Title
Francisco vs. National Labor Relations Commission
Case
G.R. No. 170087
Decision Date
Aug 31, 2006
Angelina Francisco, hired by Kasei Corp., was demoted and unpaid, leading to a constructive dismissal claim. Courts ruled an employer-employee relationship existed, declaring her dismissal illegal.

Case Digest (G.R. No. 170087)

Facts:

Angelina Francisco v. National Labor Relations Commission, Kasei Corporation, Seiichiro Takahashi, Timoteo Acedo, Delfin Liza, Irene Ballesteros, Trinidad Liza and Ramon Escueta, G.R. No. 170087, August 31, 2006, First Division, Ynares‑Santiago, J., writing for the Court. This is a Rule 45 petition for review on certiorari seeking to annul the Court of Appeals' Decision of October 29, 2004 (and Resolution of October 7, 2005) that reversed the NLRC’s April 15, 2003 decision affirming with modification the Labor Arbiter’s July 31, 2002 ruling in favor of petitioner.

Petitioner Angelina Francisco was engaged by Kasei Corporation in 1995 during its incorporation stage and was designated Accountant and Corporate Secretary, later serving as Liaison Officer and Acting Manager. Although nominally Corporate Secretary, petitioner did not keep corporate books, rarely attended board meetings and did not prepare legal corporate documents; she did, however, routinely render accounting, tax and liaison services and occasionally signed company documents. By December 31, 2000 her compensation included a P27,500 salary, P3,000 housing allowance and a 10% share in company profits.

In January 2001 petitioner was replaced as Manager and, petitioner alleges, thereafter suffered a P2,500 monthly salary reduction from January to September 2001 and nonpayment of salary in October 2001; she was later told she was no longer connected with the company. Petitioner stopped reporting for work and filed for constructive dismissal before the Labor Arbiter.

Respondents (Kasei and its officers) maintained petitioner was a technical consultant/independent contractor, not an employee: she allegedly worked at her own discretion without daily time records, was paid professional fees subject to expanded withholding tax, and was not reported as an employee to the BIR or SSS. They submitted BIR payee lists and SSS records to support this classification.

The Labor Arbiter (July 31, 2002) found petitioner an employee illegally dismissed, ordered reinstatement or separation pay, and awarded backwages, allowances, profit shares and damages. The NLRC (April 15, 2003) affirmed with modification: it ordered separation pay plus full backwages to July 31, 2002, deleted awards of moral/exemplary damages and profit sh...(Pro-only)

Issues:

  • Was there an employer‑employee relationship between Angelina Francisco and Kasei Corporation?
  • If so, was petitioner constructively or illegally ...(Pro-only)

Ruling:

  • (Pro-only)

Ratio:

  • (Pro-only)

Doctrine:

  • (Pro-only)

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