$,upreme !court: L/.epublic of Tbe, Tlbilippines
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$,upreme !court: L/.epublic of Tbe, Tlbilippines
SECOND DIVISION
PERLAS-BERNABE, S.A.J,
-versus- Chairperson,
GESMUNDO,
LAZARO-JAVIER,
FOREVER RICHSONS LOPEZ, and
TRADING CORPORATION, ROSARIO* , JJ
CHARVERSON WOOD
INDUSTRY CORPORATION,
and ADAN CO,
Respondents.
DECISION
LOPEZ, J.:
ANTECEDENTS
On June 28, 2013, Oscar S. Ortiz (Oscar), filed a complaint for illegal
dismissal and monetary claims against Forever Richsons Trading Corporation
(Forever Richsons), now Charverson Wood Industry Corporation, and Adan
* Designated additional Member per Special Order No. 2797 dated November 5, 2020.
1
Rollo, pp. 47-84.
2 Id. at 88-97; penned by Associate Justice Ronaldo B. Martin, with the concurrence of Associate Justices
I
Decision 2 G.R. No. 238289
For their part, respondents averred that they entered into a contract with
vVorkpool Manpower - a legitimate job contractor, certified9 by the
Department of Labor a..'1d Employment (DOLE) for the supply of workers who
will perform various jobs in the production and office areas. 10 Oscar signed a
Contract Agreement as Project Worker with Workpool Manpower covering
his employment from January 24, 2013 to June 24, 2013.u Workpool
Manpower's manager, Bethuel B. Cruzado, attested that Oscar was an
employee of Workpool Manpower whose employment was terminated by
reason of the expiration of his contract. 12 Thus, Oscar is not an employee of
the respondents; he was hired by Workpool Manpower for a specific
undertaking and for a fixed duration; and his salaries were paid by V✓orkpool
Manpower. Considering that Oscar is not an employee of the respondents,
there is no way for them to dismiss him, nor can he claim for monetary
benefits from them. 13
4
Id. at 100. Oscar claimc-:d fcff t¾e folwwing monerzry benefits: CO unpaid salaries/wages; (2) holiday
pay; (3) premium pay for res; day/holiiav pay; (4) overtime pay; (5) allo,,vances; (6) 13 th month pay; and
(7) service incentive leave pay, as wen <'!S moral and exempiary damages.
5
Id. at 101-1!4.
6 Id.at115-ll7.
' Id. at 118.
' Id. at 112.
9
Id. at 148-149.
10 id. at 131--133.
" Id. at. 134.
12 ld. at 135-136.
13 Id. at 126-128.
r
Decision 3 G.R. No. 238289
Before the CA, 22 Oscar's petition for certiorari was dismissed, and the
NLRC decision - that Workpool Manpower is an indispensable party- was
affirmed. For one, the CA agreed with the labor tribunals that Workpool
Manpower is the employer of Oscar. Also, the CA declared that "the labor
arbiter ordered [Oscar] to implead [Workpool Manpower] as it found that it
is an indispensable party to the case. [OscarJ refused to obey such order and
argued that [Workpool Manpower] is not an indispensable party because it
is a labor-only contractor. "23 Moreover, it was raised that the CA decision in
Charverson Wood Industry Corporation v. National Labor Relations
Commission and William Longakit (Longakit case ),24 is not applicable to
Oscar since in the Longakit case there was no allegation of a contract between
14
Id. at 153-159.
15 Id. at 169-173. The dispositive portion of the decision reads:
WIIBREFORE, premises considered, this complaint is hereby dismissed for failure to
implcad and/or joined [sic] WORKPOOL MANPOWER SERVICES as an indispensable party to
this case.
SO ORDERED.
16 Id. at 173.
17
Id.at171-172
18 Id. at I 74-175.
19 Id. at 245-248. The dispositive portion of the NLRC's Decision provides:
MIEREFORE, foregoing premises considered, the instant appeal is hereby DISMISSED
for lack of merit and the decision appealed from AFFIRMED, subject to the above qualification.
SO ORDERED.
20 Id. at 249-266.
21 Id. at 267-269.
22
Supra note 2.
23
Rollo, p. 94.
