Case Summary (G.R. No. 219508)
Petitioner
ABS‑CBN’s position: Historically engages independent talents and technical personnel per project because program lifespans are uncertain; uses an Internal Job Market (IJM) accreditation/database to source accredited technical/creative manpower; contends respondents were independent contractors or “talents” engaged per project, not regular employees.
Respondents
Respondents’ position: Employed as cameramen from 2003–2005 until 2010; included in ABS‑CBN’s IJM; issued ABS‑CBN IDs; paid hourly wages deposited to payroll accounts with statutory deductions; assigned schedules by management; supervised by production staff; subject to discipline; therefore regular employees entitled to regularization, and later claimed illegal dismissal and monetary relief after exclusion from assignments when they refused to sign proposed contracts.
Key Dates and Procedural Milestones
Labor Arbiter decision dismissing respondents’ complaint: March 30, 2011. NLRC affirmed Labor Arbiter by Resolution: August 24, 2011; Motion for Reconsideration denied: October 28, 2011. Court of Appeals granted Rule 65 petition, reversed NLRC, and ordered reinstatement and awards: September 18, 2014; CA denied petitioner’s motion for reconsideration: June 18, 2015. Petition for Review under Rule 45 filed to the Supreme Court; Supreme Court decision affirming CA: September 14, 2021.
Applicable Law and Constitutional Basis
Constitutional basis applied: 1987 Philippine Constitution (decision date 2021 triggers use of the 1987 Constitution). Procedural rules invoked: Rule 65 (petition for certiorari) and Rule 45 (petition for review on certiorari). Substantive labor law framework: Labor Code principles on employer-employee relationship, Article 280 concept of regular employment, and the established four‑fold test (selection/engagement, payment of wages, power of dismissal, and control over conduct) to determine employment status; jurisprudence cited includes Sonza v. ABS‑CBN, ABS‑CBN v. Nazareno, Begino, Del Rosario, and related authorities as applied by the courts below.
Facts and Antecedent Proceedings
ABS‑CBN maintains a practice of engaging talents and technical personnel per project and operates the IJM database to accredit and source such manpower; accreditation is non‑exclusive and training is voluntary. Respondents allege continuous engagement as cameramen from 2003–2005 onward, inclusion in IJM, issuance of company IDs, regular receipt of wages (hourly, deposited bi‑monthly), statutory deductions (withholding tax, SSS, Pag‑IBIG, PhilHealth), scheduled assignments issued by management, supervision by production supervisors, imposition of memoranda and disciplinary actions, and eventual exclusion from premises and assignments after refusing to sign contractual offers presented post‑complaint filing.
Evidence Presented by Parties
Respondents submitted ABS‑CBN ID photocopies, Income Tax Returns, payslips and machine copies of payroll, memoranda to similarly situated employees, SSS/PhilHealth/Pag‑IBIG documents, and posted work schedules. Petitioner submitted corporate documents (Articles of Incorporation, legislative franchise), payslips, and unsigned draft employment contracts; affidavits by other workers were produced belatedly.
Labor Arbiter and NLRC Findings
Labor Arbiter (March 30, 2011): Dismissed respondents’ complaint for lack of employer‑employee relationship, finding respondents were independent contractors free from company control. NLRC Second Division (Resolution August 24, 2011; Motion for Reconsideration denied October 28, 2011): Affirmed the Labor Arbiter’s finding that respondents were independent contractors because the element of control was not present.
Court of Appeals’ Ruling and Orders
Court of Appeals (September 18, 2014): Granted respondents’ Rule 65 petition, found grave abuse of discretion by the NLRC for disregarding material evidence, applied the four‑fold test (following ABS‑CBN v. Nazareno and other precedents), concluded respondents were regular employees, declared their dismissal illegal, ordered immediate reinstatement without loss of seniority, payment of full backwages and all statutory monetary benefits from dismissal to actual reinstatement, and awarded attorney’s fees equivalent to 10% of the total monetary award; CA denied petitioner’s motion for reconsideration (June 18, 2015).
Issue Presented to the Supreme Court
Whether the Court of Appeals erred in reversing the NLRC’s finding that no employer‑employee relationship existed between ABS‑CBN and the respondents, i.e., whether the CA correctly found grave abuse of discretion and established the existence of an employer‑employee relationship.
