Case Digest (G.R. No. 230030)
Facts:
Philippine Pizza, Inc., G.R. No. 230030, August 29, 2018, Supreme Court Second Division, Perlas-Bernabe, J., writing for the Court. Petition for review on certiorari under Rule 45 assails the Court of Appeals decision dated March 30, 2016 and resolution dated January 6, 2017 (CA-G.R. SP No. 136333) that had reversed the NLRC and reinstated the Labor Arbiter’s decision holding petitioner and its contractor jointly and severally liable for illegal dismissal.Respondents Jenny Porras Cayetano, Rizaldo G. Avenido, Pee Jay T. Gurion, Rumel A. Recto, Rogelio T. Sumbang, Jr., and Jimmy J. Deloso were hired by Consolidated Building Maintenance, Inc. (CBMI), a contractor that supplied janitorial, delivery and allied services to Pizza Hut branches operated by PPI. Respondents worked as service crew and delivery riders for periods ranging from 7 to 11 years and claimed they were in truth regular employees of PPI, asserting continued supervision by Pizza Hut managers, use of Pizza Hut tools, and an earlier transfer from PPI to CBMI intended to prevent attainment of regular status.
Respondents filed separate complaints for illegal dismissal against PPI and CBMI before the NLRC (NLRC-NCR Nos. 04-05060-13; 05-06931-13; 05-07363-13; 05-07941-13; 06-08125-13). The Labor Arbiter (LA), in a Decision dated August 30, 2013, found PPI and CBMI jointly and severally liable, ordered immediate reinstatement with backwages, and awarded moral and exemplary damages. The LA emphasized that the work performed was necessary to PPI’s business and noted Pizza Hut certifications and training awards as indicia of control; it also took judicial notice of a prior minute resolution in Philippine Pizza, Inc., G.R. No. 200656 (April 16, 2012), which had characterized the arrangement as labor-only contracting.
CBMI and PPI appealed to the NLRC. In a Decision dated January 28, 2014, the NLRC reversed the LA, dismissing the complaints for lack of merit. The NLRC found CBMI to be a legitimate job contractor, citing its DOLE Certificates of Registration, capital structure and audited assets, its deployment of supervisors at Pizza Hut branches, its payment of wages and remittances (SSS, PhilHealth, Pag-IBIG), and its exercise of disciplinary control (offense notices and due process). The NLRC also rejected the LA’s reliance on the minute resolution in G.R. No. 200656 as not being a binding precedent for non-parties and ruled that placing workers in a floating (temporary lay-off) status did not constitute dismissal.
Respondents filed a petition for certiorari with the Court of Appeals. In a Decision dated March 30, 2016, the CA annulled the NLRC, reinstated the LA, and held PPI and CBMI jointly and severally liable. The CA relied on stare decisis with respect to Philippine Pizza, Inc. (G.R. No. 200656) and concluded CBMI was a labor‑only contractor because it failed to show supervision and establishment of working methods, while...(Pro-only)
Issues:
- Did the Court of Appeals correctly rely on the minute resolution in Philippine Pizza, Inc. (G.R. No. 200656) and properly treat it as binding precedent to conclude CBMI was engaged in prohibited labor‑only contracting with PPI?
- Did the Court of Appeals correctly rule that respondents were illegally d...(Pro-only)
Ruling:
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Ratio:
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Doctrine:
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