1. Mayon Hotel & Restaurant v.

Adana
Facts:- J osef a Po, manager of Mayon Hot el , was el d l!a"le for te em#loyees$
money cla!ms eventougte s!ngle #ro#r!etor "us!ness was reg!stered !n te name of er daugter
Pac!ta Po- Pet ! t ! oner s ! ns! st t at ! t was er r or f or t e %a"or Ar"!ter & te
&A to ave ruled tat Josefa !s te owner s!nce er #art!c!#at!on was l!m!ted to merely "e!ng te
overseer
'(()*:
Rul!ng:-+e cl a! m t at J osef a Po ! s mer el y t e over seer ! s not "orne out "y
te ev!dence- ,nl y J os ef a a##eared ! n t e #r oceed! ngs w- t e %a"or Ar"!ter. 't
was only on a##eal w- te .%R&t at Pac!ta s!gned te #lead!ngs- J osef a f a! l ed t o su"m! t
t e document of sal e. ' t was se wo e/erc!ses all acts & man!festat!ons of owners!#-
.ot w! t st and! ng t e cer t ! 0 cat e of reg! s t r at ! on, dou"ts were cast as to te
true nature of Josefa$s !nvolvement !n te enter#r!se, & te %a"or Ar"!ter ad te autor!ty to resolve
t!s !ssue- *ven wen t e cas e was on a##eal w- t e .%R&, not!ng was
su"m!tted to negate te %a"or Ar"!ter$ s 0nd!ng tat Pac!ta !s not te real owner of te otel-+er e
! s s u"st ant ! al ev! dence t o r ul e t at J osef a ! s te owner of te otel
1. (tate Mar!ne &or#orat!on vs. &e"u (eamen$s Assoc!at!on 23.R. .o. %-11444 Fe"ruary 15,
16789
Facts: +e #et!t!oners were engaged !n te "us!ness of mar!ne coastw!se trans#ortat!on. +ey
ad a &:A w!t te &e"u (eamen$s Assoc!at!on. ,n (e#tem"er 11, 16;1, te res#ondent
un!on 0led a com#la!nt aga!nst te #et!t!oners alleg!ng tat te o<cers and men wor=!ng on
"oard te #et!t!oners$ vessels ave not "een #a!d te!r s!c= leave, vacat!on leave and
overt!me #ay> tat te #et!t!oners$ treatened ten to acce#t te reduct!on of salar!es,
o"served "y oter s!#owners> tat after te M!n!mum ?age %aw ad ta=en e@ect, te
#et!t!oners reAu!red te!r em#loyees on "oard te!r vessels, to #ay te sum of PB.4B for every
meal, w!le te masters and o<cers were reAu!red to #ay te!r meals and tat "ecause te
ca#ta!n ad refused to y!eld to te general reduct!on of salar!es, te #et!t!oners d!sm!ssed te
ca#ta!n. +e #et!t!oner, on te!r defense, stated tat tey ave su@ered a 0nanc!al losses !n
te o#erat!on of te!r vessels and tere !s no law w!c #rov!des for te #ayment of s!c= leave
or vacat!on leave to em#loyees of #r!vate 0rms> tat w!t regards to te!r overt!me #ay, tey
ave always o"served te *!gt-our la"or %aw and tat overt!me does not a##ly to tose
wo #rov!de means of trans#ortat!on. +e dec!s!on ruled !n favor of te res#ondent un!on.
Hence, t!s #et!t!on.
'ssue: ?eter or not te reAu!red meals w!c te #et!t!oner com#any deducted from te
salary of te em#loyees !s cons!dered as fac!l!t!es, and not su##lements.
Held: (u##lements const!tute e/tra remunerat!on or s#ec!al #r!v!leges or "ene0ts g!ven to or
rece!ved "y te la"orers over and a"ove te!r ord!nary earn!ngs or wages. Fac!l!t!es, on te
oter and, are !tems of e/#ense necessary for te la"orer$s and !s fam!ly$s e/!stence and
su"s!stence so tat "y e/#ress #rov!s!ons of law, tey form #art of te wage and wen
furn!sed "y te em#loyer are deduct!"le terefrom, s!nce !f tey are not so furn!sed, te
la"orer would s#end and #ay tem Cust te same. 't !s argued tat te food or meal g!ven to
te dec= o<cers, mar!ne eng!neers and unl!censed crew mem"ers !n Auest!on, were mere
fac!l!t!es w!c sould "e deducted from wages, and not su##lements w!c, accord!ng to
(ect!on 16 of te M!n!mum ?age %aw, sould not "e deducted from suc wages. 't was found
out tat te meals were freely g!ven to crew mem"ers #r!or to te e@ect!v!ty of te M!n!mum
?age %aw w!le tey were on te !g seas not as #art of te!r wages "ut as a necessary
matter !n te ma!ntenance of te ealt and e<c!ency of te crew mem"ers dur!ng te
voyage. +e deduct!ons tere!n made for te meals g!ven after August 4, 16;1, sould "e
returned to tem, and te o#erator of te coastw!se vessels sould cont!nue g!v!ng te
"ene0ts. ?erefore, te #et!t!on !s d!sm!ssed, 0nd!ng out tat te meals or food !n Auest!on
are not fac!l!t!es "ut su##lements.
8. 3aa v &A DPataCo, 165;E
Facts: *uro#!l 'ndustr!es &or#orat!on was formerly one of te tenants !n +r!n!ty :u!ld!ng w!le
3aa wa sten te "u!ld!ng adm!n!strator.
Fecem"er 11, 16G8 - *uro#!l 'ndustr!es commenced an act!on !n te &F' of Man!la for
damage saga!nst 3aa for tres#ass!ng u#on !ts r!gts, namely, cutt!ng of !ts electr!c!ty, and
remov!ng !ts namefrom te "u!ld!ng d!rectory and gate #asses of !ts o<c!als and em#loyees.
June 15, 16G4 H &F' ruled !n favor of *uro#!l order!ng 3aa to #ay te former actual damages,
moral damages, e/em#lary damages and to #ay te costs.
August 1, 16G; - A wr!t of garn!sment was !ssued #ursuant to w!c Fe#uty (er!@ Ro/as
served a.ot!ce of 3arn!sment u#on *l 3rande Hotel, were 3aa was ten em#loyed,
garn!s!ng er Isalary,comm!ss!on and-or remunerat!on.I
3aa ten 0led w!t te &F' of Man!la a mot!on to l!ft sa!d garn!sment on te ground tat er
Isalar!es, comm!ss!on and, or remunerat!on are e/em#ted from e/ecut!on under Art!cle 1GB51
of te .ew &!v!l &ode.
&F': den!ed 3aa$s mot!on and er su"seAuent MR.
