Monday, December 15, 2014

[CASE DIGEST] ATOK BIG WEDGE CO., INC. v. CA (G.R. 169510)


August 8, 2011

Ponente: Peralta, J.

FACTS:

·         In 1992, Atok Big Wedge Company, a mining company, engaged the services of Jesus P. Gison as part-time consultant on retainer basis. Gison was tasked to assist the company's retained legal counsel with matters pertaining to the prosecution of cases against illegal surface occupants within the area covered by the company's mineral claims, and to perform liaison work with several government agencies, which he said was his expertise.

·         As payment for his services, Gison received a retainer fee of P3,000.00 a month, which was delivered to him either at his residence or in a local restaurant. The parties executed a retainer agreement, but such agreement was misplaced and can no longer be found. The company did not require Gison to report to its office on a regular basis, except when occasionally requested by the management to discuss matters needing his expertise as a consultant. The said arrangement continued for the next eleven years.

·         In 2003, Gison requested that the company cause his registration with the Social Security System (SSS), but the company did not accede to his request. He later reiterated his request but it was ignored by the company on the ground that he was only a retainer/consultant. 

·         In February 2003, Gison filed a complaint with the SSS against Atok Big Wedge for the latter's refusal to cause his registration. On the same date, he was advised by the company that his retainer contract was being terminated within 30 days from the receipt thereof.  This prompted Gison to file a complaint, this time before the NLRC, for illegal dismissal, unfair labor practice, underpayment of wages, non-payment of 13th month pay, vacation pay, and sick leave pay.

·         In September 2003, Labor Arbiter Rolando D. Gambito dismissed Gison's complaint, ruling that there was no employer-employee relationship between him and Atok Big Wedge. This was affirmed by the NLRC. 

·         Gison filed an appeal before the CA, which ruled in his favor. According to the CA, Gison can be considered a regular employee based on Art. 280 of the Labor Code. The CA pointed out that applying the provision to the Gison's case, he is deemed a regular employee of the company after the lapse of one year from his employment. Considering also that Gison had been performing services for the company for eleven years, he is entitled to the rights and privileges of a regular employee. Hence, the instant petition.

RULING: 

CA ruling overturned. No employer-employee relationship between Gison and Atok Big Wedge. As such, his termination was valid and that Atok Wedge was under no legal obligation to cause his registration with the SSS.

Whether Gison is a regular employee of Atok Big Wedge, and should therefore be entitled to certain benefits. – NO.

·         Using the four-fold test, an employer-employee relationship is apparently absent in the case at bar. Among other things, Gison was not required to report everyday during regular office hours of Atok Big Wedge. Gison's monthly retainer fees were paid to him either at his residence or a local restaurant. More importantly, Atok Big Wedge did not prescribe the manner in which Gison would accomplish any of the tasks in which his expertise as a liaison officer was needed; Gison was left alone and given the freedom to accomplish the tasks using his own means and method. Gison was assigned tasks to perform, but Atok Big Wedge did not control the manner and methods by which Gison performed these tasks. Verily, the absence of the element of control on the part of the petitioner engenders a conclusion that he is not an employee of the petitioner.

·         The doctrine that the existence of an employer-employee relationship is ultimately a question of fact and that the findings thereon by the Labor Arbiter and the NLRC shall be accorded not only respect but even finality when supported by substantial evidence. 

·         Gison clearly admitted that Atok Big Wedge hired him in a limited capacity only and that there will be no employer-employee relationship between them. Gison was well aware of the agreement that he was hired merely as a liaison or consultant of the petitioner and he agreed to perform tasks for the petitioner on a temporary employment status only.

Whether the CA erred in using Art. 280 of the Labor Code as basis for its ruling. – YES. 

·         Art. 280 of the Labor Code is not applicable in the case at bar. Indeed, the Court has ruled that said provision is not the yardstick for determining the existence of an employment relationship because it merely distinguishes between two kinds of employees, i.e., regular employees and casual employees, for purposes of determining the right of an employee to certain benefits, to join or form a union, or to security of tenure; it does not apply where the existence of an employment relationship is in dispute.