Case Summary (G.R. No. 185345)

Background of the Case

• Ronnie L. Abing sought employment with Allied Banking Corporation in December 1991.
• He was instructed to apply through Marilag Business and Industrial Management Services, Inc., which had a service contract with Allied Bank.
• Abing filled out an application, passed a medical examination, and was assigned to various roles at Allied Bank, receiving an ID as a contractual employee.

Employment Transition and Termination

• On August 26, 2002, Allied Bank terminated its service contract with Marilag and entered into a new contract with Facilitators General Services, Inc. (FGSI).
• Abing was instructed to report to FGSI, where he filled out another application and resumed work at Allied Bank.
• In October 2003, Allied Bank terminated its contract with FGSI, leading to Abing being told to stop reporting to the bank.
• Abing claimed illegal dismissal, arguing he was an employee of Allied Bank and that the service contracts were a scheme to prevent his regularization.

Respondents' Defense

• Allied Bank denied Abing's claims, asserting he was employed by Marilag and FGSI, not the bank itself.
• FGSI contended it was an independent contractor and provided evidence of Abing's employment terms, including a daily salary.
• FGSI claimed it attempted to reassign Abing to other workplaces after the termination of its contract but he refused.

Quitclaims and Labor Arbiter's Decision

• Abing executed a Quitclaim and Release on October 28, 2003, after receiving his 13th month pay and service incentive leave pay.
• Marilag also noted that Abing executed a quitclaim in its favor after its service contract with Allied Bank was terminated.
• On January 14, 2005, the Labor Arbiter dismissed Abing's complaint for illegal dismissal, finding he was not an employee of Allied Bank.

NLRC and Court of Appeals' Rulings

• The NLRC initially reversed the Labor Arbiter's decision, recognizing an employer-employee relationship between Abing and Allied Bank.
• However, upon motions for reconsideration, the NLRC reinstated the Labor Arbiter's decision, concluding that Abing was an employee of FGSI.
• The Court of Appeals upheld the NLRC's decision, affirming FGSI's status as a legitimate job contractor.

Supreme Court's Review and Findings

• The Supreme Court reviewed the case under Rule 45, focusing on errors of law rather than factual determinations.
• The Court found no reversible error in the Court of Appeals' decision, confirming that FGSI was a legitimate job contractor and Abing was its employee.
• The Court emphasized the absence of grave abuse of discretion in the NLRC's ruling.

Legal Framework on Employment Relationships

• The Court referenced Department Order No. 18-02, defining legitimate labor contracting and distinguishing it from labor-only contracting.
• FGSI had been in b...continue reading

Case Syllabus (G.R. No. 185345)

Case Background

• The case involves Ronnie L. Abing (petitioner) who filed a petition for review on certiorari under Rule 45 of the Rules of Court against the National Labor Relations Commission (NLRC), Allied Banking Corporation, Facilitators General Services, Inc. (FGSI), and Marilag Business and Industrial Management Services, Inc. (respondents).
• The Supreme Court reviewed the Decision of the Court of Appeals dated July 16, 2008, and its Resolution dated November 11, 2008, which upheld the NLRC's earlier decisions regarding the employment status of the petitioner and the legality of his dismissal.

Antecedent Facts

• Employment History:

  • In December 1991, Abing applied for a job at Allied Banking Corporation and was instructed to apply through Marilag, a service contractor.
  • Abing was assigned various roles at Allied Bank and was issued an ID as a contractual employee.

• Service Contract Changes:

  • On August 26, 2002, Allied Bank terminated its contract with Marilag and entered into a new one with FGSI.
  • Abing continued to work at Allied Bank under FGSI after filling out an application form for the new contract.

• Termination of Employment:

  • In October 2003, after Allied Bank terminated its contract with FGSI, Abing was ordered to stop reporting to work.
  • He filed a complaint for illegal dismissal against Allied Bank, claiming he was an employee and was not given due process in his term...continue reading