Case Summary (G.R. No. 147566)
Facts of the Case
Rafael Maliksi filed a complaint against SMC and PHILSSEC on October 16, 1990, claiming recognition as a regular employee and alleging illegal dismissal after his services were terminated on October 31, 1990. Maliksi's work history includes engagements with Lipercon and Skillpower, both of which acted as labor contractors for SMC. He argued that his dismissal was retaliatory due to his complaint for regularization and cited the absence of due process in his termination.
Employment Structure and Responsibilities
Maliksi worked under various contracts with the mentioned labor contractors, handling accounting tasks linked to SMC’s Magnolia Division. His employment was characterized as being under the direct supervision of PHILSSEC, with salary payments also facilitated through this contractor. Following the completion of the computerization project on October 31, 1990, Maliksi's engagement was terminated.
Labor Arbiter's Decision
Initially, the Labor Arbiter ruled that Maliksi was a regular employee of PHILSSEC and dismissed the claims against SMC based on a lack of employer-employee relationship between them. The Arbiter granted Maliksi five months of back wages due to his refusal to accept alternative job offers from PHILSSEC.
NLRC and CA Rulings
Dissatisfied with the Labor Arbiter's decision, Maliksi appealed to the National Labor Relations Commission (NLRC), which overturned the Arbiter’s ruling. The NLRC declared Maliksi a regular employee of SMC and ordered his reinstatement with full benefits. The Court of Appeals (CA) subsequently affirmed the NLRC’s decision, highlighting that SMC had used the labor contractors to bypass labor laws aimed at establishing regular employment.
Reversal of Labor Arbiter Decision
The NLRC and CA concluded that Maliksi's work was integral to SMC’s operations for over the statutory period required for regularization. The courts found that SMC had employed labor-only contractors, thus negating the stance that Maliksi was simply a project employee while working for PHILSSEC.
Legal Contention and Arguments
In its appeal, SMC argued that Maliksi should not be considered a regular employee because he was employed under PHILSSEC, an independent contractor. SMC contended that the CA's ruling erroneously classified Maliksi as an SMC employee, disregarding the independent nature of PHILSSEC.
Court's Affirmation of Employee Status
The Supreme Court upheld the findings of the lower courts by affirming that the relationship between Maliksi and SMC constituted an employer-employee bond, despite the existence of intermediary contractors. It established that SMC engaged in practices aimed at circumventing labor laws, resulting in the regularization of Maliksi’s employment after more than three years of service.
Bad Faith and Compensation
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...continue readingCase Syllabus (G.R. No. 147566)
Introduction
- The case involves a petition for review under Rule 45 of the Rules of Court by San Miguel Corporation (SMC) against the National Labor Relations Commission (NLRC) and Rafael Maliksi.
- The petition seeks the reversal of the September 30, 1999 Decision and the March 20, 2001 Resolution of the Court of Appeals (CA), which upheld the NLRC’s decision declaring Maliksi a regular employee of SMC and ordering his reinstatement with benefits.
Parties Involved
- Petitioner: San Miguel Corporation (SMC)
- Respondents: National Labor Relations Commission (NLRC) and Rafael Maliksi
Background of the Case
- Maliksi filed a complaint against SMC and Philippine Software Services and Education Center (PHILSSEC) on October 16, 1990, asserting his right to be recognized as a regular employee following his termination on October 31, 1990.
- His employment history includes positions with Lipercon Services, Skillpower, Inc., and PHILSSEC, all of which he characterized as labor-only contracting entities.
- Maliksi claimed his dismissal was retaliatory for filing the complaint for regularization and cited lack of due process in his termination.
Employment History of Rafael Maliksi
- Maliksi worked for various companies in roles related to SMC, including:
- Budget head at SMC-Beer Division (April 1981 – February 1982)
- Accounting clerk at SMC-Magnolia Division (July 1983 – April 1985)
- Acting clerk at SMC-Magnolia Finance (October 1988 – October 1990)
- His work with PHILSSEC began in October 1989 until his termination in October 1990, where he performed tasks related to the computerization of SMC’s accounting systems.