G.R. No. 148102 - Labayog vs. M.Y. San Biscuits, Inc.

Philippine Pizza, Inc. (PPI) is a domestic corporation which operates the Pizza Hut franchise and is the petitioner in this case.
Respondents Michael A. Oraa and Bernardito R. Garcia, Jr. were initially hired by PPI—Oraa in April 2005 as a team member and Garcia in January 2010 as a delivery rider.
Consolidated Building Maintenance, Inc. (CBMI) is a corporation that provides janitorial, kitchen, messengerial, elevator maintenance, and allied services, and was engaged by PPI as a job contractor.

Their job functions were necessary and integral to PPI’s business operations.
PPI exercised control and supervision over their work and owned the tools they used.

After the expiration of their contracts with PPI, respondents were advised to apply with CBMI, and later, CBMI hired them to perform essentially the same jobs at PPI’s branches.
Respondents alleged that the transfer to CBMI was a scheme to avoid granting them the rights attendant to regular employment under Philippine labor laws.

On January 21, 2015, respondents filed a complaint for constructive illegal dismissal, seeking reinstatement and money claims.
Specific factual contentions were:

Oraa was prevented from reporting for work on December 22, 2014, after having taken leave the day before for a family wedding.
Garcia, who rendered work from 1:00 p.m. until 1:00 a.m. on December 20, 2014, failed to report on December 21, 2014 and was similarly barred from returning on December 22, 2014.

It was a legitimate job contractor and the actual employer of the respondents.
The alleged unauthorized absences (from December 21 to December 27, 2014) amounted to abandonment of work, justifying their dismissal.
Notices to Explain were served to the respondents (via registered mail), which were not met with a response, thereby confirming abandonment.

Ruled in favor of the respondents by finding that PPI exercised control over the work performed, which established their status as regular employees.
Determined that the transfer to CBMI was merely a device to avoid regularization.
Held that the dismissals were summary and violated respondents’ procedural due process rights.

Affirmed the LA ruling in its Decision dated December 28, 2015, stressing that the respondents were regular employees of PPI and that their dismissal was illegal.
Denied motions for reconsideration filed by both CBMI and PPI in subsequent resolutions.

In its Decision dated July 9, 2018, the CA maintained the establishment of the respondents’ regular employment status and illegal dismissal.
Clarified that while challenges to the finality of an NLRC decision were permissible, it still found no grave abuse of discretion in classifying CBMI as a labor-only contractor.
Dismissed PPI’s motion for reconsideration in its Resolution dated March 4, 2019.

Whether Consolidated Building Maintenance, Inc. (CBMI) is a legitimate job contractor (labor-only contractor) and, hence, the actual employer of the respondents.
Whether the dismissal of respondents was illegal, specifically evaluating if their alleged unauthorized absences amounted to abandonment of work, and whether the necessary procedural due process was observed in effecting such dismissal.