G.R. No. 156367 - Auto Bus Transport Systems Inc. vs. Bautista

Since 24 May 1995, Antonio Bautista was engaged by Auto Bus Transport Systems, Inc. (Autobus) as a driver-conductor on routes Manila–Tuguegarao via Baguio, Baguio–Tuguegarao via Manila and Manila–Tabuk via Baguio.
He was compensated on a purely commission basis at 7% of the total gross income per trip, paid twice monthly.

On 3 January 2000, while driving Autobus No. 114 in Sta. Fe, Nueva Vizcaya, Bautista’s bus bumped the rear of Autobus No. 124, which had stopped abruptly at a curve. Bautista claimed fatigue from extended duty and management pressure.
Management held him liable for repair costs amounting to ₱75,551.50 (30% share), barred him from work until payment, and, after one month, issued a letter terminating his employment.

On 2 February 2000, Bautista filed a complaint for illegal dismissal with claims for 13th month pay and service incentive leave pay.
Labor Arbiter (29 September 2000) dismissed the illegal dismissal claim but awarded Bautista ₱78,117.87 (13th month pay) and ₱13,788.05 (service incentive leave pay).
NLRC (28 September 2001) modified by deleting the 13th month pay award, citing commission basis exclusion under PD No. 851, and affirmed the service incentive leave award. Reconsideration was denied (31 October 2001).
Court of Appeals (6 May 2002) denied petitioner’s petition, affirming the NLRC decision in toto.
Autobus filed the present Petition for Review on Certiorari before the Supreme Court.

Whether respondent Antonio Bautista is entitled to service incentive leave pay despite being paid on a purely commission basis.
Whether the three-year prescriptive period under Article 291 of the Labor Code applies to his claim for service incentive leave pay and, if so, when such period commenced.