G.R. No. 11176 - Rivera vs. Ong Che

ABS-CBN Corporation is a major broadcaster in television and radio in the Philippines.
Clara L. Magno was employed by ABS-CBN since 1992, serving in roles ranging from Production Assistant to VTR Playback Operator.

In 2002, ABS-CBN established the IJM system to ease the recruitment and assignment of technical and creative personnel (“talents”).
Under the IJM, talents underwent specialized training, accreditation, and were assigned competency ratings and corresponding professional rates.
Despite general refusal by similarly situated talents, Magno was placed under the IJM system as a VTR Playback Operator without her consent.

Initially, Magno worked on the program Wowowee, eventually developing close ties with the production staff.
With the departure of host Willie Revillame (and some production staff) from ABS-CBN, the network launched Pilipinas Win na Win! (PWNW) on July 31, 2010.
Magno was reassigned to perform similar services for the new show PWNW.

An incident occurred when Magno attended a dinner hosted by Revillame outside of official work, an act that reportedly angered ABS-CBN management.
Magno claimed that her superiors forced her to resign by deeming her “unworthy and disloyal” after learning of her attendance at the dinner.
On August 16, 2010, she tendered a resignation letter addressed specifically to the Executive Producer of PWNW, which indicated her departure from the show rather than the entire company.
Following the submission of her resignation, Magno asserted that ABS-CBN constructively dismissed her by canceling her active work assignments and denying her further work opportunities.

Magno filed a Complaint on September 13, 2010, alleging illegal dismissal, lack of regularization, and failure to pay several employment-related benefits, along with moral and exemplary damages and attorney’s fees.
In parallel, Magno and colleagues participated as intervenors in a civil case involving ABS-CBN and Revillame, recounting their reasons for leaving the company.
The legal controversy centered on whether Magno was a regular employee or an independent contractor under the IJM system and whether her resignation was forced (i.e., a case of constructive dismissal).

The Labor Arbiter (LA) ruled that Magno was not a regular employee because ABS-CBN did not exercise control over the means and methods of her work; her claims for constructive dismissal and monetary benefits were dismissed.
The National Labor Relations Commission (NLRC) affirmed the LA’s decision, agreeing that Magno’s service engagement was non-exclusive and that she could take on work from other networks.
Magno subsequently filed a petition for certiorari with the Court of Appeals (CA), challenging the NLRC and LA decisions by alleging grave abuse of discretion and misinterpretation of her resignation letter.

The CA granted Magno’s petition, reversing the prior labor tribunal rulings by determining that Magno was a regular employee based on multiple evidences such as direct hiring, payment processes, and control over work assignments.
The CA highlighted that the language in her resignation letter indicated her intention to resign only from her position in PWNW, not from ABS-CBN altogether.
As a result, the CA ordered ABS-CBN to reinstate Magno without loss of seniority and to award backwages, moral damages, exemplary damages, and a percentage for attorney’s fees.
ABS-CBN later filed a motion for partial reconsideration, which was ultimately denied by the CA.

Whether Magno was a regular employee of ABS-CBN or merely an independent contractor under the IJM system.
Determination if ABS-CBN exercised the four-fold test: selection and engagement of employees, payment of wages, power of dismissal, and control over the employee’s work.

Whether Magno’s resignation was actually forced by ABS-CBN’s conduct—resulting in constructive dismissal.
Whether the circumstances surrounding her resignation (including cancellation of work assignments and denial of access to work premises) provided clear and convincing evidence for a claim of constructive dismissal.