&A: d!sm!ssed 3aa$s #et!t!on on te ground tat 3aa !s not a mere la"orer as contem#lated
under Art!cle 1GB5 as te term la"orer does not a##ly to one wo olds a manager!al or
su#erv!sory #os!t!on l!=e tat of #et!t!oner, "ut only to tose Ila"orers occu#y!ng te lower
strata.I
't also eld tat te term IwagesI means te #ay g!venI as !re or reward to art!sans,
mecan!cs, domest!cs or men!al servants, and la"orers em#loyed !n manufactor!es,
agr!culture, m!nes, and oter manual occu#at!on and usually em#loyed to d!st!ngu!s te
sums #a!d to #ersons !red to #erform manual la"or, s=!lled or uns=!lled, #a!d at stated t!mes,
and measured "y te day, wee=, mont, or season.
'ssue:?,. 3aa may "e cons!dered a la"orer as contem#lated under Art!cle 1GB5 of te &&.
Held-Rat!o .,. 3aa !s not an ord!nary or ran= and 0le la"orer "ut a res#ons!"ly #laced
em#loyee of *l 3rande Hotel. &ons!der!ng te !m#ortance of 3aaJs funct!on !n *l 3rande
Hotel, !t !s unden!a"le tat 3aa !s occu#y!ng a #os!t!on eAu!valent to tat of a manager!al or
su#erv!sory #os!t!on.
+e word Ila"orerI !ncludes everyone wo #erforms any =!nd of mental or #ys!cal la"or, "ut
as commonly and customar!ly used and understood, !t only a##l!es to one engaged !n some
form of manual or #ys!cal la"or
'n Kl!ne vs. Russell !t was eld tat a la"orer, w!t!n te statute e/em#t!ng from garn!sment
te wages of a Ila"orer,I !s one wose wor= de#ends on mere #ys!cal #ower to #erform
ord!nary manual la"or, and not one engaged !n serv!ces cons!st!ng ma!nly of wor= reAu!r!ng
mental s=!ll or "us!ness ca#ac!ty, and !nvolv!ng te e/erc!se of !ntellectual facult!es.
Art!cle 1GB5 used te word IwagesI and not IsalaryI !n relat!on to Ila"orerI wen !t declared
wat are to "e e/em#ted from attacment and e/ecut!on. +e term IwagesI as d!st!ngu!sed
from IsalaryI, a##l!es to te com#ensat!on for manual la"or, s=!lled or uns=!lled, #a!d at
stated t!mes, and measured "y te day, wee=, mont, or season, w!le IsalaryI denotes a
!ger degree of em#loyment, or a su#er!or grade of serv!ces, and !m#l!es a #os!t!on of o<ce:
"y contrast, te term wages I !nd!cates cons!dera"le #ay for a lower and less res#ons!"le
caracter of em#loyment, w!le IsalaryI !s suggest!ve of a larger and more !m#ortant serv!ce.
:ell vs. 'nd!an %!vestoc= &o !t was eld tat salary !s understood to relate to #os!t!on of o<ce,
to "e te com#ensat!on g!ven for o<c!al or oter serv!ce, as d!st!ngu!sed from JwagesJ, te
com#ensat!on for la"or.I
Persons "elong!ng to t!s class usually loo= to te reward of a dayJs la"or for !mmed!ate or
#resent su##ort, and suc #ersons are more !n need of te e/em#t!on tan any oters
4. &e"u Auto"us v )n!ted &e"u *m#loyees Assoc.
;. +(P', '.&,RP,RA+',. L(. +(P'& *MP%,M**( ).',. 3.R .o. 178416. Fe"ruary 18, 1BB5
FA&+(: +(P' &or#orat!on entered !nto a &ollect!ve :arga!n!ng Agreement w!t te cor#orat!on
)n!on for te !ncrease of salary for te latter$s mem"ers for te year 1BBB to 1BB1 start!ng
from January 1BBB. tus, te !ncreased !n salary was mater!al!Ned on January 1, 1BBB.
However, on ,cto"er 7, 1BBB, te Reg!onal +r!#art!te ?age and #roduct!on :oard ra!sed da!ly
m!n!mum wage from P 118.;B to P 1;B.BB start!ng .ovem"er 1, 1BBB. &onforma"ly, te
wages of te 1G #ro"at!onary em#loyees were !ncreased to P1;B.BB and "ecame regular
em#loyees terefore rece!v!ng anoter 1BO !ncrease !n salary. 'n January 1BB1, +(P'&
!m#lemented te new wage rates as mandated "y te &:A. As a result, te n!ne em#loyees
wo were sen!or to te 1G recently regular!Ned em#loyees, rece!ved less wages. ,n January
16, 1BB1, +(P'&$s HRF not!0ed te 14 em#loyees wo are #r!vate res#ondents, tat due to an
error !n te automated #ayroll system, tey were over#a!d and te over#ayment would "e
deducted from te!r salar!es start!ng Fe"ruary 1BB1. +e )n!on on te oter and, asserted
tat tere was no error and te deduct!on of te alleged over#ayment const!tuted d!m!nut!on
of #ay.
'(()*: ?eter te alleged over#ayment const!tutes d!m!nut!on of #ay as alleged "y te
)n!on.
R)%'.3: Mes, "ecause !t !s cons!dered tat &ollect!ve :arga!n!ng Agreement entered !nto "y
un!ons and te!r em#loyers are "!nd!ng u#on te #art!es and "e acted !n str!ct com#l!ance
terew!t. +us, te &:A !n t!s case !s te law "etween te em#loyers and te!r em#loyees.
+erefore, tere was no over#ayment wen tere was an !ncrease of salary for te mem"ers
of te un!on s!multaneous w!t te !ncreas!ng of m!n!mum wage for wor=ers !n te .at!onal
&a#!tal Reg!on. +e &:A sould "e followed tus, te sen!or em#loyees wo were 0rst
#romoted as regular em#loyees sall "e ent!tled for te !ncrease !n te!r salar!es and te
same w!t lower ran= wor=ers.
7. ?!ll!am :arroga vs Fata &enter &ollege et al
Facts: 'n .ovem"er 1661, ?!ll!am :arroga was !red as an !nstructor "y Fata &enter &ollege
!n !ts %aoag &!ty, 'locos .orte cam#us. 'n June 1661, :arroga was re-ass!gned to L!gan, 'locos
(ur. Part of te deal for !s re-ass!gnment was tat :arroga w!ll rece!ve a montly allowance
of P1,1BB.BB for "oard and lodg!ng w!le #erform!ng !s Co" !n L!gan. However, Fata &enter
made !t clear !n wr!t!ng tat :arroga !s only ent!tled to te add!t!onal allowance w!le
ass!gned !n L!gan and suc allowance may "e canged or forfe!ted !f e w!ll "e re-ass!gned
somewere. 'n 1664, e was recalled to %aoag. %ater, :arroga was also ass!gned as te
tem#orary Head of *ducat!on> e was also g!ven a scolars!# grant to su##ort !s #ost-
graduate stud!es. 'n 1BB8, :arroga was adv!sed tat e w!ll "e transferred to :angued, A"ra.
