Title
Supreme Court
Geraldo vs. The Bill Sender Corp.
Case
G.R. No. 222219
Decision Date
Oct 3, 2018
Delivery worker paid per-piece for 14 years ruled regular employee; illegally dismissed without due process, awarded backwages and benefits, but company president absolved of personal liability.

Case Summary (G.R. No. 222219)

Complaint and Initial Claims

On February 6, 2012, Geraldo filed a complaint for illegal dismissal, alleging that his employment was terminated on August 7, 2011, by the company’s operations manager, Nicolas Constantino, due to his alleged failure to deliver certain bills. Geraldo contended that he was not assigned those particular deliveries and that his termination lacked due process, seeking monetary claims from the company and its president, Ner Cando.

Company’s Defense

The company defended its actions by asserting that Geraldo was not a permanent employee but a piece-rate worker who chose when to work and thus was not entitled to security of tenure. It further claimed that Geraldo abandoned his job, necessitating him to substantiate his claims of illegal dismissal.

Labor Arbiter's Ruling

On November 29, 2012, the Labor Arbiter ruled in favor of Geraldo, emphasizing that the burden of proof for justifying dismissal lies with the employer. The Labor Arbiter classified Geraldo as a regular employee due to the nature of his work being intrinsically linked to the company's business operations, thus granting him benefits like separation pay and service incentive leave pay totaling P352,214.13.

NLRC Affirmation

The National Labor Relations Commission (NLRC) affirmed the Labor Arbiter’s decision on May 9, 2013, agreeing that the company failed to prove Geraldo's abandonment of employment and the necessity of following due process before termination.

Court of Appeals Decision

On August 7, 2014, the Court of Appeals overruled the NLRC's decision, stating that Geraldo's piece-rate payment structure implied he was not a regular employee. It posited that because messengers frequently transitioned between different companies based on workload needs, Geraldo lacked an employee-employer relationship with The Bill Sender Corporation, hence negating his claims for separation pay and other benefits.

Petition for Review

Geraldo filed a petition on November 26, 2015, arguing against the Court of Appeals’ determination. He contended that his status as a piece-rate worker did not preclude him from being classified as a regular employee entitled to due process protections, noting the necessity of his role within the company's operations.

Legal Analysis on Employment Status

The Supreme Court, citing Article 280 of the Labor Code, clarified that regular employees are those engaged in necessary and desirable activities for the employer's trade, regardless of whether their employment is full-time. The Court emphasized that Geraldo's prolonged service with the company, exceeding fourteen years, established his regular capacity, warranting protections against arbitrary dismissal.

Burden of Proof on the Employer

The employer's claim of abandonment was rejected by the Court. It emphasized that the onus lay on the employer to prove a deliberate intent by the employee to cease working. Geraldo's initiation of the illegal dismissal complaint and attempts to regain employment countered the abandonment claim.

Due Process Violation

The ruling underscored that due process in employment termination requires two written notices to an

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