a*t an unde"pay&ent !' &n&u& a+e# t! p"(ate "e#p!ndent# ha# al"eady%een "e#!l(ed n the de*#!n !' the $a%!" A"%te"he"e he #tated: 5en*e, '!" la*4 !' #u@*ente(den*e t! #upp!"t the *la&# !' the *!&planant#'!" alle+ed (!lat!n !' the &n&u& a+e, the"*la&# '!" unde"pay&ent "e (!lat!n !' the Mn&u&?a+e $a unde" ?a+e O"de"# N!#. 1, 2, 3, , and ;

&u#t pe"'!"*e 'all.5 13 The "e*!"d# #h! that p"(ate "e#p!ndent# dd n!tappeal the a%!(e "uln+ !' the $a%!" A"%te" t! theN$RC nethe" dd they )le any pett!n "a#n+ that##ue n the Sup"e&e C!u"t. A**!"dn+ly, n#!'a" a#th# *a#e # *!n*e"ned, that ##ue ha# %een lad t!"e#t. A# t! p"(ate "e#p!ndent#, the Bud+&ent &ay %e#ad t! ha(e attaned )nalty. F!" t # a ell-#ettled"ule n th# Bu"#d*t!n that 5an appellee h! ha# n!th&#el' appealed *ann!t !%tan '"!& the appellate*!u"t, any a@"&at(e "ele' !the" than the !ne#+"anted n the de*#!n !' the *!u"t %el!.5 1A# a *!n#euen*e !' the" #tatu# a# "e+ula"e&pl!yee# !' the pett!ne"#, they *an *la& *!#t !' l(n+ all!an*e. Th# # appa"ent '"!& the p"!(#!n

de)nn+ the e&pl!yee# enttled t! #ad all!an*e,thu#: 5. . . All !"4e"# n the p"(ate #e*t!", "e+a"dle##!' the" p!#t!n, de#+nat!n !" #tatu#, and""e#pe*t(e !' the &eth!d %y h*h the" a+e# a"epad.5 1;>"(ate "e#p!ndent# a"e al#! enttled t! *la& the"13th M!nth >ay unde" Se*t!n 30e !' the Rule# andRe+ulat!n# I&ple&entn+ >.D. N!. 8;1 h*hp"!(de#:5Se*t!n 3. E&pl!ye"# *!(e"ed. The De*"ee

#hall apply t! all e&pl!ye"# e*ept t!: 50e E&pl!ye"# !' th!#e h! a"e pad !n pu"ely*!&&##!n, %!unda"y, !" ta#4 %a##, and th!#e h!a"e pad a )ed a&!unt '!" pe"'!"&n+ a #pe*)*!"4, ""e#pe*t(e !' the t&e *!n#u&ed n thepe"'!"&an*e the"e!', e*ept he"e the !"4e"# a"epad !n pe*e-"ate %a## n h*h *a#e the e&pl!ye"#hall %e *!(e"ed %y th# ##uan*e n#!'a" a# #u*h!"4e"# a"e *!n*e"ned.5 0E&pha## #uppled.On the !the" hand, hle p"(ate "e#p!ndent# a"eenttled t! Mn&u& ?a+e, CO$A and 13th M!nth >ay,they a"e n!t enttled t! #e"(*e n*ent(e lea(e pay%e*au#e a# pe*e-"ate !"4e"# %en+ pad at a )eda&!unt '!" pe"'!"&n+ !"4 ""e#pe*t(e !' t&e

*!n#u&ed n the pe"'!"&an*e the"e!', they 'all unde"!ne !' the e*ept!n# #tated n Se*t!n 10d, Rule K,I&ple&entn+ Re+ulat!n#, G!!4 III, $a%!" C!de. F!"the #a&e "ea#!n p"(ate "e#p!ndent# *ann!t al#!*la& h!lday pay 0Se*t!n 10e, Rule IK, I&ple&entn+Re+ulat!n#, G!!4 III, $a%!" C!de.?th "e#pe*t t! the la#t ##ue, t # appa"ent thatpu%l* "e#p!ndent# ha(e &#"ead the e(den*e, '!" td!e# #h! that a (!lat!n !' the e&pl!ye"7# "ule# ha#%een *!&&tted and the e(den*e !' #u*ht"an#+"e##!n, the *!ped %a"!n+ ta+al!+, a# n thep!##e##!n !' >el!%ell! h! p!nted t! apata a# the!ne". ?hen "eu"ed %y the" e&pl!ye" t! eplan na &e&!"andu& ##ued t! ea*h !' the&, they n!t !nly'aled t! d! #! %ut n#tead ent !n A?O$ 0a%#en*e

th!ut !@*al lea(e, ated '!" the pe"!d t! eplant! ep"e and '!" pett!ne" t! d#&## the&. Theythe"ea'te" )led an a*t!n '!" lle+al d#&##al !n the'a"-'et*hed +"!und that they e"e d#&##ed %e*au#e!' un!n a*t(te#. A##u&n+ that #u*h a*t# d! n!t*!n#ttute a%and!n&ent !' the" B!%# a# n##ted %yp"(ate "e#p!ndent#, the" %latant d#"e+a"d !' the"e&pl!ye"7# &e&!"andu& # und!u%tedly an !pende)an*e t! the la'ul !"de"# !' the latte", a Bu#t)a%le+"!und '!" te"&nat!n !' e&pl!y&ent %y thee&pl!ye" ep"e##ly p"!(ded '!" n A"t*le 2830a !' the $a%!" C!de a# ell a# a *lea" nd*at!n !' +ult '!"the *!&&##!n !' a*t# n&*al t! the nte"e#t# !' thee&pl!ye", an!the" Bu#t)a%le +"!und '!" d#&##alunde" the #a&e A"t*le !' the $a%!" C!de, pa"a+"aph



0*. ?ell e#ta%l#hed n !u" Bu"#p"uden*e # the "+ht!' an e&pl!ye" t! d#&## an e&pl!yee h!#e*!ntnuan*e n the #e"(*e # n&*al t! thee&pl!ye"7# nte"e#t. 16In 'a*t the $a%!" A"%te" h&#el' t! h!& theeplanat!n !' p"(ate "e#p!ndent# a# #u%&tted+a(e n! *"eden*e t! the" (e"#!n and '!und the"e*u#e# that #ad %a"!n+ ta+al!+ a# the !ne they+!t '"!& the e&%"!de"e" '!" the A###tant Mana+e"h! a# n(e#t+atn+ the&, un%ele(a%le. $%$e

=nde" the *"*u&#tan*e#, t # e(dent that the"e # n!lle+al d#&##al !' #ad e&pl!yee#. Thu#, ?e ha(e"uled that:5N! e&pl!ye" &ay "at!nally %e epe*ted t! *!ntnuen e&pl!y&ent a pe"#!n h!#e la*4 !' &!"al#,"e#pe*t and l!yalty t! h# e&pl!ye", "e+a"d '!" h#e&pl!ye"7# "ule#, and app"e*at!n !' the d+nty and"e#p!n#%lty !' h# !@*e, ha# #! planly and*!&pletely %een %a"ed.5That the"e #h!uld %e *!n*e"n, #y&pathy, and#!l*tude '!" the "+ht# and el'a"e !' the !"4n+*la##, # &eet and p"!pe". That n *!nt"!(e"#e#%eteen a la%!"e" and h# &a#te", d!u%t# "ea#!na%lya"#n+ '"!& the e(den*e, !" n the nte"p"etat!n !' a+"ee&ent# and "tn+# #h!uld %e "e#!l(ed n the

'!"&e"7# 'a(!", # n!t an un"ea#!na%le !" un'a" "ule.Gut that d#"e+a"d !' the e&pl!ye"7# !n "+ht# andnte"e#t# *an %e Bu#t)ed %y that *!n*e"n and#!l*tude # unBu#t and una**epta%le.5 0Stan'!"dM*"!#y#te&#, In*. (. N$RC, 1;/ SCRA 1-1;1988. The la # p"!te*tn+ the "+ht# !' the la%!"e"auth!"e# nethe" !pp"e##!n n!" #el'-de#t"u*t!n !' the e&pl!ye". 1/ M!"e &p!"tantly, hle theC!n#ttut!n # *!&&tted t! the p!l*y !' #!*al Bu#t*e and the p"!te*t!n !' the !"4n+ *la##, t#h!uld n!t %e #upp!#ed that e(e"y la%!" d#pute llaut!&at*ally %e de*ded n 'a(!" !' la%!". 18Fnally, t ha# %een e#ta%l#hed that the "+ht t!d#&## !" !the"#e &p!#e d#*plna"y #an*t!n#

up!n an e&pl!yee '!" Bu#t and (ald *au#e, pe"tan# nthe )"#t pla*e t! the e&pl!ye", a# ell a# theauth!"ty t! dete"&ne the e#ten*e !' #ad *au#e na**!"dan*e th the n!"&# !' due p"!*e##. 19 The"e # n! e(den*e that the e&pl!ye" (!lated #adn!"&#. On the *!nt"a"y, p"(ate "e#p!ndent# h!(+!"!u#ly n##t !n the e#ten*e !' e&pl!ye"-e&pl!yee "elat!n#hp, %e*au#e !' the #upe"(#!nand *!nt"!l !' the" e&pl!ye" !(e" the&, e"e the(e"y !ne# h! eh%ted the" la*4 !' "e#pe*t and"e+a"d '!" the" e&pl!ye"7# "ule#.=nde" the '!"e+!n+ 'a*t#, t # e(dent that pett!ne"a%e"da#he"y had (ald +"!und# t! te"&nate the#e"(*e# !' p"(ate "e#p!ndent#. ll*d

?EREFORE, the de*#!n !' the Nat!nal $a%!"Relat!n# C!&&##!n dated Ma"*h 3<, 1988 and that!' the $a%!" A"%te" dated June 1<, 1986 a"e he"e%y&!d)ed. The *!&plant )led %y >el!%ell! andapata '!" lle+al d#&##al d!*4eted a# N$RC NCRCa#e N!. 2-28-8; # d#&##ed '!" la*4 !' 'a*tual andle+al %a#e#. Aa"d !' #e"(*e n*ent(e lea(e pay t!p"(ate "e#p!ndent# # deleted.SO ORDERED.

[G.R. No. L4183. Ju5y 1, 196.]SAN !IGUEL BREER( IN., ET., *+--on+r,/. DE!ORATI LABOR ORGANI%ATION, ETAL., r+*on)+n."ar+)+, "o<5a)or, ru> C Na>ar+no @or*+--on+r.D+5n N. !+r7a)+r @or r+*on)+n.D E C I S I O NGA=TISTA ANE$O, J p:On Janua"y 2/, 19;3, the De&!*"at* $a%!"A##!*at!n )led a *!&plant a+an#t the San M+uelG"ee"y, In*., e&%!dyn+ 12 de&and# '!" the%ette"&ent !' the *!ndt!n# !' e&pl!y&ent !' t#&e&%e"#. The *!&pany )led t# an#e" t! the*!&plant #pe*)*ally denyn+ t# &ate"al a(e"&ent#

and an#e"n+ the de&and# p!nt %y p!nt. The*!&pany a#4ed '!" the d#&##al !' the *!&plant.At the hea"n+ held #!&et&e n Septe&%e", 19;;,the un!n &an'e#ted t# de#"e t! *!n)ne t# *la& t!t# de&and# '!" !(e"t&e, n+ht-#h't de"ental pay,and att!"ney7# 'ee#, alth!u+h t a# all!ed t!p"e#ent e(den*e !n #e"(*e "ende"ed du"n+Sunday# and h!lday#, !" !n t# *la& '!" addt!nal#epa"at!n pay and #*4 and (a*at!n lea(e*!&pen#at!n.A'te" the *a#e had %een #u%&tted '!" de*#!n,>"e#dn+ Jud+e J!#e S. Gaut#ta, h! a#*!&&##!ned t! "e*e(e the e(den*e, "ende"edde*#!n ep"e##n+ h# d#p!#t!n th "e+a"d t! thep!nt# e&%!ded n the *!&plant !n h*h e(den*e

a# p"e#ented. Spe*)*ally, the d#p!#t!n n#!'a" a#th!#e p!nt# *!(e"ed %y th# pett!n '!" "e(e a"e*!n*e"ned, # a# '!ll!#:1. ?th "e+a"d t! !(e"t&e *!&pen#at!n, Jud+eGaut#ta held that the p"!(#!n# !' the E+ht-!u"$a%!" $a apply t! the e&pl!yee# *!n*e"ned '!"th!#e !"4n+ n the )eld !" en+a+ed n the #ale !' the *!&pany7# p"!du*t# !ut#de t# p"e&#e# and*!n#euently they #h!uld %e pad the et"a*!&pen#at!n a**!"ded the& %y #ad la n addt!n

t! the &!nthly #ala"y and *!&&##!n ea"ned %ythe&, "e+a"dle## !' the &eal all!an*e +(en t!e&pl!yee# h! !"4 up t! late at n+ht.2. A# t! e&pl!yee# h! !"4 at n+ht, Jud+eGaut#ta de*"eed that they %e pad the"*!""e#p!ndn+ #ala"y de"ental# '!" !"4 d!ne atn+ht p"!" t! Janua"y 1, 199 th the p"e#entual)*at!n: 2; !n the %a## !' the" #ala"y t! th!#eh! !"4 '"!& 6:<< t! 12:<< p.&., and /; t! th!#eh! !"4 '"!& 12:<1 t! 6:<< n the &!"nn+.3. ?th "e+a"d t! !"4 d!ne du"n+ Sunday#and h!lday#, Jud+e Gaut#ta al#! de*"eed that thee&pl!yee# *!n*e"ned %e pad an addt!nal*!&pen#at!n !' 2; a# p"!(ded '!" nC!&&!nealth A*t N!. e(en ' they had %een

pad a *!&pen#at!n !n &!nthly #ala"y %a##. The de&and# '!" the appl*at!n !' the Mn&u&?a+e $a t! !"4e"# pad !n 5pa4a!5 %a##, pay&ent!' a**u&ulated (a*at!n and #*4 lea(e andatt!"ney7# 'ee#, a# ell a# the aa"d !' addt!nal#epa"at!n pay, e"e ethe" d#&##ed, dened, !" #eta#de.It# &!t!n '!" "e*!n#de"at!n ha(n+ %een dened %ythe ndu#t"al *!u"t en %an*, h*h a@"&ed thede*#!n !' the *!u"t a u! th 'e e*ept!n#, theSan M+uel G"ee"y, In*. nte"p!#ed the p"e#entpett!n '!" "e(e.Anent the )ndn+ !' the *!u"t a u!, a# a@"&ed %ythe C!u"t !' Indu#t"al Relat!n#, t! the ee*t that!ut#de !" )eld #ale# pe"#!nnel a"e enttled t! the

%ene)t# !' the E+ht-!u" $a%!" $a, the pe"tnent'a*t# a"e a# '!ll!#:A'te" the &!"nn+ "!ll *all, the e&pl!yee# lea(e theplant !' the *!&pany t! +! !n the" "e#pe*t(e #ale#"!ute# ethe" at /:<< a.&. '!" #!'t d"n4# t"u*4#, !"8:<< a.&. '!" %ee" t"u*4#. They d! n!t ha(e a dalyt&e "e*!"d. The *!&pany ne(e" "eu"e the& t! #ta"tthe" !"4 a# !ut#de #ale# pe"#!nnel ea"le" than thea%!(e #*hedule. The #ale# "!ute# a"e #! planned that they *an %e*!&pleted thn 8 h!u"# at &!#t, !" that thee&pl!yee# *!uld &a4e the" #ale# !n the" "!ute#thn #u*h nu&%e" !' h!u"# (a"a%le n the #en#ethat #!&et&e# they *an %e *!&pleted n le## than 8h!u"#, #!&et&e# 6 !" / h!u"#, !" &!"e. The &!&ent



the#e !ut#de !" )eld e&pl!yee# lea(e the plant andhle n the" #ale# "!ute# they a"e !n the" !n and!'ten t&e# hen the #ale# a"e *!&pleted, !" hen&a4n+ #h!"t t"p del(e"e# !nly, they +! %a*4 t! theplant, l!ad a+an, and &a4e an!the" "!und !' #ale#. The#e e&pl!yee# "e*e(e &!nthly #ala"e# and #ale#*!&&##!n n (a"a%le a&!unt#. The a&!unt !' *!&pen#at!n they "e*e(e # un*e"tan dependn+up!n the" nd(dual e!"t# !" ndu#t"y. Ge#de# the&!nthly #ala"y, they a"e pad #ale# *!&&##!n that

"an+e '"!& >3<, ><, #!&et&e# >6<, >/<, t!#!&et&e# >9<, >1<<, and >1<9 a &!nth, at the "ate!' >.<1 t! >.<1 12 pe" *a#e.It # *!ntended that #n*e the e&pl!yee# *!n*e"neda"e pad a *!&&##!n !n the #ale# they &a4e !ut#de!' the "eu"ed 8 h!u"# %e#de# the )ed #ala"y that #pad t! the&, the C!u"t !' Indu#t"al Relat!n# e""ed n!"de"n+ that they %e pad an !(e"t&e *!&pen#at!na# "eu"ed %y the E+ht-!u" $a%!" $a '!" the"ea#!n that the *!&&##!n they a"e pad al"eadyta4e# the pla*e !' #u*h !(e"t&e *!&pen#at!n.Indeed, t # *la&ed, !(e"t&e *!&pen#at!n # anaddt!nal pay '!" !"4 !" #e"(*e "ende"ed n e*e##' 8 h!u"# a day %y an e&pl!yee, and ' the e&pl!yee# al"eady +(en et"a *!&pen#at!n '!" la%!"

pe"'!"&ed n e*e## !' 8 h!u"# a day, he # n!t*!(e"ed %y the la. # #tuat!n, the *!&pany*!ntend#, *an %e l4ened t! an e&pl!yee h! # pad!n pe*e!"4, 5pa4a!5, !" *!&&##!n %a##, h*h #ep"e##ly e*luded '"!& the !pe"at!n !' the E+ht-!u" $a%!" $a. 1?e a"e n a**!"d th th# (e, '!" n !u" !pn!n theE+ht-!u" $a%!" $a !nly ha# appl*at!n he"e ane&pl!yee !" la%!"e" # pad n a &!nthly !" daly%a##, !" # pad a &!nthly !" daly *!&pen#at!n, nh*h *a#e, ' he # &ade t! !"4 %ey!nd the "eu#tepe"!d !' 8 h!u"#, he #h!uld %e pad the addt!nal*!&pen#at!n p"e#*"%ed %y la. Th# la ha# n!appl*at!n hen the e&pl!yee !" la%!"e" # pad !n ape*e-!"4, 5pa4a!5, !" *!&&##!n %a##, "e+a"dle##

!' the t&e e&pl!yed. The phl!#!phy %ehnd th#ee&pt!n # that h# ea"nn+# a"e n the '!"& !' *!&&##!n %a#ed !n the +"!## "e*ept# !' the day.# pa"t*pat!n depend# up!n h# ndu#t"y #! thatthe &!"e h!u"# he e&pl!y# n the !"4 the +"eate"a"e h# +"!## "etu"n# and the h+he" h# *!&&##!n. Th# phl!#!phy # %ette" eplaned n Jeel Tea C!. (.?lla&#, C..A. O4l., 118 F. 2d 2<2, a# '!ll!#:5The "ea#!n# '!" e*ludn+ an !ut#de #ale#&an a"e'a"ly appa"ent. Su*h #ale#&an, t! a +"eat etent,!"4# nd(dually. The"e a"e n! "e#t"*t!n# "e#pe*tn+the t&e he #hall !"4 and he *an ea"n a# &u*h !" a#lttle, thn the "an+e !' h# a%lty, a# h# a&%t!nd*tate#. In leu !' !(e"t&e he !"dna"ly "e*e(e#*!&&##!n# a# et"a *!&pen#at!n. e !"4# aay

'"!& h# e&pl!ye"7# pla*e !' %u#ne##, # n!t #u%Be*tt! the pe"#!nal #upe"(#!n !' h# e&pl!ye", and h#e&pl!ye" ha# n! ay !' 4n!n+ the nu&%e" !' h!u"# he !"4# pe" day.5 T"ue t # that the e&pl!yee# *!n*e"ned a"e pad a)ed #ala"y '!" the" &!nth !' #e"(*e, #u*h a#GenBa&n Se(lla, a #ale#&an, >21; Ma"an! Rueda#,a t"u*4 d"(e", >1;; Al%e"t! Alpaa and AleBand"!E&ple!, t"u*4 helpe"#, >12; ea*h, and #!&et&e#they !"4 n e*e## !' the "eu"ed 8-h!u" pe"!d !'

!"4, %ut '!" the" et"a !"4 they a"e pad a*!&&##!n h*h # n l eu !' the et"a*!&pen#at!n t! h*h they a"e enttled. The "e*!"d#h!# that the#e e&pl!yee# du"n+ the pe"!d !' the" e&pl!y&ent e"e pad #ale# *!&&##!n"an+n+ '"!& >3<, ><, #!&et&e# >6<, >/<, t!#!&et&e# >9<, >1<< and >1<9 a &!nth dependn+!n the (!lu&e !' the" #ale# and the" "ate !' *!&&##!n pe" *a#e. And #!, n#!'a" a# the et"a!"4 they pe"'!"&, they *an %e *!n#de"ed a#e&pl!yee# pad !n pe*e!"4, 5pa4a!5 !"*!&&##!n %a##. The Depa"t&ent !' $a%!", *alledup!n t! &ple&ent the E+ht-!u" $a%!" $a, # !' th# !pn!n hen !n De*e&%e" 9, 19;/ t &ade the"uln+ !n a ue"y #u%&tted t! t, th"u the D"e*t!" !'

the Gu"eau !' $a%!" Standa"d#, t! the ee*t that )eld#ale# pe"#!nnel "e*e(n+ "e+ula" &!nthly #ala"e#,plu# *!&&##!n, a"e n!t #u%Be*t t! the E+ht-!u"$a%!" $a. Thu#, !n th# p!nt, #ad !@*al #tated:5. . . M!"e!(e", hen a )eld&an "e*e(e# a "e+ula"&!nthly #ala"y plu# *!&&##!n !n pe"*enta+e %a##!' h# #ale#, t # al#! the e#ta%l#hed p!l*y !' theO@*e t! *!n#de" h# *!&&##!n a# pay&ent '!" theet"a t&e he "ende"# n e*e## !' e+ht h!u"#,the"e%y *la##'yn+ h& a# ' he e"e !n pe*e!"4%a##, and the"e'!"e, te*hn*ally #pea4n+, he # n!t#u%Be*t t! the E+ht !u"# $a%!" $a.5?e a"e, the"e'!"e, !' the !pn!n that the ndu#t"al*!u"t e""ed n h!ldn+ that the E+ht-!u" $a%!" $aapple# t! the e&pl!yee# *!&p!#n+ the !ut#de

#e"(*e '!"*e and !"de"n+ that they %e pad the*!""e#p!ndn+ addt!nal *!&pen#at!n.?th "e+a"d t! the *la& '!" n+ht #ala"y de"ental#,the ndu#t"al *!u"t '!und that *la&ant# Ma+n! J!hn#!n and J!#e San*he !"4ed th the"e#p!ndent *!&pany du"n+ the pe"!d# #pe*)ed %ythe& n the" te#t&!ny and that at*h&en !l!$l+a, In!*ente# >"e#*lla# and Danel Cauy*a"ende"ed n+ht dute# !n*e e(e"y th"ee ee4#*!ntnu!u#ly du"n+ the pe"!d !' the" e&pl!y&entand that they e"e ne(e" +(en any addt!nal*!&pen#at!n a#de '"!& the" &!nthly "e+ula"#ala"e#. The *!u"t '!und that the *!&pany #ta"tedpayn+ n+ht de"ental# !nly n Janua"y, 199 %utne(e" %e'!"e that t&e. And #! t !"de"ed that the

e&pl!yee# *!n*e"ned %e pad 2; addt!nal*!&pen#at!n '!" th!#e h! !"4ed '"!& 6:<< t!12:<< p.&. and /; addt!nal *!&pen#at!n '!"th!#e h! !"4ed '"!& 12:<1 t! 6:<< n the &!"nn+.It # n! *!ntended that th# "uln+ # e""!ne!u#%e*au#e an aa"d '!" n+ht #h't de"ental# *ann!t%e +(en "et"!a*t(e ee*t %ut *an !nly %eente"taned '"!& the date !' de&and h*h a# !n Janua"y 2/, 19;3, *tn+ n #upp!"t the"e!' !u" "uln+n Ea"n#ha# D!*4# !n!lulu I"!n ?!"4 (. The C!u"t

!' Indu#t"al Relat!n#, et al., $-8896, Janua"y 2;,19;/. Th# "uln+, h!e(e", ha# n! appl*at!n he"e '!" tappea"# that %e'!"e the )ln+ !' the pett!n*!n*e"nn+ th# *la& a #&la" !ne had al"eady %een)led l!n+ a+! h*h had %een the #u%Be*t !' ne+!tat!n# %eteen the un!n and the *!&panyh*h *ul&nated n a #t"4e n 19;2. =n'!"tunately,h!e(e", the #t"4e )led !ut and the #t"4e"# e"e!"de"ed t! "etu"n t! !"4 th the unde"#tandn+ thatthe *la& '!" n+ht #ala"y de"ental# #h!uld %e#ettled n *!u"t. It # pe"hap# '!" th# "ea#!n that the*!u"t a u! +"anted th# *la& n #pte !' the !%Be*t!n!' the *!&pany t! the *!nt"a"y. The "e&ann+ p!nt t! %e dete"&ned "e'e"# t! the

*la& '!" pay '!" Sunday# and h!lday# '!" #e"(*epe"'!"&ed %y #!&e *la&ant# h! e"e at*h&en !"#e*u"ty +ua"d#. It # *!ntended that the#e e&pl!yee#a"e n!t enttled t! et"a pay '!" !"4 d!ne du"n+the#e day# %e*au#e they a"e pad !n a &!nthly %a##and a"e +(en !ne day ! h*h &ay ta4e the pla*e !' the !"4 they &ay pe"'!"& ethe" !n Sunday !" anyh!lday.?e d#a+"ee th th# *la& %e*au#e t "un# *!unte" t!la. Se*t!n !' C!&&!nealth A*t N!. ep"e##ly p"!(de# that n! pe"#!n, )"& !" *!"p!"at!n&ay *!&pel an e&pl!yee !" la%!"e" t! !"4 du"n+Sunday# and le+al h!lday# unle## he # pad anaddt!nal #u& !' 2; !' h# "e+ula" *!&pen#at!n. Th# p"!(#! # &andat!"y, "e+a"dle## !' the natu"e !'

