Title
Beta Electric Corp. vs. National Labor Relations Commission
Case
G.R. No. 86408
Decision Date
Feb 15, 1990
Luzviminda Petilla, hired as a clerk typist, was repeatedly extended on short-term contracts. After six months, she was terminated without notice. The Supreme Court ruled her a regular employee, rejecting the employer's claim of temporary status, and ordered reinstatement with backwages.
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Case Digest (G.R. No. 86408)

Facts:

    Employment Engagement

    • The petitioner, Beta Electric Corporation, hired the private respondent as clerk typist III effective December 15, 1986.
    • The initial engagement was supported by a written contract which set the terms of her employment.

    Successive Contract Extensions

    • The employment was extended on January 16, 1987, by means of a subsequent written contract.
    • Further extensions were granted on February 15, 1987; March 15, 1987; April 30, 1987; May 31, 1987; and finally up to June 30, 1987, each evidenced by a corresponding written contract.

    Termination and Immediate Legal Action

    • On June 22, 1987, the private respondent’s services were terminated without prior notice or any form of investigation.
    • On the same day, the private respondent filed a complaint for illegal dismissal before a labor arbiter.

    Rulings by Lower Bodies

    • The labor arbiter ruled in favor of the private respondent, finding the dismissal illegal.
    • The National Labor Relations Commission (NLRC) affirmed the decision of the labor arbiter, solidifying the legal support for the employee’s claim.

    Petitioner’s Argument and Employment Nature

    • The petitioner contended that the private respondent was hired on a temporary, contract-to-contract basis, meant solely for meeting seasonal or peak demands.
    • It argued that her employment was temporary, implying that termination could lawfully occur after the accomplishment of a specific task.
    • The petitioner maintained that the successive contracts indicated a temporary engagement, rather than an employment status that accrued the benefits of regularization.

    Legal and Factual Analysis

    • Despite the contract-to-contract arrangement, the actual work performed by the private respondent—acting as typist-clerk—was integral and usual to the business.
    • Under Article 281 of the Labor Code, an employee rendered regular upon completing the probationary period was identified, independent of the form of the contract.
    • The courts viewed the successive contracts as an artifice intended to prevent the private respondent from obtaining security of tenure.
    • The nature of the work did not qualify as a “specific undertaking” or “seasonal” task, thus mandating regular employment status by operation of law.

Issue:

    Determination of Employment Status

    • Whether a series of contract-to-contract appointments could still give rise to a regular employment status under the Labor Code.
    • Whether the employee’s work as a typist-clerk, being an activity “usually necessary or desirable in the usual business,” negated the argument for temporary employment.

    Validity of Termination

    • Whether the termination of the employee, after the expiration of successive contracts and beyond the probationary period, constituted an illegal dismissal.
    • Whether the petitioner’s assertion that the employee was merely working on a temporary basis was tenable in light of the statutory conversion to regular employment after six months.

    Applicability of Contractual Stipulations

    • Whether contractual stipulations regarding the duration of employment could override provisions of the Labor Code.
    • Whether the concept of a “specific undertaking” applied in this case, considering the integral and continuous nature of the work performed.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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