:arroga refused "ecause !s fater was s!c= and second, e found out tat tere w!ll "e no
add!t!onal allowance t!s t!me and tat e w!ll "e wor=!ng tere as an !nstructor and not as a
Head of *ducat!on. 'n te same year, e 0led a la"or case aga!nst Fata &ollege for
construct!ve d!sm!ssal. :arroga alleged tat te real #ur#ose of !s transfer !s to demote !m
to te ran= of an !nstructor from "e!ng te Head for *ducat!on #erform!ng adm!n!strat!ve
funct!ons and tat !s re-ass!gnment w!ll enta!l an !nd!rect reduct!on of !s salary or
d!m!nut!on of #ay cons!der!ng tat no add!t!onal allowance w!ll "e g!ven to cover for "oard
and lodg!ng e/#enses. He cla!ms tat suc add!t!onal allowance was g!ven !n te #ast and
terefore cannot "e d!scont!nued and w!tdrawn w!tout v!olat!ng te #ro!"!t!on aga!nst non-
d!m!nut!on of "ene0ts.
'(()*: ?eter or not te a"sence of add!t!onal allowance !n :arroga$s su##osed re-
ass!gnment const!tutes a d!m!nut!on of "ene0ts.
H*%F: .o. 't !s true tat as a general rule, "ene0ts and #er=s enCoyed "y em#loyees cannot
"e reduced and d!scont!nued or d!m!n!sed. :ut t!s rule !s only a##l!ca"le to grants or
"ene0ts w!c are founded on an e/#ress #ol!cy or as r!#ened !nto a #ract!ce over a long
#er!od w!c !s cons!stent and del!"erate. 'n te case at "ar, :arroga$s add!t!onal allowance
w!le !n L!gan !s not #ermanent. 'n fact, Fata &ollege made clear tat suc allowance !s only
a##l!ca"le w!le :arroga !s !n L!gan and suc allowance !s no longer a##l!ca"le !f e !s go!ng
to "e ass!gned somewere. Furter, Fata &ollege sowed tat !t !s e/#er!enc!ng 0nanc!al
d!<cult!es ence te need to w!tdraw te scolars!# #rev!ously granted to :arroga. ,n te
!ssue of !s removal as Head for *ducat!on, te same !s val!d. :arroga was merely ass!gned !n
a tem#orary ca#ac!ty, suc des!gnat!on !s term!na"le at te #leasure of Fata &ollege w!c
made suc a##o!ntment.
G. '.+*R.A+',.A% (&H,,% A%%'A.&* ,F *F)&A+,R( D'(A*E L. 3.R. .o. 11554;, June 1,
1BBB
FA&+(: Pr!vate res#ondent 'nternat!onal (cool, 'nc. D(coolE, #ursuant to PF G81, !s a
domest!c educat!onal !nst!tut!on esta"l!sed #r!mar!ly for de#endents of fore!gn d!#lomat!c
#ersonnel and oter tem#orary res!dents. +e decree autor!Nes te (cool to em#loy !ts own
teac!ng and management #ersonnel selected "y !t e!ter locally or a"road, from P!l!##!ne or
oter nat!onal!t!es, suc #ersonnel "e!ng e/em#t from oterw!se a##l!ca"le laws and
regulat!ons attend!ng te!r em#loyment, e/ce#t laws tat ave "een or w!ll "e enacted for
te #rotect!on of em#loyees. (cool !res "ot fore!gn and local teacers as mem"ers of !ts
faculty, class!fy!ng te same !nto two: D1E fore!gn-!res and D1E local-!res.
+e (cool grants fore!gn-!res certa!n "ene0ts not accorded local-!res. Fore!gn-!res are
also #a!d a salary rate 1;O more tan local-!res. ?en negot!at!ons for a new &:A were eld
on June 166;, #et!t!oner '(A*, a leg!t!mate la"or un!on and te collect!ve "arga!n!ng
re#resentat!ve of all faculty mem"ers of te (cool, contested te d!@erence !n salary rates
"etween fore!gn and local-!res. +!s !ssue, as well as te Auest!on of weter fore!gn-!res
sould "e !ncluded !n te a##ro#r!ate "arga!n!ng un!t, eventually caused a deadloc= "etween
te #art!es.
'(A* 0led a not!ce of str!=e. Fue to te fa!lure to reac a com#rom!se !n te .&M:, te matter
reaced te F,%* w!c favored te (cool. Hence t!s #et!t!on.
'(()*: ?eter te fore!gn-!res sould "e !ncluded !n "arga!n!ng un!t of local- !res.
R)%'.3: .,. +e &onst!tut!on, Art!cle P''', (ect!on 8, s#ec!0cally #rov!des tat la"or !s ent!tled
to Qumane cond!t!ons of wor=.R +ese cond!t!ons are not restr!cted to te #ys!cal wor=#lace
H te factory, te o<ce or te 0eld H "ut !nclude as well te manner "y w!c em#loyers treat
te!r em#loyees.
F!scr!m!nat!on, #art!cularly !n terms of wages, !s frowned u#on "y te %a"or &ode. Art!cle 145
declares !t an unfa!r la"or #ract!ce for an em#loyer to d!scr!m!nate !n regard to wages !n order
to encourage or d!scourage mem"ers!# !n any la"or organ!Nat!on. +e &onst!tut!on enCo!ns
te (tate to Q#rotect te r!gts of wor=ers and #romote te!r welfare, 'n (ect!on 15, Art!cle ''
of te const!tut!on mandates Qto a@ord la"or full #rotect!onR. +e (tate as te r!gt and duty
to regulate te relat!ons "etween la"or and ca#!tal. +ese relat!ons are not merely
contractual "ut are so !m#ressed w!t #u"l!c !nterest tat la"or contracts, collect!ve
"arga!n!ng agreements !ncluded, must y!eld to te common good.
However, fore!gn-!res do not "elong to te same "arga!n!ng un!t as te local-!res. A
"arga!n!ng un!t !s a group of employees of a given employer, comprised of all or less than all
of the entire body of employees, consistent with equity to the employer indicate to be the
best suited to serve the reciprocal rights and duties of the parties under the collective
bargaining provisions of the law.
+e factors !n determ!n!ng te a##ro#r!ate collect!ve "arga!n!ng un!t are D1E te w!ll of te
em#loyees D3lo"e Foctr!neE> D1E a<n!ty and un!ty of te em#loyees$ !nterest, suc as
su"stant!al s!m!lar!ty of wor= and dut!es, or s!m!lar!ty of com#ensat!on and wor=!ng cond!t!ons
D(u"stant!al Mutual 'nterests RuleE> D8E #r!or collect!ve "arga!n!ng !story> and D4E s!m!lar!ty of
em#loyment status. +e "as!c test of an asserted "arga!n!ng un!t$s acce#ta"!l!ty !s weter or
not !t !s fundamentally te com"!nat!on w!c w!ll "est assure to all em#loyees te e/erc!se of
te!r collect!ve "arga!n!ng r!gts.