!
24 CA-G.R. SP No. 06422-MIN.
Decision 4 G.R. No. 238289
On the other hand, respondents assert that Oscar is not their employee
as shown by his employment contract with Workpool Manpower, and
numerous documents revealing that Workpool Manpower paid for Oscar's
wages and contributions to the Social Security System, Pag-IBIG Fund, and
PhilHealth. As Oscar's employer, Workpool Manpower is an indispensable
party in this case. 28
The general rule is that only questions of law may be raised and
resolved by this Court in petitions under Rule 45 of the Rules of Court,
because the Court, not being a trier of facts, is not duty-bound to reexamine
25
Rollo, pp. 337-350.
y
26
Supra note 3.
27
Rollo, pp. 61-81.
28
Id. at 424-432.
Decision 5 G.R. No. 238289
29 Deocariza v. Fleet Management Services Phils., Inc., 836 Phil. 1087, 1097 (2018); Quintanar v. Coca-
Cola Bottlers, Philippines, Inc., 788 Phil. 385,401 (2016).
30
Deocariza v. Fleet Management Services Phils., Inc., 836 Phil. 1087 (2018).
31
Id. at 1097. 1) when the findings are grounded entirely on speculations, surmises, or conjectures; 2) when
the inference made is manifestly mistaken, absurd, or impossible; 3) when there is grave abuse of
discretion; 4) when the judgment is based on misapprehension of facts; 5) when the fmdings offact are
conflicting; 6) when in making its findings, the Court of Appeals went beyond the issues of the case, or
its findings are contrary to the admissions of both the appellant and the appellee; 7) when the findings
are contrary to that of the trial court; 8) when the findings are conclusions without citation of specific
evidence on which they are based; 9) when the facts set forth in the petition, as well as in the petitioner's
main and reply briefs, are disputed by the respondent; 10) when the findings of fact are premised on the
supposed absence of evidence and contradicted by the evidence on record; or I I) when the Court of
Appeals manifestly overlooked certain relevant facts not disputed by the parties, which, if properly
considered, would justify a different conclusion. (See Manila Shipmanagement & Manning, Inc. v.
Aninang, [824 Phil. 916, 925 (2018).])
32
Alaska Milk Corporation v. Paez. G.R No. 237277, November 27, 2019; Consolidated Building
Maintenance, Inc. v. Asprec, 832 Phil. 630, 642 (2018).
33 Rollo, p. 248. The pertinent portion of the NLRC's Decision reads:
The matter of whether or not [Workpool Manpower] is a labor-only contractor has yet to
be determined in the arbitration proceedings, with it be given a day in court to be heard.
Otherwise, it would deprive [Workpool Manpower] of its fundamental right to due process.
Thus, there can be no final determination of such issue without [Workpool Manpower] being
impleaded as respondent in this case. xx x.
34 Rules Implementing Articles 106 to 109 of the Labor Code, as Amended; see also DO No. 18-A, Series
of 2011, which became effective on December 4, 2011.
)
Decision 6 G.R. No. 238289
to perform a job, work or service for a principal; 35 and (a) the contractor does
not have substantial capital or investments in the form of tools, equipment,
machineries, work premises, among others, and the employees recruited and
placed are performing activities which aTe usually necessary, or desirable to
the operation of the company, or directly related to the main business of the
principal within a definite or predetermined period, regardless of whether such
job, work or service is to be performed, or completed within, or outside the
premises of the principal; or (b) the contractor does not exercise the right to
control over the performance of the work of the employee. 36
Verily, not all forms of contracting are prohibited. The law allows
contracting and subcontracting of services, but closely regulates these
activities for the protection of workers. An employer can contract out part of
its operations, provided, it complies with tlie limits and standards provided in
the Labor Code and in its implementing rules. 37 Contracting or subcontracting
shall be legitimate if all the following circumstances concur:
(a) The contractor must be registered in accordance with the rule and
carries a distinct and independent business and undertakes to
perform the job, work or service on its own responsibility, according
to its own manner and method, and free from control and direction
of the principal in all matters connected with the performance of the
work except as to the results thereof;
(c) The Service Agreement ensure compliance with all the rights and
benefits under Labor Laws.38
35
DO No. 18-02, series of 2002, Sec. 5.