*!&pen#at!n. The !nly e*ept!n # th "e+a"d t!pu%l* utlte# h! pe"'!"& #!&e pu%l* #e"(*e.?EREFORE, the de*#!n !' the ndu#t"al *!u"t #he"e%y &!d)ed a# '!ll!# the aa"d th "e+a"d t!et"a !"4 pe"'!"&ed %y th!#e e&pl!yed n the!ut#de !" )eld #ale# '!"*e # #et a#de. The "e#t !' thede*#!n n#!'a" a# !"4 pe"'!"&ed !n Sunday# andh!lday# *!(e"n+ at*h&en and #e*u"ty +ua"d#, a#ell a# the aa"d '!" n+ht #ala"y de"ental# #a@"&ed. N! *!#t#.



[G.R. No. 1366. !ay 16, 2003.]AUTO BUS TRANS"ORT S(STE!S, IN.,*+--on+r, /. ANTONIO BAUTISTA, r+*on)+n.

D E C I S I O NCICO-NAARIO, J p:

Ge'!"e =# # a >ett!n '!" Re(e !n Ce"t!"a"a##aln+ the De*#!n 1 and Re#!lut!n 2 !' the C!u"t!' Appeal# a@"&n+ the De*#!n 3 !' the Nat!nal$a%!" Relat!n# C!&&##!n 0N$RC. The N$RC "uln+&!d)ed the De*#!n !' the $a%!" A"%te" 0)ndn+"e#p!ndent enttled t! the aa"d !' 13th &!nth payand #e"(*e n*ent(e lea(e pay %y deletn+ theaa"d !' 13th &!nth pay t! "e#p!ndent. EACI* The Fa*t#Sn*e 2 May 199;, "e#p!ndent Ant!n! Gaut#ta ha#%een e&pl!yed %y pett!ne" Aut! Gu# T"an#p!"tSy#te&#, In*. 0Aut!%u#, a# d"(e"-*!ndu*t!" tht"a(el "!ute# Manla-Tu+ue+a"a! (a Ga+u!, Ga+u!- Tu+ue+a"a! (a Manla and Manla-Ta%u4 (a Ga+u!.Re#p!ndent a# pad !n *!&&##!n %a##, #e(en

pe"*ent 0/ !' the t!tal +"!## n*!&e pe" t"a(el, !n at*e a &!nth %a##.On <3 Janua"y 2<<<, hle "e#p!ndent a# d"(n+Aut!%u# N!. 11 al!n+ Sta. Fe, Nue(a K*aya, the%u# he a# d"(n+ a**dentally %u&ped the "ea"p!"t!n !' Aut!%u# N!. 12, a# the latte" (eh*le#uddenly #t!pped at a #ha"p *u"(e th!ut +(n+ anya"nn+.Re#p!ndent a(e""ed that the a**dent happened%e*au#e he a# *!&pelled %y the &ana+e&ent t! +!%a*4 t! R!a#, I#a%ela, alth!u+h he had n!t #lept '!"al&!#t tenty-'!u" 02 h!u"#, a# he had Bu#t a""(edn Manla '"!& R!a#, I#a%ela. Re#p!ndent 'u"the"alle+ed that he a# n!t all!ed t! !"4 untl he 'ullypad the a&!unt !' >/;,;;1.;<, "ep"e#entn+ th"ty

pe"*ent 03< !' the *!#t !' "epa" !' the da&a+ed%u#e# and that de#pte "e#p!ndent7# plea# '!""e*!n#de"at!n, the #a&e a# +n!"ed %y&ana+e&ent. A'te" a &!nth, &ana+e&ent #ent h& alette" !' te"&nat!n. Thu#, !n <2 Fe%"ua"y 2<<<, "e#p!ndent n#ttuted aC!&plant '!" Ille+al D#&##al th M!ney Cla&# '!"n!npay&ent !' 13th &!nth pay and #e"(*e n*ent(elea(e pay a+an#t Aut!%u#.>ett!ne", !n the !the" hand, &antaned that"e#p!ndent7# e&pl!y&ent a# "eplete th !en#e#n(!l(n+ "e*4le## &p"uden*e, +"!## ne+l+en*e, andd#h!ne#ty. T! #upp!"t t# *la&, pett!ne" p"e#ented*!pe# !' lette"#, &e&!#, ""e+ula"ty "ep!"t#, and



a""ant# !' a""e#t pe"tann+ t! #e(e"al n*dent#he"en "e#p!ndent a# n(!l(ed. aEIDTFu"the"&!"e, pett!ne" a(e"# that n the ee"*#e !' t# &ana+e&ent p"e"!+at(e, "e#p!ndent7#e&pl!y&ent a# te"&nated !nly a'te" the latte" a#p"!(ded th an !pp!"tunty t! eplan h# #de"e+a"dn+ the a**dent !n <3 Janua"y 2<<<.On 29 Septe&%e" 2<<<, %a#ed !n the pleadn+# and#upp!"tn+ e(den*e p"e#ented %y the pa"te#, $a%!"A"%te" M!n"!e C. Ta%n+an p"!&ul+ated a De*#!n,

the d#p!#t(e p!"t!n !' h*h "ead#:?EREFORE, all p"e&#e# *!n#de"ed, t # he"e%y'!und that the *!&plant '!" Ille+al D#&##al ha# n!le+ t! #tand !n. It # he"e%y !"de"ed DISMISSED, a# t# he"e%y DISMISSED.!e(e", #tll %a#ed !n the a%!(e-d#*u##edp"e&#e#, the "e#p!ndent &u#t pay t! the*!&planant the '!ll!n+:a. h# 13th &!nth pay ' "!& the date ! ' h#h"n+ t! the date !' h# d#&##al, p"e#ently *!&putedat >/8,11/.8/%. h# #e"(*e n*ent(e lea(e pay '!" a ll theyea"# he had %een n #e"(*e th the "e#p!ndent,p"e#ently *!&puted at >13,/88.<;.All !the" *la&# !' %!th *!&planant and "e#p!ndent

a"e he"e%y d#&##ed '!" la*4 !' &e"t. ;N!t #at#)ed th the de*#!n !' the $a%!" A"%te",pett!ne" appealed the de*#!n t! the N$RC h*h"ende"ed t# de*#!n !n 28 Septe&%e" 2<<1, thede*"etal p!"t!n !' h*h "ead#:The Rule# and Re+ulat!n# I&ple&entn+>"e#dental De*"ee N!. 8;1, pa"t*ula"ly Se*. 3p"!(de#:5Se*t!n 3. E&pl!ye"# *!(e"ed. The De*"ee#hall apply t! all e&pl!ye"# e*ept t!: e e&pl!ye"# !' th!#e h! a"e pad !n pu"ely*!&&##!n, %!unda"y, !" ta#4 %a##, pe"'!"&n+ a#pe*)* !"4, ""e#pe*t(e !' the t&e *!n#u&ed nthe pe"'!"&an*e the"e!'. . . .5

Re*!"d# #h! that *!&planant, n h# p!#t!n pape",ad&tted that he a# pad !n a *!&&##!n %a##.A*SCaIIn (e !' the '!"e+!n+, e dee& t Bu#t andeuta%le t! &!d'y the a##aled De*#!n %y deletn+the aa"d !' 13th &!nth pay t! the *!&planant. ?EREFORE, the De*#!n dated 29 Septe&%e" 2<<<# MODIFIED %y deletn+ the aa"d !' 13th &!nth pay. The !the" )ndn+# a"e AFFIRMED. 6In !the" !"d#, the aa"d !' #e"(*e n*ent(e lea(epay a# &antaned. >ett!ne" thu# #!u+ht a"e*!n#de"at!n !' th# a#pe*t, h*h a##u%#euently dened n a Re#!lut!n %y the N$RCdated 31 O*t!%e" 2<<1.

D#plea#ed th !nly the pa"tal +"ant !' t# appeal t!the N$RC, pett!ne" #!u+ht the "e(e !' #adde*#!n th the C!u"t !' Appeal# h*h a##u%#euently dened %y the appellate *!u"t n aDe*#!n dated <6 May 2<<2, the d#p!#t(e p!"t!n!' h*h "ead#:?EREFORE, p"e&#e# *!n#de"ed, the >ett!n #DISMISSED '!" la*4 !' &e"t and the a##aledDe*#!n !' "e#p!ndent C!&&##!n n N$RC NCR CAN!. <26;8-2<<< # he"e%y AFFIRMED n t!t!. N!

*!#t#. /en*e, the n#tant pett!n.I##ue#1. ?hethe" !" n!t "e#p!ndent # enttled t!#e"(*e n*ent(e lea(e2. ?hethe" !" n!t the th"ee 03-yea"p"e#*"pt(e pe"!d p"!(ded unde" A"t*le 291 !' the$a%!" C!de, a# a&ended, # appl*a%le t!"e#p!ndent7# *la& !' #e"(*e n*ent(e lea(e pay.a*CETDRuln+ !' the C!u"t The d#p!#t!n !' the )"#t ##ue "e(!l(e# a"!und thep"!pe" nte"p"etat!n !' A"t*le 9; !' the $a%!" C!de(#-V-(# Se*t!n 10D, Rule K, G!!4 III !' theI&ple&entn+ Rule# and Re+ulat!n# !' the $a%!"

C!de h*h p"!(de#:A"t. 9;. RIT TO SERKICE INCENTIKE $EAKE0a E(e"y e&pl!yee h! ha# "ende"ed at lea#t!ne yea" !' #e"(*e #hall %e enttled t! a yea"ly#e"(*e n*ent(e lea(e !' )(e day# th pay.G!!4 III, Rule K: SERKICE INCENTIKE $EAKESECTION 1. C!(e"a+e. Th# "ule #hall apply t! alle&pl!yee# e*ept: 0d Feld pe"#!nnel and !the" e&pl!yee# h!#epe"'!"&an*e # un#upe"(#ed %y the e&pl!ye"n*ludn+ th!#e h! a"e en+a+ed !n ta#4 !" *!nt"a*t%a##, pu"ely *!&&##!n %a##, !" th!#e h! a"epad n a )ed a&!unt '!" pe"'!"&n+ !"4""e#pe*t(e !' the t&e *!n#u&ed n the

pe"'!"&an*e the"e!' . . .A *a"e'ul pe"u#al !' #ad p"!(#!n# !' la ll "e#ultn the *!n*lu#!n that the +"ant !' #e"(*e n*ent(elea(e ha# %een del&ted %y the I&ple&entn+ Rule#and Re+ulat!n# !' the $a%!" C!de t! apply !nly t!th!#e e&pl!yee# n!t epl*tly e*luded %y Se*t!n 1!' Rule K. A**!"dn+ t! the I&ple&entn+ Rule#,Se"(*e In*ent(e $ea(e #hall n!t apply t! e&pl!yee#*la##)ed a# 5)eld pe"#!nnel.5 The ph"a#e 5!the"e&pl!yee# h!#e pe"'!"&an*e # un#upe"(#ed %ythe e&pl!ye"5 &u#t n!t %e unde"#t!!d a# a #epa"ate*la##)*at!n !' e&pl!yee# t! h*h #e"(*e n*ent(elea(e #hall n!t %e +"anted. Rathe", t #e"(e# a# ana&pl)*at!n !' the nte"p"etat!n !' the de)nt!n !' )eld pe"#!nnel unde" the $a%!" C!de a# th!#e

5h!#e a*tual h!u"# !' !"4 n the )eld *ann!t %edete"&ned th "ea#!na%le *e"tanty.5 8 The #a&e # t"ue th "e#pe*t t! the ph"a#e 5th!#eh! a"e en+a+ed !n ta#4 !" *!nt"a*t %a##, pu"ely*!&&##!n %a##.5 Sad ph"a#e #h!uld %e "elated th5)eld pe"#!nnel,5 applyn+ the "ule !n eBu#de&+ene"# that +ene"al and unl&ted te"&# a"e"e#t"aned and l&ted %y the pa"t*ula" te"&# thatthey '!ll!. 9 en*e, e&pl!yee# en+a+ed !n ta#4 !"*!nt"a*t %a## !" pad !n pu"ely *!&&##!n %a## a"e

n!t aut!&at*ally ee&pted '"!& the +"ant !' #e"(*en*ent(e lea(e, unle##, they 'all unde" the*la##)*at!n !' )eld pe"#!nnel. CSTDIE The"e'!"e, pett!ne"7# *!ntent!n that "e#p!ndent #n!t enttled t! the +"ant !' #e"(*e n*ent(e lea(e Bu#t%e*au#e he a# pad !n pu"ely *!&&##!n %a## #&#pla*ed. ?hat &u#t %e a#*e"taned n !"de" t!"e#!l(e the ##ue !' p"!p"ety !' the +"ant !' #e"(*en*ent(e lea(e t! "e#p!ndent # hethe" !" n!t he #a )eld pe"#!nnel.A**!"dn+ t! A"t*le 82 !' the $a%!" C!de, 5)eldpe"#!nnel5 #hall "e'e" t! n!n-a+"*ultu"al e&pl!yee#h! "e+ula"ly pe"'!"& the" dute# aay '"!& thep"n*pal pla*e !' %u#ne## !" %"an*h !@*e !' thee&pl!ye" and h!#e a*tual h!u"# !' !"4 n the )eld

*ann!t %e dete"&ned th "ea#!na%le *e"tanty. Th#de)nt!n # 'u"the" ela%!"ated n the Gu"eau !' ?!"4n+ C!ndt!n# 0G?C, Ad(#!"y Opn!n t!>hlppne Te*hn*al-Cle"*al C!&&e"*al E&pl!yee#A##!*at!n 1< h*h #tate# that:A# a +ene"al "ule, )eld pe"#!nnel a"e th!#e h!#epe"'!"&an*e !' the" B!%#e"(*e # n!t #upe"(#ed %ythe e&pl!ye" !" h# "ep"e#entat(e, the !"4pla*e%en+ aay '"!& the p"n*pal !@*e and h!#e h!u"#and day# !' !"4 *ann!t %e dete"&ned th"ea#!na%le *e"tanty hen*e, they a"e pad #pe*)*a&!unt '!" "ende"n+ #pe*)* #e"(*e !" pe"'!"&n+#pe*)* !"4. I' "eu"ed t! %e at #pe*)* pla*e# at#pe*)* t&e#, e&pl!yee# n*ludn+ d"(e"# *ann!t %e#ad t! %e )eld pe"#!nnel de#pte the 'a*t that they

a"e pe"'!"&n+ !"4 aay '"!& the p"n*pal !@*e !' the e&pl!ye". E&pha## !u"# T! th# d#*u##!n %y the G?C, the pett!ne" de"#and p!#tulate# that unde" #ad ad(#!"y !pn!n, n!e&pl!yee !uld e(e" %e *!n#de"ed a )eld pe"#!nnel%e*au#e e(e"y e&pl!ye", n !ne ay !" an!the",ee"*#e# *!nt"!l !(e" h# e&pl!yee#. >ett!ne"'u"the" a"+ue# that the !nly *"te"!n that #h!uld %e*!n#de"ed # the natu"e !' !"4 !' the e&pl!yee nthat, ' the e&pl!yee7# B!% "eu"e# that he !"4#aay '"!& the p"n*pal !@*e l4e that !' a&e##en+e" !" a %u# d"(e", then he # ne(ta%ly a)eld pe"#!nnel. T*DAS?e a"e n!t pe"#uaded. At th# p!nt, t # ne*e##a"y t!#t"e## that the de)nt!n !' a 5)eld pe"#!nnel5 # n!t



&e"ely *!n*e"ned th the l!*at!n he"e thee&pl!yee "e+ula"ly pe"'!"&# h# dute# %ut al#! ththe 'a*t that the e&pl!yee7# pe"'!"&an*e #un#upe"(#ed %y the e&pl!ye". A# d#*u##ed a%!(e,)eld pe"#!nnel a"e th!#e h! "e+ula"ly pe"'!"& the"dute# aay '"!& the p"n*pal pla*e !' %u#ne## !' the e&pl!ye" and h!#e a*tual h!u"# !' !"4 n the)eld *ann!t %e dete"&ned th "ea#!na%le *e"tanty. Thu#, n !"de" t! *!n*lude hethe" an e&pl!yee # a)eld e&pl!yee, t # al#! ne*e##a"y t! a#*e"tan '

a*tual h!u"# !' !"4 n the )eld *an %e dete"&nedth "ea#!na%le *e"tanty %y the e&pl!ye". In #!d!n+, an nu"y &u#t %e &ade a# t! hethe" !" n!tthe e&pl!yee7# t&e and pe"'!"&an*e a"e *!n#tantly#upe"(#ed %y the e&pl!ye".A# !%#e"(ed %y the $a%!" A"%te" and *!n*u""ed n %ythe C!u"t !' Appeal#:It # !' Bud*al n!t*e that al!n+ the "!ute# that a"epled %y the#e %u# *!&pane#, the"e a"e t# n#pe*t!"#a##+ned at #t"ate+* pla*e# h! %!a"d the %u# andn#pe*t the pa##en+e"#, the pun*hed t*4et#, and the*!ndu*t!"7# "ep!"t#. The"e # al#! the &andat!"y!n*e-a-ee4 *a" %a"n !" #h!p day, he"e the %u# #"e+ula"ly *he*4ed a# t! t# &e*han*al, ele*t"*al, andhyd"aul* a#pe*t#, hethe" !" n!t the"e a"e p"!%le&#

the"e!n a# "ep!"ted %y the d"(e" and!" *!ndu*t!". They t!!, &u#t %e at #pe*)* pla*e a# #* #pe*)edt&e, a# they +ene"ally !%#e"(e p"!&pt depa"tu"e anda""(al '"!& the" p!nt !' !"+n t! the" p!nt !' de#tnat!n. In ea*h and e(e"y dep!t, the"e # alay#the D#pat*he" h!#e 'un*t!n # p"e*#ely t! #ee t! tthat the %u# and t# *"e lea(e the p"e&#e# at#pe*)* t&e# and a""(e at the e#t&ated p"!pe"t&e. The#e, a"e p"e#ent n the *a#e at %a". The d"(e",the *!&planant he"en, a# the"e'!"e unde" *!n#tant#upe"(#!n hle n the pe"'!"&an*e !' th# !"4. e*ann!t %e *!n#de"ed a )eld pe"#!nnel. 11?e a+"ee n the a%!(e d#u#t!n. The"e'!"e, a#*!""e*tly *!n*luded %y the appellate *!u"t,"e#p!ndent # n!t a )eld pe"#!nnel %ut a "e+ula"

e&pl!yee h! pe"'!"&# ta#4# u#ually ne*e##a"y andde#"a%le t! the u#ual t"ade !' pett!ne"7# %u#ne##.A**!"dn+ly, "e#p!ndent # enttled t! the +"ant !' #e"(*e n*ent(e lea(e. I*ESaA The ue#t!n n! that &u#t %e add"e##ed # up t!hat a&!unt !' #e"(*e n*ent(e lea(e pay"e#p!ndent # enttled t!. The "e#p!n#e t! th# ue"y ne(ta%ly lead# u# t! the*!""elat(e ##ue !' hethe" !" n!t the th"ee 03-yea"p"e#*"pt(e pe"!d unde" A"t*le 291 !' the $a%!"C!de # appl*a%le t! "e#p!ndent7# *la& !' #e"(*en*ent(e lea(e pay.A"t*le 291 !' the $a%!" C!de #tate# that all &!ney*la&# a"#n+ '"!& e&pl!ye"-e&pl!yee "elat!n#hp#hall %e )led thn th"ee 03 yea"# '"!& the t&e the

*au#e !' a*t!n a**"ued !the"#e, they #hall %e'!"e(e" %a""ed.In the appl*at!n !' th# #e*t!n !' the $a%!" C!de,the p(!tal ue#t!n t! %e an#e"ed # hen d!e# the*au#e !' a*t!n '!" &!ney *la&# a**"ue n !"de" t!dete"&ne the "e*4!nn+ date !' the th"ee-yea"p"e#*"pt(e pe"!d.It # #ettled Bu"#p"uden*e that a *au#e !' a*t!n ha#th"ee ele&ent#, t! t, 01 a "+ht n 'a(!" !' theplant %y hate(e" &ean# and unde" hate(e" la

t a"#e# !" # *"eated 02 an !%l+at!n !n the pa"t !' the na&ed de'endant t! "e#pe*t !" n!t t! (!late#u*h "+ht and 03 an a*t !" !&##!n !n the pa"t !' #u*h de'endant (!lat(e !' the "+ht !' the plant !"*!n#ttutn+ a %"ea*h !' the !%l+at!n !' thede'endant t! the plant. 12 T! p"!pe"ly *!n#t"ue A"t*le 291 !' the $a%!" C!de, t# e##ental t! a#*e"tan the t&e hen the th"dele&ent !' a *au#e !' a*t!n t"an#p"ed. Statedde"ently, n the *!&putat!n !' the th"ee-yea"p"e#*"pt(e pe"!d, a dete"&nat!n &u#t %e &adea# t! the pe"!d hen the a*t *!n#ttutn+ a (!lat!n!' the !"4e"#7 "+ht t! the %ene)t# %en+ *la&eda# *!&&tted. F!" ' the *au#e !' a*t!n a**"ued&!"e than th"ee 03 yea"# %e'!"e the )ln+ !' the

&!ney *la&, #ad *au#e !' a*t!n ha# al"eadyp"e#*"%ed n a**!"dan*e th A"t*le 291. 13C!n#euently, n *a#e# !' n!npay&ent !' all!an*e#and !the" &!neta"y %ene)t#, ' t # e#ta%l#hed thatthe %ene)t# %en+ *la&ed ha(e %een thheld '"!&the e&pl!yee '!" a pe"!d l!n+e" than th"ee 03yea"#, the a&!unt pe"tann+ t! the pe"!d %ey!ndthe th"ee-yea" p"e#*"pt(e pe"!d # the"e'!"e %a""ed%y p"e#*"pt!n. The a&!unt that *an !nly %ede&anded %y the a++"e(ed e&pl!yee #hall %el&ted t! the a&!unt !' the %ene)t# thheld thnth"ee 03 yea"# %e'!"e the )ln+ !' the *!&plant. 1It # e##ental at th# p!nt, h!e(e", t! "e*!+nethat the #e"(*e n*ent(e lea(e # a *u"!u# an&al n"elat!n t! !the" %ene)t# +"anted %y the la t! e(e"y

e&pl!yee. In the *a#e !' #e"(*e n*ent(e lea(e, thee&pl!yee &ay *h!!#e t! ethe" u#e h# lea(e *"edt#!" *!&&ute t t! t# &!neta"y eu(alent ' n!tehau#ted at the end !' the yea". 1; Fu"the"&!"e, ' the e&pl!yee enttled t! #e"(*e n*ent(e lea(e d!e#n!t u#e !" *!&&ute the #a&e, he # enttled up!n h#"e#+nat!n !" #epa"at!n '"!& !"4 t! the*!&&utat!n !' h# a**"ued #e"(*e n*ent(e lea(e.A# enun*ated %y the C!u"t n Fe"nande (. N$RC: 16 The *lea" p!l*y !' the $a%!" C!de # t! +"ant #e"(*en*ent(e lea(e pay t! !"4e"# n all e#ta%l#h&ent#,#u%Be*t t! a 'e e*ept!n#. Se*t!n 2, Rule K, G!!4III !' the I&ple&entn+ Rule# and Re+ulat!n#p"!(de# that 5e(e"y e&pl!yee h! ha# "ende"ed atlea#t !ne yea" !' #e"(*e #hall %e enttled t! a yea"ly

#e"(*e n*ent(e lea(e !' )(e day# th pay.5 Se"(*en*ent(e lea(e # a "+ht h*h a**"ue# t! e(e"ye&pl!yee h! ha# #e"(ed 5thn 12 &!nth#, hethe"*!ntnu!u# !" %"!4en "e*4!ned '"!& the date thee&pl!yee #ta"ted !"4n+, n*ludn+ auth!"eda%#en*e# and pad "e+ula" h!lday# unle## the!"4n+ day# n the e#ta%l#h&ent a# a &atte" !' p"a*t*e !" p!l*y, !" that p"!(ded n the e&pl!y&ent*!nt"a*t#, # le## than 12 &!nth#, n h*h *a#e #adpe"!d #hall %e *!n#de"ed a# !ne yea".5 It # al#!

