Monday, February 29, 2016

CASE DIGEST: LIKHA-PMPB vs Burlingame Corp 524 SCRA 690 (2007)

Concept: Independent Contract and Labor Only Contractor

Facts:
  • Jan. 17, 2000, LIKHA-PMPB filed a petition for certification before DOLE, it seeks to represent all RANK and FILE EMPLOYEES (means the employee doesn't occupy a high-level position within the organization) of the respondent, which counts to 70 all in all.
  • LIKA-PMPB said that there is no existing union in Burlingame representing the regular rank and file employees.
  • It prayed that it be voluntarily recognized by Burlingame to be a collective bargaining agent or the alternative, that a certification/consent election be held among regular rank and file employees.
  • Burlingame filed a motion to dismiss the petition. It argued that there exists no employee-employer relationship between them and the members of the LIKHA-PMPB. It further alleged that the members are employee F.GARIL MANPOWER SERVICES, a duly licensed local employment agency. To prove such contention, respondent presented a copy of its contract with F. Garil.
  • June 29, 2000. Med-Arbiter Renato Panungo dismissed the petition for lack of employee-employer relationship, which lead LIKHA to file a appeal before the secretary of labor and employment.
  • December 29, 2000. Secretary ordered the immediate conduct of a certificaiton election.
  • Respondents went to CA, CA revered the decision. Petitioners filed for a motion of reconsideration. Denied.
Issue: w/on employee-employer exists because F. Garil is an independent contractor

Held:
  • There is is employee-employer relationship and F.Garil is not an independent contractor 
  • Findings shows thru four-fold test, shows that there is Employee-Employer relationship (1) selection (2) payment of wages (3) power to dismiss (4) power to control conduct
  • F. Garil is a labor only contractor. 
    • Does not have substantial capital or investments in form of tools, equipment, machineries, work premises and other materials
    • the work of the promo girls are directly relation to the princicpal business
    • free from control and supervision from its principal
Source and Full Text: http://sc.judiciary.gov.ph/jurisprudence/2007/march2007/162053.htm

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