Title
Supreme Court
Imbuido vs. National Labor Relations Commission
Case
G.R. No. 114734
Decision Date
Mar 31, 2000
A data encoder, repeatedly rehired over three years, was illegally dismissed after union activity; the Supreme Court ruled her a regular employee, entitled to reinstatement, backwages, and service incentive leave pay.

Case Summary (G.R. No. 175002)

Employment Details and Termination

Petitioner Imbuido's contracts stipulated that her employment was tied to specific projects with set durations, specifying that termination could occur upon completion of the job or dismissal for justified causes. The employment was framed as project-based, and upon her termination, which was cited to be due to “low volume of work," questions arose regarding the validity of this reason, especially as petitioner was involved in unionizing efforts among employees.

Initial Ruling by Labor Arbiter

After filing a complaint for illegal dismissal in May 1992, a ruling favoring Imbuido was issued by Labor Arbiter Raul T. Aquino in August 1992. The Labor Arbiter concluded that Imbuido was a regular employee under Article 280 of the Labor Code, and thus, was entitled to security of tenure, reinstatement, and back wages following her illegal dismissal.

NLRC Reversal

On appeal, the NLRC reversed the Labor Arbiter’s decision in a September 1993 ruling, denying the illegal dismissal claim and asserting that Imbuido’s employment termination was valid due to the completion of her project, even while recognizing her role as a regular employee. The NLRC emphasized that regular employment does not guarantee tenure beyond the specific project duration.

Petitioner’s Arguments

In her petition for certiorari, Imbuido argued several points: the NLRC's decision ignored the Labor Arbiter's findings, claimed she was improperly labeled as a project employee, and asserted that her termination was influenced by unfair labor practices and not a valid cause. She also contested the remand of her service incentive leave pay for further arbitration.

Court's Conclusion on Employment Status

The Supreme Court ultimately recognized that Imbuido was indeed a project employee as defined under labor law, concluding that an employee engaged on a project basis is employed for a specified period for a defined undertaking. However, the Court noted that Imbuido's continuous engagement over three years, performing essential tasks for the company, qualified her for regular employment status under the prevailing legal standards.

Security of Tenure and Just Causes

The Court reaffirmed that as a regular employee, Imbuido enjoyed security of tenure, making it imperative for her dismissal to be justified under the provisions of the Labor Code. The reasons cited by the employer (low volume of work and completion of the project) were found to not constitute valid grounds for her dismissal, thus entitling her to reinstatement and full back wages.

Backwages and Benefits

In terms of the computation of wages, the court determine

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