Title
Opulencia Ice Plant and Storage vs. National Labor Relations Commission
Case
G.R. No. 98368
Decision Date
Dec 15, 1993
A 20-year employee, dismissed after demanding correct wages, was ruled a regular employee entitled to benefits despite lack of payroll evidence.

Case Summary (G.R. No. 98368)

Employment Background

Esita worked as a compressor operator for Tiongson Ice Plant for twenty years before joining Opulencia's ice plant in 1980. Initially positioned in Tanauan, his daily wage started at P35.00. In 1986, he was transferred to the Calamba plant for maintenance and repair work, following which he assisted in the home renovations of Dr. Opulencia. On February 6, 1989, Esita was dismissed for asserting his rights regarding unpaid wages, leading him to file a complaint for illegal dismissal and related claims against the petitioners.

Petitioners' Denial of Employment Relationship

The petitioners refuted Esita's claims, suggesting he was not an employee due to the non-operation of the Tanauan plant in 1980 and asserting that he served only as a helper during repair work. They maintained that Esita was allowed to stay on the premises for benevolent reasons, asserting his attendance was voluntary. The petitioners further claimed that Esita did not appear on their payroll, which they argued indicated a lack of an employment relationship.

Ruling by Labor Arbiter

Labor Arbiter Numeriano D. Villena ruled in favor of Esita on December 8, 1989, determining that a valid employer-employee relationship existed. He directed the petitioners to pay Esita P33,518.02, covering various compensation claims, except for overtime pay, which was dismissed due to insufficient evidence.

NLRC Affirmation and Monetary Reductions

On November 29, 1990, the National Labor Relations Commission (NLRC) upheld the Labor Arbiter's verdict but reduced the monetary award to P28,344.60, in light of the lack of sufficient proof for certain claimed workdays.

Petitioners’ Arguments for Jurisdictional Challenges

In their petition, the petitioners argued that the NLRC lacked jurisdiction over the case based on their assertion that no employer-employee relationship existed. They sought a reversal of NLRC's ruling, citing the absence of documentary evidence, inconsistent statements from Esita, and challenging the legitimacy of the employment relationship based on the nature of Esita’s work.

Legal Analysis of Employer-Employee Relationship

The Supreme Court contended that the mere assertion of no employer-employee relationship does not absolve the NLRC of jurisdiction if evidence substantiating such a relationship exists. The Court noted that no specific form of evidence is mandated to establish employment; testimonial evidence can sufficiently confirm such a relationship. The absence of payroll documents was deemed insignificant given the testimonies provided.

Evaluation of Employment Status

The argument posited by the petitioners regarding the temporary nature of Esita’s work due to sporadic demand for repairs was rejected. The Court clarified that the regularity of employment status does not hinge solely on physical presence but on the necessity of the employee's work within the business operations. The Labor Code specifies that employees who have worked for a year are

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