Title
Beta Electric Corp. vs. National Labor Relations Commission
Case
G.R. No. 86408
Decision Date
Feb 15, 1990
Luzviminda Petilla, hired as a clerk typist, was repeatedly extended on short-term contracts. After six months, she was terminated without notice. The Supreme Court ruled her a regular employee, rejecting the employer's claim of temporary status, and ordered reinstatement with backwages.

Case Summary (G.R. No. 86408)

Applicable Law

The case is governed by the provisions of the 1987 Philippine Constitution, as well as relevant portions of the Labor Code, specifically Article 281 regarding probationary employment and regularization of employees.

Employment History and Dispute

Luzviminda Petilla was hired by Beta Electric Corporation as a clerk typist III on a temporary basis with successive written contracts extending her employment. Her employment began on December 15, 1986, and continued through a series of extensions until her termination on June 22, 1987, without prior notice or investigation. Following her termination, she filed a complaint for illegal dismissal before a labor arbiter.

Rulings of Lower Courts

Both the labor arbiter and the National Labor Relations Commission ruled in favor of Petilla, determining that her dismissal was illegal and mandated her reinstatement along with backwages.

Petitioner’s Argument

The petitioner contended that Petilla’s appointment was temporary, asserting that it could terminate her employment at will since her role was ostensibly limited to fulfilling seasonal or peak work demands. They argued that the nature of her temporary appointments justified her dismissal.

Legal Definition of Employment Status

The court addressed the validity of the petitioner’s claims by defining conditions under which employment may be termed “temporary.” According to Article 281 of the Labor Code, an employee is considered a regular employee if allowed to continue working beyond the probationary period of six months. Since Petilla’s duration of employment exceeded this period, she attained regular status.

Contractual Limitations vs. Legal Mandates

The court clarified that while employment contracts can stipulate terms, they cannot override statutory rights and protections afforded by the Labor Code. Therefore, despite the contract-to-contract arrangement, Petilla should be regarded as a regular employee due to her prolonged tenure.

Nature of Petilla's Employment

The court further reasoned that Petilla’s role as a typist-clerk did not constitute a “specific undertaking” or seasonal work based on legal definitions. The nature of her responsibilities was deemed essentia

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