5*!&&uta%le t! t# &!ney eu(alent ' n!t u#ed !"ehau#ted at the end !' the yea".5 In !the" !"d#, ane&pl!yee h! ha# #e"(ed '!" !ne yea" # enttled t!t. e &ay u#e t a# lea(e day# !" he &ay *!lle*t t#&!neta"y (alue. T! l&t the aa"d t! th"ee yea"#, a#the #!l*t!" +ene"al "e*!&&end#, # t! unduly "e#t"*t#u*h "+ht. 1/ Ital*# #uppled TCSE*IC!""e#p!ndn+ly, t *an %e *!n#*ent!u#ly dedu*edthat the *au#e !' a*t!n !' an enttled e&pl!yee t!*la& h# #e"(*e n*ent(e lea(e pay a**"ue# '"!& the&!&ent the e&pl!ye" "e'u#e# t! "e&une"ate t#&!neta"y eu(alent ' the e&pl!yee dd n!t &a4eu#e !' #ad lea(e *"edt# %ut n#tead *h!#e t! a(al !' t# *!&&utat!n. A**!"dn+ly, ' the e&pl!yee #he#t! a**u&ulate h# lea(e *"edt# and !pt# '!" t#

*!&&utat!n up!n h# "e#+nat!n !" #epa"at!n '"!&e&pl!y&ent, h# *au#e !' a*t!n t! *la& the h!lea&!unt !' h# a**u&ulated #e"(*e n*ent(e lea(e#hall a"#e hen the e&pl!ye" 'al# t! pay #u*ha&!unt at the t&e !' h# "e#+nat!n !" #epa"at!n'"!& e&pl!y&ent.Applyn+ A"t*le 291 !' the $a%!" C!de n l+ht !' th#pe*ula"ty !' the #e"(*e n*ent(e lea(e, e *an*!n*lude that the th"ee 03-yea" p"e#*"pt(e pe"!d*!&&en*e#, n!t at the end !' the yea" hen thee&pl!yee %e*!&e# enttled t! the *!&&utat!n !' h##e"(*e n*ent(e lea(e, %ut '"!& the t&e hen thee&pl!ye" "e'u#e# t! pay t# &!neta"y eu(alent a'te"de&and !' *!&&utat!n !" up!n te"&nat!n !' thee&pl!yee7# #e"(*e#, a# the *a#e &ay %e.

The a%!(e *!n#t"ual !' A"t. 291, (#-V-(# the "ule# !n#e"(*e n*ent(e lea(e, # n 4eepn+ th the"ud&enta"y p"n*ple that n the &ple&entat!n andnte"p"etat!n !' the p"!(#!n# !' the $a%!" C!de andt# &ple&entn+ "e+ulat!n#, the !"4n+&an7#el'a"e #h!uld %e the p"&!"dal and pa"a&!unt*!n#de"at!n. 18 The p!l*y # t! etend theappl*a%lty !' the de*"ee t! a +"eate" nu&%e" !' e&pl!yee# h! *an a(al !' the %ene)t# unde" thela, h*h # n *!n#!nan*e th the a(!ed p!l*y !' the State t! +(e &a&u& ad and p"!te*t!n t!la%!". 19In the *a#e at %a", "e#p!ndent had n!t &ade u#e !' h# #e"(*e n*ent(e lea(e n!" de&anded '!" t#*!&&utat!n untl h# e&pl!y&ent a# te"&nated %y



pett!ne". Nethe" dd pett!ne" *!&pen#ate h#a**u&ulated #e"(*e n*ent(e lea(e pay at the t&e!' h# d#&##al. It a# !nly up!n h# )ln+ !' a*!&plant '!" lle+al d#&##al, !ne &!nth '"!& thet&e !' h# d#&##al, that "e#p!ndent de&anded '"!&h# '!"&e" e&pl!ye" *!&&utat!n !' h# a**u&ulatedlea(e *"edt#. # *au#e !' a*t!n t! *la& thepay&ent !' h# a**u&ulated #e"(*e n*ent(e lea(ethu# a**"ued '"!& the t&e hen h# e&pl!ye"d#&##ed h& and 'aled t! pay h# a**u&ulated

lea(e *"edt#. ATIC*S The"e'!"e, the p"e#*"pt(e pe"!d th "e#pe*t t! h#*la& '!" #e"(*e n*ent(e lea(e pay !nly *!&&en*ed'"!& the t&e the e&pl!ye" 'aled t! *!&pen#ate h#a**u&ulated #e"(*e n*ent(e lea(e pay at the t&e!' h# d#&##al. Sn*e "e#p!ndent had )led h# &!ney*la& a'te" !nly !ne &!nth '"!& the t&e !' h#d#&##al, ne*e##a"ly, h# &!ney *la& a# )ledthn the p"e#*"pt(e pe"!d p"!(ded '!" %y A"t*le291 !' the $a%!" C!de.?EREFORE, p"e&#e# *!n#de"ed, the n#tantpett!n # he"e%y DENIED. The a##aled De*#!n !' the C!u"t !' Appeal# n CA-.R. S>. N!. 6839; #he"e%y AFFIRMED. N! C!#t#. ITSCEDSO ORDERED.



[G.R. No. 1268. No/+?<+r 28, 199.]SAN JUAN DE DIOS #OS"ITAL E!"LO(EESASSOIATION4A$!A. ONSUELO !A&UILING,LEONARDO !ARTINE%, DO!INGO ELA, JR.,RODOL$O ALUIN, JR., "ERLA !ENDO%A, RERA"#AEL RE(ES, ROGELIO BEL!ONTE, AND 3OT#ER E!"LO(EE4UNION !E!BERS,*+--on+r, /. NATIONAL LABOR RELATIONSO!!ISSION, an) SAN JUAN DE DIOS #OS"ITAL,r+*on)+n.

D E C I S I O NFRANCISCO, J p:>ett!ne"#, the "an4-and-)le e&pl!yee-un!n !@*e"#and &e&%e"# !' San Juan De D!# !#ptal E&pl!yee#A##!*at!n, #ent !n July <8, 1991, a 5'!u" 0- pa+elette" th atta*hed #upp!"t #+natu"e# . . . "eue#tn+and pleadn+ '!" the epedt!u# &ple&entat!n andpay&ent %y "e#p!ndent5 Juan De D!# !#ptal 5!' the7<-O=RS;-DAL ?ORQ?EEQ7 th *!&pen#a%leee4ly t! 02 day# ! p"!(ded '!" %y Repu%l* A*t;9<1 a# *la")ed '!" en'!"*e&ent %y the Se*"eta"y !' $a%!"7# >!l*y In#t"u*t!n# N!. ; dated Ap"l 12,1988.5 1 Re#p!ndent h!#ptal 'aled t! +(e a'a(!"a%le "e#p!n#e thu#, pett!ne"# )led a *!&plant

"e+a"dn+ the" 5*la&# '!" #tatut!"y %ene)t# unde"the a%!(e-*ted la and p!l*y ##uan*e5 2 , d!*4eteda# N$RC NCR Ca#e N!. <<-<8-<81;-91. On Fe%"ua"y26, 1992, the $a%!" A"%te" 3 d#&##ed the*!&plant. >ett!ne"# appealed %e'!"e pu%l*"e#p!ndent Nat!nal $a%!" Relat!n# C!&&##!n 0N$RC, d!*4eted a# N$RC NCR CA <<3<28-92, h*ha@"&ed the $a%!" A"%te"7# de*#!n. >ett!ne"#7#u%#euent &!t!n '!" "e*!n#de"at!n a# denedhen*e, th# pett!n unde" Rule 6; !' the Rule# !' C!u"t a#*"%n+ +"a(e a%u#e !' d#*"et!n !n the pa"t!' N$RC n *!n*ludn+ that >!l*y In#t"u*t!n# N!. ;5p"!*eed# '"!& a "!n+ nte"p"etat!n !' RA ;9<15 ;and A"t*le 83 !' the $a%!" C!de. $$Bu"A# the C!u"t #ee# t, the *!"e ##ue # hethe" >!l*y

In#t"u*t!n# N!. ; ##ued %y then $a%!" Se*"eta"y0n! Senat!" F"an4ln M. D"l!n # (ald !" n!t. The p!l*y n#t"u*t!n n ue#t!n p"!(de# n 'ull a#'!ll!#:5>!l*y In#t"u*t!n N!. ;5T!: All C!n*e"ned5Su%Be*t: ?!"4n+ !u"# and C!&pen#at!n !' !#ptalCln* >e"#!nnel5Th# ##uan*e *la")e# the en'!"*e&ent p!l*y !' th#Depa"t&ent !n the !"4n+ h!u"# and *!&pen#at!n!' pe"#!nnel e&pl!yed %y h!#ptal#*ln*# th a %ed*apa*ty !' 1<< !" &!"e and th!#e l!*ated n *te#and &un*palte# th a p!pulat!n !' !ne &ll!n !"&!"e.

5Repu%l* A*t ;9<1 t!!4 ee*t !n 21 June 1969p"e#*"%e# a <-h!u"; day !"4 ee4 '!"h!#ptal*ln* pe"#!nnel. At the #a&e t&e, the A*tp"!h%t# the d&nut!n !' the *!&pen#at!n !' the#e!"4e"# h! !uld #ue" a "edu*t!n n the" ee4lya+e %y "ea#!n !' the #h!"tened !"4ee4p"e#*"%ed %y the A*t. In ee*t, RA ;9<1 "eu"e#that the *!(e"ed h!#ptal !"4e"# h! u#ed t! !"4#e(en 0/ day# a ee4 #h!uld %e pad '!" #u*hnu&%e" !' day# '!" !"4n+ !nly ; day# !" < h!u"# a

ee4. *dphl5The e(dent ntent!n !' RA ;9<1 # t! "edu*e thenu&%e" !' h!#ptal pe"#!nnel, *!n#de"n+ the natu"e!' the" !"4 and at the #a&e t&e +ua"antee thepay&ent t! the& !' a 'ull ee4ly a+e '!" #e(en 0/day#. Th# # ute *lea" n the Ee&pla"y N!te !' RA;9<1 h*h #tate#:7A# *!&pa"ed th the !the" e&pl!yee# and la%!"e"#,the#e h!#ptal and health *ln* pe"#!nnel a"e !(e"-!"4ed de#pte the 'a*t that the" dute# a"e &!"edel*ate n natu"e. I' e !e" the& %ette" !"4n+*!ndt!n#, t # %ele(ed that the 5%"an d"an5, that!u" *!unt"y #ue"# n!aday# a# 'a" a# the#epe"#!nnel a"e *!n*e"ned ll %e *!n#de"a%lyle##ened. The 'a*t that the#e h!#ptal# and health

*ln*# pe"#!nnel pe"'!"& dute# h*h a"e d"e*tly*!n*e"ned th the health and l(e# !' !u" pe!pled!e# n!t &ean that they #h!uld !"4 '!" a l!n+e"pe"!d than &!#t e&pl!yee# and la%!"e"#. They a"eal#! enttled t! a# &u*h "e#t a# !the" !"4e"#.Ma4n+ the& !"4 l!n+e" than # ne*e##a"y &ayendan+e", "athe" than p"!te*t the health !' the"patent#. Ge#de#, they a"e n!t "e*e(n+ %ette" paythan the !the" !"4e"#. The"e'!"e, t # Bu#t and 'a"that they &ay %e &ade t! enB!y the p"(le+e# !' eual !"4n+ h!u"# th !the" !"4e"# e*ept th!#ee*epted %y la. 0Sth C!n+"e## !' the Repu%l* !' the >hl ppne#, Th"d Se##!n, !u#e !' Rep"e#entat(e#, . N!. 1663<75The $a%!" C!de n t# A"t*le 83 ad!pt# and

n*!"p!"ate# the %a#* p"!(#!n# !' RA ;9<1 and"etan# t# #p"t and ntent h*h # t! #h!"ten the!"4ee4 !' *!(e"ed h!#ptal pe"#!nnel and at the#a&e t&e a##u"e the& !' a 'ull ee4ly a+e.5C!n##tent th #u*h #p"t and ntent, t # thep!#t!n !' the Depa"t&ent that pe"#!nnel n #u%Be*th!#ptal and *ln*# a"e enttled t! a 'ull ee4ly a+e'!" #e(en 0/ day# ' they ha(e *!&pleted the <-h!u";-day !"4ee4 n any +(en !"4ee4.5All en'!"*e&ent and adBud*at!"y a+en*e# !' th#Depa"t&ent #hall %e +uded %y th# ##uan*e n thed#p!#t!n !' *a#e# n(!l(n+ the pe"#!nnel !' *!(e"ed h!#ptal# and *ln*#.5D!ne n the Cty !' Manla, th# 12th day !' Ap"l,1988.

50S+d. FRANQ$IN M. DRI$ONSe*"eta"y50E&pha## Added?e n!te that >!l*y In#t"u*t!n N!. ; "ele# andpu"p!"t# t! &ple&ent Repu%l* A*t N!. ;9<1,!the"#e 4n!n a# 5An A*t >"e#*"%n+ F!"ty !u"# A?ee4 O' $a%!" F!" !(e"n&ent and >"(ate !#ptal#O" Cln* >e"#!nnel5, ena*ted !n June 21, 1969.Relan*e !n Repu%l* A*t N!. ;9<1, h!e(e", #&#pla*ed '!" the #ad #tatute, a# *!""e*tly "uled %y

"e#p!ndent N$RC, ha# l!n+ %een "epealed th thepa##a+e !' the $a%!" C!de !n May 1, 19/, A"t*le3<2 !' h*h epl*tly p"!(de#: 5All la%!" la# n!tad!pted a# pa"t !' th# C!de ethe" d"e*tly !" %y"e'e"en*e a"e he"e%y "epealed. All p"!(#!n# !' e#tn+ la#, !"de"#, de*"ee#, "ule# and "e+ulat!n#n*!n##tent he"eth a"e l4e#e "epealed.5A**!"dn+ly, !nly A"t*le 83 !' the $a%!" C!de h*happea"# t! ha(e #u%#tantally n*!"p!"ated !""ep"!du*ed the %a#* p"!(#!n# !' Repu%l* A*t N!.;9<1 &ay #upp!"t >!l*y In#t"u*t!n# N!. ; !n h*hthe latte"7# (aldty &ay %e +au+ed. A"t*le 83 !' the$a%!" C!de #tate#:5A"t. 83. N!"&al !u"# !' ?!"4. The n!"&al h!u"#!' !"4 !' any e&pl!yee #hall n!t e*eed e+ht 08

h!u"# a day.5ealth pe"#!nnel n *te# and &un*palte# th ap!pulat!n !' at lea#t !ne &ll!n 01,<<<,<<< !" nh!#ptal# and *ln*# th a %ed *apa*ty !' at lea#t!ne hund"ed 01<< #hall h!ld "e+ula" !@*e h!u"# '!"e+ht 08 h!u"# a day, '!" )(e 0; day# a ee4,e*lu#(e !' t&e '!" &eal#, e*ept he"e thee+en*e# !' the #e"(*e "eu"e that #u*h pe"#!nnel!"4 '!" # 06 day# !" '!"ty-e+ht 08 h!u"#, nh*h *a#e they #hall %e enttled t! an addt!nal*!&pen#at!n !' at lea#t th"ty pe" *ent 03< !' the""e+ula" a+e '!" !"4 !n the #th day. F!" pu"p!#e#!' th# A"t*le, 5health pe"#!nnel5 #hall n*lude:"e#dent phy#*an#, nu"#e#, nut"t!n#t#, dettan#,pha"&a*#t#, #!*al !"4e"#, la%!"at!"y te*hn*an#,

pa"a&ed*al te*hn*an#, p#y*h!l!+#t#, &d(e#,attendant# and all !the" h!#ptal !" *ln* pe"#!nnel.50E&pha## #uppledA *u"#!"y "eadn+ !' A"t*le 83 !' the $a%!" C!de%et"ay# pett!ne"#7 p!#t!n that 5h!#ptal e&pl!yee#5a"e enttled t! 5a 'ull ee4ly #ala"y th pad t! 02day#7 ! ' they ha(e *!&pleted the <-h!u";-day!"4ee45. 6 ?hat A"t*le 83 &e"ely p"!(de# a"e: 01the "e+ula" !@*e h!u" !' e+ht h!u"# a day, )(e day#pe" ee4 '!" health pe"#!nnel, and 02 he"e thee+en*e# !' #e"(*e "eu"e that health pe"#!nnel!"4 '!" # day# !" '!"ty-e+ht h!u"# then #u*h healthpe"#!nnel #hall %e enttled t! an addt!nal*!&pen#at!n !' at lea#t th"ty pe"*ent !' the""e+ula" a+e '!" !"4 !n the #th day. The"e #



n!thn+ n the la that #upp!"t# then Se*"eta"y !' $a%!"7# a##e"t!n that 5pe"#!nnel n #u%Be*t h!#ptal#and *ln*# a"e enttled t! a 'ull ee4ly a+e '!" #e(en0/ day# ' they ha(e *!&pleted the <-h!u";-day!"4ee4 n any +(en !"4ee45. Needle## t! #ay,the Se*"eta"y !' $a%!" e*eeded h# auth!"ty %yn*ludn+ a t! day# ! th pay n *!nt"a(ent!n !' the *lea" &andate !' the #tatute. Su*h a*t the C!u"t#hall n!t *!untenan*e. Ad&n#t"at(e nte"p"etat!n!' the la, e "ete"ate, # at %e#t &e"ely ad(#!"y, /

and the C!u"t ll n!t he#tate t! #t"4e d!n anad&n#t"at(e nte"p"etat!n that de(ate# '"!& thep"!(#!n !' the #tatute.

Indeed, e(en ' e e"e t! #u%#*"%e th pett!ne"#7e""!ne!u# a##e"t!n that Repu%l* A*t N!. ;9<1 ha#nethe" %een a&ended n!" "epealed %y the $a%!"C!de, e ne(e"thele## )nd >!l*y In#t"u*t!n# N!. ;n(ald. A pe"u#al !' Repu%l* A*t N!. ;9<1 8 "e(eal#n!thn+ the"en that +(e# t! day# ! th pay '!"health pe"#!nnel h! *!&plete a <-h!u" !"4 !" ;-day !"4ee4. In 'a*t, the Eplanat!"y N!te !' !u#eGll N!. 1663< 0late" pa##ed nt! la a# Repu%l* A*tN!. ;9<1 epl*tly #tate# that the %ll7# #!le pu"p!#e# t! #h!"ten the !"4n+ h!u"# !' health pe"#!nnel

and n!t t! d!le !ut a t! day# ! th pay. en*e:5The a**!&panyn+ %ll #ee4# t! +"ant "e#dentphy#*an#, #ta nu"#e#, nut"t!n#t#, &d(e#,attendant# and !the" h!#ptal and health *ln*pe"#!nnel !' pu%l* and p"(ate h!#ptal# and *ln*#,the p"(le+e !' enB!yn+ the e+ht h!u"# a ee4e*lu#(e !' t&e '!" lun*h +"anted %y la t! all+!(e"n&ent e&pl!yee# and !"4e"# e*ept th!#ee&pl!yed n #*h!!l# and n *!u"t#. At p"e#ent th!#eh!#ptal# and health *ln* pe"#!nnel n*ludn+ th!#ee&pl!yed n p"(ate h!#ptal# and *ln*#, !"4 #day# a ee4, 8 h!u"# a day !" 8 h!u"# a ee4.5A# *!&pa"ed th the !the" e&pl!yee# and la%!"e"#,the#e h!#ptal and health *ln* pe"#!nnel a"e !(e"-!"4ed de#pte the 'a*t that the" dute# a"e &!"e

del*ate n natu"e. I' e !e" the& %ette" !"4n+*!ndt!n#, t # %ele(ed that the 7%"an d"an7, that!u" *!unt"y #ue"# n!aday# a# 'a" a# the#epe"#!nnel a"e *!n*e"ned ll %e *!n#de"a%lyle##ened. The 'a*t that the#e h!#ptal# and health*ln* pe"#!nnel pe"'!"& dute# h*h a"e d"e*tly*!n*e"ned th the health and l(e# !' !u" pe!pled!e# n!t &ean that they #h!uld !"4 '!" a l!n+e"pe"!d than &!#t e&pl!yee# and la%!"e"#. They a"eal#! enttled t! a# &u*h "e#t a# !the" !"4e"#. Ma4n+the& !"4 l!n+e" than # ne*e##a"y &ay endan+e","athe" than p"!te*t, the health !' the" patent#.Ge#de#, they a"e n!t "e*e(n+ %ette" pay than the!the" !"4e"#. The"e'!"e, t # Bu#t and 'a" that they%e &ade t! enB!y the p"(le+e# !' eual !"4n+

h!u"# th !the" !"4e"# e*ept th!#e e*epted %yla.5In the l+ht !' the '!"e+!n+, app"!(al !' th# %ll ##t"!n+ly "e*!&&ended.50SD. SERIO . $OLO$A5C!n+"e##&an, 3"d D#t"*tManla5 0Anne 5F5 !' pett!n, e&pha## #uppledFu"the", pett!ne"#7 p!#t!n # al#! ne+ated %y the(e"y "ule# and "e+ulat!n# p"!&ul+ated %y theGu"eau !' $a%!" Standa"d# h*h &ple&ent Repu%l*

A*t N!. ;9<1. >e"tnent p!"t!n# !' the &ple&entn+"ule# p"!(de:5R=$ES AND RE=$ATIONS IM>$EMENTINRE>=G$IC ACT NO. ;9<15Gy ("tue !' Se*t!n /9 !' the Re(#ed Ad&n#t"at(eC!de, a# &!d)ed %y #e*t!n 18 !' I&ple&entat!nRep!"t '!" Re!"+anat!n >lan N!. 2<-A !n $a%!",(e#tn+ n the Gu"eau !' $a%!" Standa"d# theauth!"ty t! p"!&ul+ate "ule# and "e+ulat!n# t!&ple&ent a+e and h!u" la#, the '!ll!n+ "ule#and "e+ulat!n# a"e he"e%y ##ued '!" the&ple&entat!n !' Repu%l* A*t N!. ;9<1. $%$e5CA>TER I C!(e"a+e5Se*t!n 1. ene"al State&ent !n C!(e"a+e. Repu%l* A*t N!. ;9<1, he"ena'te" "e'e""ed t! a# the