Standard of Review Applied by the Supreme Court
On a Rule 45 petition challenging a CA ruling rendered in a Rule 65 certiorari proceeding, the Supreme Court’s review is generally limited to questions of law; factual findings are not to be re‑examined unless they are unsupported by any evidence or rest on a gross misapprehension of facts. Grave abuse of discretion by the NLRC is shown when findings are unsupported by substantial evidence, disregard material evidence, contradict the Labor Arbiter, or where reversal is necessary to prevent substantial wrong and do substantial justice.
Supreme Court Holding
The petition for review under Rule 45 was denied. The Supreme Court affirmed the Court of Appeals’ decision and resolution, holding that respondents proved by substantial evidence that an employer‑employee relationship existed with ABS‑CBN, that the NLRC abused its discretion in disregarding substantial evidence, and that the CA correctly applied the four‑fold test and pertinent precedents to reach its conclusions.
Reasoning: Substantial Evidence and Grave Abuse
The Supreme Court agreed with the CA that respondents submitted overwhelming and material evidence (IDs, ITRs, payslips showing withholding, SSS/PhilHealth/Pag‑IBIG records, work schedules, memoranda) demonstrating regular employment; petitioner failed to present contemporaneous signed contracts evidencing an independent contractor relationship for the period 2003–2010 and relied mainly on unsigned draft contracts and belated affidavits, which were insufficient to rebut respondents’ evidence. Under these circumstances, the NLRC’s ruling was held to be a grave abuse of discretion for disregarding decisive evidence.
Reasoning: Application of the Four‑Fold Test
The Court applied the four‑fold test and found each element satisfied in favor of respondents:
- Selection and engagement: Respondents were hired through ABS‑CBN’s personnel process as Junior Cameramen and did not possess unique celebrity or bargaining status akin to “talents” in Sonza.
- Payment of wages: Payslips and ITRs showed direct wage payments by ABS‑CBN on an hourly basis with statutory deductions, and respondents lacked power to negotiate talent fees.
- Power of dismissal: ABS‑CBN exercised disciplinary measures toward similarly situated workers, controlled access to premises and assignments, and respondents were materially dependent on ABS‑CBN for continued work.
- Power of control/supervision: ABS‑CBN supervised respondents through production supervisors, executive producers, and program directors; provided tools, equipment, and premises; and dictated assignments and schedules, indicating control over means and methods.
Based on these factual findings, the Court concluded an employer‑employee relationship existed.
Reasoning: Precedent Analysis (Sonza, Nazareno, Del Rosario, Begino)
The Court distinguished Sonza v. ABS‑CBN (talent with unique bargaining power and artistic autonomy) as factually inapposite because respondents lacked celebrity status, independent bargaining, guaranteed talent fees, and autonomy in work methods or schedule. The Court relied on ABS‑CBN v. Nazareno and recent rulings such as Del Rosario and Begino, which upheld that cameramen and similar technical personnel may be regular employees when the four‑fold test is satisfied and their work is indispensable to the broadcaster’s business. The Court also explained that minute resolutions or decisions in different cases (e.g., Jalog) are not binding precedent on different parties and factual matrices.
IJM Work Pool and Regularization Analysis
The Court addressed ABS‑CBN’s IJM work pool argument and held that
...continue readingCase Syllabus (G.R. No. 219508)
Procedural Posture and Relief Sought
- Petition for Review on Certiorari under Rule 45 filed with the Supreme Court (G.R. No. 219508, formerly UDK No. 15345), seeking reversal of the Court of Appeals (CA) Decision dated September 18, 2014 and its Resolution dated June 18, 2015 in CA-G.R. SP No. 122795.
- The CA had granted a Petition for Certiorari under Rule 65 filed by respondents Kessler Tajanlangit, Vladimir Martin, Herbie Medina and Juan Paulo Nieva, setting aside the National Labor Relations Commission (NLRC) Resolutions dated August 24, 2011 and October 28, 2011, which had affirmed the Labor Arbiter’s Decision dated March 30, 2011.
