Title
Rada vs. National Labor Relations Commission
Case
G.R. No. 96078
Decision Date
Jan 9, 1992
Hilario Rada, a project employee, was validly terminated after project completion but awarded overtime pay for transporting employees.

Case Digest (G.R. No. 96078)
Expanded Legal Reasoning Model

Facts:

  • Employment Engagements
    • Petitioner Hilario Rada was hired by Philnor Consultants and Planners, Inc. as a driver under successive fixed‐term contracts for the Manila North Expressway Extension, Second Stage (MNEE Stage 2) project:
      • First contract: July 1, 1977 to June 30, 1979 (24 months)
      • Second contract: July 1, 1979 to April 30, 1980 (10 months)
      • Third contract: May 1, 1980 to November 30, 1981 (19 months), with subsequent extensions up to December 31, 1985
    • All contracts expressly stated employment was co‐terminus with the specified project phase and would automatically terminate upon completion.
  • Termination and Post‐Contract Actions
    • The last contract extension (October 1, 1985 to December 31, 1985) was not renewed due to project completion.
    • In December 1985, petitioner applied for personnel clearance, received cash conversion of unused leave credits and financial assistance (₱3,796.20), and executed a Release, Waiver and Quitclaim.
  • Administrative Proceedings
    • May 20, 1987: Petitioner filed before NLRC a complaint for non‐payment of separation pay and overtime pay.
    • Philnor’s defense: Petitioner was a project employee; no illegal dismissal; no overtime work; executed quitclaim.
    • July 1987: Petitioner amended complaint, claimed illegal dismissal as a regular employee and entitlement to overtime pay.
    • August 31, 1989: Labor Arbiter ordered reinstatement with backwages and awarded overtime pay for three excess hours daily from January 1983 to December 1985.
    • November 19, 1990: NLRC reversed the arbiter’s decision, dismissed the complaint, and held petitioner was a project employee.
    • Petitioner filed a petition for certiorari with the Supreme Court challenging the NLRC decision.

Issues:

  • Jurisdictional Question
    • Whether NLRC had jurisdiction to entertain Philnor’s appeal despite late filing of the supersedeas bond.
  • Employee Status and Security of Tenure
    • Whether petitioner, after nearly eight years of continuous service under consecutive fixed‐term contracts, attained the status of a regular employee with security of tenure.
    • Whether his termination upon project completion amounted to illegal dismissal.
  • Entitlement to Benefits
    • Whether petitioner was entitled to separation pay or reinstatement with backwages.
    • Whether petitioner was entitled to overtime pay for three hours daily spent in transporting employees.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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