Case Digest (G.R. No. 171275)
Facts:
Victor Meteoro, et al. v. Creative Creatures, Inc., G.R. No. 171275, July 13, 2009, the Supreme Court Third Division, Nachura, J., writing for the Court.Creative Creatures, Inc. is a domestic corporation that produces set designs and provides set construction services, principally for ABS‑CBN Broadcasting Corporation. Petitioners (thirty-three individuals) were engaged by respondent at various times as artists, carpenters, and welders to design, assemble, set up and dismantle props and provide sound effects for respondent’s productions. Beginning February–March 1999, petitioners filed consolidated complaints with the DOLE‑NCR (docketed as NCR00‑9902‑IS‑011) claiming unpaid night shift differential, overtime, holiday and rest‑day premiums, 13th month pay, service incentive leave pay, paternity leave, educational assistance, rice benefits, and unlawful deductions.
A DOLE inspection found that records were not made available at the time of inspection and that respondent asserted petitioners were contractual or independent talent workers; the inspector also noted that petitioners were required to punch timecards. On April 12, 1999 petitioners separately filed an illegal dismissal complaint with the NLRC (docketed NLRC‑NCR Case No. 00‑04‑04459‑9).
On October 11, 1999 the DOLE Regional Director issued an Order directing respondent to pay the thirty‑three complainants a total of P2,694,709.00 for various unpaid benefits. The Regional Director applied the Labor Code determinants of employer‑employee relationship (control and supervision, power of dismissal, payment of wages, selection/engagement) and found petitioners regular employees for the activity in which they were employed. On October 18, 2002, DOLE Secretary Patricia A. Sto. Tomas affirmed the Regional Director’s findings and likewise upheld DOLE‑NCR’s jurisdiction, invoking the visitorial and enforcement powers under Article 128 of the Labor Code, as amended by R.A. No. 7730.
Respondent appealed to the Court of Appeals (CA) in CA‑G.R. SP No. 76942. By Decision dated May 31, 2005 (and Resolution dated January 27, 2006), the CA granted the petition, declared null and void the Secretary’s Orders dated October 18, 2002 and February 5, 2003, and held that the case fell within the “exception clause” of Article 128(b), thereby divesting the Regional Director/Secretary of jurisdiction; the CA also noted the...(Pro-only)
Issues:
- Whether the Court of Appeals erred in ruling that the case falls within the exception clause of Article 128(b) of the Labor Code, thereby divesting the DOLE Regional Director and Secretary of jurisdiction to decide petitioners’ money claims and in annulli...(Pro-only)
Ruling:
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Ratio:
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Doctrine:
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