- Labor Arbiter dismissed consolidated complaints (illegal dismissal, unfair labor practice and monetary claims) for lack of merit. CA reversed that outcome and ordered reinstatement and monetary reliefs; petitioner ABS-CBN sought review before the Supreme Court.
- Supreme Court resolution filed September 14, 2021 (opinion by Justice Lopez, J.), denying the petition and affirming the CA.
Factual Background
- Petitioner ABS-CBN’s core business: broadcasting radio and television content; program lifetimes unpredictable, making regular hiring for program production impractical.
- To address fluctuating needs, petitioner engaged independent contractors (“talents”)—directors, actors, scriptwriters, production and technical staff—on a per-program basis.
- In 2002 petitioner adopted the Internal Job Market System (IJM), a database of accredited technical/creative manpower and talents including competency ratings and professional rates; accreditation allowed but not exclusive; training sponsored by petitioner was voluntary.
- IJM allowed producers to view talent profiles and availability; talents were notified of particular projects and, upon acceptance, reported for production dates.
- Respondents alleged they were hired as cameramen in various dates from July 2003 to April 2005; no written employment contract was executed at hiring; respondents signed an “Accreditation in the Internal Job Market System” form for inclusion in the IJM workpool.
- Respondents received ABS-CBN identification cards and wages paid directly by ABS-CBN on a per-hour basis at rates of P80.00 to P90.00 per hour; annual income tax returns showed average gross monthly salaries: Kessler P. Tajanlangit Php17,725.05; Vladimir M. Martin Php30,574.34; Juan Paulo G. Nieva Php17,585.06; Herbie S. Medina Php25,533.94.
- Payroll disbursements allegedly made bi-monthly to ATM payroll accounts after withholding taxes and statutory contributions (SSS, Pag-IBIG, PhilHealth).
- Respondents claim assignment to programs, work schedules and supervision were issued by petitioner; they were allegedly under direct supervision of production supervisors, managers and directors; discipline and memos were applied; no delegation of work to third parties permitted.
- In response to respondents’ filing of a regularization complaint, petitioner presented unsigned sample employment contracts in 2011 and conditioned continued work on signing the contract and withdrawing the case; respondents refused and were allegedly barred from company premises and removed from work schedules and day-off lists.
- Respondents filed and later amended their complaint, seeking damages and attorney’s fees. Case docketed LAC No. 05-001414-11 before the NLRC.
Evidence Presented by Parties
- Respondents’ evidence:
- Photocopies of ABS-CBN identification cards;
- Photocopies of Income Tax Returns (ITRs);
- Machine copies of payslips issued by petitioner;
- Various memoranda issued to similarly situated co-employees;
- Machine copies of documents from SSS, PhilHealth and Pag-IBIG;
- Copies of work schedules posted at company premises.
- Petitioner’s evidence:
- Photocopy of Articles of Incorporation;
- Photocopy of legislative franchise;
- Copies of respondents’ payslips;
- Photocopy of unsigned employment contracts presented to respondents in 2011;
- Belated affidavits of witnesses (other workers engaged by petitioner) submitted with motion for reconsideration.
Labor Arbiter and NLRC Proceedings and Rulings
- Labor Arbiter Arden S. Anni (Decision dated March 30, 2011) dismissed the respondents’ joint complaint for lack of employer-employee relationship, concluding respondents worked free from petitioner’s control and were independent contractors.
- Petitioner appealed to the NLRC (raffled to Second Division; NLRC NCR Case No. 07-10236-10). NLRC rendered Resolution dated August 24, 2011, denying the appeal and affirming the Labor Arbiter’s Decision; NLRC found absence of control and classified respondents as independent contractors.
- Respondents’ Motion for Reconsideration (September 30, 2011) was denied by NLRC Resolution dated October 28, 2011.
Court of Appeals Decision and Relief
- Court of Appeals granted respondents’ Petition for Certiorari under Rule 65 and held the NLRC committed grave abuse of discretion in ruling there was no employer-employee relationship (Decision dated September 18, 2014; CA-G.R. SP No. 122795).
- CA reversed and set aside the NLRC Decision and Resolution, and entered judgment:
- Declaring respondents regular employees of ABS-CBN and entitled to rights, benefits and privileges from when they became regula