Title
San Miguel Corporation vs. National Labor Relations Commission
Case
G.R. No. 74193-94
Decision Date
Jun 9, 1992
San Miguel Corp. held solidarily liable with contractor Reliable for unpaid 13th-month pay of 134 employees under Labor Code provisions.

Case Digest (G.R. No. 74193-94)

Facts:

San Miguel Corporation v. National Labor Relations Commission, G.R. No. 74193-94, June 09, 1992, First Division, Grino-Aquino, J., writing for the Court.

On February 8, 1983, Luisito de Ocampo and 133 co-employees filed a complaint against their employer, Reliable Contractor, and San Miguel Corporation alleging underpayment of wages and nonpayment of the 13th month pay for 1980–1982. The complainants alleged they were regular and permanent employees of Reliable, which contracted with San Miguel to perform loading, unloading and repair work on a task (piece-work) basis until December 1982; they claimed they received only P17.00 daily and no 13th month pay.

San Miguel answered that under P.D. No. 851 and its implementing rules it was not jointly and severally liable with Reliable for Reliable’s employees’ 13th month pay and that it had remitted the agreed contractor’s fees, which included amounts for basic wages, emergency allowance and 13th month pay. Reliable contended that, because it engaged workers on a task basis until December 1982, it fell outside the coverage of P.D. No. 851.

On October 30, 1984, Labor Arbiter Pelagio A. Carpio dismissed the underpayment claim but ordered San Miguel and Reliable to pay the employees their 13th month pay for 1980–1982. Both parties appealed; on January 29, 1986 the National Labor Relations Commission (NLRC) affirmed the Labor Arbiter’s decision. San Miguel then filed a petition for certiorari wit...(Subscriber-Only)

Issues:

  • Did the NLRC commit grave abuse of discretion in directing San Miguel Corporation to be solidarily liable with Reliable Contractor for the 13th month pay of Reliable’s employees for 1980–1982?
  • If reviewable, may an indirect employer like San Miguel be held solidarily liable with an independent contractor for the contractor’s failure to pay 13th month pay, des...(Subscriber-Only)

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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