'n te case at "ar, !t does not a##ear tat fore!gn-!res ave !nd!cated te!r !ntent!on to "e
grou#ed togeter w!t local-!res for #ur#oses of collect!ve "arga!n!ng. +e collect!ve
"arga!n!ng !story !n te (cool also sows tat tese grou#s were always treated se#arately.
Fore!gn-!res ave l!m!ted tenure> local-!res enCoy secur!ty of tenure. Altoug fore!gn-!res
#erform s!m!lar funct!ons under te same wor=!ng cond!t!ons as te local-!res, fore!gn-!res
are accorded certa!n "ene0ts not granted to local-!res suc as ous!ng, trans#ortat!on,
s!##!ng costs, ta/es and ome leave travel allowances. +ese "ene0ts are reasona"ly
related to te!r status as fore!gn-!res, and Cust!fy te e/clus!on of te former from te latter.
+o !nclude fore!gn-!res !n a "arga!n!ng un!t w!t local-!res would not assure e!ter grou# te
e/erc!se of te!r res#ect!ve collect!ve "arga!n!ng r!gts.
?H*R*F,R*, te #et!t!on !s 3'L*. F)* &,)R(*. +e #et!t!on !s ere"y 3RA.+*F '. PAR+.
5. :'+,M JAL'*R DFA.'%, P. JAL'*RE, L F%M A&* &,RP,RA+',.-F%,RF*%M. &A(+'%%,,Fe"ruary
1;, 1B11
FA&+(: ,n May 18, 1BB5, Jav!er 0led a com#la!nt "efore te .%R& for under#ayment of
salar!es and oter la"or standard "ene0ts. He alleged tat e was an em#loyee of Fly Ace
s!nce (e#tem"er 1BBG, #erform!ng var!ous tas=s at te res#ondent$s wareouse suc as
clean!ng and arrang!ng te canned !tems "efore te!r del!very to certa!n locat!ons, e/ce#t !n
!nstances wen e would "e ordered to accom#any te com#any$s del!very ve!cles, as
#a!nante> tat e re#orted for wor= from Monday to (aturday from G:BB o$cloc= !n te
morn!ng to ;:BB o$cloc= !n te afternoon> tat dur!ng !s em#loyment, e was not !ssued an
!dent!0cat!on card and #ay sl!#s "y te com#any> tat on May 7, 1BB5, e re#orted for wor=
"ut e was no longer allowed to enter te com#any #rem!ses "y te secur!ty guard u#on te
!nstruct!on of Ru"en ,ng , !s su#er!or > tat after several m!nutesof "egg!ng to te guard to
allow !m to enter, e saw ,ng wom e a##roaced and as=ed wy e was "e!ng "arred
fromenter!ng te #rem!ses> tat ,ng re#l!ed "y say!ng, I +anung!n mo ana= mo> tat e ten
went ome and d!scussed te matter w!t !s fam!ly> tat e d!scovered tat ,ng ad "een
court!ng !s daugter Annalyn after te two met at a 0esta cele"rat!on !n Mala"on &!ty> tat
Annalyn tr!ed to tal= to ,ng and conv!nce !m to s#are er fater from trou"le "ut e refused
to accede> tat tereafter, Jav!er was term!nated from !s em#loyment w!tout not!ce> and
tat e was ne!ter g!ven te o##ortun!ty to refute te cause-s of !s d!sm!ssal from wor= .Fly
Ace averred tat !t was engaged !n te "us!ness of !m#ortat!on and sales of grocer!es.
(omet!me !n Fecem"er 1BBG, Jav!er was contracted "y !ts em#loyee, Mr. ,ng, as e/tra el#er
on a #a=yaw "as!s at an agreed rate of P 8BB.BB #er tr!#, w!c was later !ncreased to P
81;.BB !n January 1BB5. Mr. ,ng contracted Jav!er rougly ; to 7 t!mes only !n a mont
wenever te ve!cle of !ts contracted auler, M!lmar Haul!ng (erv!ces, was not ava!la"le. ,n
A#r!l 8B, 1BB5, Fly Ace no longer needed teserv!ces of Jav!er. Feny!ng tat e was te!r
em#loyee, Fly Ace !ns!sted tat tere was no !llegal d!sm!ssal.
Fly Ace su"m!tted aco#y of !ts agreement w!t M!lmar Haul!ng (erv!ces and co#!es of
ac=nowledgment rece!#ts ev!denc!ng #ayment to Jav!er for !s contracted serv!ces "ear!ng
te words, Ida!ly man#ower D#a=yaw-#!ece rate #ayEI and te latter$s s!gnatures-!n!t!als.

%a"or Ar"!ter
%A d!sm!ssed te com#la!nt. Jav!er fa!led to #resent #roof tat e was a regular em#loyee of
Fly Ace. 2no 'F, documents, #aysl!#s. Fly Ace !s not engaged !n truc=!ng "us!ness "ut !n te
!m#ortat!on and sales of grocer!es. (!nce tere !s aregular auler to del!ver !ts #roducts, we
g!ve credence to
Res#ondents$ cla!m tat com#la!nant was contracted on I#a=!aoI "as!s. .%R& 't was of te
v!ew tat a #a=yaw
-"as!s arrangement d!d not #reclude te e/!stence of em#loyer-em#loyee
relat!ons!#.IPayment "y result / / / !s a metod of com#ensat!on and does not de0ne te
essence of te relat!on. 't !s a mere metod of com#ut!ng com#ensat!on, not a "as!s for
determ!n!ng te e/!stence or a"sence of an em#loyer-em#loyee relat!ons!#.
I+e .%R& furter averred tat !t d!d not follow tat a wor=er was a Co" contractor and not an
em#loyee, Cust "ecause te wor= e
was do!ng was not d!rectly related to te em#loyer$s trade or "us!ness or te wor= may "e
cons!dered as Ie/t raI el#er as !n t!s case> and tat te relat!ons!# of an em#loyer and an
em#loyee was determ!ned "y law and te same would #reva!l watever te #art!es may call !t
F!nd!ng Jav!er to "e a regular em#loyee, te .%R& ruled tat e was ent!tled to a secur!ty of
tenure
For fa!l!ng to #resent #roof of a val!d cause for !s term!nat!on, Fly Ace was found to "e l!a"le
for !llegal d!sm!ssal of Jav!er wo was l!=ew!se ent!tled to "ac= wages and se#arat!on #ay !n
l!eu of re!nstatement. &ourt of A##eals Re!nstated d!sm!ssal of com#la!nt. Jav!er fa!led to
#rove "y su"stant!al ev!dence r-ee relat!ons!#. F!d not #ass te control test.