A*t, #hall apply t!:70a All h!#ptal# and *ln*#, n*ludn+ th!#e tha %ed *apa*ty !' le## than !ne hund"ed, h*h a"e#tuated n *te# !" &un*palte# th a p!pulat!n!' !ne &ll!n !" &!"e and t!70% All h!#ptal# and *ln*# th a %ed *apa*ty!' at lea#t !ne hund"ed, ""e#pe*t(e !' the #e !' p!pulat!n !' the *ty !" &un*palty he"e they &ay%e #tuated.7 5Se*t!n /. Re+ula" ?!"4n+ Day. The"e+ula" !"4n+ day# !' *!(e"ed e&pl!yee# #hall %en!t &!"e than )(e day# n a !"4ee4. The!"4ee4 &ay %e+n at any h!u" and !n any day,n*ludn+ Satu"day !" Sunday, de#+nated %y the

e&pl!ye".5E&pl!ye"# a"e n!t p"e*luded '"!& *han+n+ thet&e at h*h the !"4day !" !"4ee4 %e+n#,p"!(ded that the *han+e # n!t ntended t! e(adethe "eu"e&ent# !' the#e "e+ulat!n# !n thepay&ent !' addt!nal *!&pen#at!n.5 5Se*t!n 1;. Addt!nal >ay =nde" the A*t and C.A. N!. . 0a E&pl!yee# !' *!(e"ed h!#ptal# and*ln*# h! a"e enttled t! the %ene)t# p"!(dedunde" the E+ht-!u" $a%!" $a, a# a&ended, #hall%e pad an addt!nal *!&pen#at!n eu(alent t!the" "e+ula" "ate plu# at lea#t tenty-)(e pe"*entthe"e!' '!" !"4 pe"'!"&ed !n Sunday and !lday#,n!t e*eedn+ e+ht h!u"#, #u*h e&pl!yee# #hall %e

enttled t! an addt!nal *!&pen#at!n !' at lea#t 2;!' the" "e+ula" "ate.50% F!" !"4 pe"'!"&ed n e*e## !' '!"ty h!u"# aee4, e*ludn+ th!#e "ende"ed n e*e## !' e+hth!u"# a day du"n+ the ee4, e&pl!yee# *!(e"ed %ythe E+ht-!u" $a%!" $a #hall %e enttled t! anaddt!nal #t"a+ht-t&e pay h*h &u#t %e eu(alentat lea#t t! the" "e+ula" "ate.5I' pett!ne"# a"e enttled t! t! day# ! th pay,then the"e appea"# t! %e n! #en#e at all hy Se*t!n

1; !' the &ple&entn+ "ule# +"ant# addt!nal*!&pen#at!n eu(alent t! the "e+ula" "ate plu# atlea#t tenty-)(e pe"*ent the"e!' '!" !"4 pe"'!"&ed!n Sunday t! health pe"#!nnel, !" an 5addt!nal#t"a+ht-t&e pay h*h &u#t %e eu(alent at lea#t t!the "e+ula" "ate5 5'!" !"4 pe"'!"&ed n e*e## !' '!"ty h!u"# a ee4 . . . >!l*y In#t"u*t!n# N!. ; t!!u" &nd unduly etended the #tatute. The Se*"eta"y!' $a%!" &!"e!(e" e""ed n n(!4n+ the 5#p"t andntent5 !' Repu%l* A*t N!. ;9<1 and A"t*le 83 !' the$a%!" C!de '!" t # an ele&enta"y "ule !' #tatut!"y*!n#t"u*t!n that hen the lan+ua+e !' the la #*lea" and uneu(!*al, the la &u#t %e ta4en t! &eanea*tly hat t #ay#. 9 N! addt!n# !" "e(#!n# &ay%e pe"&tted. >!l*y In#t"u*t!n# N!. ; %en+

n*!n##tent th and "epu+nant t! the p"!(#!n !' A"t*le 83 !' the $a%!" C!de, a# ell a# t! Repu%l*A*t N!. ;9<1, #h!uld %e, a# t # he"e%y, de*la"ed (!d.?EREFORE, the de*#!n appealed '"!& #AFFIRMED. N! *!#t#.SO ORDERED.



[G.R. No. 1282. D+7+?<+r 19, 2001.]INTER"#IL LABORATORIES E!"LO(EES UNION4$$, ENRIO GON%ALES an) !A. T#ERESA!ONTEJO, *+--on+r, /. INTER"#ILLABORATORIES, IN., AND #ONORABLELEONARDO A. &UISU!BING, SERETAR( O$LABOR AND E!"LO(!ENT, r+*on)+n.

D E C I S I O NQA>=NAN, J p:

A##aled n th# pett!n '!" "e(e !n *e"t!"a" a"ethe de*#!n, p"!&ul+ated !n 29 De*e&%e" 1999,and the "e#!lut!n, p"!&ul+ated !n <; Ap"l 2<<<, !' the C!u"t !' Appeal# n CA-.R. S> N!. ;<9/8.Culled '"!& the ue#t!ned de*#!n, the 'a*t# !' the*a#e a"e a# '!ll!#:Inte"phl $a%!"at!"e# E&pl!yee# =n!n-FF? # the#!le and e*lu#(e %a"+ann+ a+ent !' the "an4-and-)le e&pl!yee# !' Inte"phl $a%!"at!"e#, In*., a*!&pany en+a+ed n the %u#ne## !' &anu'a*tu"n+

and pa*4a+n+ pha"&a*eut*al p"!du*t#. They had aC!lle*t(e Ga"+ann+ A+"ee&ent 0CGA ee*t(e '"!&<1 Au+u#t 199< t! 31 July 1993.>"!" t! the ep"at!n !' the CGA !" #!&et&e nFe%"ua"y 1993, Alle#and"! . Salaa", 1 K*e->"e#dent-u&an Re#!u"*e# Depa"t&ent !' "e#p!ndent *!&pany, a# app"!a*hed %y Ne#t!"O*a&p!, the un!n p"e#dent, and e"nand!Cle&ente, a un!n d"e*t!". The t! un!n !@*e"#nu"ed a%!ut the #tand !' the *!&pany "e+a"dn+the du"at!n !' the CGA h*h a# #et t! ep"e n a'e &!nth#. Salaa" t!ld the un!n !@*e"# that the&atte" *!uld %e %e#t d#*u##ed du"n+ the '!"&alne+!tat!n# h*h !uld #ta"t #!!n.In Ma"*h 1993, O*a&p! and Cle&ente a+an

app"!a*hed Salaa". They nu"ed !n*e &!"e a%!utthe CGA #tatu# and "e*e(ed the #a&e "eply '"!&Salaa". In Ap"l 1993, O*a&p! "eue#ted '!" a&eetn+ t! d#*u## the du"at!n and ee*t(ty !' theCGA. Salaa" a**eded and a &eetn+ a# held !n 1;Ap"l 1993 he"e the un!n !@*e"# a#4ed hethe"Salaa" !uld %e a&ena%le t! &a4e the ne CGAee*t(e '!" t! 02 yea"#, #ta"tn+ <1 Au+u#t 1993.Salaa", h!e(e", de*la"ed that t !uld #tll %ep"e&atu"e t! d#*u## the &atte" and that the*!&pany *!uld n!t &a4e a de*#!n at the &!&ent. The (e"y net day, !" !n 16 Ap"l 1993, all the "an4-and-)le e&pl!yee# !' the *!&pany "e'u#ed t! '!ll!the" "e+ula" t!-#h't !"4 #*hedule !' '"!& 6:<<a.&. t! 6:<< p.&., and '"!& 6:<< p.&. t! 6:<< a.&. At

2:<< p.&. and 2:<< a.&., "e#pe*t(ely, the e&pl!yee##t!pped !"4n+ and le't the" !"4pla*e th!ut#ealn+ the *!ntane"# and #e*u"n+ the "a&ate"al# they e"e !"4n+ !n. ?hen Salaa"nu"ed a%!ut the "ea#!n '!" the" "e'u#al t! '!ll!the" n!"&al !"4 #*hedule, the e&pl!yee# t!ld h&t! 5a#4 the un!n !@*e"#.5 T! &n&e the da&a+ethe !(e"t&e %!y*!tt a# *au#n+ the *!&pany,Salaa" &&edately a#4ed '!" a &eetn+ th theun!n !@*e"#. In the &eetn+, En"*! !nale#, aun!n d"e*t!", t!ld Salaa" that the e&pl!yee# !uld!nly "etu"n t! the" n!"&al !"4 #*hedule ' the*!&pany !uld a+"ee t! the" de&and# a# t! theee*t(ty and du"at!n !' the ne CGA. Salaa"a+an t!ld the un!n !@*e"# that the &atte" *!uld %e

%ette" d#*u##ed du"n+ the '!"&al "ene+!tat!n# !' the CGA. Sn*e the un!n a# appa"ently un#at#)edth the an#e" !' the *!&pany, the !(e"t&e %!y*!tt*!ntnued. In addt!n, the e&pl!yee# #ta"ted t!en+a+e n a !"4 #l!d!n *a&pa+n du"n+ the t&ethey e"e !"4n+, thu# #u%#tantally delayn+ thep"!du*t!n !' the *!&pany. 2On 1 May 1993, pett!ne" un!n #u%&tted th"e#p!ndent *!&pany t# CGA p"!p!#al, and the latte")led t# *!unte"-p"!p!#al.

On <3 Septe&%e" 1993, "e#p!ndent *!&pany )ledth the Nat!nal $a%!" Relat!n# C!&&##!n 0N$RCa pett!n t! de*la"e lle+al pett!ne" un!n7#5!(e"t&e %!y*!tt5 and 5!"4 #l!d!n5 h*h,a**!"dn+ t! "e#p!ndent *!&pany, a&!unted t!lle+al #t"4e. The *a#e, d!*4eted N$RC-NCR Ca#e N!.<<-<9-<;;29-93, a# a##+ned t! $a%!" A"%te"Manuel R. Caday.On 22 O*t!%e" 1993, "e#p!ndent *!&pany )led ththe Nat!nal C!n*lat!n and Medat!n G!a"d 0NCMGan u"+ent "eue#t '!" p"e(ent(e &edat!n a&ed t!help the pa"te# n the" CGA ne+!tat!n#. 3 Thepa"te#, h!e(e", 'aled t! a""(e at an a+"ee&ent and!n 1; N!(e&%e" 1993, "e#p!ndent *!&pany )led ththe O@*e !' the Se*"eta"y !' $a%!" and E&pl!y&ent

a pett!n '!" a##u&pt!n !' Bu"#d*t!n.On 2 Janua"y 199, pett!ne" un!n )led th theNCMG a N!t*e !' St"4e *tn+ un'a" la%!" p"a*t*ealle+edly *!&&tted %y "e#p!ndent *!&pany. On 12Fe%"ua"y 199, the un!n #ta+ed a #t"4e.On 1 Fe%"ua"y 199, Se*"eta"y !' $a%!" Ne(e#C!n'e#!" ##ued an a##u&pt!n !"de" !(e" the la%!"d#pute. On <2 Ma"*h 199, Se*"eta"y C!n'e#!" ##uedan !"de" d"e*tn+ "e#p!ndent *!&pany t!5&&edately a**ept all #t"4n+ !"4e"#, n*ludn+ the)'ty-th"ee 0;3 te"&nated un!n !@*e"#, #h!p#tea"d# and un!n &e&%e"# %a*4 t! !"4 unde" the#a&e te"&# and *!ndt!n# p"e(aln+ p"!" t! the#t"4e, and t! pay all the unpad a**"ued yea" end%ene)t# !' t# e&pl!yee# n 1993.5 ; On the !the"

hand, pett!ne" un!n a# d"e*ted t! 5#t"*tly and&&edately *!&ply th the "etu"n-t!-!"4 !"de"###ued %y 0the O@*e . . ..5 6 The #a&e !"de"p"!n!un*ed that 50all pendn+ *a#e# h*h a"e d"e*t!#h!!t# !' the n#tant la%!" d#pute a"e he"e%y#u%#u&ed he"eth.5 /In the nte"&, the *a#e %e'!"e $a%!" A"%te" Caday*!ntnued. On 16 Ma"*h 199, pett!ne" un!n )ledan 5="+ent Man'e#tat!n and M!t!n t! C!n#!ldatethe In#tant Ca#e and t! Su#pend >"!*eedn+#5#ee4n+ the *!n#!ldat!n !' the *a#e th the la%!"d#pute pendn+ %e'!"e the Se*"eta"y !' $a%!".De#pte !%Be*t!n %y "e#p!ndent *!&pany, $a%!"A"%te" Caday held n a%eyan*e the p"!*eedn+#%e'!"e h&. !e(e", !n <6 June 199, A*tn+ $a%!"



Se*"eta"y J!#e S. G"llante#, a'te" )ndn+ that the##ue# "a#ed !uld "eu"e a '!"&al hea"n+ and thep"e#entat!n !' e(denta"y &atte"#, d"e*ted $a%!"A"%te"# Caday and M. S!l del R!#a"! t! p"!*eed ththe hea"n+ !' the *a#e# %e'!"e the& and t!the"ea'te" #u%&t the" "ep!"t and "e*!&&endat!n t!h# !@*e.On <; Septe&%e" 199;, $a%!" A"%te" Caday#u%&tted h# "e*!&&endat!n t! the then Se*"eta"y!' $a%!" $e!na"d! A. u#u&%n+. 8 Then Se*"eta"y

u#u&%n+ app"!(ed and ad!pted the "ep!"t n h#O"de", dated 13 Au+u#t 199/, hen*e:?EREFORE, )ndn+ the #ad Rep!"t !' $a%!" A"%te"Manuel R. Caday t! %e #upp!"ted %y #u%#tantale(den*e, th# O@*e he"e%y RESO$KES t! A>>ROKEand ADO>T the #a&e a# the de*#!n n th# *a#e, and Bud+&ent # he"e%y "ende"ed:01 De*la"n+ the 7!(e"t&e %!y*!tt7 and 7!"4#l!d!n7 a# lle+al #t"4e02 De*la"n+ the "e#p!ndent un!n !@*e"#na&ely:Ne#t!" O*a&p! >"e#dentCa"&el! Sant!# K*e->"e#dentMa"te# M!nteB! T"ea#u"e"G!a"d Me&%e"R*! !nale# Audt!"

R!d A%uan D"e*t!"Se+undn! Fl!"e# D"e*t!"e"nand! Cle&ente D"e*t!"h! #pea"headed and led the !(e"t&e %!y*!tt and!"4 #l!d!n, t! ha(e l!#t the" e&pl!y&ent #tatu#and03 Fndn+ the "e#p!ndent# +ulty !' un'a" la%!"p"a*t*e '!" (!latn+ the then e#tn+ CGA h*hp"!h%t# the un!n !" any e&pl!yee du"n+ thee#ten*e !' the CGA '"!& #ta+n+ a #t"4e !"en+a+n+ n #l!d!n !" nte""upt!n !' !"4 and!"de"n+ the& t! *ea#e and de##t '"!& 'u"the"*!&&ttn+ the a'!"e#ad lle+al a*t#.>ett!ne" un!n &!(ed '!" the "e*!n#de"at!n !' the!"de" %ut t# &!t!n a# dened. The un!n ent t!

the C!u"t !' Appeal# (a a pett!n '!" *e"t!"a". In then! ue#t!ned de*#!n p"!&ul+ated !n 29De*e&%e" 1999, the appellate *!u"t d#&##ed thepett!n. The un!n7# &!t!n '!" "e*!n#de"at!n a#l4e#e dened.en*e, the p"e#ent "e*!u"#e he"e pett!ne" alle+ed: TE ONORAG$E FIFT DIKISION OF TE CO=RT OFA>>EA$S, $IQE TE ONORAG$E >=G$IC RES>ONDENTIN TE >ROCEEDINS GE$O?, COMMITTED RAKEAG=SE OF DISCRETION, AMO=NTIN TO $ACQ ANDOR ECESS OF J=RISDICTION ?EN ITCOM>$ETE$L DISREARDED 5>ARO$ EKIDENCE R=$E5IN TE EKA$=ATION AND A>>RECIATION OF EKIDENCE>ROFFERED GL TE >ARTIES.

TE ONORAG$E FIFT DIKISION OF TE CO=RT OFA>>EA$S COMMITTED RAKE AG=SE OF DISCRETION,AMO=NTIN TO $ACQ ANDOR ECESS OF J=RISDICTION, ?EN IT DID NOT DEC$ARE >RIKATERES>ONDENT7S ACT OF ETENDIN S=GSTANTIA$SE>ARATION >ACQAE TO A$MOST A$$ INKO$KEDOFFICERS OF >ETITIONER =NION, D=RIN TE>ENDENCL OF TE CASE, AS TANTAMO=NT TOCONDONATION, IF INDEED, TERE ?AS ANLMISDEED COMMITTED.

TE ONORAG$E FIFT DIKISION OF TE CO=RT OFA>>EA$S COMMITTED RAKE AG=SE OF DISCRETION,AMO=NTIN TO $ACQ ANDOR ECESS OF J=RISDICTION ?EN IT E$D TAT TE SECRETARLOF $AGOR AND EM>$OLMENT AS J=RISDICTIONOKER A CASE 0A >ETITION TO DEC$ARE STRIQEI$$EA$ ?IC AD $ON GEEN FI$ED AND>ENDIN GEFORE TE $AGOR ARGITER. 9?e #u#tan the ue#t!ned de*#!n.On the &atte" !' the auth!"ty and Bu"#d*t!n !' theSe*"eta"y !' $a%!" and E&pl!y&ent t! "ule !n thelle+al #t"4e *!&&tted %y pett!ne" un!n, t #und#puted that the pett!n t! de*la"e the #t"4elle+al %e'!"e $a%!" A"%te" Caday a# )led l!n+%e'!"e the Se*"eta"y !' $a%!" and E&pl!y&ent

##ued the a##u&pt!n !"de" !n 1 Fe%"ua"y 199.!e(e", t *ann!t %e dened that the ##ue# !' 5!(e"t&e %!y*!tt5 and 5!"4 #l!d!n5 a&!untn+t! lle+al #t"4e %e'!"e $a%!" A"%te" Caday a"ente"tned th the la%!" d#pute %e'!"e the $a%!"Se*"eta"y. In 'a*t, !n 16 Ma"*h 199, pett!ne" un!ne(en a#4ed $a%!" A"%te" Caday t! #u#pend thep"!*eedn+# %e'!"e h& and *!n#!ldate the #a&eth the *a#e %e'!"e the Se*"eta"y !' $a%!". ?henA*tn+ $a%!" Se*"eta"y G"llante# !"de"ed $a%!"A"%te" Caday t! *!ntnue th the hea"n+ !' thelle+al #t"4e *a#e, the pa"te# a**eded andpa"t*pated n the p"!*eedn+#, 4n!n+ 'ully ellthat the"e a# al#! a d"e*t(e '!" $a%!" A"%te"Caday t! the"ea'te" #u%&t h# "ep!"t and

"e*!&&endat!n t! the Se*"eta"y. A# the appellate*!u"t p!nted !ut, the #u%#euent pa"t*pat!n !' pett!ne" un!n n the *!ntnuat!n !' the hea"n+a# n ee*t an a@"&at!n !' the Bu"#d*t!n !' theSe*"eta"y !' $a%!". The appellate *!u"t al#! *!""e*tly held that theue#t!n !' the Se*"eta"y !' $a%!" and E&pl!y&ent7# Bu"#d*t!n !(e" la%!" and la%!"-"elated d#pute# a#al"eady #ettled n Inte"nat!nal >ha"&a*eut*al, In*.(#. !n. Se*"eta"y !' $a%!" and A##!*ated $a%!"=n!n 0A$= 1< he"e the C!u"t de*la"ed:In the p"e#ent *a#e, the Se*"eta"y a# epl*tly+"anted %y A"t*le 2630+ !' the $a%!" C!de theauth!"ty t! a##u&e Bu"#d*t!n !(e" a la%!" d#pute*au#n+ !" l4ely t! *au#e a #t"4e !" l!*4!ut n an

ndu#t"y nd#pen#a%le t! the nat!nal nte"e#t, andde*de the #a&e a**!"dn+ly. Ne*e##a"ly, th#auth!"ty t! a##u&e Bu"#d*t!n !(e" the #ad la%!"d#pute &u#t n*lude and etend t! all ue#t!n# and*!nt"!(e"#e# a"#n+ the"e'"!&, n*ludn+ *a#e# !(e"h*h the la%!" a"%te" ha# e*lu#(e Bu"#d*t!n.M!"e!(e", A"t*le 21/ !' the $a%!" C!de # n!tth!ut, %ut *!nte&plate#, e*ept!n# the"et!. Th# #e(dent '"!& the !penn+ p"!(#! the"en "eadn+70e*ept a# !the"#e p"!(ded unde" th# C!de . . .7

>lanly, A"t*le 2630+ !' the $a%!" C!de a# &eant t!&a4e %!th the Se*"eta"y 0!" the (a"!u# "e+!nald"e*t!"# and the la%!" a"%te"# #ha"e Bu"#d*t!n,#u%Be*t t! *e"tan *!ndt!n#. Othe"#e, the Se*"eta"y!uld n!t %e a%le t! ee*t(ely and e@*entlyd#p!#e !' the p"&a"y d#pute. T! h!ld the *!nt"a"y&ay e(en lead t! the a%#u"d and unde#"a%le "e#ulthe"en the Se*"eta"y and the la%!" a"%te" *!n*e"ned&ay ha(e da&et"*ally !pp!#ed "uln+#. A# e ha(e#ad, 70t # 'unda&ental that a #tatute # t! %e "ead na &anne" that !uld %"eathe l'e nt! t, "athe" thande'eat t.In )ne, the ##uan*e !' the a##aled !"de"# # thnthe p"!(n*e !' the Se*"eta"y a# auth!"ed %y A"t*le2630+ !' the $a%!" C!de and A"t*le 21/0a and 0; !'

the #a&e C!de, ta4en *!nB!ntly and "at!nally*!n#t"ued t! #u%#e"(e the !%Be*t(e !' the Bu"#d*t!n(e#ted n the Se*"eta"y. 11Anent the alle+ed &#app"e*at!n !' the e(den*ep"!e"ed %y the pa"te#, t # a!&at* that the'a*tual )ndn+# !' the $a%!" A"%te", hen #u@*ently#upp!"ted %y the e(den*e !n "e*!"d, &u#t %ea**!"ded due "e#pe*t %y the Sup"e&e C!u"t. 12 e"e,the "ep!"t and "e*!&&endat!n !' $a%!" A"%te"Caday a# n!t !nly ad!pted %y then Se*"eta"y !' $a%!" u#u&%n+ %ut a# l4e#e a@"&ed %y theC!u"t !' Appeal#. ?e #ee n! "ea#!n t! depa"t '"!&the" )ndn+#.>ett!ne" un!n &antaned that the $a%!" A"%te" andthe appellate *!u"t d#"e+a"ded the 5pa"!l e(den*e

"ule5 13 hen they upheld the alle+at!n !' "e#p!ndent *!&pany that the !"4 #*hedule !' t#e&pl!yee# a# '"!& 6:<< a.&. t! 6:<< p.&. and '"!&6:<< p.&. t! 6:<< a&. A**!"dn+ t! pett!ne" un!n,the p"!(#!n# !' the" CGA !n !"4n+ h!u"# *lea"ly#tated that the n!"&al !"4n+ h!u"# e"e 5'"!& /:3<a.&. t! :3< p.&.5 1 >ett!ne" un!n unde"#*!"edthat the "e+ula" !"4 h!u"# '!" the *!&pany a# !nlye+ht 08 h!u"#. It 'u"the" *!ntended that the $a%!"A"%te" a# ell a# the C!u"t !' Appeal# #h!uld n!tha(e ad&tted any !the" e(den*e *!nt"a"y t! hata# #tated n the CGA. The "elan*e !n the pa"!l e(den*e "ule # &#pla*ed.In la%!" *a#e# pendn+ %e'!"e the C!&&##!n !" the$a%!" A"%te", the "ule# !' e(den*e p"e(aln+ n



*!u"t# !' la !" euty a"e n!t *!nt"!lln+. 1; Rule# !' p"!*edu"e and e(den*e a"e n!t appled n a (e"y "+dand te*hn*al #en#e n la%!" *a#e#. 16 en*e, the$a%!" A"%te" # n!t p"e*luded '"!& a**eptn+ ande(aluatn+ e(den*e !the" than, and e(en *!nt"a"y t!,hat # #tated n, the CGA.In any e(ent, the pa"te# #tpulated:Se*t!n 1. Re+ula" ?!"4n+ !u"# A n!"&al!"4day #hall *!n##t !' n!t &!"e than e+ht 08h!u"#. The "e+ula" !"4n+ h!u"# '!" the C!&pany

