FVR Skills V Jovert Seva GR 200857

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Doctrine: to December 31, 2008.

 Pursuant to this, the respondents were


Rights of Contractual Employees deployed to Robinsons.

G.R. No. 200857               October 22, 2014 Halfway through the service contract, the petitioner asked the
respondents to execute individual contracts which stipulated that
FVR SKILLS AND SERVICES EXPONENTS, INC. (SKILLEX), their respective employments shall end on December 31, 2008,
FULGENCIO V. RANA and MONINA R. BURGOS, Petitioners,  unless earlier terminated.
vs.
JOVERT SEV A, et. al, Respondents. The petitioner and Robinsons no longer extended their contract of
janitorial services. Consequently, the petitioner dismissed the
Brief: respondents as they were project employees whose duration of
employment was dependent on the petitioner's service contract
with Robinsons.
This is a petition for review on certiorari the challenging the
December 22, 2011 decision and the March 2, 2012
resolution (assailed CA rulings) of the Court of Appeals (CA) in The respondents responded to the termination of their
CA-G.R. SP No. 120991. These assailed CA rulings affirmed the employment by filing a complaint for illegal dismissal with the
April 28, 2011 decision and the June 16, 2011 resolution (NLRC NLRC. They argued that they were not project employees; they
rulings) of the National Labor Relations Commission (NLRC) in were regular employees who may only be dismissed for just or
NLRC LAC No. 08-001687-10 (NLRC NCR Case Nos. 08-11557- authorized causes. The respondents also asked for payment of
09 and 08-11399-09). The NLRC rulings in turn reversed and set their unpaid wage differential, 13th month pay differential, service
aside the June 4, 2010 decision of the labor arbiter (LA). incentive leave pay, holiday pay and separation pay.

Facts: Issue:

The twenty-eight (28) respondents in this case were employees Whether the respondents are regular employees.
of petitioner FVR Skills and Services Exponents, Inc. (petitioner),
an independent contractor engaged in the business of providing Held:
janitorial and other manpower services to its clients. As early as
1998, some of the respondents had already been under the Yes. The respondents are regular employees, not project
petitioner's employ. employees. Article 280 (now Article 294) of the Labor Code
governs the determination of whether an employee is a regular or
On April 21, 2008, the petitioner entered into a Contract of a project employee.
Janitorial Service (service contract) with Robinsons Land
Corporation (Robinsons). Both agreed that the petitioner shall Under this provision, there are two kinds of regular employees,
supply janitorial, manpower and sanitation services to Robinsons namely: (1) those who were engaged to perform activities which
Place Ermita Mall for a period of one year - from January 1, 2008 are usually necessary or desirable in the usual business or trade
of the employer; and (2) those casual employees who became
regular after one year of service, whether continuous or broken, service incentive leave, rest days, overtime pay, holiday pay,
but only with respect to the activity for which they have been 13th month pay and separation pay; (c) social security and
hired. welfare benefits; (d) self-organization, collective bargaining and
peaceful concerted action; and (e) security of tenure.
The primary standard in determining regular employment is the
reasonable connection between the particular activity performed In this light, we thus conclude that although the respondents were
by the employee and the employer's business or trade. This assigned as contractual employees to the petitioner's various
connection can be ascertained by considering the nature of the clients, under the law, they remain to be the petitioner's regular
work performed and its relation to the scheme of the particular employees, who are entitled to all the rights and benefits of
business, or the trade in its entirety. regular employment.

Guided by this test, we conclude that the respondents' work as WHEREFORE, in light of these considerations, we hereby DENY
janitors, service crews and sanitation aides, are necessary or the petition. We AFFIRM with MODIFICATION the Court of
desirable to the petitioner's business of providing janitorial and Appeals' decision dated December 22, 2011 and resolution dated
manpower services to its clients as an independent contractor. March 2, 2012 in CAG.R. SP No. 120991, which also AFFIRMED
the National Labor Relation Commission's decision dated April
Also, the respondents had already been working for the petitioner 28, 2011 and resolution dated June 16, 2011. Petitioners
as early as 1998. Even before the service contract with Fulgencio V. Rana and Monina R. Burgos are hereby absolved
Robinsons, the respondents were already under the petitioner's from paying the respondents' monetary awards in their personal
employ. They had been doing the same type of work and capacity. No costs.
occupying the same positions from the time they were hired and
until they were dismissed in January 2009.The petitioner did not
present any evidence to refute the respondents' claim that from
the time of their hiring until the time of their dismissal, there was
no gap in between the projects where they were assigned to. The
petitioner continuously availed of their services by constantly
deploying them to its clients.

Lastly, under Department Order (DO) 18-02, the applicable labor


issuance to the petitioner's case, the contractor or subcontractor
is considered as the employer of the contractual employee for
purposes of enforcing the provisions of the Labor Code and other
social legislation.

DO 18-02 grants contractual employees all the rights and


privileges due a regular employee, including the following: (a)
safe and healthful working conditions;(b) labor standards such as

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