'(()*:?,. Jav!er was regular em#loyee of Fly Ace. .,, onus #ro"and! was on Jav!er and e
fa!led to #rov!de su"stant!al ev!dence.
RA+',: 'n an !llegal d!sm!ssal case, te onus #ro"and! rests on te em#loyer to #rove tat !ts
d!sm!ssal of an em#loyee was for a val!d cause. However, "efore a case for !llegal d!sm!ssal
can #ros#er, an em#loyer-em#loyee relat!ons!# must 0rst "e esta"l!sed. */!stence of an
em#loyer-em#loyee relat!ons!# "etween !m and Fly Ace !s essent!ally a
Auest!on of fact. 'n deal!ng w!t factual !ssues !n la"or cases, I
su"stant!al ev!dence tat amount of relevant ev!dence w!c a reasona"le m!nd m!gt acce#t
as adeAuate to Cust!fy a conclus!on !s su<c!ent
6. Ma"eNa vs .%R& 271 SCRA 7! "
.orma Ma"eNa was an em#loyee !red "y Hotel (u#reme !n :agu!o &!ty. 'n 1661, an
!ns#ect!on was made "y te Fe#artment of %a"or and *m#loyment DF,%*E at Hotel (u#reme
and te F,%* !ns#ectors d!scovered several v!olat!ons "y te otel management.
'mmed!ately, te owner of te otel, Peter .g, d!rected !s em#loyees to e/ecute an a<dav!t
w!c would #ur#ort tat tey ave no com#la!nts watsoever aga!nst Hotel (u#reme.
Ma"eNa s!gned te a<dav!t "ut se refused to cert!fy !t w!t te #rosecutor$s o<ce. %ater,
wen se re#orted to wor=, se was not allowed to ta=e er s!ft. (e ten as=ed for a leave
"ut was not granted yet se$s not "e!ng allowed to wor=. 'n May 1661, se ten sued Peter
.g for !llegal d!sm!ssal. Peter .g, !n !s defense, sa!d tat Ma"eNa a"andoned er wor=. 'n July
1661, Peter .g also 0led a cr!m!nal com#la!nt aga!nst Ma"eNa as e alleged tat se ad
stolen a "lan=et and some oter stu@ from te otel. Peter .g went on to amend !s re#ly !n
te la"or case to ma=e !t a##ear tat te reason wy e d!sm!ssed Ma"eNa was "ecause of
!s loss of con0dence "y reason of te teft allegedly comm!tted "y Ma"eNa. +e la"or ar"!ter
wo andled te case, a certa!n Fel!#e Pat!, ruled !n favor of Peter .g.
'(()*: ?eter or not tere !s a"andonment !n te case at "ar. ?eter or not loss of
con0dence as ground for d!sm!ssal a##l!es !n te case at "ar.
H*%F: .o. +e s!de of Peter .g !s "ereft of mer!t so !s te dec!s!on of te %a"or Ar"!ter w!c
was unfortunately a<rmed "y te .%R&.
Abandonment - A"andonment !s not #resent. Ma"eNa returned several t!mes to !nAu!re a"out
te status of er wor= or er em#loyment status. (e even as=ed for a leave "ut was not
granted. Her as=!ng for leave !s a clear !nd!cat!on tat se as no !ntent!on to a"andon er
wor= w!t te otel. *ven te em#loyer =nows tat !s #ur#orted reason of d!sm!ss!ng er
due to a"andonment w!ll not Sy so e amended !s re#ly to !nd!cate tat !t !s actually Qloss of
con0denceR tat led to Ma"eNa$s d!sm!ssal.
#oss of Con$dence- 't !s true tat loss of con0dence !s a val!d ground to d!sm!ss an em#loyee.
:ut t!s !s !deally only a##l!ed to wor=ers wose #os!t!ons reAu!re a certa!n level or degree of
trust #art!cularly tose wo are mem"ers of te manager!al sta@. *v!dently, an ord!nary
cam"erma!d wo as to s!gn out for l!nen and oter otel #ro#erty from te #ro#erty
custod!an eac day and wo as to account for eac and every towel or "edseet ut!l!Ned "y
te otel$s guests at te end of er s!ft would not fall under any of tese two classes of
em#loyees for w!c loss of con0dence, !f a"ly su##orted "y ev!dence, would normally a##ly.
Furter, te sus#!c!ous 0l!ng "y Peter .g of a cr!m!nal case aga!nst Ma"eNa long after se
!n!t!ated er la"or com#la!nt aga!nst !m ardly warrants ser!ous cons!derat!on of loss of
con0dence as a ground of Ma"eNa$s d!sm!ssal.
1B. A%'P', R. R)3A, vs. .A+',.A% %A:,R R*%A+',.( &,MM'((',. 3.R. .o. %-G17;4-71
January 11, 166B
%acts& Pet!t!oners were te 0sermen-crew mem"ers of G-: (andyman '', one of several
0s!ng vessels owned and o#erated "y #r!vate res#ondent Fe 3uNman F!s!ng *nter#r!ses
w!c !s #r!mar!ly engaged !n te 0s!ng "us!ness w!t #ort and o<ce at &amal!gan,
&amar!nes (ur. Pet!t!oners rendered serv!ce a"oard sa!d 0s!ng vessel !n var!ous ca#ac!t!es,
as follows: Al!#!o Ruga and Jose Parma #atron-#!lot> *lad!o &alderon, c!ef eng!neer> %aurente
:autu, second eng!neer> Ja!me :ar"!n, master 0serman> .!canor Franc!sco, second
0serman> P!l!# &ervantes and *leuter!o :ar"!n, 0sermen.
For serv!ces rendered !n te conduct of #r!vate res#ondentJs regular "us!ness of ItrawlI
0s!ng, #et!t!oners were #a!d on #ercentage comm!ss!on "as!s !n cas "y one Mrs. P!lar de
3uNman, cas!er of #r!vate res#ondent. As agreed u#on, tey rece!ved t!rteen #ercent D18OE
of te #roceeds of te sale of te 0s-catc !f te total #roceeds e/ceeded te cost of crude
o!l consumed dur!ng te 0s!ng tr!#, oterw!se, tey rece!ved ten #ercent D1BOE of te total
#roceeds of te sale. +e #atron-#!lot, c!ef eng!neer and master 0serman rece!ved a
m!n!mum !ncome of P8;B.BB #er wee= w!le te ass!stant eng!neer, second 0serman, and
0serman-w!ncman rece!ved a m!n!mum !ncome of P17B.BB #er wee=.