#hall %e '"!& /:3< A.M. t! :3< >.M. The #*hedule !' #h't !"4 #hall %e &antaned h!e(e" the *!&pany&ay *han+e the p"e(aln+ !"4 t&e at t# d#*"et!n,#h!uld #u*h *han+e %e ne*e##a"y n the !pe"at!n# !' the C!&pany. All e&pl!yee# #hall !%#e"(e #u*h "ule#a# ha(e %een lad d!n %y the *!&pany '!" thepu"p!#e !' ee*tn+ *!nt"!l !(e" !"4n+ h!u"#. 1/It # e(dent '"!& the '!"e+!n+ p"!(#!n that the!"4n+ h!u"# &ay %e *han+ed, at the d#*"et!n !' the *!&pany, #h!uld #u*h *han+e %e ne*e##a"y '!" t#!pe"at!n#, and that the e&pl!yee# #hall !%#e"(e#u*h "ule# a# ha(e %een lad d!n %y the *!&pany. Inthe *a#e %e'!"e u#, $a%!" A"%te" Caday '!und that"e#p!ndent *!&pany had t! ad!pt a *!ntnu!u# 2-h!u" !"4 daly #*hedule %y "ea#!n !' the natu"e !'

t# %u#ne## and the de&and# !' t# *lent#. It a#e#ta%l#hed that the e&pl!yee# adhe"ed t! the #ad!"4 #*hedule #n*e 1988. The e&pl!yee# a"edee&ed t! ha(e a(ed the e+ht-h!u" #*hedule #n*ethey '!ll!ed, th!ut any ue#t!n !" *!&plant, thet!-#h't #*hedule hle the" CGA a# #tll n '!"*eand e(en p"!" the"et!. The t!-#h't #*heduleee*t(ely *han+ed the !"4n+ h!u"# #tpulated nthe CGA. A# the e&pl!yee# a##ented %y p"a*t*e t!th# a""an+e&ent, they *ann!t n! %e hea"d t! *la&that the !(e"t&e %!y*!tt # Bu#t)ed %e*au#e theye"e n!t !%l+ed t! !"4 %ey!nd e+ht h!u"#.A# $a%!" A"%te" Caday elu*dated n h# "ep!"t:Re#p!ndent#7 atte&pt t! deny the e#ten*e !' #u*h"e+ula" !(e"t&e #*hedule # %eled %y the" !n

aa"ene## !' the e#ten*e !' the "e+ula" !(e"t&e#*hedule !' 6:<< A.M. t! 6:<< >.M. and 6:<< >.M. t!6:<< A.M. !' the '!ll!n+ day that ha# %een +!n+ !n#n*e 1988. >"!!' !' th# # the *a#e und#putedly )led%y the un!n '!" and n %ehal' !' t# &e&%e"#, he"ent # *la&ed that the *!&pany ha# n!t %een*!&putn+ *!""e*tly the n+ht p"e&u& and !(e"t&epay '!" !"4 "ende"ed %eteen 2:<< A.M. and 6:<<A.M. !' the 6:<< >.M. t! 6:<< A.M. #h't. 0t#n pp. 9-1<,te#t&!ny !' Ale##and"! . Salaa" du"n+ hea"n+ !nAu+u#t 9, 199. In 'a*t, the un!n K*e->"e#dentCa"&el! C. Sant!#, de&anded that the *!&pany&a4e a "e*!&putat!n !' the !(e"t&e "e*!"d# !' thee&pl!yee# '"!& 198/ 0Eh. 5>5. E(en the" !ntne##, un!n D"e*t!" En"*! C. !nale#, te#t)ed

that hen n 1992 he a# #tll a ualty C!nt"!lIn#pe*t!" at the Su*at >lant !' the *!&pany, h##*hedule a# #!&et&e at 6:<< A.M. t! 6:<< >.M.,#!&et&e at 6:<< A.M. t! 2:<< >.M., at 2:<< >.M. t!1<:<< >.M. and #!&et&e at 6:<< >.M. t! 6:<< A.M.,and hen !n the 6 t! 6 #h't#, he "e*e(ed the*!&&en#u"ate pay 0t.#.n. pp. /-9, hea"n+ !' Janua"y1<, 199. $4e#e, hle n the !(e"t&e pe"&t#,dated Ma"*h 1, 6, 8, 9 t! 12, 1993, h*h e"epa##ed a"!und daly '!" the e&pl!yee# t! #+n, h#

na&e appea"ed %ut th!ut h# #+natu"e#, heh!e(e" had "ende"ed !(e"t&e du"n+ th!#e date#and a# pad %e*au#e unl4e n !the" depa"t&ent#, tha# %e*!&e a ha%t t! the& t! #+n the !(e"t&e#*hedule ee4ly 0t.#.n. pp. 26-31, hea"n+ !' Janua"y1<, 199. The aa"ene## !' the "e#p!ndent un!n,t# !@*e"# and &e&%e"# a%!ut the e#ten*e !' the"e+ula" !(e"t&e #*hedule !' 6:<< A.M. t! 6:<< >.M.and 6:<< >.M. t! 6:<< A.M. !' the '!ll!n+ day ll %e'u"the" #h!n n the d#*u##!n !' the #e*!nd ##ue.18A# t! the #e*!nd ##ue !' hethe" !" n!t the"e#p!ndent# ha(e en+a+ed n 5!(e"t&e %!y*!tt5 and5!"4 #l!d!n5 '"!& Ap"l 16, 1993 up t! Ma"*h /,199, %!th a&!untn+ t! lle+al #t"4e, the e(den*e

p"e#ented # eually *"y#tal *lea" that the 5!(e"t&e%!y*!tt5 and 5!"4 #l!d!n5 *!&&tted %y the"e#p!ndent# a&!unted t! lle+al #t"4e.A# und#puta%ly te#t)ed t! %y M". Ale##and"! .Salaa", the *!&pany7# K*e->"e#dent-u&anRe#!u"*e# Depa"t&ent, #!&et&e n Fe%"ua"y, 1993,he a# app"!a*hed %y the un!n >"e#dent Ne#t!"O*a&p! and =n!n D"e*t!" e"nand! Cle&ente h!a#4ed h& a# t! hat a# the #tand !' the *!&pany"e+a"dn+ the du"at!n !' the CGA %eteen the*!&pany and h*h a# #et t! ep"e !n July 31,1993. e an#e"ed that the &atte" *!uld %e %e#td#*u##ed du"n+ the '!"&al "ene+!tat!n# h*hanyay a# t! #ta"t #!!n. Th# ue"y a# '!ll!edup #!&et&e n Ma"*h, 1993, and h# an#e" a# the

#a&e. In ea"ly Ap"l, 1993, the un!n p"e#dent"eue#ted '!" a &eetn+ t! d#*u## the du"at!n andee*t(ty !' the CGA. A**edn+ t! the "eue#t, a&eetn+ a# held !n Ap"l 1;, 1993 he"en theun!n !@*e"# a#4ed h& ' he !uld a+"ee t! &a4ethe ne CGA ee*t(e !n Au+u#t 1, 1993 and thete"& the"e!' t! %e (ald '!" !nly t! 02 yea"#. ?henhe an#e"ed that t a# #tll p"e&atu"e t! d#*u## the&atte", the (e"y net day, Ap"l 16, 1993, all the "an4and )le e&pl!yee# !' the *!&pany "e'u#ed t! '!ll!the" "e+ula" t!-#h't !"4 #*hedule !' 6:<< A.M. t!6:<< >.M. and 6:<< >.M. t! 6:<< A.M., hen a'te" the8-h!u"# !"4, they a%"uptly #t!pped !"4n+ at 2:<<>.M. and 2:<< A.M., "e#pe*t(ely, lea(n+ the" pla*e!' !"4 th!ut #ealn+ the *!ntane"# and #e*u"n+

the "a &ate"al# they e"e !"4n+ !n. ?hen he #athe !"4e"# lea(n+ %e'!"e the end !' the" #h't, hea#4ed the& hy and the" "eply a# 5a#4ed 0#* theun!n !@*e"#.5 Ala"&ed %y the !(e"t&e %!y*!tt andthe da&a+e t a# *au#n+ the *!&pany, he"eue#ted '!" a &eetn+ th the un!n !@*e"#. In the&eetn+, he a#4ed the& hy the "e+ula" !"4#*hedule a# n!t %en+ '!ll!ed %y the e&pl!yee#,and un!n D"e*t!" En"*! !nale#, th the #upp!"t!' the !the" un!n !@*e"#, t!ld h& that '

&ana+e&ent !uld a+"ee t! a t!-yea" du"at!n '!"the ne CGA and an ee*t(ty date !' Au+u#t 1,1993, all e&pl!yee# ll "etu"n t! the n!"&al !"4#*hedule !' t! 12-h!u" #h't#. ?hen an#e"ed thatthe &ana+e&ent *!uld n!t de*de !n the &atte" atthe &!&ent and t! ha(e t d#*u##ed and a+"eedup!n du"n+ the '!"&al "ene+!tat!n#, the !(e"t&e%!y*!tt *!ntnued and the e&pl!yee# at the #a&et&e e&pl!yed a !"4 #l!d!n *a&pa+n du"n+!"4n+ h!u"#, *au#n+ *!n#de"a%le delay n thep"!du*t!n and *!&plant# '"!& the *lent#*u#t!&e"#0Eh. 5O5, A@da(t !' Ale##and"! . Salaa" h*h'!"&ed pa"t !' h# d"e*t te#t&!ny. Th# te#t&!nalna""at!n# !' Salaa" a#, a# ea"le" #ad, und#puted%e*au#e the "e#p!ndent#7 *!un#el a(ed h# *"!##

ea&nat!n 0t.#.n. p. 1;, hea"n+ !n Au+u#t 9, 199.A#de '"!& the '!"e+!n+ und#puted te#t&!ne# !' Salaa", the te#t&!ne# !' !the" Depa"t&entMana+e"# p!ntn+ t! the un!n !@*e"# a# then#t+at!"# !' the !(e"t&e %!y*!tt and !"4#l!d!n, the te#t&!ny !' Ep'an! Salu&%de# 0Eh.5L5 a un!n &e&%e" at the t&e the *!n*e"teda*t(te# !' the "e#p!ndent# t!!4 pla*e, # u!tedhe"eunde":52. N!!n >e%"e"! 1993, pnataa+ n+>"e#dente n+ =ny!n na # Ne#t!" O*a&p! an+ lahatn+ ta+a-&antenan*e n+ %aat depa"ta&ent! upan+du&al! #a #an+ &tn+. Sa &tn+ na y!n, #na% nR!d A%uan, na #an+ D"e4t!" n+ =ny!n, na &ay"!!nlala%a# na &e&! an+ =ny!n na na+-uut!# #a &+a

e&pleyad! n+ Q!&panya na &a+-&%ent! n+ #a"-#a"n+ dahlan pa"a lan+ hnd #la &a4apa+t"a%ah!n+ 5!(e"t&e5. Sna%han "n a4! n Te##e M!nteB! na#ya na&an+ T"ea#u"e" n+ =ny!n na 7Manny, hua+4a na lan+ pu&a#!4 #a Gye"ne# pa"a hnd 4a&a#a%han n+ &a+t"a%ah! n+ Sa%ad! at $n++!7 na#ya na&an+ a"a n+ 5!(e"t&e5 4! . . .53. Na4alpa# an+ dalaan+ %uan at n!!n+unan+ %aha+ n+ A%"l 1993, &ntn+ 4a& n+ Sh!pStea"d# na&n na #na A"el A%en!Ba, Dany Tan#!n+*! at K*4y Ga"!n. Sna%han 4a& na hua+n+ &a+-!(e"t&e pa+ na+%+ay n+ #enya# an+ =ny!nn+ 5#h!t&e.55. N!!n+ u&a+a n+ 4a-1; n+ A%"l 1993,na+#a% na # Danny Tan#!n+*! n+ 5#h!t&e5. Dahl



dt! ala n+ e&pleyad!n+ na+-!(e"t&e at #a%ay-#a%ay #lan+ u&al#, &al%an #a a4n. A4! ay pu&a#!4"n n!!n+ A%"l 1/ at 18, 1993 na Sa%ad! at $n++!.5;. N!!n+ 4a-19 n+ A%"l 1993, a4! aypnataa+ n A"el A%en!Ba Sh!p Stea"d, #a !p#nan+ =ny!n. Nadatnan 4! d!!n an+ hal!# lahat n+!p#yale# n+ =ny!n na #na:Ne#t!" O*a&p! >"e#denteCa"&el! Sant!# G#e->"e#denteNandn+ Cle&ente D"e*t!"

Te## M!nteB! Che' Stea"dSe+und! Fl!"e# D"e*t!"En"*! !nale# Audt!"G!y Al*anta"a Sh!p Stea"dR!d A%uan D"e*t!"at &a"a& pan+ %a na hnd 4! na &aala-ala.>a+pa#!4 4!, a4!7y pnal+"an n+ &+a !p#yale# n+=ny!n. Tnan!n+ a4! n R!d A+uan 4un+ %a4t a4!5na+-!(e"t&e5 +ay!n+ 5Gn+yan 4a na na&n n+n#t"u*t!n na hua+ pu&a#!4, pnlt &! pa "n+pu&a#!4.5 5Mana+e&ent 4a %a ! =ny!n#ta.5 Sna+!t4! na a4! ay =ny!n#ta. Tnan!n+ nya &ul 4un+%a4t a4! pu&a#!4. Sna% 4! na ala a4!n+ &a%+ayna dahlan pa"a lan+ hnd pu&a#!4 at 5&a+-!(e"t&e.5 >a+4atap!# nt!, a4! ay pna+&u&u"a n+

&+a !p#yale# n+ =ny!n 4aya7t a4! ay &adalan+u&al#. $4e#e, the "e#p!ndent#7 denal !' ha(n+ a hand nthe !"4 #l!d!n #n*e the"e a# n! *han+e n thepe"'!"&an*e and !"4 e@*en*y '!" the yea" 1993 a#*!&pa"ed t! the p"e(!u# yea" a# e(en "e%ued %ythe" tne## Ma. The"e#a M!nteB!, a ualty C!nt"!lAnaly#t. F!" !n *"!##-ea&nat!n, #he 0M!nteB!ad&tted that #he *!uld n!t an#e" h! #he a# a%let! p"epa"e the p"!du*t(ty "ep!"t# '"!& May 1993 t!Fe%"ua"y 199 %e*au#e '"!& Ap"l 1993 up t! Ap"l199, #he a# !n un!n lea(e. A# #u*h, thep"!du*t(ty "ep!"t# #he had ea"le" #h!n a# n!tp"epa"ed %y he" #n*e #he had n! pe"#!nal 4n!led+e

!' the "ep!"t# 0t.#.n. pp. 32-3;, hea"n+ !' Fe%"ua"y2/, 199;. A#de '"!& th# ad&##!n, the *!&pa"#!n&ade %y the "e#p!ndent# a# !' n! &!&ent, %e*au#ethe h+he" p"!du*t!n '!" the yea"# p"e(!u# t! 1993a# "ea*hed hen the e&pl!yee# "e+ula"ly "ende"ed!(e"t&e !"4. Gut undena%ly, !(e"t&e %!y*!tt and!"4 #l!d!n '"!& Ap"l 16, 1993 up t! Ma"*h /,199 had "e#ulted n!t !nly n )nan*al l!##e# t! the*!&pany %ut al#! da&a+ed t# %u#ne## "eputat!n.E(dently, '"!& all the '!"e+!n+, "e#p!ndent#7unBu#t)ed unlate"al alte"at!n !' the 2-h!u" !"4#*hedule th"u the" *!n*e"ted a*t(te# !' 5!(e"t&e%!y*!tt5 and 5!"4 #l!d!n5 '"!& Ap"l 16, 1993 upt! Ma"*h /, 199, t! '!"*e the pett!ne" *!&pany t!a**ede t! the" un"ea#!na%le de&and#, *an %e

*la##)ed a# a #t"4e !n an n#tall&ent %a##, a#*!""e*tly *alled %y pett!ne" *!&pany . . . . 19It # thu# und#puted that &e&%e"# !' the un!n %ythe" !n (!lt!n de*ded n!t t! "ende" !(e"t&e#e"(*e# n Ap"l 1993. 2< >ett!ne" un!n e(enad&tted th# n t# Me&!"andu&, dated 12 Ap"l1999, )led th the C!u"t !' Appeal#, a# ell a# nthe pett!n %e'!"e th# C!u"t, h*h %!th #tated that50#!&et&e n Ap"l 1993, &e&%e"# !' he"enpett!ne", !n the" !n (!lt!n and n 4eepn+ th

the "e+ula" !"4n+ h!u"# n the C!&pany . . .de*ded n!t t! "ende" !(e"t&e.5 21 Su*h ad&##!n*!n)"&ed the alle+at!n !' "e#p!ndent *!&pany thatpett!ne" en+a+ed n 5!(e"t&e %!y*!tt5 and 5!"4#l!d!n5 h*h, t! u#e the !"d# !' $a%!" A"%te"Caday, a# ta4en a# a &ean# t! *!e"*e "e#p!ndent*!&pany t! yeld t! t# un"ea#!na%le de&and#.DaIA*CM!"e &p!"tantly, the 5!(e"t&e %!y*!tt5 !" 5!"4#l!d!n5 %y the e&pl!yee# *!n#ttuted a (!lat!n!' the" CGA, h*h p"!h%t# the un!n !" e&pl!yee,du"n+ the e#ten*e !' the CGA, t! #ta+e a #t"4e !"en+a+e n #l!d!n !" nte""upt!n !' !"4. 22 InIla at Gu4l!d n+ Man++a+aa (#. N$RC, 23 th#C!u"t "uled:

. . . 0The *!n*e"ted a*t(ty n ue#t!n !uld #tll %ell*t %e*au#e *!nt"a"y t! the !"4e"#7 epl*t*!nt"a*tual *!&&t&ent 5that the"e #hall %e n!#t"4e#, al4!ut#, #t!ppa+e !" #l!d!n !' !"4,%!y*!tt#, #e*!nda"y %!y*!tt#, "e'u#al t! handle any&e"*hand#e, p*4etn+, #t-d!n #t"4e# !' any 4nd,#y&pathet* !" +ene"al #t"4e#, !" any !the"nte"'e"en*e th any !' the !pe"at!n# !' theCOM>ANL du"n+ the te"& !' . . . 0the" *!lle*t(e%a"+ann+ a+"ee&ent.5?hat ha# Bu#t %een #ad &a4e# unne*e##a"y"e#!lut!n !' SMC7# a"+u&ent that the !"4e"#7*!n*e"ted "e'u#al t! adhe"e t! the !"4 #*hedule n'!"*e '!" the la#t #e(e"al yea"#, # a #l!d!n, annhe"ently lle+al a*t(ty e##entally lle+al e(en n

the a%#en*e !' a n!-#t"4e *lau#e n a *!lle*t(e%a"+ann+ *!nt"a*t, !" #tatute !" "ule. The C!u"t # n#u%#tantal a+"ee&ent th the pett!ne"7# *!n*ept!' a #l!d!n a# a 5#t"4e !n the n#tall&ent plan5a# a ll'ul "edu*t!n n the "ate !' !"4 %y *!n*e"teda*t!n !' !"4e"# '!" the pu"p!#e !' "e#t"*tn+ the!utput !' the e&pl!ye", n "elat!n t! a la%!" d#putea# an a*t(ty %y h*h !"4e"#, th!ut a *!&plete#t!ppa+e !' !"4, "eta"d p"!du*t!n !" the"pe"'!"&an*e !' dute# and 'un*t!n# t! *!&pel&ana+e&ent t! +"ant the" de&and#. The C!u"t al#!a+"ee# that #u*h a #l!d!n # +ene"ally *!nde&neda# nhe"ently ll*t and unBu#t)a%le, %e*au#e hlethe e&pl!yee# 5*!ntnue t! !"4 and "e&an at the"p!#t!n# and a**ept the a+e# pad t! the&,5 they

at the #a&e t&e 5#ele*t hat pa"t !' the" all!ttedta#4# they *a"e t! pe"'!"& !' the" !n (!lt!n !""e'u#e !penly !" #e*"etly, t! the e&pl!ye"7# da&a+e,t! d! !the" !"45 n !the" !"d#, they 5!"4 !n the"!n te"&#.5 . . . 2Fnally, the C!u"t *ann!t a+"ee th the p"!p!#t!nthat "e#p!ndent *!&pany, n etendn+ #u%#tantal#epa"at!n pa*4a+e t! #!&e !@*e"# !' pett!ne"un!n du"n+ the penden*y !' th# *a#e, n ee*t,*!nd!ned the lle+al a*t# they *!&&tted.

Re#p!ndent *!&pany *!""e*tly p!#tu"ed that at thet&e the#e un!n !@*e"# !%taned the" #epa"at!n%ene)t#, they e"e #tll *!n#de"ed e&pl!yee# !' the*!&pany. en*e, the *!&pany a# &e"ely *!&plyn+th t# le+al !%l+at!n#. 2; Re#p!ndent *!&pany*!uld ha(e thheld the#e %ene)t# pendn+ the )nal"e#!lut!n !' th# *a#e. Let, *!n#de"n+ pe"hap# the)nan*al ha"d#hp# epe"en*ed %y t# e&pl!yee# andthe e*!n!&* #tuat!n p"e(aln+, "e#p!ndent*!&pany *h!#e t! let t# e&pl!yee# a(al !' the"#epa"at!n %ene)t#. The C!u"t (e# the +e#tu"e !' "e#p!ndent *!&pany a# an a*t !' +ene"!#ty '!" h*ht #h!uld n!t %e pun#hed.?EREFORE, the pett!n # DENIED D=E CO=RSE andthe 29 De*e&%e" 1999 de*#!n !' the C!u"t !'

Appeal# # AFFIRMED.SO ORDERED.



[G.R. No. L41623. $+<ruary 2, 1961.]"AN A!ERIAN ORLD AIRA(S S(STE!;"#ILI""INES=, *+--on+r, /. "AN A!ERIANE!"LO(EES ASSOIATION, r+*on)+n.Ro, S+5* C arra7oo @or *+--on+r. Jo+ E*-na @or r+*on)+n.

D E C I S I O NRELES, J.G.$., J p:Appeal %y *e"t!"a" '"!& the de*#!n !' the C!u"t !'

Indu#t"al Relat!n# n Ca#e N!. 1<;; - K datedO*t!%e" 1<, 19;9, and t# "e#!lut!n en %an* denyn+the &!t!n '!" "e*!n#de"at!n )led %y the pett!ne"he"en. The d#p!#t(e p!"t!n !' the appealed de*#!n"ead#:5?EREFORE, the C!u"t !"de"# the Che' !' theEa&nn+ D(#!n !" h# "ep"e#entat(e t! *!&putethe !(e"t&e *!&pen#at!n due the a'!"e#ad'!u"teen 01 a"*"a't &e*han*# and the t!e&pl!yee# '"!& the C!&&un*at!n Depa"t&ent,%a#ed !n the t&e #heet !' #ad e&pl!yee# '"!&Fe%"ua"y 23 19;2 up t! the n*ludn+ July 1;, 19;8and t! #u%&t h# "ep!"t thn 3< day# '!" 'u"the"d#p!#t!n %y the C!u"t and the *!&pany #hall #h!

t! the C!u"t Ea&ne" #u*h t&e #heet# and !the"d!*u&ent# that &ay %e ne*e##a"y n the a'!"e#ad*!&putat!n and t! 02 "ep"e#entat(e# '!" the*!&pany and t! 02 "ep"e#entat(e# '!" the un!n#hall %e *h!#en t! help the C!u"t Ea&ne" n #ad*!&putat!n.5The *!&pany # al#! !"de"ed t! pe"&anently ad!ptthe #t"a+ht 8- h!u" #h't n*lu#(e !' &eal pe"!dh*h # &utually %ene)*al t! the pa"te#.5SO ORDERED.5In th# appeal, pett!ne" ad(an*e# )(e p"!p!#t!n#h*h, %"ey, a"e a# '!ll!#: 01 the Indu#t"al C!u"tha# n! Bu"#d*t!n t! !"de" the pay&ent !' !(e"t&e*!&pen#at!n, t %en+ a &e"e &!neta"y *la&*!+na%le %y "e+ula" *!u"t# 02 the )ndn+ that the



!ne-h!u" &eal pe"!d #h!uld %e *!n#de"ed !(e"t&e!"4 0dedu*tn+ 1; &nute# a# t&e all!tted '!"eatn+ # n!t #upp!"ted %y #u%#tantal e(den*e 03the *!u"t %el! had n! auth!"ty t! dele+ate t# Bud*al 'un*t!n# %y !"de"n+ the Che' !' theEa&nn+ D(#!n !" h# "ep"e#entat(e t! *!&putethe !(e"t&e pay 0 the )ndn+ that the"e a# n!a+"ee&ent t! thd"a Ca#e N!. 1<;; - K n*!n#de"at!n !' the a+e n*"ea#e# n the C!lle*t(eGa"+ann+ C!nt"a*t 0Eh. 5A5 # n!t #upp!"ted %y

#u%#tantal e(den*e and 0; the *!u"t %el! had n!auth!"ty t! !"de" the C!&pany t! ad!pt a #t"a+ht 8-h!u" #h't n*lu#(e !' &eal pe"!d.On the ##ue !' Bu"#d*t!n !(e" *la&# '!" !(e"t&epay, e ha(e #n*e de)ntely "uled n a nu&%e" !' "e*ent de*#!n# that the Indu#t"al C!u"t &ayp"!pe"ly ta4e *!+nan*e !' #u*h *a#e# ', at the t&e!' the pett!n, the *!&planant# e"e #tll n the#e"(*e !' the e&pl!ye", !", ha(n+ %een #epa"ated'"!& #u*h #e"(*e, #h!uld a#4 '!" "en#tate&ent!the"#e, #u*h *la&# #h!uld %e %"!u+ht %e'!"e the"e+ula" *!u"t#.0NASSCO (#. CIR, et al., $-13888, Ap"l29, 196< FRISCO (#. CIR, et al., $-138<6, May 23,196< G!a"d !' $udat!"#, et al., (#. CIR, et al., $-1;8;, May 23, 196< Sta. Ce*la Sa&ll# C!. (#.

