Title
Carpio vs. Modair Manila Co. Ltd., Inc.
Case
G.R. No. 239622
Decision Date
Jun 21, 2021
Ruben Carpio, employed by Modair from 1998-2013, was deemed a regular employee due to repeated re-hiring and vital role, but his dismissal was lawful upon project completion.

Case Summary (G.R. No. 239622)

Labor Arbiter Decision

On March 12, 2015, the Labor Arbiter dismissed Carpio’s complaint. The Arbiter found that Carpio’s initial 1998 engagement was regular but was interrupted by a voluntary resignation in February 2000. Subsequent engagements were covered by project contracts, making him a project employee whose service validly ended with each project’s completion.

NLRC Decision

On September 29, 2015, the NLRC reversed the Arbiter, declaring Carpio a regular employee. It discounted the resignation letter for lack of matching signature and credited a certificate of continuous employment and regular payslips (2001–2010). The NLRC ordered Carpio’s reinstatement without backwages. A motion for reconsideration was denied on October 30, 2015.

Court of Appeals Decision

On December 27, 2017, the Court of Appeals granted Modair’s certiorari petition, finding grave abuse by the NLRC. It held that Carpio signed specific project agreements, Modair filed termination reports, and repeated re-hiring does not convert project status into regular. The CA reinstated the Arbiter’s dismissal. A reconsideration motion was denied on April 30, 2018.

Issues

  1. Whether Carpio is a regular or project-based employee.
  2. Whether Carpio was illegally dismissed.

Supreme Court Ruling on Employment Status

Applying the 1987 Constitution and Article 295, SC En Banc found Carpio presumed regular from 1998 because Modair failed to prove project basis for 1998–2008. The certificate of employment and payslips went unrebutted. Subsequent memoranda were mere notices, not contracts specifying co-terminus engagement. Even if project agreements covered tail-end work, Carpio’s continuous service performing indispensable tasks established regular status. The recorded resignation was invalid for lack of employer acceptance.

Supreme Court Ruling on Illegal Dismissal

Although regular, Carpio was not illegally dismissed. His cause of action arose after the NYK Project. Modair demonstrated no electrician vacancy and offered a relocation project which Carpio declined. As a regular construction employee, he was “on leave” under the no-work-no-pay principle. No evidence of work abandonment or employer dismissal for just causes exists. His executed quitclaims and releases upon project completion bar money claims.

Articulated Principles on Regular vs. Project Employment

  1. Presumption of regular status unless employer proves specific project, its existence, and voluntary bargain.
  2. If regular from outset, later project contracts cannot undermine

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