096 TIANGCO v. ABS-CBN BROADCASTING CORPORATION CBN as exclusive talent for radio and television.

Thereafter, ABS-CBN issued a

GR No. 200434 | 6 December 2021 | Employee vs Independent Contractor | Uy Memorandum concerning commercial appearances of its talents and regular
employees. Citing the "clear . . . need to protect the integrity and credibility of the
Petitioner: CARMELA C. TIANGCO news and public affairs programs[,]"the Memorandum directed all on-air and/or
Respondent: ABS-CBN BROADCASTING CORPORATION on-camera talents and employees in the Radio and the News and Public Affairs
Departments to refrain from appearing in commercial advertisements, violation
Recit-Ready: of which shall be considered a serious breach of company rules and regulations.
Tiangco was initially engaged by respondent ABS-CBN Corporation as Talent Newscaster, on 3. Petitioner allegedly violated the Memorandum when she appeared in a Tide
an exclusive basis. Her contracts were renewed several times. They entered into an commercial that aired sometime in December 1995. Consequently, on 16
agreement where Tiango agreed to be ABS-CBN’s exclusive talent. A Memorandum was
January 1996, ABS-CBN placed petitioner under suspension for three months
subsequently published by ABS-CBN prohibiting its all on-air and/or on-camera talents and
without pay from her co-anchor positions in TV Patrol on Channel 2 and Mel &
employees in the Radio and the News and Public Affairs Departments to refrain from
appearing in commercial advertisements. Petitioner allegedly violated the Memorandum Jay radio program over at DZMM.
when she appeared in a Tide commercial. Consequently, she was placed under suspension 4. Petitioner, through its agent MJMDC, sent a Letter to ABS-CBN and expressed
for 3 months. Petitioner arguedthat her suspension and alleged constructive dismissal. She that her suspension and alleged constructive dismissal were in violation of the
claimed that she is not an independent contractor but a regular employee based on the four- Agreement. For that reason, they were rescinding the Agreement at their
fold test and was illegally dismissed. W/N petitioner an ABS-CBN employee or an instance. In response, ABS-CBN, through counsel, rebuked the rescission, saying
independent contractor → independent contractor. The Court ruled that Tiango is an that there was no basis for it as petitioner was an independent contractor and
independent contractor, applying the four-fold test. First, petitioner's acknowledgment that
that her suspension for her violation of the Agreement did not constitute
she was hired by reason of her peculiar talents, skills, personality, and celebrity status
constructive dismissal.
proved the presence of one of the elements of an independent contractor. A unique skill,
expertise, or talent is one of the factors in determining the nature of a person's status at 5. LA: declared petitioner’s suspension and subsequent constructive dismissal as
work. Second, payment through the company payroll on specified dates with income tax illegal.
withheld at source is not conclusive proof of employer-employee relations, contrary to 6. ABS-CBN appealed this decision to the NLRC on the ground of lack of
petitioner’s argument. Third, petitioner viewed her three-month suspension without pay as jurisdiction considering that no employer-employee relationship existed between
proof that ABS-CBN had power of discipline over her. This is incorrect. The suspension itself ABS- CBN and petitioner.
was improper under the circumstances. Lastly, petitioner alleged that ABS-CBN controlled 7. NLRC: Vacated LA decision.
the manner she performed her job, particularly as a news anchor of TV Patrol, as she merely
8. Petitioner claimed that she is not an independent contractor based on the ruling
read the news. As a news anchor, petitioner is tasked to read or present a news copy that
she or another person wrote. Nothing on record, however, shows that petitioner performed
in Sonza but is a regular employee based on the four-fold test and was illegally
other tasks in relation to being an anchor, or that ABS-CBN dictated how petitioner should dismissed.
read the news or perform her other related tasks, if any. a. ABS-CBN specifically selected and hired her for her individual and peculiar
talents, skills, personality, and celebrity status
b. ABS-CBN paid her salaries through a payroll account every 10th and 25th day of
Doctrine: each month and withheld compensation income tax
An independent contractor is one who carries on a distinct and independent business and c. Petitioner was subject to ABS-CBN's rules and regulations, as in fact, ABS- CBN
undertakes to perform the job, work, or service on their own account and under their own placed her under a three-month suspension without pay
responsibility according to their own manner and method, free from the control and d. Unlike her role as co-host of "Mel & Jay," ABS-CBN controlled the means and
direction of the principal in all matters connected with the performance of the work except
method of her performance of her job as newscaster for TV Patrol starting in
as to the results thereof. Hence, while an independent contractor enjoys independence and
freedom from the control and supervision of their principal, an employee is subject to the
1986 as she was merely tasked to read the news. Petitioner further maintains
employer's power to control the means and methods by which the employee's work is to be that she also assumed the roles as Director for Lingkod Bayan, a job grade S4,
performed and accomplished. segment producer in TV Patrol, and news reporter.

