Title
Arms Taxi vs. National Labor Relations Commission
Case
G.R. No. 104523
Decision Date
Mar 8, 1993
Culla, a mechanic and manager for a taxi business, was illegally dismissed without due process. The Supreme Court ruled he was an employee, entitled to backwages, separation pay, and indemnity, but denied his commission claim due to lack of evidence.

Case Summary (G.R. No. 222523)

Facts of the Case

Culla was employed by the Tanongon spouses in various roles, including mechanic, manager, and dispatcher, earning a monthly salary of ₱5,000 plus commissions. He claimed to have been unlawfully dismissed and ejected from his residence in June 1986, with no prior investigation or written notice. In response to his dismissal, he filed a complaint for reinstatement, backwages, commissions, and damages.

Allegations and Denials

The Tanongon spouses contended that they did not operate the taxi service directly and denied any employer-employee relationship with Culla. They claimed he acted as an independent contractor while Aida dela Cruz stated that Culla was never officially hired by her and questioned any entitlement to a commission on earnings.

Labor Arbiter's Decision

On February 14, 1990, Labor Arbiter Ricardo C. Nora ruled that Culla was an employee of the Tanongon spouses and was terminated illegally. The Labor Arbiter ordered the spouses and Aida dela Cruz to pay Culla ₱195,000 in backwages and separation pay. However, the request for a 15% commission was denied due to a lack of evidence.

Appeals and NLRC Rulings

Both parties appealed the Labor Arbiter’s decision. Culla sought greater monetary compensation while the Tanongon spouses disputed Culla's status as an employee. The National Labor Relations Commission (NLRC) affirmed the Labor Arbiter’s decision, citing late filing of appeal by the Tanongon spouses and a lack of evidence supporting Culla's commission claim.

Consolidated Petitions for Certiorari

Culla and the Tanongon spouses filed separate petitions for certiorari, which were consolidated. Culla's argument that his monthly salary was partial fulfillment of a commission agreement was dismissed as the Statute of Frauds applied. The NLRC’s finding that Culla was indeed an employee was deemed supported by sufficient evidence.

Employment Status and Rights

The case examined Culla's employment status under Article 280 of the Labor Code, establishing that he was regular staff performing necessary activities for the business. As such, he was entitled to security

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