G.R. No. 210961 - Mago vs. Sun Power Manufacturing Limited

Petitioners Leo V. Mago and Leilanie E. Colobong were former employees of Jobcrest Manufacturing, Incorporated (Jobcrest), a duly organized corporation engaged in contracting management consultancy and services, licensed by the Department of Labor and Employment (DOLE).
Sun Power Manufacturing Limited (Sunpower) is a corporation principally engaged in manufacturing automotive computer and electronic parts.
On October 10, 2008, Jobcrest and Sunpower entered into a Service Contract Agreement whereby Jobcrest would provide business process services for Sunpower.

The petitioners underwent training by Jobcrest before being assigned to work in Sunpower’s plant in Laguna Technopark.
Leo was assigned on July 25, 2009, as a Production Operator at the Coinstacking Station, while Leilanie was assigned on June 27, 2009, as a Production Operator handling final visual inspection at the Packaging Station.
Jobcrest’s on-site supervisor Allan Dimayuga supervised the petitioners during their assignment within Sunpower premises.

In October 2011, Sunpower allegedly terminated the Coinstacking/Material Handling and Visual Inspection segments through an operational realignment affecting services supplied by Jobcrest.
At that time, Leo was on paternity leave and Leilanie on maternity leave due to childbirth.
Leo reported for work to file his leave, was informed by the Jobcrest supervisor Allan of termination due to absences, but was instructed to report back to Jobcrest on December 14, 2011.
On reporting to Jobcrest, Leo was served a Notice of Administrative Charge for alleged violation of company policy; he denied the charges and filed a complaint for illegal dismissal with the NLRC.
Leilanie was informed upon reporting to Jobcrest on November 29, 2011, that she was to be transferred to another client company with medical examination requirements; she also filed a complaint for illegal dismissal on December 15, 2011.
Both petitioners refused Jobcrest’s offer to be reinstated or reassigned.

Labor Arbiter (LA) dismissed the petitioners’ complaint against Sunpower for illegal dismissal, declaring Jobcrest a legitimate independent contractor and the petitioners as its employees.
On appeal, the National Labor Relations Commission (NLRC) reversed the LA's decision, declaring the petitioners as regular employees of Sunpower and Jobcrest as a labor-only contractor, ordering reinstatement with full back wages and attorney’s fees.
Sunpower filed a petition for certiorari with the Court of Appeals (CA), which reversed the NLRC’s ruling, reaffirmed the LA’s decision, and enjoined enforcement of the NLRC ruling.
The CA’s denial of the petitioners’ motions for reconsideration was also affirmed.
Petitioners elevated the case to the Supreme Court via a petition for review on certiorari.

Whether Jobcrest Manufacturing, Inc. is a labor-only contractor or a legitimate and independent contractor vis-à-vis Sunpower.
Whether the petitioners are regular employees of Sunpower or Jobcrest.
Whether the petitioners were illegally dismissed from employment.