FACTS: ISSUE:
1. Tiangco was initially engaged by respondent ABS-CBN Corporation as Talent W/N petitioner an ABS-CBN employee or an independent contractor → independent
Newscaster, on an exclusive basis. Her contracts were renewed several times. contractor
2. ABS-CBN entered into an agreement with Mel & Jay Management and
Development Corporation, committing to provide petitioner's services to ABS-

 RATIO: any radio or television program, segment or feature of any other radio or television
station without the prior written approval of the company."
An independent contractor is one who carries on a distinct and independent
business and undertakes to perform the job, work, or service on their own account Although there was basis to hold petitioner responsible for the breach, ABS-CBN has
and under their own responsibility according to their own manner and method, free no basis to suspend. The tie that binds ABS-CBN and petitioner was the Agreement
from the control and direction of the principal in all matters connected with the they signed in May 1994. There is nothing in the Agreement that allows ABS-CBN to
performance of the work except as to the results thereof. Hence, while an suspend petitioner for violating its rules. Its remedy should have been to terminate
independent contractor enjoys independence and freedom from the control and the Agreement as stipulated.
supervision of their principal, an employee is subject to the employer's power to
control the means and methods by which the employee's work is to be performed Lastly, petitioner alleged that ABS-CBN controlled the manner she performed her job,
and accomplished. particularly as a news anchor of TV Patrol, as she merely read the news. As a news
anchor, petitioner is tasked to read or present a news copy that she or another
Independent contractors often present themselves to possess unique skills, person wrote. Nothing on record, however, shows that petitioner performed other
expertise or talent to distinguish them from ordinary employees. The specific tasks in relation to being an anchor, or that ABS-CBN dictated how petitioner should
selection and hiring of SONZA in his case is, because of his unique skills, talent and read the news or perform her other related tasks, if any. As a well-known veteran
celebrity status not possessed by ordinary employees, is a circumstance indicative, news anchor, petitioner's manner in delivering the news was distinctly her own. Her
but not conclusive, of an independent contractual relationship. voice, stature, aura, and representation, form part of the unique qualities that
impelled ABS-CBN to pick her for the job. Petitioner "reading the news" is not the
The line of jurisprudence tells us that there is no inflexible rule to determine if a same as an average person reading the same news. The impact would simply not be
person is an employee or an independent contractor; thus, the characterization of the same as there is premium that goes with petitioner's stature.
the relationship must be made based on the particular circumstances of each case.
There are several factors that may be considered by the courts, but the right to
control remains the dominant factor in determining whether one is an employee or
an independent contractor.

Application of the Four-Fold Test

First, petitioner's acknowledgment that she was hired by reason of her peculiar
talents, skills, personality, and celebrity status proved the presence of one of the
elements of an independent contractor. A unique skill, expertise, or talent is one of
the factors in determining the nature of a person's status at work.

Second, payment through the company payroll on specified dates with income tax
withheld at source is not conclusive proof of employer-employee relations. Such an
arrangement is oftentimes agreed upon only for purposes of convenience and does
not, in itself, create a badge of employment status.

Third, petitioner viewed her three-month suspension without pay as proof that ABS-
CBN had power of discipline over her. This is incorrect. The suspension itself was
improper under the circumstances. Records showed that ABS-CBN suspended
petitioner for her alleged violation of the Memorandum prohibiting talents from
appearing in commercials. The prohibition was likewise imprinted in petitioner's
contract as part of the that warranty, stating "she shall not appear in commercials
nor plug, mention, or otherwise promote in the radio and television programs herein