Labor Law Case Digest Index (Mercader)
Labor Law Case Digest Index (Mercader)
Labor Law Case Digest Index (Mercader)
2. Southeast International Rattan, Inc v. Coming G.R. NO. 126297 February 11, 2008
To ascertain the existence of an employer-employee relationship jurisprudence has invariably adhered to the
four-fold test, to wit:
(1) the selection and engagement of the employee;
(2) the payment of wages;
(3) the power of dismissal; and
(4) the power to control the employee’s conduct, or the so-called "control test."
In resolving the issue of whether such relationship exists in a given case, substantial evidence – that amount of
relevant evidence which a reasonable mind might accept as adequate to justify a conclusion – is sufficient.
Although no particular form of evidence is required to prove the existence of the relationship, and any competent
and relevant evidence to prove the relationship may be admitted, a finding that the relationship exists must
nonetheless rest on substantial evidence.
Accordingly, petitioner's employment with ANZ depended on the outcome of his background check, which
partakes of the nature of a suspensive condition, and hence, renders the obligation of the would-be employer, i.e.,
ANZ in this case, conditional. While a contract may be perfected in the manner of operation described above, the
efficacy of the obligations created thereby may be held in suspense pending the fulfillment of particular conditions
agreed upon. In other words, a perfected contract may exist, although the obligations arising therefrom if
premised upon a suspensive condition would yet to be put into effect. Thus, until and unless petitioner complied
with the satisfactory background check, there exists no obligation on the part of ANZ to recognize and fully accord
him the rights under the employment contract.
32. San Miguel Corporation Employees Union v. Bersamira GR NO. 87700 June 13, 1990
A "labor dispute" as defined in Article 212 (1) of the Labor Code includes "any controversy or matter concerning
terms and conditions of employment or the association or representation of persons in negotiating, fixing,
maintaining, changing, or arranging the terms and conditions of employment, regardless of whether the disputants
stand in the proximate relation of employer and employee." A labor dispute can nevertheless exist "regardless of
whether the disputants stand in the proximate relationship of employer and employee" (Article 212 [1], Labor
Labor Law 2 (Labor Relations) | Atty. Mercader Case Doctrines ib3g
that the NLRC does not have original jurisdiction over the cases enumerated in paragraph (a) and that if a claim
The labor disputes referred to in the same Article 262 [of the Labor Code] can include all those disputes
mentioned in Article 217 over which the Labor Arbiter has original and exclusive jurisdiction.” From the above
discussion, it is clear that voluntary arbitrators may, by agreement of the parties, assume jurisdiction over a
termination dispute such as the present case, contrary to the assertion of petitioner that they may not.
In ruling that VA assumed jurisdiction in deciding the issue of the legality of dismissal of Albarico, the
circumstances of the case lead to no other conclusion that the claim for separation pay was premised on his
allegation of illegal dismissal. Then, VA properly assumed jurisdiction over the issue of the legality of his
dismissal. To think otherwise would lead to absurdity, because the voluntary arbitrator would then be deciding that
issue in a vacuum. The arbitrator would have no basis whatsoever for saying that respondent was entitled to
separation pay or not if the issue of the legality of Albarico’s dismissal was not resolved first.
This claim is distinguished from cases of actions for damages where the employer-employee relationship is
merely incidental and the cause of action proceeds from a different source of obligation. Thus, the regular courts
have jurisdiction where the damages claimed for were based on: tort, malicious prosecution, or breach of contract,
as when the claimant seeks to recover a debt from a former employee or seeks liquidated damages in the
enforcement of a prior employment contract. The fact that the transaction happened at the time they were
employer and employee did not negate the civil jurisdiction of trial court. Hence, it is erroneous for the LA and the
CA to rule on such claim arising from a different source of obligation and where the employer-employee
relationship was merely incidental, moreso when the claim does not arise from or is necessarily connected with
the fact of termination.
-end of midterms.