Case Summary (G.R. No. 202481)
PETITIONERS AND RESPONDENTS
Petitioners: Approximately 95 workers, later reduced to 75, who initially filed regularization claims and, in many instances, subsequent illegal dismissal cases.
Respondent: ABS-CBN Broadcasting Corporation, a domestic franchisee operating a nationwide television and radio network.
KEY DATES AND PROCEEDINGS
• Engagement of technical workers: mid-1990s to early 2000s, continuous rehiring through an “Internal Job Market System.”
• Labor Arbiter decisions (2002–2004): mixed findings on regular status.
• National Labor Relations Commission rulings (2008–2009): some grant of regularization, some dismissals.
• Court of Appeals decisions (2011–2016): eight consolidated petitions for certiorari under Rule 45, resulting in both affirmances and reversals.
• Supreme Court decision (En Banc, September 8, 2020): resolution of eight consolidated Rule 45 petitions.
APPLICABLE LAW
• 1987 Philippine Constitution: guarantees security of tenure, just and humane conditions of work, and right to self-organization.
• Labor Code of the Philippines (Articles 294–295, on security of tenure and definition of regular employment; Article 106 on contractor liability).
• Department of Labor and Employment Policy Instruction No. 40 (broadcast industry rules on station vs. program employees).
• Jurisprudential doctrines: four-fold test for employer-employee relationship; economic realities test; work-pool principles.
ISSUES PRESENTED
- Validity of procedural defenses: failure to file motions for reconsideration, forum shopping and invocation of stare decisis.
- Applicability of this Court’s minute resolution in Jalog v. NLRC to non-parties.
- Existence of an employer-employee relationship under the four-fold test and economic realities.
- Classification as regular vs. project (or seasonal) employees under Article 295.
- Nature and effect of ABS-CBN’s Internal Job Market System as a work pool.
- Legality of dismissals and entitlement to reinstatement, backwages and other benefits.
PROCEDURAL POSTURE AND RULINGS BELOW
The consolidated petitions challenged eight Court of Appeals rulings: two on regularization (G.R. Nos. 202481; 202495–97) and six on illegal dismissal (G.R. Nos. 210165; 219125; 222057; 224879; 225101; 225874). The network raised procedural defects and substantive non-employee status as defenses. The CA in some divisions dismissed cases for lack of jurisdiction or held workers guilty of forum shopping; in others it declared them regular employees or denied illegal dismissal claims.
RULING ON MOTION FOR RECONSIDERATION
The failure to file motions for reconsideration before the CA was excused. The issues in certiorari were identical to those passed upon by the NLRC, making reconsideration futile. In labor cases, rigid application of technical rules is avoided when it would frustrate substantial justice, especially where workers’ livelihoods are at stake.
RULING ON FORUM SHOPPING
Workers who initially filed regularization claims and later illegal dismissal cases did not commit forum shopping. The causes of action and reliefs sought were distinct: regularization addresses status and benefits; illegal dismissal addresses unlawful termination and attendant reliefs. The test of identity of cause—whether the same evidence would support both actions—was not met.
RULING ON JALOG DECISION
A Court of Appeals decision affirmed by a minute resolution is binding only as to the same parties and subject matter. Jalog involved different litigants; its holding could not be mechanically applied to the consolidated petitions.
EMPLOYER-EMPLOYEE RELATIONSHIP ANALYSIS
The Supreme Court reaffirmed the four-fold test: (1) selection and engagement; (2) payment of wages; (3) power of dismissal; and (4) power of control. The “control test” is paramount and examines whether the employer had authority over not just the result of the work but also the means and methods. Absent such control, and when remuneration depends solely on results, the relationship may be one of independent contracting. Where control is implied rather than actually exercised, it is sufficient if the employer retains the right to control.
REGULAR EMPLOYEE STATUS
Under Article 295 of the Labor Code, an employee is “regular” if engaged in activities usually necessary or desirable in the employer’s usual business or trade, regardless of contrary written agreements. Work that is seasonal or project-based must have a definite scope or duration established at hiring. Jurisprudence (Begino; Nazareno) has held that broadcast workers performing core production functions—camerawork, lighting, sound engineering—are regular employees when their services are indispensable to content generation, even if hired on successive project engagements.
INTERNAL JOB MARKET SYSTEM AS WORK POOL
ABS-CBN’s “Internal Job Market System” functioned as a work pool from which the company continuously drew accredited technical personnel for successive productions. While members were free to seek outside work during lulls, uninterrupted rehiring for essential tasks rendered them regular work-pool employees. Under Maraguinot and later cases, such conti
Case Syllabus (G.R. No. 202481)
Procedural Background
- Eight (8) petitions for review on certiorari under Rule 45 consolidated en banc by Supreme Court Resolution (Feb. 27, 2019).
- Two categories of cases:
• Regularization (G.R. Nos. 202481; 202495 & 202497)
• Illegal dismissal (G.R. Nos. 210165; 219125; 222057; 224879; 225101; 225874) - Labor Arbiter, NLRC, and various divisions of the Court of Appeals issued conflicting decisions on:
• Regular versus contractual (“talent”) status of workers
• Legality of terminations - Issues of procedural requirements (motions for reconsideration, forum shopping) and substantive matters (employee status, classification, dismissal).
Parties and Subject Matter
- Petitioners: Ninety-five (95) technical and production personnel (cameramen, lightmen, audio men, VTR operators, drivers, etc.).
- Respondent: ABS-CBN Broadcasting Corporation—domestic corporation with broadcast franchise (R.A. No. 7966; franchise expired May 5, 2020).
- Counselled by private and union interests in labor cases for regularization, reinstatement, backwages, separation pay, benefits, and attorney’s fees.
Antecedents and Facts
- ABS-CBN’s Business:
• Core: TV and radio broadcasting networks—self-produced, co-produced, line-produced shows; live coverages; block-timing; licensed foreign content.
• Production functions deemed necessary and desirable to its advertising and broadcast operations. - Engagement of Workers:
• Hired through HR; underwent mandatory seminars and workshops.
• Assigned to production teams (technical crew, production staff, OB/PA van drivers) under company supervisors.
• Paid semi-monthly via payroll; BIR Form 2316, SSS, PhilHealth, Pag-IBIG contributions withheld. - Internal Job Market (IJM) System (2002):
• Database of accredited technical/creative talents with competency ratings and fees.
• Workers required—often under protest—to sign IJM accreditation and later “talent/freelance” contracts; paid hourly, excluding overtime and holiday differentials. - Unionization and Litigation:
• Workers formed ABS-CBN IJM Workers’ Union; filed regularization cases (2002–2003).
• ABS-CBN reclassified personnel as “talents” (April 2003 memorandum) and later as “freelance” (2007).
• Mass dismissals (June–Sept. 2010) of those who refused new contracts—no notices, summary removals from premises.
• Complaints for illegal dismissal and monetary claims followed.
Issues
- Procedural:
• Is failure to file a motion for r ...continue reading