CIR, $-12; $-12;;, May 2/, 196< ABa-Inte"nat!nal C!"p. (#. Se+u"tan, $-16<38, O*t!%e"2;, 196< Sa&pa+uta >*tu"e#, In*., et al. (#. CIR, $-16<, O*t!%e" 2;, 196<. Sn*e, n the n#tant *a#e,the"e # n! ue#t!n that the e&pl!yee# *la&n+!(e"t&e *!&pen#at!n e"e #tll n the #e"(*e !' the*!&pany hen the *a#e a# )led, the Bu"#d*t!n !' the C!u"t !' Indu#t"al Relat!n# *ann!t %e a##aled. In'a*t, #n*e t # n!t p"etended that, the"ea'te", the*!&planant# e"e d#*ha"+ed !" !the"#ete"&nated the" "elat!n#hp th the *!&pany '!"any "ea#!n, all !' #ad *!&planant# *!uld #tll %e ththe *!&pany up t! the p"e#ent.>ett!ne" he"en *la&# that the !ne-h!u" &eal pe"!d#h!uld n!t %e *!n#de"ed a# !(e"t&e !"4 0a'te"

dedu*tn+ 1; &nute#, %e*au#e the e(den*e #h!edthat *!&planant# *!uld "e#t *!&pletely and e"e n!tn any &anne" unde" the *!nt"!l !' the *!&panydu"n+ that pe"!d. The *!u"t %el! '!und, !n the*!nt"a"y, that du"n+ the #!-*alled &eal pe"!d, the&e*han*# e"e "eu"ed t! #tand %y '!" e&e"+en*y!"4 that ' they happened n!t t! %e a(ala%le hen*alled, they e"e "ep"&anded %y the lead&an thata# n 'a*t t happened !n &any !**a#!n#, the&e*han*# had %een *alled '"!& the" &eal# !" t!ld t!hu""y up eatn+ t! pe"'!"& !"4 du"n+ th# pe"!d.Fa" '"!& %en+ un#upp!"ted %y #u%#tantal e(den*e,the "e*!"d *lea"ly *!n)"&# the a%!(e 'a*tual )ndn+#!' the Indu#t"al C!u"t.

S&la"ly, th# C!u"t # #at#)ed th the )ndn+ thatthe"e a# n! a+"ee&ent t! thd"a Ca#e N!. 1<;;-K n *!n#de"at!n !' the a+e n*"ea#e# !%taned %ythe un!n and #et '!"th n the C!lle*t(e Ga"+ann+A+"ee&ent Eh%t# 5A5. A# "ea#!ned !ut %y the *!u"t%el!, #u*h alle+ed a+"ee&ent !uld ha(e %eenn*!"p!"ated n the *!nt"a*t ' t e#ted. The 'a*tthat the un!n )led a &!t!n t! d#&## th!utp"eBud*e, a'te" the C!lle*t(e Ga"+ann+ C!nt"a*thad %een #+ned, dd n!t ne*e##a"ly &ean that t

had a+"eed t! thd"a the *a#e n *!n#de"at!n !' the a+e n*"ea#e#. The &!t!n t#el' 0Anne 5G5,>ett!n '!" Ce"t!"a" a# ep"e##ly %a#ed !n anunde"#tandn+ that the *!&pany !uld 5'!"&ulate a#*hedule !' !"4 h*h #hall %e n *!n#!nan*e thC. A. 5. All n all, the"e # #u%#tantal e(den*e nthe "e*!"d t! #upp!"t the )ndn+ !' the *!u"t %el!that n! #u*h a+"ee&ent a# &ade.It # net *!ntended that n !"de"n+ the Che' !' theEa&nn+ D(#!n !" h# "ep"e#entat(e t! *!&putethe *!&pen#at!n due, the Indu#t"al C!u"t undulydele+ated t# Bud*al 'un*t!n# and the"e%y "ende"edan n*!&plete de*#!n. ?e d! n!t %ele(e #!.C!&putat!n !' the !(e"t&e pay n(!l(e# a&e*han*al 'un*t!n, at &!#t. And the "ep!"t !uld

#tll ha(e t! %e #u%&tted t! the Indu#t"al C!u"t '!"t# app"!(al, %y the (e"y te"&# !' the !"de" t#el'. That the"e a# n! #pe*)*at!n !' the a&!unt !' !(e"t&e pay n the de*#!n dd n!t &a4e tn*!&plete, #n*e th# &atte" !uld ne*e##a"ly %e&ade *lea" en!u+h n the &ple&entat!n !' thede*#!n 0#ee Malate Ta*a% a"a+e, In*. (#. CIR,et al., $-8/18, May 11, 19;6. The Indu#t"al C!u"t7# !"de" '!" pe"&anent ad!pt!n!' a #t"a+ht 8-h!u" #h't n*ludn+ the &eal pe"!da# %ut a *!n#euen*e !' t# )ndn+ that the &ealh!u" a# n!t !ne !' *!&plete "e#t, %ut a# a*tually a!"4 h!u", #n*e, '!" t# du"at!n, the la%!"e"# had t!%e !n "eady *all. O' *!u"#e, ' the C!&pany p"a*t*e#n th# "e+a"d #h!uld %e &!d)ed t! a!"d the

&e*han*# a "eal "e#t du"n+ that h!u" 0'. e., %yn#talln+ an ent"ely de"ent e&e"+en*y *"e, !"any #&la" a""an+e&ent, then the &!d)*at!n !' th# pa"t !' the de*#!n &ay %e #!u+ht '"!& theC!u"t %el!. A# thn+# n! #tand, e #ee n! a""ant'!" alte"n+ the de*#!n. The Bud+&ent appealed '"!& # a@"&ed. C!#t#a+an#t appellant.

[G.R. No. L4032. S+*+?<+r 0, 1982.]!ERUR( DRUG O., IN., *+--on+r, /. NARDODA(AO, ET AL., r+*on)+n.a*ara C I5aan @or *+--on+r.G+rar)o ". a<o an an) E5-a Ban>a5- @or

r+*on)+n.

D E C I S I O N=TIERRE, JR., J p: Th# # a pett!n '!" "e(e !n *e"t!"a" !' thede*#!n !' the C!u"t !' Indu#t"al Relat!n# datedMa"*h 3<, 1968 n Ca#e N!. 1926-K and the Re#!lut!n!' the C!u"t en %an* dated July 6, 1968 denyn+ t!#epa"ate &!t!n# '!" "e*!n#de"at!n )led %ypett!ne"# and "e#p!ndent#. The 'a*tual %a*4+"!und !' Ca#e N!. 1926-K ##u&&a"ed %y the "e#p!ndent C!u"t !' Indu#t"alRelat!n# a# '!ll!#:5Th# # a (e")ed pett!n dated Ma"*h 1/, 196 h*ha# #u%#euently a&ended !n July 31, 196 )led %y



Na"d! Daya! and /< !the"# a+an#t Me"*u"y D"u+ C!.,In*., and!" Ma"an! ue, >"e#dent ene"alMana+e", and Me"*u"y D"u+ C!., In*., E&pl!yee#A##!*at!n p"ayn+, th "e#pe*t t! "e#p!ndent*!"p!"at!n and t# p"e#dent and +ene"al &ana+e": 1pay&ent !' the" unpad %a*4 a+e# '!" !"4 d!ne !nSunday# and le+al h!lday# plu# 26 addt!nal*!&pen#at!n '"!& date !' the" e&pl!y&ent up t! June 3<, 1962 2 pay&ent !' et"a *!&pen#at!n !n!"4 d!ne at n+ht 3 "en#tate&ent !' Janua"!

Re'e"ente and O#*a" E*hala" t! the" '!"&e" p!#t!n#th %a*4 #ala"e# and, a# a+an#t the "e#p!ndentun!n, '!" t# d#e#ta%l#h&ent and the "e'und !' all&!ne# t had *!lle*ted '"!& pett!ne"#.5In #epa"ate &!t!n#, "e#p!ndent &ana+e&ent and"e#p!ndent un!n &!(e t! d#&##, the )"#t !n the+"!und that:5I. The pett!n #tate# n! *au#e !' a*t!n.5II . Th# C!u"t ha# n! Bu"#d*t!n !(e" the#u%Be*t !' the *la&# !' pett!ne"# Janua"! Re'e"enteand O#*a" E*hala".5III. The"e # an!the" a*t!n pendn+ %eteen the#a&e pa"te#, na&ely, Me"*u"y D"u+ C!., In*., and!"Ma"an! ue and Na"d! Daya!.hle !n the !the" hand, the #e*!nd alle+e# that th#

C!u"t ha# n! Bu"#d*t!n !(e" the a*t# *!&planed !' a+an#t the "e#p!ndent un!n.5F!" "ea#!n# #tated n the O"de" dated Ma"*h 2,1966, th# C!u"t "e#!l(ed the &!t!n# t! d#&##, a#'!ll!#:51. "!und N!. 1 !' &ana+e&ent7# &!t!n t!d#&## a# dened '!" la*4 !' &e"t.52. It# #e*!nd +"!und a# '!und &e"t!" !u#and, a**!"dn+ly Janua"! Re'e"ente and O#*a" E*hala"e"e d"!pped a# pa"ty pett!ne"# n th# *a#e.53. The th"d +"!und a# dened, h!ldn+ thatthe"e #tll e#t# the e&pl!ye"-e&pl!yee "elat!n#hp%eteen Na"d! Daya! and the &ana+e&ent.5. ?th "e#pe*t t! the '!u"th +"!und, the C!u"theld that !n the %a## !' #e*t!n /-A !' C.A. N!. ,

a# a&ended %y R.A. N!. 1993, 7t *an %e #a'ely #adthat, *!untn+ %a*4a"d the th"ee 03 yea"p"e#*"pt(e pe"!d '"!& the date !' the )ln+ !' then#tant pett!n Ma"*h 2<, 196 all !' pett!ne"#7*la&# ha(e n!t yet p"e#*"%ed.75;. In #! 'a" a# "e#p!ndent un!n7# &!t!n #*!n*e"ned, the C!u"t held that 7pett!ne"#7 *au#e !' a*t!n a+an#t the "e#p!ndent A##!*at!n #h!uld %ed#&##ed th!ut p"eBud*e t! the "e)ln+ !' the #a&ea# an un'a" la%!" p"a*t*e *a#e.75Only the "e#p!ndent &ana+e&ent &!(ed t!"e*!n#de" the O"de" !' Ma"*h 2, 196; %ut the #a&ea# dened %y the C!u"t en %an* n a "e#!lut!n datedAu+u#t 26, 196;. Re#p!ndent #u%&tted an an#e" t!the a&ended pett!n h*h a# #u%#euently

a&ended !n Janua"y 6, 1966, *!ntann+ #!&ead&##!n# and #!&e denal# !' the &ate"ala(e"&ent# !' the a&ended pett!n. Gy ay !' a@"&at(e and #pe*al de'en#e#, "e#p!ndent#alle+ed that pett!ne"# ha(e n! *au#e !' a*t!na+an#t Ma"an! ue %e*au#e the" e&pl!ye" #"e#p!ndent Me"*u"y D"u+ C!&pany, In*., an e#tn+*!"p!"at!n h*h ha# a #epa"ate and d#tn*tpe"#!nalty '"!& t# n*!"p!"at!"#, #t!*4h!lde"#and!" !@*e"#, that the *!&pany %en+ a #e"(*e

ente"p"#e # e*luded '"!& the *!(e"a+e !' the E+ht!u" $a%!" $a, a# a&ended that n! *!u"t ha# thep!e" t! #et a+e#, "ate# !' pay, h!u"# !' e&pl!y&ent !" !the" *!ndt!n# !' e&pl!y&ent t!the etent !' d#"e+a"dn+ an a+"ee&ent the"e!n%eteen the "e#p!ndent *!&pany and thepett!ne"#, and !' )n+ n+ht de"ental a+e#that the pett!ne"# e"e 'ully pad '!" #e"(*e#"ende"ed unde" the te"&# and *!ndt!n# !' thend(dual *!nt"a*t# !' e&pl!y&ent that the pett!nha(n+ %een (e")ed %y !nly th"ee !' the pett!ne"#th!ut #h!n+ that the !the"# auth!"ed then*lu#!n !' the" na&e# a# pett!ne"# d!e# n!t*!n'e" Bu"#d*t!n t! th# C!u"t that the"e # n!e&pl!ye"-e&pl!yee "elat!n#hp %eteen

&ana+e&ent and pett!ne" Na"d! Daya! and thath# *la& ha# %een "elea#ed and!" %a""ed %y an!the"a*t!n and that pett!ne"#7 *la&# a**"un+ %e'!"eMa"*h 2<, 1961 ha(e p"e#*"%ed.5 0Anne 5>5, pp.11<-112, "!ll!.A'te" hea"n+ !n the &e"t#, the "e#p!ndent *!u"t"ende"ed t# de*#!n. The d#p!#t(e p!"t!n !' theMa"*h 3<, 1968 de*#!n "ead#:5IN KIE? OF TE FOREOIN, the C!u"t he"e%y"e#!l(e# that:51. The *la& !' the pett!ne"# '!" pay&ent !' %a*4a+e# *!""e#p!ndn+ t! the )"#t '!u" h!u"# !"4"ende"ed !n e(e"y !the" Sunday and )"#t '!u" h!u"#!n le+al h!lday# #h!uld %e dened '!" la*4 !' &e"t.52. Re#p!ndent Me"*u"y D"u+ C!&pany, In*. #

he"e%y !"de"ed t! pay the #ty-nne 069 pett!ne"#:50a An addt!nal #u& eu(alent t! 2; !' the""e#pe*t(e %a#* !" "e+ula" #ala"e# '!" #e"(*e#"ende"ed !n Sunday# and le+al h!lday# du"n+ thepe"!d '"!& Ma"*h 2<, 1961 up t! June 3<, 1962 and50% An!the" addt!nal #u& !" p"e&u&eu(alent t! 2; !' the" "e#pe*t(e %a#* !" "e+ula"#ala"e# '!" n+htt&e #e"(*e# "ende"ed '"!& Ma"*h2<, 1961 up t! June 3<, 1962.53. >et t!ne"#7 pett !n t! *!n(e"t the& t!&!nthly e&pl!yee# #h!uld %e, a# t # he"e%y, dened'!" la*4 !' &e"t.5. Re#p!ndent Ma"an! ue, %en+ an !@*e"and a*ted !nly a# an a+ent n %ehal' !' the"e#p!ndent *!"p!"at!n, #h!uld %e a%#!l(ed '"!& the

&!ney *la&# !' he"en pett!ne"# h!#e e&pl!ye",a**!"dn+ t! the pleadn+# and e(den*e, # theMe"*u"y D"u+ C!&pany, In*.5T! epedte the *!&putat!n !' the &!ney aa"d,the Che' C!u"t Ea&ne" !" h# auth!"ed"ep"e#entat(e # he"e%y d"e*ted t! p"!*eed t! the!@*e !' the "e#p!ndent *!"p!"at!n at Ga&%an+St"eet, Sta. C"u, Manla, the latte" t! &a4e a(ala%let! #ad e&pl!yee t# "e*!"d#, l4e t&e "e*!"d#,pay"!ll# and !the" pe"tnent pape"#, and *!&pute the

&!ney *la&# aa"ded n th# de*#!n and, up!n the*!&plet!n the"e!', t! #u%&t h# "ep!"t a# #!!n a#p!##%le '!" 'u"the" d#p!#t!n !' the C!u"t.5N!t #at#)ed th the de*#!n, the "e#p!ndent# )led a&!t!n '!" t# "e*!n#de"at!n. The &!t!n '!""e*!n#de"at!n, a# h!e(e", dened %y the C!u"t en%an* n t# Re#!lut!n dated July 6, 1968.>ett!ne" Me"*u"y D"u+ C!&pany, In*., a##+ned the'!ll!n+ e""!"# n th# pett!n:IRES>ONDENT CIR ERRED IN DEC$ARIN TECONTRACTS OF EM>$OLMENT, EIGITS 5A5 AND 5G5,N=$$ AND KOID AS GEIN CONTRARL TO >=G$IC>O$ICL AND IN S=STAININ, ACCORDIN$L, >RIKATERES>ONDENTS7 C$AIMS FOR 2; S=NDAL AND $EA$

O$IDAL >REMI=MS GECA=SE S=C DEC$ARATIONAND A?ARD ARE NOT S=>>ORTED GL S=GSTANTIA$EKIDENCE, T=S INFRININ =>ON TE CARDINA$RITS OF TE >ETITIONER AND A$SO GECA=SE TEKA$IDITL OF SAID CONTRACTS OF EM>$OLMENT ASNOT GEEN RAISED.IIRES>ONDENT CIR ERRED IN S=STAININ >RIKATERES>ONDENTS7 C$AIMS FOR NITTIME ?ORQ >REMI=MS NOT ON$L GECA=SE OF TE DEC$ARE>O$ICL ON CO$$ECTIKE GARAININ FREEDOME>RESSED IN RE>=G$IC ACT 8/; AND TE E>RESS>ROIGITION IN SECTION / OF SAID STAT=TE, G=TA$SO GECA=SE OF TE ?AIKER OF SAID C$AIMS AND TE TOTA$ AGSENCE OF EKIDENCE TEREON.

IIIRES>ONDENT CIR ERRED IN MAQIN A?ARDS INFAKOR OF TE >RIKATE RES>ONDENTS ?O NEITERAKE EKIDENCE NOR EKEN A>>EARED TO SO? TEIR INTEREST. Th"ee ##ue# a"e d#*u##ed %y the pett!ne" n t# )"#ta##+n&ent !' e""!". The )"#t ##ue "e'e"# t! t#alle+at!n that the "e#p!ndent C!u"t e""ed nde*la"n+ the *!nt"a*t# !' e&pl!y&ent null and (!dand *!nt"a"y t! la. Th# alle+at!n # p"e&#ed up!nthe '!ll!n+ )ndn+ !' the "e#p!ndent *!u"t:5Gut the C!u"t )nd# &e"t n the *la& '!" thepay&ent !' addt!nal *!&pen#at!n '!" !"4 d!ne !nSunday# and h!lday#. ?hle an e&pl!ye" &ay*!&pel h# e&pl!yee# t! pe"'!"& #e"(*e !n #u*h



day#, the la ne(e"thele## &p!#e# up!n h& the!%l+at!n t! pay h# e&pl!yee# at lea#t 2;addt!nal !' the" %a#* !" "e+ula" #ala"e#.57N! pe"#!n )"& !" *!"p!"at!n, %u#ne##e#ta%l#h&ent !" pla*e !' *ente" !' la%!" #hall *!&pelan e&pl!yee !" la%!"e" t! !"4 du"n+ Sunday# andle+al h!lday# unle## he # pad an addt!nal #u& !' at lea#t tenty-)(e pe" *entu& !' h# "e+ula""e&une"at!n. >ROKIDED, O?EKER, That th#p"!h%t!n #hall n!t apply t! pu%l* utlte#

pe"'!"&n+ #!&e pu%l* #e"(*e #u*h a# #upplyn++a#, ele*t"*ty, p!e", ate", !" p"!(dn+ &ean# !' t"an#p!"tat!n !" *!&&un*at!n.7 0Se*t!n C. A. N!. 0Ital*# #uppledAlth!u+h a #e"(*e ente"p"#e, "e#p!ndent *!&pany7#e&pl!yee# a"e thn the *!(e"a+e !' C. A. N!. ,a# a&ended 4n!n a# the E+ht !u" $a%!" $a, '!"they d! n!t 'all thn the *ate+!"y !" *la##e&pl!yee# !" la%!"e"# e*luded '"!& t# p"!(#!n#.0Se*t!n 2, %d. *dll5The C!u"t # n!t &p"e##ed %y the a"+u&ent thatunde" the *!nt"a*t# !' e&pl!y&ent the pett!ne"#a"e n!t enttled t! #u*h *la& '!" the "ea#!n that the#a&e a"e *!nt"a"y t! la. >ay&ent !' et"a !"addt!nal pay '!" #e"(*e# "ende"ed du"n+ Sunday#

and le+al h!lday# # &andated %y la. E(en a##u&n+that the pett!ne"# had a+"eed t! !"4 !n Sunday#and le+al h!lday# th!ut any 'u"the" *!n#de"at!nthan the" &!nthly #ala"e#, they a"e n!t %a""edne(e"thele## '"!& *la&n+ hat # due the&,%e*au#e #u*h a+"ee&ent # *!nt"a"y t! pu%l* p!l*yand # de*la"ed null and (!d %y la.57Any a+"ee&ent !" *!nt"a*t %eteen e&pl!ye" andthe la%!"e" !" e&pl!yee *!nt"a"y t! the p"!(#!n# !' th# A*t #hall %e null and (!d a% nt!.75=nde" the *ted #tatut!"y p"!(#!n, the pett!ne"#a"e Bu#t)ed t! "e*e(e addt!nal a&!unt eu(alentt! 2; !' the" "e#pe*t(e %a#* !" "e+ula" #ala"e# '!"!"4 d!ne !n Sunday# and le+al h!lday# '!" thepe"!d '"!& Ma"*h 2<, 1961 t! June 3<, 1962.5

0De*#!n, pp. 119-12<, "!ll!F"!& a pe"u#al !' the '!"e+!n+ #tate&ent# !' the"e#p!ndent *!u"t, t *an %e #een "eadly that thepett!ne"-*!&pany %a#ed t# a"+u&ent# n t# )"#ta##+n&ent !' e""!" !n the "!n+ p"e&#e. The*!nt"a*t# !' e&pl!y&ent #+ned %y the p"(ate"e#p!ndent# a"e !n a #tanda"d '!"&, an ea&ple !' h*h # that !' p"(ate "e#p!ndent Na"d! Daya!u!ted he"eunde":

5Me"*u"y D"u+ C!., In*.1;8< Ga&%an+, ManlaO*t!%e" 3<, 19;9

M". Na"d! Daya!1<1; Sta. CatalnaRal A(e., Eten.

Dea" M". Daya!: L!u a"e he"e%y app!nted a# Che*4e", n theChe*4n+ Depa"t&ent !' MERC=RL DR= CO., INC.,ee*t(e July 1, 19;9 and y!u #hall "e*e(e an annual*!&pen#at!n the a&!unt !' T! Th!u#and '!u"hund"ed pe#!# !nly >2,<<.<<<, that n*lude# theaddt!nal *!&pen#at!n '!" !"4 !n Sunday# andle+al h!lday#. L!u" )"& %en+ a Se"(*e Ente"p"#e, y!u ll %e"eu"ed t! pe"'!"& !"4 e(e"y day n a yea" a#

'!ll!#:8 !u"# !"4 !n "e+ula" day# and all #pe*al !lday#that &ay %e de*la"ed %ut th the 2; addt!nal*!&pen#at!n !u"# !"4 !n e(e"y !the" Sunday# !' the &!nth.F!" any !"4 pe"'!"&ed n e*e## !' the h!u"# a#a%!(e &ent!ned, y!n #hall %e pad 2; addt!nal*!&pen#at!n pe" h!u". Th# app!nt&ent &ay %e te"&nated th!ut n!t*e'!" *au#e and th!ut *au#e up!n th"ty day# "ttenn!t*e. Th# #upe"#ede# y!u" app!nt&ent !' July 1, 19;9.

