02 Albert Teng Fish Trading V Pahagac

ALBERT TENG FISH TRADING v.
PAHAGAC
FACTS:
 Albert Teng Fish Trading is engaged in deep sea fishing and, for this purpose,
owns boats (basnig), equipment, and other fishing paraphernalia.
 As owner of the business, Teng claims that he customarily enters into joint
venture agreements with master fishermen (maestros) who are skilled and are
experts in deep sea fishing; they take charge of the management of each fishing
venture, including the hiring of the members of its complement. He avers that
the maestros hired the respondent workers as checkers to determine the volume
of the fish caught in every fishing voyage.
 respondent workers filed a complaint for illegal dismissal
against Albert Teng Fish Trading, Teng, and Chua.
 The respondent workers alleged that Teng hired them, without any written
employment contract, to serve as his "eyes and ears" aboard the fishing boats; to
classify the fish caught by bañera; to report to Teng via radio communication the
classes and volume of each catch; to receive instructions from him as to where
and when to unload the catch; to prepare the list of the provisions requested by
the maestro and the mechanic for his approval; and, to procure the items as
approved by him.
 They also claimed that they received regular monthly salaries, 13th month pay,
Christmas bonus, and incentives in the form of shares in the total volume
of fish caught.
 In his defense, Teng maintained that he did not have any hand in hiring the
respondent workers; the maestros, rather than he, invited them to join the
venture. According to him, his role was clearly limited to the provision of the
necessary capital, tools and equipment, consisting of basnig, gears, fuel, food,
and other supplies.
 VA’s Ruling: rendered a decision in Teng's favor and declared that no employer-
employee relationship existed between Teng and the respondent workers.
o The respondent workers received the VA's decision on June 12, 2003.
They filed a motion for reconsideration, which was denied in an order
dated June 27, 2003 and which they received on July 8, 2003.
o The VA reasoned out that Section 6, Rule VII of the 1989 Procedural
Guidelines in the Conduct of Voluntary Arbitration Proceedings (1989
Procedural Guidelines) does not provide the remedy of a motion for
reconsideration to the party adversely affected by the VA's order or
decision.
 CA’s Ruling: reversed the VA's decision after finding sufficient evidence showing
the existence of employer-employee relationship.
ISSUE: Whether the VA's decision is subject to a motion for reconsideration -- YES
RULING:
 Article 262-A of the Labor Code does not prohibit the filing of a motion for
reconsideration.
 Article 262-A deleted the word "unappealable" from Article 263. The deliberate
selection of the language in the amendatory act differing from that of the original
act indicates that the legislature intended a change in the law, and the court
should endeavor to give effect to such intent. We recognized the intent of the
change of phraseology in Imperial Textile Mills, Inc. v. Sampang.
 In Coca-Cola Bottlers Phil., Inc., Sales Force Union-PTGWO-Balais v. Coca-
Cola Bottlers Philippines, Inc., we likewise ruled that the VA's decision may still
be reconsidered on the basis of a motion for reconsideration seasonably
filed within 10 days from receipt thereof. The seasonable filing of a motion
for reconsideration is a mandatory requirement to forestall the finality of
such decision.
 These rulings fully establish that the absence of a categorical language in Article
262-A does not preclude the filing of a motion for reconsideration of the VA's
decision within the 10-day period. Teng's allegation that the VA's decision had
become final and executory by the time the respondent workers filed an appeal
with the CA thus fails. We consequently rule that the respondent workers
seasonably filed a motion for reconsideration of the VA's judgment, and the VA
erred in denying the motion because no motion for reconsideration is allowed.
 The Court notes that despite our interpretation that Article 262-A does not
preclude the filing of a motion for reconsideration of the VA's decision, a contrary
provision can be found in Section 7, Rule XIX of the Department of Labor's
Department Order (DO) No. 40, series of 2003.
 The requirement that administrative remedies be exhausted is based on the
doctrine that in providing for a remedy before an administrative agency, every
opportunity must be given to the agency to resolve the matter and to exhaust all
opportunities for a resolution under the given remedy before bringing an action
in, or resorting to, the courts of justice. Where Congress has not clearly required
exhaustion, sound judicial discretion governs, guided by congressional intent.
 By disallowing reconsideration of the VA's decision, Section 7, Rule XIX of DO
40-03 and Section 7 of the 2005 Procedural Guidelines went directly against the
legislative intent behind Article 262-A of the Labor Code.These rules deny the VA
the chance to correct himself and compel the courts of justice to prematurely
intervene with the action of an administrative agency entrusted with the
adjudication of controversies coming under its special knowledge, training and
specific field of expertise. In this era of clogged court dockets, the need for
specialized administrative agencies with the special knowledge, experience and
capability to hear and determine promptly disputes on technical matters or
intricate questions of facts, subject to judicial review, is indispensable.
In Industrial Enterprises, Inc. v. Court of Appeals, we ruled that relief must first
be obtained in an administrative proceeding before a remedy will be supplied by
the courts even though the matter is within the proper jurisdiction of a court.
 There exists an employer-employee relationship between Teng and the
respondent workers. For the 13 years that the respondent workers worked
for Teng, they received wages on a regular basis, in addition to their shares in
the fish caught. The worksheet showed that the respondent workers received
uniform amounts within a given year, which amounts annually increased until the
termination of their employment in 2002. Teng's claim that the amounts received
by the respondent workers are mere commissions is incredulous, as it would
mean that the fish caught throughout the year is uniform and increases in
number each year.
 More importantly, the element of control — which we have ruled in a number of
cases to be a strong indicator of the existence of an employer-employee
relationship — is present in this case. Teng not only owned the tools and
equipment, he directed how the respondent workers were to perform their job as
checkers; they, in fact, acted as Teng's eyes and ears in every fishing expedition.
 In the present case, the maestros did not have any substantial capital or
investment. Teng admitted that he solely provided the capital and equipment,
while the maestros supplied the workers. The power of control over the
respondent workers was lodged not with the maestros but with Teng. As
checkers, the respondent workers' main tasks were to count and classify
the fish caught and report them to Teng. They performed tasks that were
necessary and desirable in Teng's fishing business. Taken together, these
incidents confirm the existence of a labor-only contracting which is prohibited in
our jurisdiction, as it is considered to be the employer's attempt to evade
obligations afforded by law to employees.

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