South - East - International - Rattan - Inc. - v.
South - East - International - Rattan - Inc. - v.
South - East - International - Rattan - Inc. - v.
DECISION
VILLARAMA, JR. , J : p
Before the Court is a petition for review on certiorari under Rule 45 to reverse and
set aside the Decision 2 dated February 21, 2008 and Resolution 3 dated February 9, 2009
of the Court of Appeals (CA) in CA-G.R. CEB-SP No. 02113.
Petitioner South East International Rattan, Inc. (SEIRI) is a domestic corporation
engaged in the business of manufacturing and exporting furniture to various countries with
principal place of business at Paknaan, Mandaue City, while petitioner Estanislao Agbay, as
per records, is the President and General Manager of SEIRI. 4
On November 3, 2003, respondent Jesus J. Coming led a complaint 5 for illegal
dismissal, underpayment of wages, non-payment of holiday pay, 13th month pay and
service incentive leave pay, with prayer for reinstatement, back wages, damages and
attorney's fees.
Respondent alleged that he was hired by petitioners as Sizing Machine Operator on
March 17, 1984. His work schedule is from 8:00 a.m. to 5:00 p.m. Initially, his
compensation was on "pakiao" basis but sometime in June 1984, it was xed at P150.00
per day which was paid weekly. In 1990, without any apparent reason, his employment was
interrupted as he was told by petitioners to resume work in two months time. Being an
uneducated person, respondent was persuaded by the management as well as his brother
not to complain, as otherwise petitioners might decide not to call him back for work.
Fearing such consequence, respondent accepted his fate. Nonetheless, after two months
he reported back to work upon order of management. 6
Despite being an employee for many years with his work performance never
questioned by petitioners, respondent was dismissed on January 1, 2002 without lawful
cause. He was told that he will be terminated because the company is not doing well
nancially and that he would be called back to work only if they need his services again.
Respondent waited for almost a year but petitioners did not call him back to work. When
he nally led the complaint before the regional arbitration branch, his brother Vicente was
used by management to persuade him to withdraw the case. 7 TDSICH
On their part, petitioners denied having hired respondent asserting that SEIRI was
incorporated only in 1986, and that respondent actually worked for SEIRI's furniture
suppliers because when the company started in 1987 it was engaged purely in buying and
exporting furniture and its business operations were suspended from the last quarter of
1989 to August 1992. They stressed that respondent was not included in the list of
employees submitted to the Social Security System (SSS). Moreover, respondent's
brother, Vicente Coming, executed an a davit 8 in support of petitioners' position while
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Allan Mayol and Faustino Apondar issued notarized certi cations 9 that respondent
worked for them instead. 1 0
With the denial of petitioners that respondent was their employee, the latter
submitted an a davit 1 1 signed by ve former co-workers stating that respondent was
one of the pioneer employees who worked in SEIRI for almost twenty years.
In his Decision 1 2 dated April 30, 2004, Labor Arbiter Ernesto F. Carreon ruled that
respondent is a regular employee of SEIRI and that the termination of his employment was
illegal. The dispositive portion of the decision reads:
WHEREFORE, premises considered, judgment is hereby rendered ordering
the respondent South East (Int'1.) Rattan, Inc. to pay complainant Jesus J.
Coming the following:
The other claims and the case against respondent Estanislao Agbay are
dismissed for lack of merit.
SO ORDERED. 1 3
SO ORDERED. 1 8
Further, the Labor Arbiter is directed to make the proper adjustment in the
computation of the award of separation pay as well as the monetary awards of
wage differential, 13th month pay, holiday pay and service incentive leave pay.
SO ORDERED. 2 0
Petitioners led a motion for reconsideration but the CA denied it under Resolution
dated February 9, 2009.
Hence, this petition raising the following issues:
6.1
WHETHER UNDER THE FACTS AND EVIDENCE ON RECORD, THE FINDING OF
THE HONORABLE COURT OF APPEALS THAT THERE EXISTS EMPLOYER-
EMPLOYEE RELATIONSHIP BETWEEN PETITIONERS AND RESPONDENT IS IN
ACCORD WITH LAW AND APPLICABLE DECISIONS OF THIS HONORABLE
COURT.