Ke"y t"uly y!u"#,MERC=RL DR= CO., INC.0S+d. MARIANO =E

ene"al Mana+e"ACCE>TED ?IT F=$$ CONFORMITL:0S+d. NARDO DALAO750E. 5A5 and 5150De*#!n, pp. 11-11;, "!ll! The#e *!nt"a*t# e"e n!t de*la"ed %y the "e#p!ndent*!u"t null and (!d n the" ent"ety. The "e#p!ndent*!u"t, !n the %a## !' the *!n*tn+ e(den*ep"e#ented %y the pa"te#, n ee*t: 1 "eBe*ted thethe!"y !' the pett!ne" *!&pany that the 2;addt!nal *!&pen#at!n *la&ed %y the p"(ate"e#p!ndent# '!" the '!u"-h!u" !"4 they "ende"eddu"n+ Sunday# and le+al h!lday# p"!(ded n the"*!nt"a*t# !' e&pl!y&ent e"e *!(e"ed %y thep"(ate "e#p!ndent#7 "e#pe*t(e &!nthly #ala"e# 2

+a(e *"eden*e t! p"(ate "e#p!ndent#7, 0Na"d!Daya!, E"ne#t! Tala&pa# and J!#a# Fede"*!te#t&!ne# that the 2; addt!nal *!&pen#at!na# n!t n*luded n the p"(ate "e#p!ndent#7"e#pe*t(e &!nthly #ala"e# and 3 "uled that anya+"ee&ent n a *!nt"a*t !' e&pl!y&ent h*h !ulde*lude the 2; addt!nal *!&pen#at!n '!" !"4d!ne du"n+ Sunday# and h!lday# # null and (!d a#&andated %y la.On the #e*!nd ##ue, the pett!ne"-*!&pany"ete"ated t# #tand that unde" the "e#pe*t(e*!nt"a*t# !' e&pl!y&ent the p"(ate "e#p!ndent#,the #u%Be*t 2; addt!nal *!&pen#at!n hadal"eady %een n*luded n the latte"7# "e#pe*t(e&!nthly #ala"e#. Th# *!ntent!n # %a#ed !n the

te#t&!ny !' t# l!ne tne##, M". Ja*nt! C!n*ep*!nand pe"tnent eh%t#. Thu#:5Eh%t A #h!# that '!" the pe"!d !' O*t!%e" 3<,196<, the annual *!&pen#at!n !' p"(ate "e#p!ndentNa"d! Daya!, n*ludn+ the addt!nal *!&pen#at!n'!" the !"4 he "ende"# du"n+ the )"#t '!u" 0 h!u"#!n e(e"y !the" Sunday and !n the e+ht 08 $e+al!lday# at the t&e a# >2,<<.<< !" >2<<.<< pe"&!nth. The#e a&!unt# dd n!t "ep"e#ent %a#* #ala"y!nly, %ut they "ep"e#ented the %a#* daly a+e !'

Na"d! Daya! *!n#de"ed t! %e n the a&!unt !' >/.36 3<; !"dna"y !"4n+ day# at the t&e !" n the t!tala&!unt !' >2,1.8<. S! plu# the a&!unt !' >1;6.<h*h # the eu(alent !' the Sunday and $e+al!lday "ate at >9.2< %a#* "ate !' >/.36 plu# 2;the"e!' !" >1.8 1/, the latte" )+u"e "ep"e#entn+13 Sunday# and $e+al !lday# !' 8 h!u"# ea*h. . . . 5That the "eu"ed &n&u& 2; Sunday and $e+al!lday addt!nal *!&pen#at!n a# pad t! and"e*e(ed %y the e&pl!yee# '!" the !"4 they "ende"ed!n e(e"y !the" Sunday and !n the e+ht $e+al!lday# '!" the pe"!d O*t!%e", 19;9 t! June 3<,1962 # 'u"the" *!""!%!"ated %y Eh%t# ;, 6, 8, 9 and9-A and the te#t&!ny !' M". Ja*nt! C!n*ep*!n

the"e!n.5 0G"e' '!" the >ett!ne", pp. 2, 2/. The a'!"e#ad *!&putat!n# e"e n!t +(en *"eden*e%y the "e#p!ndent *!u"t. In 'a*t the #a&e*!&putat!n# e"e n!t e(en &ent!ned n the *!u"t7#de*#!n h*h #h!# that the *!u"t '!und #u*h*!&putat!n# n*"ed%le. The *!&putat!n#,#upp!#edly patte"ned a'te" the ?AS Inte"p"etat(eGulletn N!. 2 !' the Depa"t&ent $a%!" de&!n#t"atedn Eh%t# 565, 5/5, 585, 595, and 59-A5, &#e"a%ly'aled t! #h! the ea*t and *!""e*t annual #ala"y a##tated n the "e#pe*t(e *!nt"a*t# !' e&pl!y&ent !' the "e#p!ndent e&pl!yee#. The )+u"e# a""(ed at nea*h *a#e dd n!t tally th the annual #ala"e# !n thee&pl!yee#7 *!nt"a*t# !' e&pl!y&ent, the de"en*e(a"yn+ '"!& >1.2< t! a# &u*h a# >1.< alay#

a+an#t the nte"e#t !' the e&pl!yee#. The pett!ne"7#de'en#e *!n##t# !' &athe&at*al *!&putat!n# &adea'te" the )ln+ !' the *a#e n !"de" t! eplan a *lea"atte&pt t! &a4e t# e&pl!yee# !"4 th!ut the et"a*!&pen#at!n p"!(ded %y la !n Sunday# and le+alh!lday#. $$Bu"In n!t +(n+ e+ht t! the e(den*e !' the pett!ne"-*!&pany, the "e#p!ndent *!u"t #u#taned the p"(ate"e#p!ndent#7 e(den*e t! the ee*t that the" 2;addt!nal *!&pen#at!n '!" !"4 d!ne !n Sunday#and $e+al !lday# e"e n!t n*luded n the""e#pe*t(e &!nthly #ala"e#. The p"(ate "e#p!ndent#p"e#ented e(den*e th"!u+h the te#t&!ne# !' Na"d!Daya!, E"ne#t! Tala&pa#, and J!#a# Fede"*! h! a"ethe&#el(e# a&!n+ the e&pl!yee# h! )led the *a#e



'!" un'a" la%!" p"a*t*e n the "e#p!ndent *!u"t anda"e p"(ate "e#p!ndent# he"en. The pett!ne"-*!&pany7# *!ntent!n that the "e#p!ndent *!u"t7#*!n*lu#!n !n the ##ue !' the 2; addt!nal*!&pen#at!n '!" !"4 d!ne !n Sunday# and le+alh!lday# du"n+ the )"#t '!u" h!u"# that the p"(ate"e#p!ndent# had t! !"4 unde" the" "e#pe*t(e*!nt"a*t# !' e&pl!y&ent a# n!t #upp!"ted %y#u%#tantal e(den*e #, the"e'!"e, un'!unded. Mu*hle## d! ?e )nd any +"a(e a%u#e !' d#*"et!n !n the

pa"t !' the "e#p!ndent *!u"t n t# nte"p"etat!n !' the e&pl!y&ent *!nt"a*t7# p"!(#!n !n #ala"e#. In(e !' the *!nt"!lln+ d!*t"ne that a +"a(e a%u#e !' d#*"et!n &u#t %e #h!n n !"de" t! a""ant !u"d#tu"%n+ the )ndn+# !' the "e#p!ndent *!u"t, the"e(e"#al !' the *!u"t7# )ndn+# !n th# &atte" #una""anted. 0San*he (#. C!u"t !' Indu#t"alRelat!n#, 2/ SCRA 9<. The la#t ##ue "a#ed n the )"#t a##+n&ent !' e""!""e'e"# t! a p"!*edu"al &atte". The pett!ne"-*!&pany*!ntend# that the ue#t!n a# t! hethe" !" n!t the*!nt"a*t# !' e&pl!y&ent e"e null and (!d a# n!tput n ##ue, hen*e, the "e#p!ndent *!u"t pu"#uant t!the Rule# !' C!u"t #h!uld ha(e "e'"aned '"!& the"uln+ that #u*h *!nt"a*t# !' e&pl!y&ent e"e null

and (!d. In th# *!nne*t!n ?e "e#tate !u" )ndn+that the "e#p!ndent *!u"t dd n!t de*la"e the*!nt"a*t# !' e&pl!y&ent null and (!d n the"ent"ety. Only the !%Be*t!na%le 'eatu"e# (!lat(e !' la e"e null)ed. Gut e(en +"antn+ that the C!u"t !' Indu#t"al Relat!n# de*la"ed the *!nt"a*t# !' e&pl!y&ent h!lly (!d, t *!u ld d! #!n!tth#tandn+ the p"!*edu"al !%Be*t!n. In San*he(. C!u"t !' Indu#t"al Relat!n#, #up"a, th# C!u"t#pea4n+ th"!u+h then Ju#t*e, n! Che' Ju#t*eEn"ue M. Fe"nand!, #tated: 5M!"e!(e", pett!ne"# appea" t! %e !%l(!u# !' the#tatut!"y &andate that "e#p!ndent C!u"t n thehea"n+, n(e#t+at!n and dete"&nat!n !' any

ue#t!n !" *!nt"!(e"#y and n the ee"*#e !' any !' t# dute# !" p!e" # t! a*t 7a**!"dn+ t! Bu#t*e andeuty and #u%#tantal &e"t# !' the *a#e, th!ut"e+a"d t! te*hn*alte# !" le+al '!"&# and #hall n!t %e%!und %y any te*hn*al "ule# !' le+al e(den*e7n'!"&n+ t# &nd 7n #u*h &anne" a# t &ay dee& Bu#t and euta%le.7 A+an, th# C!u"t ha# n(a"a%lya**!"ded the &!#t h!#pta%le #*!pe t! the %"eadthand a&pltude th h*h #u*h p"!(#!n # *!u*hed.S! t ha# %een '"!& the ea"le#t *a#e de*ded n 1939t! a 196/ de*#!n.5 T! ##ue# a"e "a#ed n the #e*!nd a##+n&ent !' e""!" %y the pett!ne"-*!&pany. The )"#t hn+e# !nthe Bu"#d*t!n !' the "e#p!ndent *!u"t t! aa"daddt!nal *!&pen#at!n '!" n+htt&e !"4. >ett!ne"

ant# =# t! "e-ea&ne Ou" "uln+# !n the ue#t!n!' n+htt&e !"4. It *!ntend# that the "e#p!ndent*!u"t ha# n! Bu"#d*t!n t! aa"d addt!nal*!&pen#at!n '!" n+htt&e !"4 %e*au#e !' thede*la"ed p!l*y !n '"eed!& !' *!lle*t(e %a"+ann+ep"e##ed n Repu%l* A*t 8/; and the ep"e##p"!h%t!n n Se*t!n / !' the #ad #tatute. a "e-ea&nat!n !' the de*#!n# !n n+htt&e payde"ental a# the '!*u# !' attent!n n Rhee& !' the >hlppne#, In*. et al. (. Fe""e", et al 019 SCRA

13<. The ea"le#t *a#e# *ted %y the pett!ne"-*!&pany, Na"* (. Na"* ?!"4e"# =n!n, $-12</;, May29, 19;9 and >hlppne En+nee"#7 Synd*ate (.Gaut#ta, $-16<, Fe%"ua"y 29, 196, e"e d#*u##edlen+thly. Thu# 52. On the *la& '!" n+ht de"ental#, n!etended d#*u##!n # ne*e##a"y. T! %e "ead a#*!nt"!lln+ he"e # >hlppne En+nee"#7 Synd*ate,In*. (#. !n. J!#e S. Gaut#ta, et al., $-16<,Fe%"ua"y 29, 196, he"e th# C!u"t, #pea4n+ th"uM". Che' Ju#t*e Ce#a" Gen+!n, de*la"ed 57Only !ne ##ue # "a#ed: hethe" !" n!t up!n theena*t&ent !' Repu%l* A*t 8/;, the CIR l!#t t# Bu"#d*t!n !(e" *la&# '!" addt!nal *!&pen#at!n

'!" "e+ula" n+ht !"4. >ett!ne" #ay# that th# A*t"edu*ed the Bu"#d*t!n !' "e#p!ndent *!u"t andl&ted t t! #pe*)* *a#e# h*h th# C!u"t ha#de)ned a#: 7. . . 01 hen the la%!" d#pute ae*t# anndu#t"y h*h # nd#pen#a%le t! the nat!nalnte"e#t and # #! *e"t)ed %y the >"e#dent t! thendu#t"al *!u"t 0Se*. 1<, Repu%l* A*t 8/; 02 henthe *!nt"!(e"#y "e'e"# t! &n&u& a+e unde" theMn&u& ?a+e $a 0Repu%l* A*t 6<2 03 hen tn(!l(e# h!u"# !' e&pl!y&ent unde" the E+ht-!u"$a%!" $a 0C!&&!nealth A*t and 0 hen tn(!l(e# an un'a" la%!" p"a*t*e Se*. ; 0a, Repu%l*A*t 8/;7, >au, et al. (#. Tan, et al., ;2 O. a, N!.13, ;836.5>ett!ne" n##t# that "e#p!ndent#7 *a#e 'all# n n!ne

!' the#e *ate+!"e# %e*au#e a# held n t! p"e(!u#*a#e#, n+ht !"4 # n!t !(e"t&e %ut "e+ula" !"4and that "e#p!ndent *!u"t7# auth!"ty t! t"y the *a#e*ann!t %e &pled '"!& t# 7+ene"al Bu"#d*t!n and%"!ad p!e"#7 unde" C!&&!nealth A*t 1<3%e*au#e Repu%l* A*t 8/; p"e*#ely *u"%ed #u*hp!e"# l&tn+ the& t! *e"tan #pe*)* lt+at!n#,%ey!nd h*h t # n!t pe"&tted t! a*t.5?e %ele(e pett!ne" t! %e n e""!". It# p!#t!n*!llde# th !u" "uln+ n the Na"* *a#e Nat!nalR*e C!"n C!"p. 0NARIC (#. NARIC ?!"4e"#7 =n!n,et al., .R. N!. 12</;, May 29, 19;9 he"e e held:57?hle t # t"ue that th# C!u"t &ade the a%!(e*!&&ent n the a'!"e&ent!ned *a#e, t d!e# n!tntend t! *!n(ey the dea that !"4 d!ne at n+ht

*ann!t al#! %e an !(e"t&e !"4. The *!&&ent !nly#e"(ed t! e&pha#e that the de&and h*h the ShellC!&pany &ade up!n t# la%!"e"# # n!t &e"ely!(e"t&e !"4 %ut n+ht !"4 and #! the"e a# needt! de"entate n+ht '"!& dayt&e !"4. In 'a*t, the*!&pany *!ntended that the"e a# n! la that"eu"ed the pay&ent !' addt!nal *!&pen#at!n '!"n+ht !"4 unl4e an !(e"t&e !"4 h*h # *!(e"ed%y C!&&!nealth A*t N!. 0E+ht-!u" $a%!"$a. And th# *!u"t n that *a#e #ad that hle the"e

a# n! la a*tually "eu"n+ pay&ent !' addt!nal*!&pen#at!n '!" n+ht !"4, the ndu#t"al *!u"t ha#the p!e" t! dete"&ne the a+e# that n+ht !"4e"##h!uld "e*e(e unde" C!&&!nealth A*t N!. 1<3, and#! t Bu#t)ed the addt!nal *!&pen#at!n n the Shell*a#e '!" 7hy+en*, &ed*al, &!"al, *ultu"al and#!*!l!+*al "ea#!n#.75 T"ue, n >au, et al. (#. Tan, et al., #up"a, and n a#e"e# !' *a#e# the"ea'te", ?e held that the %"!adp!e"# *!n'e""ed %y C!&&!nealth A*t 1<3 !n theCIR &ay ha(e %een *u"taled %y Repu%l* A*t 8/;h*h l&ted the& t! the '!u" *ate+!"e# the"enep"e##ed n lne th the pu%l* p!l*y !' all!n+#ettle&ent !' ndu#t"al d#pute# (a the *!lle*t(e

%a"+ann+ p"!*e## %ut ?e )nd n! *!+ent "ea#!n '!"*!n*ludn+ that a #ut !' th#natu"e '!" et"a *!&pen#at!n '!" n+ht !"4 'all#!ut#de the d!&an !' the ndu#t"al *!u"t. ?thal, the"e*!"d d!e# n!t #h! that the e&pl!ye"-e&pl!yee"elat!n %eteen the 6 "e#p!ndent# and thepett!ne" had *ea#ed.A'te" the pa##a+e !' Repu%l* A*t 8/;, th# C!u"t ha#n!t !nly upheld the ndu#t"al *!u"t7# a##u&pt!n !' Bu"#d*t!n !(e" *a#e# '!" #ala"y de"ental# and!(e"t&e pay Chua ?!"4e"# =n!n 0N$= (#. CtyAut!&!t(e C!., et al., .R. N!. $-116;;, Ap"l 29,19;9 >"#*! (#. CIR, et al., .R. N!. $-138<6, May 23,196< !" '!" pay&ent !' addt!nal *!&pen#at!n '!"!"4 "ende"ed !n Sunday# and h!lday# and '!" n+ht

!"4 Na##*! (#. Al&n, et al., .R. N!. $-9<;;,N!(e&%e" 28, 19;8 Dete*t(e >"!te*t(e Gu"eau,In*. (#. Felpe ue(a"a, et al., .R. N!. $-8/38, May31, 19;/ %ut ha# al#! #upp!"ted #u*h *!u"t7# "uln+that !"4 pe"'!"&ed at n+ht #h!uld %e pad &!"ethan !"4 d!ne at dayt&e, and that ' that !"4 #d!ne %ey!nd the !"4e"7# "e+ula" h!u"# !' duty, he#h!uld al#! %e pad addt!nal *!&pen#at!n '!"!(e"t&e !"4. Na"* (#. Na"* ?!"4e"#7 =n!n, et al.,.R. N!. $-12</;, May 29, 19;9, *tn+ #hell C!. (#.Nat!nal $a%!" =n!n, 81 >hl. 31;. Ge#de#, t! h!ldthat th# *a#e '!" et"a *!&pen#at!n n! 'all#%ey!nd the p!e"# !' the ndu#t"al *!u"t t! de*de#,!uld a&!unt t! a 'u"the" *u"tal&ent !' the Bu"#d*t!n !' #ad *!u"t t! an etent h*h &ay



de'eat the pu"p!#e !' the Ma+na Ca"ta t! thep"eBud*e !' la%!".7 $u# Re*at! Dy, et al (#. CIR, .R.N!. $-1//88, May 2;, 19625 The pett!ne"-*!&pany7# a"+u&ent# !n the"e#p!ndent *!u"t7# alle+ed la*4 !' Bu"#d*t!n !(e"addt!nal *!&pen#at!n '!" !"4 d!ne at n+ht %y the"e#p!ndent# # th!ut &e"t. *dll The !the" ##ue "a#ed n the #e*!nd a##+n&ent !' e""!" # p"e&#ed !n the pett!ne"-*!&pany7#*!ntent!n that the "e#p!ndent *!u"t7# "uln+ !n the

addt!nal *!&pen#at!n '!" n+htt&e !"4 # n!t#upp!"ted %y #u%#tantal e(den*e. Th# *!ntent!n # untena%le. >e"tnent p!"t!n# !' the"e#p!ndent *!u"t7# de*#!n "ead: 5The"e # n! #e"!u# d#a+"ee&ent %eteen thepett!ne"# and "e#p!ndent &ana+e&ent !n the 'a*t#"e*ted a%!(e. The (a"an*e n the e(den*e # !nlyth "e#pe*t t! the &!ney *la&#. ?tne##e# '!"pett!ne"# de*la"ed they !"4ed !n "e+ula" day# and!n e(e"y !the" Sunday and al#! du"n+ all h!lday#that '!" #e"(*e# "ende"ed !n Sunday# and h!lday#they e"e n!t pad '!" the )"#t '!u" 0 h!u"# andhat they !nly "e*e(ed a# the !(e"t&e*!&pen#at!n *!""e#p!ndn+ t! the nu&%e" !' h!u"#

a'te" !" n e*e## !' the )"#t '!"t h!u"# and that #u*hpay&ent # %en+ nd*ated n the !(e"t&e pay '!"!"4 d!ne n e*e## !' e+ht h!u"# !n "e+ula" !"4n+day#. It # al#! *la&ed that the" n+htt&e #e"(*e#*!uld ell %e #een !n the" "e#pe*t(e daly t&e"e*!"d#. . . . 0E&pha## #uppled 0p. 116, "!ll! The "e#p!ndent *!u"t7# "uln+ !n addt!nal*!&pen#at!n '!" !"4 d!ne at n+ht #, the"e'!"e, n!tth!ut e(den*e. M!"e!(e", the pett!ne"-*!&panydd n!t deny that the p"(ate "e#p!ndent# "ende"edn+htt&e !"4. In 'a*t, n! addt!nal e(den*e a#ne*e##a"y t! p"!(e that the p"(ate "e#p!ndent# e"eenttled t! addt!nal *!&pen#at!n '!" hethe" !" n!tthey e"e enttled t! the #a&e # a ue#t!n !' lah*h the "e#p!ndent *!u"t an#e"ed *!""e*tly. The

5a(e" "ule5 # n!t appl*a%le n the *a#e at %a".Addt!nal *!&pen#at!n '!" n+htt&e !"4 #'!unded !n pu%l* p!l*y, hen*e the #a&e *ann!t %ea(ed. 0A"t*le 6, C(l C!de. On th# &atte", ?e%ele(e that the "e#p!ndent *!u"t a*ted a**!"dn+ t! Bu#t*e and euty and the #u%#tantal &e"t# !' the*a#e, th!ut "e+a"d t! te*hn*alte# !" le+al '!"&#and #h!uld %e #u#taned. The th"d a##+n&ent !' e""!" # l4e#e th!ut&e"t. The 'at that !nly th"ee !' the p"(ate"e#p!ndent# te#t)ed n *!u"t '!e# n!t ad(e"#elyae*t the nte"e#t# !' the !the" "e#p!ndent# n the*a#e. The "uln+ n D&ayu+a (. C!u"t !' Indu#t"alRelat!n# 0.R. N!. $-<213, May 2/, 19;/ ha# %eena%and!ned n late" "uln+# !' th# C!u"t. IN >hlppne

$and-A"-Sea la%!" =n!n 0>$AS$= (. Sy Ind!n+C!&pany R*e And C!"n Mll 011 SCRA 2// ?e had!**a#!n t! "e-ea&ne the "uln+ n D&ayu+a. ?e#tated: $$p"5The latte" "e(e"#ed the de*#!n !' the t"al Jud+e a#"e+a"d# the "en#tate&ent th %a*4a+e# !' . . .up!n the the!"y that th# # n!t a *la## #ut that,7*!n#euently, t # ne*e##a"y and &pe"at(e thatthey #h!uld pe"#!nally te#t'y and p"!(e the *ha"+e#n the *!&plant7, and that, ha(n+ 'aled t! d! #!,

the de*#!n !' the t"al Jud+e n the" 'a(!" #untena%le unde" the "ule lad d!n n D&ayu+a (#.C!u"t !' Indu#t"al Relat!n#, .R. N!. $-<213 0May2/, 19;/.5?e d! n!t #ha"e the (e ta4en n the "e#!lut!nappealed '"!&. A# the t"al Jud+e *!""e*tly #ad, n h#d##ent '"!& #ad "e#!lut!n: In the *a#e !' San*he (. C!u"t !' Indu#t"alRelat!n#, #up"a, th# C!u"t #tated:5T! the "ep"!a*h a+an#t the *hallen+ed !"de" n the%"e' !' pett!ne"# n (e !' !nly t! !' the #e(en*la&ant# te#t'yn+, a #tate&ent %y th# C!u"t nO"&!* Su+a" C!., In*. (#. OSCO ?!"4e"# F"ate"nty$a%!" =n!n !uld #u@*e %y ay !' "e'utat!n. Thu#:

