Title
Supreme Court
Consolidated Building Maintece, Inc. vs. Asprec, Jr.
Case
G.R. No. 217301
Decision Date
Jun 6, 2018
CBMI, an independent contractor, illegally dismissed employees Asprec and Bataller after extended suspension without reinstatement or pay, entitling them to backwages and separation pay.

Case Summary (G.R. No. 217301)

Antecedent Facts

The respondents, Asprec and Bataller, claimed to have been regular employees of PPI, with Asprec having started work in January 2001 and Bataller in March 2008. They described how PPI referred them to CBMI for continued employment, resulting in a situation where they continued their roles without significant change in duties or supervision, despite being transitioned to CBMI's payroll. The controversy erupted after an incident of alleged attempted theft involving CBMI personnel, which led to the respondents’ suspension and subsequent dismissal.

Labor Arbiter’s Ruling

Following the filing of their complaint on November 12, 2010, for constructive illegal dismissal, the Labor Arbiter (LA) ruled on June 27, 2011, in favor of the respondents, ordering their reinstatement due to what was determined as illegal dismissal by the bosses of both CBMI and PPI. The LA utilized the "four-fold test" to establish their employment status under PPI and found both companies liable, denying any assertion of legitimate job contracting by CBMI.

National Labor Relations Commission's (NLRC) Ruling

The NLRC issued a resolution on September 28, 2011, affirming the LA's decision yet modifying the responsibilities concerning payment and effectively dropping PPI from the case. It asserted that the respondents were regular employees of CBMI, highlighting the importance of employment contracts and CBMI’s acknowledgment of the respondents' employment status. This led to appeals from both parties concerning the NLRC's determination.

Court of Appeals (CA) Ruling

On November 15, 2013, the CA reversed the NLRC's resolution, stating that CBMI was acting as a labor-only contractor, which rendered the arrangement illegal. The CA concluded that their duties were essential to PPI's core business and that PPI maintained sufficient control over their work activities, leading to a declaration of illegal dismissal.

Issues Presented

The main issues evaluated were whether CBMI qualifies as a labor-only contractor and whether the respondents have validly claimed to be illegally dismissed, leading towards entitlement to monetary claims for damages, including back wages and attorney's fees.

Supreme Court Ruling

The Supreme Court determined the petition to be partially meritorious. The Court acknowledged the divergence in factual assessments between the LA, NLRC, and CA, allowing for a re-evaluation of the evidence. The Court concluded that CBMI was indeed an independent contractor based on substantial investment criteria and operational control. It emphasized that no convincing evidence was presented to rebut the presumption of regularity bestowed upon CBMI by the Department of Labor and Employment (DOLE).

Dismissal and Suspension Analysis

The Court noted that while CBMI legi

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