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    Air Material Wing Savings and Loan Association VS NLRC

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    Balaod Maricor
    1) Luis S. Salas was appointed as the legal counsel of Air Material Wings Savings and Loan Association, Inc. (AMWSLAI) in 1980 and reappointed in 1987 for a term of three years. 2) Salas filed a complaint with the NLRC against AMWSLAI for separation pay and other benefits after his contract was nearing termination. AMWSLAI argued there was no employer-employee relationship. 3) The Supreme Court ruled that an employer-employee relationship did exist, as AMWSLAI exercised control over Salas by defining his duties and paying him a monthly retainer. The NLRC therefore had jurisdiction over Salas' monetary claims against AMWSLAI

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    Air Material Wing Savings and Loan Association VS NLRC

    Uploaded by

    Balaod Maricor
    93 views2 pages
    1) Luis S. Salas was appointed as the legal counsel of Air Material Wings Savings and Loan Association, Inc. (AMWSLAI) in 1980 and reappointed in 1987 for a term of three years. 2) Salas filed a complaint with the NLRC against AMWSLAI for separation pay and other benefits after his contract was nearing termination. AMWSLAI argued there was no employer-employee relationship. 3) The Supreme Court ruled that an employer-employee relationship did exist, as AMWSLAI exercised control over Salas by defining his duties and paying him a monthly retainer. The NLRC therefore had jurisdiction over Salas' monetary claims against AMWSLAI

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    1) Luis S. Salas was appointed as the legal counsel of Air Material Wings Savings and Loan Association, Inc. (AMWSLAI) in 1980 and reappointed in 1987 for a term of three years. 2) Salas filed a complaint with the NLRC against AMWSLAI for separation pay and other benefits after his contract was nearing termination. AMWSLAI argued there was no employer-employee relationship. 3) The Supreme Court ruled that an employer-employee relationship did exist, as AMWSLAI exercised control over Salas by defining his duties and paying him a monthly retainer. The NLRC therefore had jurisdiction over Salas' monetary claims against AMWSLAI

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    93 views2 pages

    Air Material Wing Savings and Loan Association VS NLRC

    Uploaded by

    Balaod Maricor
    1) Luis S. Salas was appointed as the legal counsel of Air Material Wings Savings and Loan Association, Inc. (AMWSLAI) in 1980 and reappointed in 1987 for a term of three years. 2) Salas filed a complaint with the NLRC against AMWSLAI for separation pay and other benefits after his contract was nearing termination. AMWSLAI argued there was no employer-employee relationship. 3) The Supreme Court ruled that an employer-employee relationship did exist, as AMWSLAI exercised control over Salas by defining his duties and paying him a monthly retainer. The NLRC therefore had jurisdiction over Salas' monetary claims against AMWSLAI

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    7

    Air Material Wing Savings And Loan Association, Inc


    versus
    National Labor Relations Commission, Et Al.,
    G.R. No. 111870 June 30, 1994

    FACTS:
    Luis S. Salas was appointed "notarial and legal counsel" for Air Material Wings
    Savings and Loan Association, Inc. (AMWSLAI) in 1980. The appointment was renewed
    for three years in an implementing order dated January 23, 1987, reading as follows:
    SUBJECT: Implementing Order on the Reappointment of the Legal Officer
    TO: ATTY. LUIS S. SALAS
    Per approval of the Board en banc in a regular meeting held on January 21, 1987, you
    are hereby reappointed as Notarial and Legal Counsel of this association for a term of
    three (3) years effective March 1, 1987, unless sooner terminated from office for cause or
    as may be deemed necessary by the Board for the interest and protection of the
    association.
    Aside from notarization of loan & other legal documents, your duties and
    responsibilities are hereby enumerated in the attached sheet, per Articles IX, Section 1-d
    of the by-laws and those approved by the Board en banc.
    Your monthly compensation/retainer's fee remains the same.
    This shall form part of your 201 file.
    BY AUTHORITY OF THE BOARD:
    LUVIN S. MANAY
    President & Chief of the Board
    AMWSLAI also defined some of his duties, as follows:
    1. To act on all legal matters pertinent to his Office.
    2. To seek remedies to effect collection of overdue accounts of members without
    prejudice to initiating court action to protect the interest of the association.
    3. To defend by all means all suit against the interest of the Association.
    On January 9, 1990, the company issued another order reminding Salas of the
    approaching termination of his legal services under their contract. This prompted Salas to
    file a complaint with NLRC against AMWSLAI for separation pay, vacation and sick
    leave benefits, cost of living allowances, refund of SSS premiums, moral and exemplary
    damages, payment of notarial services and attorney's fees.
    AMWSLAI moved to dismiss for lack of jurisdiction. The company held that
    there was no employer-employee relationship and that Salas’ monetary claims properly
    fell within the jurisdiction of the regular courts. They contended that the NLRC is not
    empowered to adjudicate claims for notarial fees

    ISSUE:
    8

    Whether or not an employee-employer relationship exists between AMWSLAI and


    Atty. Salas

    SUPREME COURT RULING:


    Employee-employer relationship exists. The Labor Arbiter has jurisdiction over
    money claims arising out of or in connection with the employer-employee relationship or
    some aspect or incident of such relationship.
    The terms and conditions set out in the letter-contract entered by the parties show that
    Salas was an employee of AMWSLAI. His selection as the company counsel was done by
    the board of directors in one of its regular meetings. The company paid him a monthly
    compensation/retainer's fee for his services. Though his appointment was for a fixed term
    of three years, the employer reserved its power of dismissal for cause or as it might deem
    necessary. AMWSLAI also exercised its power of control over Salas by defining his
    duties and functions.

    The two classes of lawyers


    The Court quoted an earlier case Hydro Resources Contractors Corp. v. Pagalilauan:
    A lawyer, like any other professional, may very well be an employee of a private
    corporation or even of the government. It is not unusual for a big corporation to hire a
    staff of lawyers as its in-house counsel, pay them regular salaries, rank them in its table of
    organization, and otherwise treat them like its other officers and employees. At the same
    time, it may also contract with a law firm to act as outside counsel on a retainer basis. The
    two classes of lawyers often work closely together but one group is made up of
    employees while the other is not. A similar arrangement may exist as to doctors, nurses,
    dentists, public relations practitioners and other professionals.

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