7Th# C!u"t 'ully a+"ee# th the "e#p!ndent thatualty and n!t uantty !' tne##e# #h!uld %e thep"&!"dal *!n#de"at!n n the app"a#al !' e(den*e.7 Ga"ely e+ht day# late", n an!the"de*#!n, the a%!(e #tate&ent a# +(en *!n*"eteep"e##!n. Thu#: 7The %a#e# !' the aa"d# e"e n!t!nly the "e#pe*t(e a@da(t# !' the *la&ant# %ut thete#t&!ne# !' 2 tne##e# 0%e*au#e 6 e"e n!t+(en *"eden*e %y the *!u"t %el! h! dent)edthe #ad 239 *la&ant#. The *!ntent!n !' pett!ne"#!n th# p!nt # the"e'!"e un'!unded7. M!"e!(e" n>hlppne $and-A"-Sea $a%!" =n!n 0>$AS$= (. SyInd!n+ C!&pany R*e C!"n Mll, th# C!u"t, th"!u+hthe p"e#ent Che' Ju#t*e, "eBe*ted a# untena%le thethe!"y !' the C!u"t !' Indu#t"al Relat!n# *!n*e"nn+

the &pe"at(e need# !' all the *la&ant# t! te#t'ype"#!nally and p"!(e the" *ha"+e# n the *!&plant.A# te"#ely put: 7?e d! n!t #ha"e the (e ta4en n the"e#!lut!n appealed '"!&.5 The pett!ne"7# *!ntent!n that t# e&pl!yee# 'ullyunde"#t!!d hat they #+ned hen they ente"ed nt!the *!nt"a*t# !' e&pl!y&ent and that they #h!uld %e%!und %y the" (!lunta"y *!&&t&ent7# #ana*h"!n#t* n th# t&e and a+e. *dphl The Me"*u"y D"u+ C!., In*., &antan# a *han !' d"u+#t!"e# that a"e !pen e(e"y day !' the ee4 and,'!" #!&e #t!"e#, up t! (e"y late at n+ht %e*au#e !' the natu"e !' the pha"&a*eut*al "etal %u#ne##. The"e#p!ndent# 4ne that they had t! !"4 Sunday#and h!lday# and at n+ht, n!t a# e*ept!n# t! the

"ule %ut a pa"t !' the "e+ula" *!u"#e !' e&pl!y&ent.>"e#ented th *!nt"a*t# #ettn+ the" *!&pen#at!n!n an annual %a## th an ep"e## a(e" !' et"a*!&pen#at!n '!" !"4 !n Sunday# and h!lday#, the!"4e"# dd n!t ha(e &u*h *h!*e. The p"(ate"e#p!ndent# e"e at a d#ad(anta+e n#!'a" a# the*!nt"a*tual "elat!n#hp a# *!n*e"ned. ?!"4e"# n!u" *!unt"y d! n!t ha(e the luu"y !" '"eed!& !' de*lnn+ B!% !penn+# !" )ln+ "e#+nat!n# e(enhen #!&e te"&# and *!ndt!n# !' e&pl!y&ent a"e

n!t !nly !ne"!u# and neut!u# %ut lle+al. It #p"e*#ely %e*au#e !' th# #tuat!n that the '"a&e"# !' the C!n#ttut!n e&%!ded the p"!(#!n# !n #!*al Bu#t*e 0Se*t!n 6, A"t*le II and p"!te*t!n t! la%!"0Se*t!n 9, A"t*le II n the De*la"at!n !' >"n*ple#And State >!l*e#.It # pu"#uant t! the#e *!n#ttut!nal &andate# thatthe *!u"t# a"e e(e" (+lant t! p"!te*t the "+ht# !' !"4e"# h! a"e pla*e# n *!nt"a*tuallyd#ad(anta+e!u# p!#t!n# and h! #+n a(e"# !"p"!(#!n# *!nt"a"y t! la and pu%l* p!l*y. $e$%?EREFORE, the pett!n # he"e%y d#&##ed. Thede*#!n and "e#!lut!n appealed '"!& a"e a@"&edth *!#t# a+an#t the pett!ne".SO ORDERED.



T#IRD DI'ISION[G.R. No. 160. January 1, 200.] JERR( E. AEDERA, ANTONIO "ARILLA, ANDOT#ERS LISTED IN ANNE FA,F 1 *+--on+r4a**+55an, /. INTERNATIONAL ONTAINERTER!INAL SER'IES, IN. ;ITSI=, NATIONALLABOR RELATIONS O!!ISSION an) #ON.OURT O$ A""EALS, r+*on)+n4a**+55an.

D E C I S I O NCAR>IO-MORA$ES, J p:F!" *!n#de"at!n # the pett!n '!" "e(e !n*e"t!"a" a##aln+ the de*#!n !' the C!u"t !' Appeal# a@"&n+ that !' the Nat!nal $a%!" Relat!n#C!&&##!n 0N$RC h*h a@"&ed the de*#!n !' the $a%!" A"%te" denyn+ he"en pett!ne"#-appellant#7 C!&plant-n-Inte"(ent!n th M!t!n '!"Inte"(ent!n. I*ADSE The ante*edent 'a*t# a"e a# '!ll!#:>ett!ne"#-appellant# Je""y A*ede"a, et al. a"ee&pl!yee# !' he"en p"(ate "e#p!ndent Inte"nat!nalC!ntane" Te"&nal Se"(*e#, In*. 0ICTSI and a"e!@*e"#&e&%e"# !' A##!*ated >!"t Che*4e"#

?!"4e"# =n!n-Inte"nat!nal C!ntane" Te"&nalSe"(*e#, In*. $!*al Chapte" 0A>C?=-ICTSI, a la%!"!"+anat!n duly "e+#te"ed a# a l!*al a@late !' theA##!*ated >!"t Che*4e"# ?!"4e"# =n!n 0A>C?=.?hen ICTSI #ta"ted t# !pe"at!n# n 1988, tdete"&ned the "ate !' pay !' t# e&pl!yee# %y u#n+3< day#, the nu&%e" !' day# !' !"4 !' thee&pl!yee# n a yea", a# d(#!". 2On Septe&%e" 28, 199<, ICTSI ente"ed nt! t# )"#tC!lle*t(e Ga"+ann+ A+"ee&ent 0CGA th A>C?=th a te"& !' )(e yea"# ee*t(e untl Septe&%e"28, 199;. 3 The CGA a# "ene+!tated and the"ea'te""eneed th"!u+h a #e*!nd CGA that t!!4 ee*t !nSepte&%e" 29, 199;, ee*t(e '!" an!the" )(e yea"#.

G!th CGA# *!ntaned an dent*ally-!"dedp"!(#!n !n h!u"# and day# !' !"4 "eadn+:A"t*le IRe+ula" !u"# !' ?!"4 and Day# !' $a%!"Se*t!n 1. The "e+ula" !"4n+ day# n a ee4#hall %e )(e 0; day# !n any day '"!& M!nday t!Sunday, a# &ay %e #*heduled %y the COM>ANL, up!n#e(en 0/ day# p"!" n!t*e unle## any !' th# day #de*la"ed a #pe*al h!lday. ; 0E&pha## !&ttedIn a**!"dan*e th the a%!(e-u!ted p"!(#!n !' the

CGA, the e&pl!yee#7 !"4 ee4 a# "edu*ed t! )(eday# !" a t!tal !' 2;< day# a yea". ICTSI, h!e(e",*!ntnued u#n+ the 3<-day d(#!" n *!&putn+ thea+e# !' the e&pl!yee#. 6On N!(e&%e" 1<, 199<, the Re+!nal T"pa"tte ?a+eand >"!du*t(ty G!a"d 0RT?>G n the Nat!nalCaptal Re+!n de*"eed a >1/.<< daly a+e n*"ea#e'!" all !"4e"# and e&pl!yee# "e*e(n+ >12;.<< pe"day !" l!e" n the Nat!nal Captal Re+!n. / Thethen p"e#dent !' A>C?=, t!+ethe" th #!&e un!n&e&%e"#, thu# "eue#ted the ICTSI7# u&an Re#!u"*eDepa"t&ent>e"#!nnel Mana+e" t! *!&pute thea*tual &!nthly n*"ea#e n the e&pl!yee#7 a+e# %y&ultplyn+ the RT?>G &andated n*"ea#e %y 36;day# and d(dn+ the p"!du*t %y 12 &!nth#. 8

eedn+ the p"!p!#al and '!ll!n+ the&ple&entat!n !' the ne a+e !"de", ICTSI #t!ppedu#n+ 3< day# a# d(#!" and #ta"ted u#n+ 36; day#n dete"&nn+ the daly a+e !' t# e&pl!yee# and!the" *!n#euental *!&pen#at!n, e(en ' thee&pl!yee#7 !"4 ee4 *!n##ted !' !nly )(e day# a#a+"eed up!n n the CGA. 9In ea"ly 199/, ICTSI ent !n a "et"en*h&ent p"!+"a&and lad ! t# !n-*all e&pl!yee#. 1< Th# p"!&ptedthe A>C?=-ICTSI t! )le a n!t*e !' #t"4e h*hn*luded a# *au#e !' a*t!n n!t !nly the "et"en*h&ent!' the e&pl!yee# %ut al#! ICTSI7# u#e !' 36; day# a#d(#!" n the *!&putat!n !' a+e#. 11 The d#pute"e#pe*tn+ the "et"en*h&ent a# "e#!l(ed %y a*!&p"!&#e #ettle&ent 12 hle that "e#pe*tn+ the

*!&putat!n !' a+e# a# "e'e""ed t! the $a%!"A"%te". 13On Fe%"ua"y 26, 199/, A>C?=, !n %ehal' !' t#&e&%e"# and !the" e&pl!yee# #&la"ly #tuated,)led th the $a%!" A"%te" a *!&plant a+an#t ICTSIh*h a# d#&##ed '!" A>C?=7# 'alu"e t! )le t#p!#t!n pape". 1 =p!n the de&and !' he"enpett!ne"#-appellant#, A>C?= )led a &!t!n t! "e((ethe *a#e h*h a# +"anted. A>C?= the"eup!n )ledt# p!#t!n pape" !n Au+u#t 22, 199/. 1;On De*e&%e" 8, 199/, pett!ne"#-appellant# )ledth the $a%!" A"%te" a C!&plant-n-Inte"(ent!nth M!t!n t! Inte"(ene. 16 In the pett!n at %a",they Bu#t)ed the" &!(e t! nte"(ene n th# #e:



Sh!uld the un!n #u**eed n p"!#e*utn+ the *a#eand n +ettn+ a 'a(!"a%le "ea"d t # a*tually theythat !uld %ene)t '"!& the de*#!n. On the !the"hand, #h!uld the un!n 'al t! p"!(e t# *a#e, !" t!p"!#e*ute the *a#e dl+ently, the nd(dual !"4e"#!" &e&%e"# !' the un!n !uld #ue" +"eat and&&ea#u"a%le l!##. . . . they anted t! n#u"e %ythe" nte"(ent!n that the *a#e !uld the"ea'te" %ep"!#e*uted th all due dl+en*e and !uld n!t a+an%e d#&##ed '!" la*4 !' nte"e#t t! p"!#e*ute !n the

pa"t !' the un!n. 1/ The $a%!" A"%te" "ende"ed a de*#!n, the d#p!#t(ep!"t!n !' h*h "ead#:?EREFORE, de*#!n # he"e%y "ende"ed de*la"n+that the *!""e*t d(#!" n *!&putn+ the daly a+eand !the" la%!" #tanda"d %ene)t# !' the e&pl!yee# !' "e#p!ndent ICTSI h! a"e &e&%e"# !' *!&planant=n!n a# ell a# the !the" e&pl!yee# #&la"ly#tuated # t! hund"ed )'ty 02;< day# #u*h that #ad"e#p!ndent # he"e%y !"de"ed t! pay the e&pl!yee#*!n*e"ned the de"ental# "ep"e#entn+ theunde"pay&ent !' #ad #ala"e# and !the" %ene)t#"e*4!ned th"ee 03 yea"# %a*4 '"!& Fe%"ua"y 26,199/, the date !' )ln+ !' th# *!&plant !" *!&puted'"!& Fe%"ua"y 2/ 199 untl pad, %ut '!" pu"p!#e# !'

appeal, the #ala"y de"ental# a"e te&p!"a"ly*!&puted '!" !ne yea" n the a&!unt !' F!u" und"edSty E+ht Th!u#and F!"ty >e#!# 0>68,<<.<<. 18In the #a&e de*#!n, the $a%!" A"%te" denedpett!ne"#-appellant#7 C!&plant-n-Inte"(ent!n thM!t!n '!" Inte"(ent!n up!n a )ndn+ that they a"eal"eady ell "ep"e#ented %y A>C?=. 19On appeal, the N$RC "e(e"#ed the de*#!n !' the$a%!" A"%te" and d#&##ed A>C?=7# *!&plant '!"la*4 !' &e"t. 2< The denal !' pett!ne"#-appellant#7nte"(ent!n a#, h!e(e", a@"&ed. 21=n#at#)ed th the de*#!n !' the N$RC, A>C?=)led a pett!n '!" *e"t!"a" th the C!u"t !' Appeal#hle pett!ne"#-appellant# )led the"# th th# C!u"th*h "e'e""ed the pett!n 22 t! the C!u"t !' Appeal#.

The C!u"t !' Appeal# d#&##ed A>C?=7# pett!n !nthe '!ll!n+ +"!und#: 'alu"e t! alle+e hen t#&!t!n '!" "e*!n#de"at!n !' the N$RC de*#!n a#)led, 'alu"e t! atta*h the ne*e##a"y append*e# t!the pett!n, and 'alu"e t! )le t# &!t!n '!" eten#!nt! )le t# pett!n thn the "e+le&enta"y pe"!d. 23A# '!" pett!ne"#-appellant#7 pett!n '!" *e"t!"a", ta# d#&##ed %y the C!u"t !' Appeal# n th# #e:It # *lea" '"!& the "e*!"d# that he"en pett!ne"#,*la&n+ t! %e e&pl!yee# !' "e#p!ndent ICTSI, a"eal"eady ell "ep"e#ented %y t# e&pl!yee# un!n,A>C?=, n the pett!n %e'!"e th# C!u"t 0CA-.R. S>.N!. ;3266 alth!u+h the #a&e ha# %een d#&##ed. The p"e#ent pett!n #, the"e'!"e a #upe"uty thatde#e"(e# t! %e d#&##ed. Fu"the"&!"e, !nly A*ede"a

#+ned the Ce"t)*ate !' n!n-'!"u& #h!ppn+. On th##*!"e al!ne, th# pett!n #h!uld l4e#e %ed#&##ed. ?e )nd that the #a&e ha# n! &e"t*!n#de"n+ that he"en pett!ne"# ha(e n!tp"e#ented any &e"t!"!u# a"+u&ent that !uld Bu#t'y the "e(e"#al !' the De*#!n !' the N$RC.A"t*le I !' the CGA p"!(de#:RE=$AR O=RS OF ?ORQ AND DALS OF $AGOR5Se*t!n 1. The "e+ula" !"4n+ day# n a ee4#hall %e )(e 0; day# !n any day '"!& M!nday t!

Sunday, a# &ay %e #*heduled %y the COM>ANL, up!n#e(en 0/ day# p"!" n!t*e unle## any !' th# day #de*la"ed a #pe*al h!lday. 5 Th# p"!(#!n *ate+!"*ally #tate# the "eu"ednu&%e" !' !"4n+ day# an e&pl!yee # epe*ted t!!"4 '!" a ee4. It d!e# n!t, h!e(e", nd*ate the&anne" n h*h an e&pl!yee7# #ala"y # t! %e*!&puted. In 'a*t, n!thn+ n the CGA &a4e# any"e'e""al t! any d(#!" h*h #h!uld %e the %a## '!"dete"&nn+ the #ala"y. The N$RC, the"e'!"e, *!""e*tly"uled that 5. . . the a%#en*e !' any ep"e## !" #pe*)*p"!(#!n n the CGA that 2;< day# #h!uld %e u#ed a#d(#!" alt!+ethe" &a4e# the p!#t!n !' the =n!nuntena%le.5

C!n#de"n+ that he"en pett!ne"# the&#el(e#"eue#ted that 36; day# %e u#ed a# the d(#!" n*!&putn+ the" a+e n*"ea#e and late" dd n!t "a#e!" !%Be*t t! the #a&e du"n+ the ne+!tat!n# !' thene CGA, they a"e *lea"ly e#t!pped t! n! *!&plan!' #u*h *!&putat!n !nly %e*au#e they n! l!n+e"%ene)t '"!& t. Indeed, the 36; d(#!" '!" the pa#t#e(en 0/ yea"# ha# al"eady %e*!&e p"a*t*e and la%eteen the *!&pany and t# e&pl!yee#. 2 0Ital*##uppled en*e, the p"e#ent pett!n !' pett!ne"#-appellant#h! 'ault the C!u"t !' Appeal# a# '!ll!#:I. . . IN REJECTIN TE CGA OF TE >ARTIES AS TE

SO=RCE OF TE DIKISOR TO DETERMINE TE?ORQERS7 DAI$L RATE TOTA$$L DISREARDED TEA>>$ICAG$E $ANDMARQ DECISIONS OF TEONORAG$E S=>REME CO=RT ON TE MATTER.II. . . IN DISREARDIN A>>$ICAG$E DECISIONS OF TIS ONORAG$E CO=RT ?EN IT R=$ED TAT TE>ETITIONERS-A>>E$$ANTS ARE A$READL INESTO>>E$.III. . . IN R=$IN TAT TE >ETITIONERS-A>>E$$ANTSAKE NO $EA$ RIT TO INTERKENE IN AND>=RS=E TIS CASE AND TAT TEIR INTERKENTIONIS A S=>ERF$=ITL.IK

. . . IN O$DIN, A$TO= MERE$L AS AN OGITERDICT=M, TAT ON$L >ETITIONER JERRL ACEDERASINED TE CERTIFICATE OF NON-FOR=M SO>>IN.2; The th"d a##+ned e""!" "e#pe*tn+ pett!ne"#-appellant#7 "+ht t! nte"(ene #hall )"#t %e pa##edup!n, t %en+ dete"&nat(e !' the" "+ht t! "a#e the!the" a##+ned e""!"#.>ett!ne"#-appellant# an*h!" the" "+ht t! nte"(ene!n Rule 19 !' the 199/ Rule# !' C(l >"!*edu"e,

Se*t!n 1 !' h*h "ead#:Se*t!n 1. ?h! &ay nte"(ene. A pe"#!nh! ha# le+al nte"e#t n the &atte" n lt+at!n, !" nthe #u**e## !' ethe" !' the pa"te#, !" an nte"e#ta+an#t %!th, !" # #! #tuated t! %e ad(e"#elyae*ted %y a d#t"%ut!n !" !the" d#p!#t!n !' p"!pe"ty n the *u#t!dy !' the *!u"t !" !' an !@*e"the"e!' &ay, th lea(e !' *!u"t, %e all!ed t!nte"(ene n the a*t!n. The *!u"t #hall *!n#de"hethe" !" n!t the nte"(ent!n ll unduly delay !"p"eBud*e the adBud*at!n !' the "+ht# !' the !"+nalpa"te#, and hethe" !" n!t the nte"(en!"7# "+ht &ay%e 'ully p"!te*ted n a #epa"ate p"!*eedn+. They #t"e## that they ha(e *!&pled th the"eu#te# '!" nte"(ent!n %e*au#e 01 they a"e the

!ne# h! #tand t! +an !" l!#e %y the d"e*t le+al!pe"at!n and ee*t !' any Bud+&ent that &ay %e"ende"ed n th# *a#e, 02 n! undue delay !" p"eBud*e!uld "e#ult '"!& the" nte"(ent!n #n*e the"C!&plant-n-Inte"(ent!n th M!t!n '!" Inte"(ent!na# )led hle the $a%!" A"%te" a# #tll hea"n+ the*a#e and %e'!"e any de*#!n the"e!n a# "ende"ed,and 03 t a# n!t p!##%le '!" the& t! )le a #epa"ate*a#e a# they !uld %e +ulty !' '!"u& #h!ppn+%e*au#e the !nly '!"u& a(ala%le '!" the& a# the$a%!" A"%te". 26>ett!ne"#-appellant#, h!e(e", 'aled t! *!n#de", naddt!n t! the "ule !n nte"(ent!n, the "ule !n"ep"e#entat!n, thu#ly:Se*. 3. Rep"e#entat(e# a# pa"te#. ?he"e the

a*t!n # all!ed t! %e p"!#e*uted !" de'ended %y a"ep"e#entat(e !" #!&e!ne a*tn+ n a )du*a"y*apa*ty, the %ene)*a"y #hall %e n*luded n the ttle!' the *a#e and #hall %e dee&ed t! %e the "eal pa"tyn nte"e#t. A "ep"e#entat(e &ay %e a t"u#tee !' anep"e## t"u#t, a +ua"dan, an ee*ut!" !"ad&n#t"at!", !" a pa"ty auth!"ed %y la !" the#eRule# . . . 2/ 0Ital*# #uppledA la%!" un!n # !ne #u*h pa"ty auth!"ed t!"ep"e#ent t# &e&%e"# unde" A"t*le 220a !' the$a%!" C!de h*h p"!(de# that a un!n &ay a*t a#the "ep"e#entat(e !' t# &e&%e"# '!" the pu"p!#e !' *!lle*t(e %a"+ann+. Th# auth!"ty n*lude# thep!e" t! "ep"e#ent t# &e&%e"# '!" the pu"p!#e !' en'!"*n+ the p"!(#!n# !' the CGA. That A>C?=



a*ted n a "ep"e#entat(e *apa*ty 5'!" and n %ehal' !' t# =n!n &e&%e"# and !the" e&pl!yee# #&la"ly#tuated,5 the ttle !' the *a#e )led %y t at the $a%!"A"%te"7# O@*e #! ep"e##ly #tate#.?hle a pa"ty a*tn+ n a "ep"e#entat(e *apa*ty,#u*h a# a un!n, &ay %e pe"&tted t! nte"(ene n a*a#e, !"dna"ly, a pe"#!n h!#e nte"e#t# a"e al"eady"ep"e#ented ll n!t %e pe"&tted t! d! the #a&e 28e*ept hen the"e # a #u++e#t!n !' '"aud !"*!llu#!n !" that the "ep"e#entat(e ll n!t a*t n

+!!d 'ath '!" the p"!te*t!n !' all nte"e#t#"ep"e#ented %y h&. 29>ett!ne"#-appellant# *te the d#&##al !' the *a#e)led %y ICTSI, )"#t %y the $a%!" A"%te", and late" %ythe C!u"t !' Appeal#. 3< The d#&##al !' the *a#ed!e# n!t, h!e(e", %y t#el' #h! the e#ten*e !' '"aud !" *!llu#!n !" a la*4 !' +!!d 'ath !n the pa"t !' A>C?=. The"e &u#t %e *lea" and *!n(n*n+ e(den*e!' '"aud !" *!llu#!n !" la*4 !' +!!d 'athndependently !' the d#&##al. Th#, pett!ne"#-appellant# 'aled t! p"!e".>ett!ne"#-appellant# l4e#e ep"e## the" 'ea" thatA>C?= !uld n!t p"!#e*ute the *a#e dl+ently%e*au#e !' t# 5#eethea"t "elat!n#hp5 th ICTSI. 31 The"e # n!thn+ !n "e*!"d, h!e(e", t! #upp!"t th#

alle+ed "elat!n#hp h*h alle+at!n #u"'a*e# a# a&e"e a'te"th!u+ht %e*au#e t a# ne(e" "a#ed ea"ly!n. It a# "a#ed !nly n pett!ne"#-appellant#7 "eplyt! ICTSI7# *!&&ent n the pett!n at %a", the la#tpleadn+ #u%&tted t! th# C!u"t, h*h a# )led !n June 2<, 2<<1 !" &!"e than 2 &!nth# a'te"pett!ne"#-appellant# )led the" C!&plant-n-Inte"(ent!n th M!t!n t! Inte"(ene th the $a%!"A"%te". aTADCE T! "ete"ate, '!" a &e&%e" !' a *la## t! %e pe"&ttedt! nte"(ene n a "ep"e#entat(e a*t!n, '"aud !"*!llu#!n !" la*4 !' +!!d 'ath !n the pa"t !' the"ep"e#entat(e &u#t %e p"!(en. It &u#t %e %a#ed !n'a*t# %!"ne !n "e*!"d. Me"e a##e"t!n#, a# hatpett!ne"#-appellant# p"!e", d! n!t #u@*e.

The '!"e+!n+ d#*u##!n lea(e# t unne*e##a"y t!d#*u## the !the" a##+ned e""!"#.?EREFORE, the p"e#ent pett!n # he"e%y DENIED.SO ORDERED.

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