Case Digest (G.R. No. 74193-94)
Facts:
- On February 8, 1983, Luisito de Ocampo and 133 co-employees filed a complaint against Reliable Contractor and San Miguel Corporation (SMC).
- The complaint alleged underpayment of wages and nonpayment of the 13th month pay for the years 1980 to 1982.
- The complainants claimed they were regular and permanent employees of Reliable, which had a contract with SMC for loading and unloading materials and repairing shells and pellets on a task basis until December 1982.
- During this period, the employees were paid a daily wage of P17.00 but did not receive their 13th month pay.
- SMC argued that under Presidential Decree No. 851 and its implementing rules, it was not jointly and severally liable with Reliable for the 13th month pay of Reliable's employees.
- Reliable contended that since it hired the complainants on a task basis, it was exempt from the coverage of P.D. No. 851.
- On October 30, 1984, Labor Arbiter Pelagio A. Carpio dismissed the complaint for underpayment of wages but directed SMC and Reliable to pay the 13th month pay for 1980 to 1982.
- Both parties appealed, and on January 29, 1986, the National Labor Relations Commission (NLRC) affirmed the Labor Arbiter's decision.
- SMC then filed a petition for certiorari, questioning whether it could be held jointly and severally liable with Reliable for the 13th month pay.
Issue:
- (Unlock)
Ruling:
- The Supreme Court dismissed the petition for certiorari, affirming the NLRC's decision that San Miguel Corporation is solidarily liable with Reliable Contractor fo...(Unlock)
Ratio:
- The Supreme Court upheld the NLRC's decision based on the provisions of the Labor Code.
- Although P.D. No. 851 does not explicitly provide for the solidary liability of the principal and the independent contractor for the 13th month pay, the Court found analogous provisions in the Labor Code that apply.
- Article 106 of the Labor Code states that if a contractor or subcontractor fails to pay the wages of his employees, the employer shall be jointly and severally...continue reading
Case Digest (G.R. No. 74193-94)
Facts:
In the case of "San Miguel Corporation v. National Labor Relations Commission," a complaint was filed on February 8, 1983, by Luisito de Ocampo and 133 co-employees against their employer, Reliable Contractor, and San Miguel Corporation (SMC). The complaint alleged underpayment of wages and nonpayment of their 13th month pay for the years 1980 to 1982. The complainants claimed they were regular and permanent employees of Reliable Labor Contractor (Reliable), which had a contract with SMC to undertake loading and unloading of materials and repair shells and pellets on a task (or piece work) basis until December 1982. During this period, the employees were paid a daily wage of P17.00 but did not receive their 13th month pay. SMC contended that under Presidential Decree No. 851 and its implementing rules, it was not jointly and severally liable with Reliable for the 13th month pay of Reliable's employees. Reliable argued that since it hired the complainants on a task basis, it was exempt from the coverage of P.D. No. 851. On October 30, 1984, Labor Arbiter Pelagio A. Carpio dismissed the complaint for underpayment of wages but directed SMC and Reliable to pay the 13th month pay for 1980 to 198...