843. MWSS VS.

HERNANDEZ
FACTS:

Several contractual employees of the MWSS filed a complaint before the NLRC for willful
failure to pay their wage differentials, allowances, and other monetary benefits.
The defense of MWSS was that it was a GOCC, and therefore the NLRC had no
jurisdiction over the case.
Nevertheless, the Labor-Arbiter rendered a decision against MWSS citing that only
regular employees are NOT within the NLRC jurisdiction. Since the petitioners were
contractual employees, they are still within NLRC jurisdiction. The L-A also stated that
the Civil Service Decree applies to employees in government corporation in all matters,
except monetary claims, which is a case governed by the Labor Code. Since this is a
money case, the NLRC still had jurisdiction.
MWSS filed an certiorari to the SC

ISSUE: Are employees of the MWSS covered by the Labor Code or the Civil Service laws?
SC:
MWSS is a GOCC created under RA 6234. Employment in the MWSS is governed NOT BY
THE LABOR CODE, but by civil service law rules and regulations. Thus, controversies arising
from or connected with that employement are NOT RECOGNIZABLE BY THE NLRC.
The contention of the L-A that only regular employees are not covered by NLRC, and that
non-regular or contractual employees are still covered by NLRC, is sophistical. There is no
legal or logical justification for such a distinction. Indeed it is ruled out by the fact that
positions in the civil service are classified into career and non-career. (not by regular or
contractual).
The other contention of the L-A that monetary claims are still governed by the NLRC/ Labor
Code, is even more patently illogical, and deserves no confutation.
RECAP:
1. The MWSS is a GOCC and employment is governed by the CSL, not the Labor Code
2. Both regular and contractual employees are covered. There is no distinction.
3. NLRC has no jurisdiction over money claims of contractual employees of GOCCs. They are
still governed by the CSL, not the Labor Code.