,n (e#tem"er 11, 1658 u#on arr!val at te 0s!ng #ort, #et!t!oners were told "y Jorge de
3uNman, #res!dent of #r!vate res#ondent, to #roceed to te #ol!ce stat!on at &amal!gan,
&amar!nes (ur, for !nvest!gat!on on te re#ort tat tey sold some of te!r 0s-catc at
m!dsea to te #reCud!ce of #r!vate res#ondent. Pet!t!oners den!ed te carge cla!m!ng tat te
same was a countermove to te!r av!ng formed a la"or un!on and "ecom!ng mem"ers of
Fefender of 'ndustr!al Agr!cultural %a"or ,rgan!Nat!ons and 3eneral ?or=ers )n!on
DF'A%,3?)E on (e#tem"er 8, 1658.
Fur!ng te !nvest!gat!on, no w!tnesses were #resented to #rove te carge aga!nst
#et!t!oners, and no cr!m!nal carges were formally 0led aga!nst tem.
.otw!tstand!ng, #r!vate res#ondent refused to allow #et!t!oners to return to te 0s!ng
vessel to resume te!r wor= on te same day, (e#tem"er 11, 1658.
,n (e#tem"er 11, 1658, #et!t!oners !nd!v!dually 0led te!r com#la!nts for !llegal d!sm!ssal and
non-#ayment of 18t mont #ay, emergency cost of l!v!ng allowance and serv!ce !ncent!ve
#ay, w!t te ten M!n!stry Dnow Fe#artmentE of %a"or and *m#loyment, Reg!onal Ar"!trat!on
:ranc .o. L, %egas#! &!ty, Al"ay. +ey un!formly contended tat tey were ar"!trar!ly
d!sm!ssed w!tout "e!ng g!ven am#le t!me to loo= for a new Co".
'ssue: ?eter or not te 0sermen-crew mem"ers of te trawl 0s!ng vessel G-: (andyman
'' are em#loyees of !ts owner-o#erator, Fe 3uNman F!s!ng *nter#r!ses.
Rul!ng: F!s#ut!ng te 0nd!ng of #u"l!c res#ondent tat a ICo!nt 0s!ng ventureI e/!sts
"etween #r!vate res#ondent and #et!t!oners, #et!t!oners cla!m tat #u"l!c res#ondent
e/ceeded !ts Cur!sd!ct!on and-or a"used !ts d!scret!on wen !t added facts not conta!ned !n te
records wen !t stated tat te #!lot-crew mem"ers do not rece!ve com#ensat!on from te
"oat-owners e/ce#t te!r sare !n te catc #roduced "y te!r own e@orts> tat #u"l!c
res#ondent !gnored te ev!dence of #et!t!oners tat #r!vate res#ondent controlled te 0s!ng
o#erat!ons> tat #u"l!c res#ondent d!d not ta=e !nto account esta"l!sed Cur!s#rudence tat
te relat!ons!# "etween te 0s!ng "oat o#erators and te!r crew !s one of d!rect em#loyer
and em#loyee.
?e ave cons!stently ruled tat !n determ!n!ng te e/!stence of an em#loyer-em#loyee
relat!ons!#, te elements tat are generally cons!dered are te follow!ng DaE te select!on
and engagement of te em#loyee> D"E te #ayment of wages> DcE te #ower of d!sm!ssal> and
DdE te em#loyerJs #ower to control te em#loyee w!t res#ect to te means and metods "y
w!c te wor= !s to "e accom#l!sed. 5 +e em#loyment relat!on ar!ses from contract of !re,
e/#ress or !m#l!ed. 6 'n te a"sence of !r!ng, no actual em#loyer-em#loyee relat!on could
e/!st.
From te four D4E elements ment!oned, we ave generally rel!ed on te so-called r!gt-of-
control test were te #erson for wom te serv!ces are #erformed reserves a r!gt to control
not only te end to "e ac!eved "ut also te means to "e used !n reac!ng suc end. +e test
calls merely for te e/!stence of te r!gt to control te manner of do!ng te wor=, not te
actual e/erc!se of te r!gt.
+e #et!t!on !s 3RA.+*F. +e Auest!oned resolut!on of te .at!onal %a"or Relat!ons
&omm!ss!on dated May 8B,165; !s ere"y R*L*R(*F and (*+ A('F*. Pr!vate res#ondent !s
ordered to re!nstate #et!t!oners to te!r former #os!t!ons or any eAu!valent #os!t!ons w!t 8-
year "ac=wages and oter monetary "ene0ts under te law. .o #ronouncement as to costs.
11. &e"u 'nst!tute of +ecnology D&'+E v. ,#le
Facts:-+e cour t awar ded 1BO of t e "ac= wages #aya"le to all mem"ers of te
"arga!n!ng un!t as negot!at!on fee w-c covers AF, agency fee & te l!=e. ,nly mem"ers of te "arga!n!ng un!t
sould "e made to #ay t!s assessment- *m#l oyer scool cont ends t at t e nego f ee
of 1BO sould not "e carged aga!nst te 7BO!ncremental #roceeds from tu!t!on fee !ncreases on te
ground tat t!s !s not a "arga!n a"le matter as !t as already "een 0/ed "y law> ence, only 8BO sould "e
su"Cect to te com#utat!on of te 1BO nego fee-+e f acul t y assoc! at ! on asser t s t at t e
wol e6BO !ncremental #roceeds from +F !ncreases sould "e te "as!s for com#ut!ng te 1BO nego fee. 't
alleged tat were !t not for te demand made "y te un!on & su"seAuent not!ce of str!=e tat ensued ar!s!ng
from te non !m#lementat!on of PF 4;1, te scool would not grant te "ene0ts tere under
'ssue:
Rul!ng:- + e s c o o l ! s c o r r e c t -+e wol e 6BO econom! c #ac=age
awarded "y te .%R& cannot "e te "as!s for com#ut!ng te negot!at!on fees as te law as already
#rov!ded for te m!n!mum #ercentage of +F !ncreases to "e allotted for teacers & oter scool #ersonnel. +!s
!s mandatory & cannot "e d!m!n!sed altoug !t may "e !ncreased "y collect!ve "arga!n!ng- ,nl y t e
amt "eyond t at mandat ed "y l aw sould "e su"Cect to nego fees & AF s!nce !t !s only t!s
w-c te em#loyees ad to "arga!n for -+e 7BO w- c t e l aw gr ant s ! s not a negot ! a"l e
!ssue & not o"ta!ned "y negot!at!on
11. PHILIPPINE AIRLINES, INC., vs. NATIONAL LABOR RELATIONS COMMISSION and
ARMANDO DOLINA, G.R. No. 55159 December , 19!9
FA&+(: Pr!vate res#ondent Fol!na was adm!tted to te P!l!##!ne A!rl!nes DPA%E Av!at!on (cool for
tra!n!ng as a #!lot "eg!nn!ng 17 January 16G8. +e tra!n!ng agreement "ound PA% to #rov!de regular
and #ermanent em#loyment to Fol!na u#on com#let!on of te tra!n!ng course. ,n 1; January 16G4,
Fol!na com#leted te course, and undertoo= an eAu!#ment Aual!0cat!on course u# to 4 ,cto"er 16G4.
