Title
Abing vs. National Labor Relations Commission
Case
G.R. No. 185345
Decision Date
Sep 10, 2014
Petitioner, employed through service contractors, claimed illegal dismissal by Allied Bank. SC ruled FGSI as legitimate contractor, no employer-employee relationship with bank.
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Case Digest (G.R. No. 185345)

Facts:

Employment Background

  • In December 1991, Ronnie L. Abing (petitioner) sought employment with Allied Banking Corporation (Allied Bank). He was instructed to apply through Marilag Business and Industrial Management Services, Inc. (Marilag), which had a service contract with Allied Bank.
  • The petitioner filled out an application form with Marilag, passed a medical examination, and was assigned to Allied Bank's legal department. He performed various tasks such as messenger, skip tracer, checker and verifier of properties, and receiving clerk/vault keeper. He was issued an Allied Bank ID as a contractual employee.

Change in Service Contract

  • On August 26, 2002, Allied Bank terminated its service contract with Marilag and entered into a new contract with Facilitators General Services, Inc. (FGSI). The petitioner was instructed to report to FGSI, where he filled out an application form and resumed his work at Allied Bank.

Termination of Employment

  • In October 2003, Allied Bank terminated its contract with FGSI, and the petitioner was told to stop reporting to work by October 17, 2003. The petitioner claimed he was an employee of Allied Bank and was illegally dismissed without due process. He argued that the service contracts with Marilag and FGSI were schemes to prevent his regularization despite his continuous service for many years.

Respondents' Defense

  • Allied Bank denied that the petitioner was its employee, stating that he was hired by Marilag and FGSI under their service agreements. FGSI claimed it was an independent job contractor and that the petitioner was its employee. FGSI also stated that it attempted to reassign the petitioner to other workplaces, but he refused and instead executed a quitclaim after receiving his 13th month pay and service incentive leave pay.
  • Marilag also presented a quitclaim executed by the petitioner in December 2002 after its service contract with Allied Bank was terminated.

Labor Arbiter and NLRC Decisions

  • The Labor Arbiter (LA) dismissed the petitioner's complaint, finding that he was an employee of Marilag and FGSI, not Allied Bank. The National Labor Relations Commission (NLRC) initially reversed the LA's decision, finding an employer-employee relationship between the petitioner and Allied Bank. However, upon reconsideration, the NLRC reinstated the LA's decision, ruling that FGSI was a legitimate job contractor and the petitioner was its employee.

Court of Appeals Decision

  • The Court of Appeals (CA) upheld the NLRC's decision, finding that FGSI was a legitimate job contractor under Department Order No. 18-02 of the Department of Labor and Employment (DOLE).

Issue:

  1. Whether an employer-employee relationship existed between the petitioner and Allied Bank.
  2. Whether the petitioner was illegally dismissed by Allied Bank.
  3. Whether FGSI was a legitimate job contractor.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Conclusion:

The Supreme Court affirmed the CA's decision, ruling that the petitioner was an employee of FGSI, a legitimate job contractor, and not Allied Bank. His complaint for illegal dismissal against Allied Bank was without merit.


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