Title
Felipe vs. Danilo Divina Tamayo Konstract, Inc.
Case
G.R. No. 218009
Decision Date
Sep 21, 2016
Petitioners, hired as project employees for specific construction projects, claimed regular status after non-reassignment post-project completion. Courts ruled them project employees, with lawful termination upon project end, denying claims for reinstatement, back wages, and damages.

Case Summary (G.R. No. 218009)

Background Facts

Felipe and Velasco were employed by DDTKI in different capacities, with Felipe starting as a Formworks Aide on December 19, 2005, and Velasco as a Warehouse Aide on March 14, 2007. They asserted that they maintained regular employment status until September 2010, when they were not assigned any further work. They sought clarification regarding their employment status through a letter dated September 28, 2010, but received no response. Subsequently, on October 12, 2010, they lodged a complaint for illegal dismissal and non-payment of benefits with the arbitration branch of the National Labor Relations Commission (NLRC).

Respondents' Claim

In response, DDTKI contended that both Felipe and Velasco were project employees, hired specifically for designated projects with defined durations. They produced employment contracts argued to corroborate that the petitioners were aware of the temporary nature of their employment. The company indicated that once the projects were completed, they did not have further need for their services and hence reported their termination to the Department of Labor and Employment (DOLE) as a completion of work phase.

Labor Arbiter's Decision

On March 28, 2011, the Labor Arbiter issued a decision dismissing the complaint, asserting that Felipe and Velasco were indeed project employees as shown by the nature of their contracts. The Arbiter emphasized that contracts specified the duration of employment tied to specific projects, indicating lawful termination upon project completion.

National Labor Relations Commission Ruling

The NLRC upheld the Labor Arbiter's decision, concluding that the termination was legitimate due to the expiration of the project employment contracts. However, a modification required DDTKI to compensate the petitioners for their proportionate 13th-month pay. Following a motion for reconsideration by petitioners which was denied, they escalated their case to the Court of Appeals (CA).

Court of Appeals Decision

The CA denied the petition after examining the findings of the NLRC, affirming that the petitioners' continuous service did not qualify them as regular employees since their employment was limited to defined projects. The CA ruled that the internal memo (Manpower Requisition Form) presented by petitioners did not constitute a basis for regular employment.

Issues Raised by Petitioners

Petitioners raised three main issues: their classification as regular employees, claims of illegal dismissal, and entitlements to monetary claims including damages and attorney's fees. They argued against the CA's determination, asserting a lack of project documentation justifying their classification as project employees while emphasizing their significant tenure.

Respondents' Position

Respondents contended that the petitioners failed to demonstrate that the CA acted with grave abuse of discretion in its rulings. They maintained that the absence of a continuous employment relationship, juxtaposed with the project-based nature of their roles, substantiated their decision not to renew contracts post-project completion.

Supreme Court's Ruling

The Supreme Court acknowledged that the matter c

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