Title
San Miguel Foods, Inc. vs. Rivera
Case
G.R. No. 220103
Decision Date
Jan 31, 2018
SMFI outsourced invoicing to ICSI; respondents claimed regularization. SC ruled ICSI as legitimate contractor, no employer-employee relationship with SMFI, dismissing claims.

Case Digest (G.R. No. 204052-53)
Expanded Legal Reasoning Model

Facts:

  • Parties and Nature of Dispute
    • Petitioner: San Miguel Foods, Inc. (SMFI), a corporation engaged in feeds, poultry and meats business.
    • Respondents: Invoicing personnel assigned to SMFI through IMSHR Corporate Support, Inc. (ICSI), who filed complaints after SMFI discontinued invoicing operations at its head office.
  • Contractual Arrangement and Employment Relationship
    • In January 2005, SMFI contracted ICSI for six months to perform invoicing services, with a month-to-month renewal clause thereafter.
    • ICSI assigned its employees (the respondents) to SMFI; tasks included witnessing unloading of poultry products, preparing invoices and delivery receipts, securing receiving documents, and submitting daily reports.
    • In mid-2009, SMFI opted to relocate its invoicing operations to San Fernando, Pampanga; only one respondent accepted transfer, others resigned, continued working, or ceased reporting.
    • Respondents filed consolidated complaints for constructive dismissal, regularization, unpaid benefits, and damages before the Labor Arbiter (LA).
  • Procedural History
    • The LA (Feb. 17, 2010) dismissed the complaints, finding ICSI a legitimate contractor and the respondents’ employer under the four-fold test.
    • The National Labor Relations Commission (NLRC) (Sept. 28, 2010) affirmed the LA Decision and denied reconsideration.
    • The Court of Appeals (CA) (Oct. 28, 2014) reversed: held SMFI was the respondents’ true employer, ordered reinstatement and backwages; denied reconsideration (Aug. 18, 2015).
    • SMFI filed this petition for review on certiorari under Rule 45.

Issues:

  • Legitimacy of Contractor
    • Whether ICSI is a legitimate job contractor or a prohibited labor-only contractor under Article 106 of the Labor Code and DOLE implementing rules.
  • Employer-Employee Relationship
    • Whether an employer-employee relationship exists between SMFI and the respondents, entitling them to regularization, reinstatement, and benefits.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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