,n 6 ,cto"er 16G4, te &!v!l Aeronaut!cs Adm!n!strat!on !ssued !m a l!cense as &ommerc!al P!lot and
PA% ten e/tended !m a tem#orary a##o!ntment for s!/ D7E monts as %!m!ted F!rst ,<cer. ?en !s
a##o!ntment was due to e/#!re on 8B A#r!l 16G;, Fol!na ad only logged e!gty four D54E ours and
0fty 0ve D;;E m!nutes Sy!ng t!me, sort of te m!n!mum ;BB Sy!ng ours reAu!red for regular!Nat!on as
F!rst ,<cer. +o ena"le !m to com#lete te reAu!rement, !s em#loyment was e/tended for anoter s!/
monts w!c a##o!ntment was descr!"ed as I#ermanent.I ,n 81 ,cto"er 16G;, wen !s
a##o!ntment was aga!n due to e/#!re, e was st!ll sort of te m!n!mum Sy!ng t!me reAu!rement suc
tat !s a##o!ntment was aga!n e/tended u# to 8B A#r!l 16G7. Fur!ng t!s t!rd e/tens!on of !s
a##o!ntment, Fol!na com#leted te ;BB Sy!ng ours reAu!rement, and tus on 81 Marc 16G7 e
a##l!ed for regular!Nat!on as F!rst ,<cer. Pend!ng !s #ys!cal e/am!nat!on "y te c!ef Fl!gt (urgeon,
!s a##o!ntment was aga!n e/tended to 81 ,cto"er 16G7. ,n 1G August 16G7, Fol!na too= a
#sycolog!cal e/am!nat!on were!n !s IAda#ta"!l!ty Rat!ngI was found to "e Iunacce#ta"leI . ,n 18
(e#tem"er 16G7, com#la!nant was aga!n su"Cected to an e/am!nat!on and !nterv!ew "y te P!lot
Acce#tance Tual!0cat!ons :oard as #art of te regular!Nat!on #rocess, w!c e/am!nat!on revealed
tat Mr. A. Fol!na not Aual!0ed for regular em#loyment !n te &om#any.
&onforma"ly, te :oard recommended te term!nat!on of te com#la!nant #ursuant to w!c PA% 0led
a clearance a##l!cat!on for Fol!naJs term!nat!on. 'n te meant!me Fol!na was #laced under #revent!ve
sus#ens!on e@ect!ve 1 ,cto"er 16G7. Fol!na countered w!t a com#la!nt for !llegal d!sm!ssal on 7
,cto"er 16G7 . ,n 17 January 16GG te ,<cer-!n-&arge of te Fe#artment of %a"or Reg!onal ,<ce
.o. 'L l!fted te #revent!ve sus#ens!on, and ordered #et!t!oner to re!nstate Fol!na to !s former
#os!t!on w!t full "ac=wages from 1 ,cto"er 16G7 u# to actual re!nstatement. +e !ssue of term!nat!on
and damages was referred to te */ecut!ve %a"or Ar"!ter for com#ulsory ar"!trat!on. Pet!t!oner
a##ealed te order l!ft!ng Fol!naJs sus#ens!on to te (ecretary of %a"or. However, on 1 Marc 16GG,
#end!ng te resolut!on of #et!t!onerJs a##eal, te #art!es s!gned an agreement "efore te
)ndersecretary of %a"or, te terms of w!c are as follows:
A3R**M*.+
+e unders!gned #art!es ere"y agree to te follow!ng:
1 ?!le #end!ng 0nal resolut!on of te com#la!nt of Mr. Armando Fol!na aga!nst te P!l!##!ne
A!rl!nes, e sall "e cons!dered !n te #ayroll e@ect!ve 1 ,cto"er 16G7.
1 +e order of Reg!onal F!rector L!cente %eogardo for te re!nstatement w!t "ac=wages of Mr.
Fol!na !s ere"y rendered moot and academ!c.
8 +e #art!es sall cons!der t!s arrangement #end!ng 0nal resolut!on of te case "y
ar"!trat!on.
(u"seAuently, on 8B May 16GG, te Act!ng (ecretary of %a"or !ssued an order 0nd!ng tat te
#ro#r!ety of te sus#ens!on ad "een rendered moot and academ!c "y te a"ove agreement and
referred te case for com#ulsory ar"!trat!on to te */ecut!ve %a"or Ar"!ter . ,n 18 Marc 16G6, te
%a"or Ar"!ter rendered !ts dec!s!on, te d!s#os!t!ve #ort!on of w!c reads as follows:
+e o##os!torJs +*RM'.A+',. '( '. ,RF*R.
:y v!rtue of te a"ove dec!s!on, PA% removed Fol!na from !ts #ayroll e@ect!ve 1 A#r!l 16G6. Fol!na ten
a##ealed te %a"or Ar"!terJs dec!s!on to te #u"l!c res#ondent .%R& on 16 A#r!l 16G6 and tere 0led a
mot!on #ray!ng tat PA% "e ordered to return !m to PA%Js #ayroll. ,n 5 Fe"ruary 165B, #u"l!c
res#ondent .%R& rendered !ts dec!s!on conta!n!ng te assa!led #ort!on tat te com#la!nant, terefore,
must "e restored to te #ayroll and #a!d for !s salar!es from 1 A#r!l 16G6, te date e was dro##ed
from te res#ondentJs #ayroll.
'(()*: ?H*+H*R ,R .,+ +H* .%R& &,MM'++*F 3RAL* A:)(* ,F F'(&R*+',. '. H,%F'.3 +HA+
PR'LA+* R*(P,.F*.+ F,%'.A ?A( *.+'+%*F +, H'( (A%AR'*( FR,M 1 APR'% 16G6 I).+'% +H'( &A(*
'( F'.A%%M R*(,%L*F.I
+e a"ove content!ons call for te #ro#er !nter#retat!on of te agreement "etween te #art!es,
s#ec!0cally te t!rd st!#ulat!on conta!n!ng te clause I#end!ng 0nal resolut!on of te case "y
ar"!trat!on.I
+e clause I#end!ng 0nal resolut!on of te case "y ar"!trat!onI sould "e understood to "e l!m!ted
only to te #roceed!ngs "efore te %a"or Ar"!ter, suc tat wen te latter rendered !s dec!s!on, te
case was 0nally resolved "y ar"!trat!on.
More !m#ortant, owever, !s te fact tat te .%R&Js order for te cont!nued #ayment of Fol!naJs
salar!es !s !ncons!stent w!t !ts a<rmance of te %a"or Ar"!terJs dec!s!on u#old!ng te val!d!ty of
Fol!naJs d!sm!ssal. 'n a<rm!ng te %a"or Ar"!terJs dec!s!on grant!ng te term!nat!on clearance, te
.%R& eld tat:
?!t res#ect to te !ssue of weter or not te com#la!nantJs 2Fol!na9 d!sm!ssal was
su<c!ently grounded, we are not #ersuaded tat te res#ondent 2ere!n #et!t!oner PA%9 !s
under o"l!gat!on to em#loy !m as regular em#loyee s!m#ly "ecause e was cert!0ed
#ys!cally 0t and tecn!cally to #ro0c!ent "y te &AA.