36
DO No. 18-A, series of20! I, Sec. 6.
37 Coca-Cola Bottlers Phils., Inc. vs. Dela Cr.a, 622 Phil. 886, 902 (2009).
38
DO No. 18-A, series of 2011, Sec. 4.
39
See Consolidated Building Maintenance, Inc. v. Asprec, J7 , Supra note 32, at 644.
40 832 Phil. 630 (2018).
41
Id. at 647-650.
I
Decision 7 G.R. No. 238289
42
Rollo, p. 148.
43
Id. at 149.
44
Consolidated Huilding Ji,,faintenance, (nc. v. Asprec, Jr., supra note 32 at 645.
45
Alaska Afilk C01poration v. Paez, supra note 32.
.u; Rollo) PP- 131-133.
47 Id. at i°3.3.
48
Id. at 126-127.
49
Coca-Cola Bottlers Phils., Inc. ·v. Dela Cruz) supra note 37 ~ at 905.
I
Decision 8 G.R. No. 238289
6. It is expressly and clearly understood and agreed that the CLIENT is not [the]
employer of the CONTRACTOR and/or its hired workers or employees.
Nothing herein shall be construed as establishing the relationship of employer
and employee, between the CLIENT and CONTRACTOR. As such, the
CONTRACTOR shall at times be personally and directly responsible for the:
On the other hand, Oscar attested, and the respondents did not dispute,
that he was assigned the following tasks: (1) receiver in the Dahul 1 machine,
which is used to strip the bark of logs; (2) spreader machine operator of the
plywood finish assembly department; (3) core cutter operator at the
production section; and (4) piling 3-feet Cross Band and gathering and
burning of wood debris. 54 It cannot be denied that the duties of Oscar involve
the production and manufacturing of the respondents' main product, plywood.
Thus, his functions are necessary and desirable to the usual business and trade
of the respondents. In addition, the machines operated by Oscar were owned
l
Decision 9 G.R. No. 238289
Where, as in this case, the main issue is labor contracting and a labor-
only contracting situation is found to exist as discussed below, the question of
whether or not the purported contractors are necessary parties is a non-issue;
these purported contractors are mere representatives of the principal/employer
whose personality, as against that of the workers, is merged -,,ifu faat of the
55
Cf. Alaska }vfilk Corporation v_ Paez. et al., G.P_ No. 237277, November 27, 2019, supra note 32.
56
Rollo, pp. 115-116.
57
Coca-Cola Bottlers Phils., inc. v. Dela Cruz,. supra note 37, at 900.
58
Id. at 900-90 I.
59
622 Phil. 886 (2009).
t
Decision 10 G.R. No. 238289
60
ld.at901.
61 LABOR CODE, Art. 279, reads:
Security of Tenure. - In cases ofregular employment, t.'le employer sha!! not terrnina1e the sc-;_vI~s
ofan employee except for a just Caus.:-. or when authorized by this Title. A.n employee who is unjusiiy
dismissed from work shall be entitled to reinstatement without !0Ss of seniority right.'- and other
privileges a.'1.d to his full backwages, inc!usive of ai1cwances, and to his other benefits or their
monetary equiva1_e-.nt computed from the time his compensati0n was withheld .from hir.2 u.p to the time
of his actual remstatement.
02
Purayday v. Shogun Shipping Co., Inc., G.R. No. 204555, July 6. 2020.
63
Supra note 6 l.
64
See Petron Corpoiation v. Caberte, 759 Phil. 353, 371-372 (2015).
t
Decision 11 G.R. No. 238289
SO ORDERED.
WE CONCUR:
ESTELA M. P~RNABE
Senior Associate Justice
Chairperson
Jj__J__;_
G.GESMUNDO AMY .A~RO~.JAVIER
Js1:aciate Justice
A TT ESTA TI ON
I attest that the conclusions in the above Decision had been reached in
consultation before the case was assigned to the writer of the opinion of the
Court's Division.
ESTELA J1i~RNABE
Senior Associate .Justice
Chairperson
CERTIFICATION
DIOSDADO
Chief