+!s !s understanda"le for !t concerns te safety of !ts #ro#ert!es, and a"ove all, te safety of
te l!ves and #ro#ert!es of !ts #assengers, w!c "y law !t !s comm!tted to trans#ort safely. 'n
te a"sence, terefore, of any sow!ng tat !ts standards are unreasona"le and d!scr!m!natory,
w!c we do not 0nd ere, ?e cannot d!stur" tem. ?e can only say tat for e/erc!s!ng
e/traord!nary d!l!gence !n te select!on of !ts #!lots, ?e Co!n te #u"l!c !n commend!ng !t.
'n v!ew of te a"ove 0nd!ng of val!d d!sm!ssal, te .%R& ad no autor!ty to order te cont!nued
#ayment of Fol!naJs salar!es from 1 A#r!l 16G6 unt!l te case !s 0nally resolved. +e .%R&Js order
would result !n com#ensat!ng Fol!na for serv!ces no longer rendered and wen e !s no longer !n PA%Js
em#loy. +!s !s contrary to te age-old rule of Ia fa!r dayJs wage for a fa!r dayJs la"orI w!c cont!nues
to govern te relat!on "etween la"or and ca#!tal and rema!ns a "as!c factor !n determ!n!ng em#loyeesJ
wages 2Fura"!lt Reca##!ng Plant & &o. v. .at!onal %a"or Relat!ons &omm!ss!on, 3.R. .o. G7G47, July
1G, 165G, 1;1 (&RA 8159. (o tat, !f tere !s no wor= #erformed "y te em#loyee tere can "e no
wage or #ay unless te la"orer was a"le, w!ll!ng and ready to wor= "ut was #revented "y
management or was !llegally loc=ed out, sus#ended or d!sm!ssed. ?ere te em#loyeeJs d!sm!ssal
was for a Cust cause, !t would ne!ter "e fa!r nor Cust to allow te em#loyee to recover somet!ng e
as not earned and could not ave earned 2(antos v. .at!onal %a"or Relat!ons &omm!ss!on, 3.R. .o.
G7G11, (e#tem"er 11, 165G, 1;4 (&RA 1779.
Moreover, !n order!ng te cont!nued #ayment of Fol!naJs salar!es from 1 A#r!l 16G6 unt!l te case !s
0nally resolved, te .%R& !n e@ect ordered te #ayment of "ac=wages to Fol!na notw!tstand!ng !ts
0nd!ng of a val!d d!sm!ssal.
18. L!ctor!as m!ll!ng com#any v c!r d!gest 1678 l-1G151
14. &elest!al, et al. vs (outern M!ndanao */#er!mental (tat!on, et al., 1B7 P!l 767> 3.R. .o. %-116;B,
Fecem"er 6, 16;6
"ac#$: +e M!n!mum ?age %aw #rov!des tat !n order tan an em#loyee or la"orer may "e
#a!d te m!n!mum wage of P1.;B a day, e must "e em#loyed "y an enter#r!se engaged !n
agr!culture> sa!d enter#r!se sould o#erate a farm com#r!s!ng more tan 11 ectares> and
sa!d em#loyee or la"orer sould "e engaged !n agr!culture.
(ect!on 1 of te M!n!mum ?age %aw DRA 7B1E #rov!des a de0n!t!on of agr!culture: Agr!culture
!ncludes farm!ng !n all !ts "rances and among oter t!ngs !nclude cult!vat!on and t!llage of
te so!l, da!ry!ng, te #roduct!on, cult!vat!on, grow!ng, and arvest!ng of any agr!cultural or
ort!cultural commod!t!es, te ra!s!ng of l!vestoc= or #oultry, and any #ract!ces #erformed "y
a farmer or on a farm as an !nc!dent to or !n conCunct!on w!t suc farm!ng o#erat!ons, "ut
does not !nclude te manufactur!ng or #rocess!ng of sugar, coconuts, a"aca, to"acco,
#!nea##les or oter farm #roducts.
Res#ondent e/#er!mental stat!on, w!c o#erates a farm com#r!s!ng of 67B ectares, !s an
agency of te :ureau of Plant 'ndustry w!c are "ot engaged !n agr!culture or are ded!cated
!n agr!cultural funct!ons as #rov!ded "y sect!ons 1G;8 and 1G;4 of te Rev!sed Adm!n!strat!ve
&ode.
Pet!t!oners, em#loyees of te e/#er!mental stat!on alleged tat tey are ent!tled to te
m!n!mum wage of P4.BB a day, !nstead of P1.;B, w!c was actually #a!d tem "y te
res#ondent e/#er!mental stat!on. +e Aud!tor 3eneral rendered a dec!s!on tat tey are
ent!tled to te latter amount.
I$$%e: ?,. em#loyees of an e/#er!mental stat!on engaged !n agr!culture are agr!cultural
em#loyees.
He&d: Mes. ?ere an e/#er!mental stat!on o#erates a farm com#r!s!ng 67B ectares, and,
troug !ts em#loyees and la"orers actually t!lls te so!l, !ntroduces and #lants seeds of te
"est cro# var!et!es found "y !t after study and e/#er!ment, ra!ses sa!d cro#s !n te "est
a##roved metods of cult!vat!on, !nclud!ng te s#ac!ng of eac #lant or seedl!ng and te
amount of water needed troug !rr!gat!on, weed!ng, etc., and te oter #ro#er arvest!ng of
te cro#s, !nclud!ng te t!m!ng and metod, d!scovers #lant #ests and te!r erad!cat!on "y
means of treatment w!t te #ro#er !nsect!c!des, and tereafter e/tracts te seeds from te
arvest for sale and d!str!"ut!on to farmers, tere can "e no Auest!on tat all tese acts and
funct!ons fall w!t!n te de0n!t!on of agr!culture #rov!ded !n te M!n!mum ?age %aw, and
conseAuently, are agr!cultural.
't follows tat te la"orers and farm wor=ers wo actually carry out and #erform tese
funct!ons are also engaged !n agr!culture.
(ome em#loyees !n te e/#er!mental stat!on may "e engaged !n o<ce wor=. 'n as muc as
tey are all em#loyed "y te same, w!c !s a farm enter#r!se, and te!r wor= !s !nc!dental to
agr!culture, tey may also "e cons!dered as agr!cultural wor=ers and em#loyees.
1;. A+,K-:'3 ?*F3* M'.'.3 &,., vs. A+,K-:'3 ?*F3* M)+)A% :*.*F'+ A((,&'A+',. .
May 1;, 16;8 3.R. .o. %-;;64