6.2
In support of their claim that respondent was not their employee, petitioners
presented Employment Reports to the SSS from 1987 to 2002, the Certi cations issued
by Mayol and Apondar, two a davits of Vicente Coming, payroll sheets (1999-2000),
individual pay envelopes and employee earnings records (1999-2000) and a davit of
Angelina Agbay (Treasurer and Human Resources O cer). The payroll and pay records did
not include the name of respondent. The a davit of Ms. Agbay stated that after SEIRI
started its business in 1986 purely on export trading, it ceased operations in 1989 as
evidenced by Certi cation dated January 18, 1994 from the Securities and Exchange
Commission (SEC); that when business resumed in 1992, SEIRI undertook only a little of
manufacturing; that the company never hired any workers for varnishing and pole sizing
because it bought the same from various suppliers, including Faustino Apondar;
respondent was never hired by SEIRI; and while it is true that Mr. Estanislao Agbay is the
company President, he never dispensed the salaries of workers. 2 8
In his first affidavit, Vicente Coming averred that:
6. [Jesus Coming] is a furniture factory worker. In 1982 to 1986, he
was working with Ben Mayol as round core maker/splitter.
On the other hand, respondent submitted the a davit executed by Eleoterio Brigoli,
Pedro Brigoli, Napoleon Coming, Efren Coming and Gil Coming who all attested that
respondent was their co-worker at SEIRI. Their affidavit reads:
We, the undersigned, all of legal ages, Filipino, and resident[s] of Cebu,
after having been duly sworn to in accordance with law, depose and say:
That we are former employees of SOUTH EAST RATTAN which is owned
by Estan Eslao Agbay;
That we personally know JESUS COMING considering that we worked
together in one company SOUTH EAST RATTANT [sic];
That we together with JESUS COMING are all under the employ of ESTAN
ESLAO AGBAY considering that the latter is the one directly paying us and holds
the absolute control of all aspects of our employment; aICcHA
That it is not true that JESUS COMING is under the employ of one person
other than ESTAN ESLAO AGBAY OF SOUTH EAST RATTAN;
That Jesus Coming is one of the pioneer employees of SOUTH EAST
RATTAN and had been employed therein for almost twenty years;
That we executed this a davit to attest to the truth of the foregoing facts
and to deny any contrary allegation made by the company against his
employment with SOUTH EAST RATTAN. 3 2
In his decision, Labor Arbiter Carreon found that respondent's work as sizing
machine operator is usually necessary and desirable to the rattan furniture business of
petitioners and their failure to include respondent in the employment report to SSS is not
conclusive proof that respondent is not their employee. As to the a davit of Vicente
Coming, Labor Arbiter Carreon did not give weight to his statement that respondent is not
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petitioners' employee but that of one Faustino Apondar. Labor Arbiter Carreon was not
convinced that Faustino Apondar is an independent contractor who has a contractual
relationship with petitioners.
In reversing the Labor Arbiter, the NLRC reasoned as follows:
First complainant alleged that he worked continuously from March 17,
1984 up to January 21, 2002. Records reveal however that South East (Int'l.)
Rattan, Inc. was incorporated only last July 18, 1986 (p. 55 records)[.] Moreover,
when they started to actually operate in 1987, the company was engaged purely
on "buying and exporting rattan furniture" hence no manufacturing employees
were hired. Furthermore, from the last quarter of 1989 up to August of 1992, the
company suspended operations due to economic reverses as per Certi cation
issued by the Securities and Exchange Commission (p. 56 records)[.]
Second, for all his insistence that he was a regular employee, complainant
failed to present a single payslip, voucher or a copy of a company payroll
showing that he rendered service during the period indicated therein. . . .
From the above established facts we are inclined to give weight and
credence to the Certi cations of Allan Mayol and Faustino Apondar, both
suppliers of nished Rattan Furniture (pp. 442-43, records). It appears that
complainant rst worked with Allan Mayol and later with Faustino Apondar upon
the proddings of his brother Vicente. Vicente's a davit as to complainant's
employment history was more detailed and forthright. . . .
xxx xxx xxx
On the other hand, the CA gave more credence to the declarations of the ve former
employees of petitioners that respondent was their co-worker in SEIRI. One of said
a ants is Vicente Coming's own son, Gil Coming. Vicente averred in his second a davit
that when he confronted his son, the latter explained that he was merely told by their
Pastor to sign the a davit as it will put an end to the controversy. Vicente insisted that his
son did not know the contents and implications of the document he signed. As to the
absence of respondent's name in the payroll and SSS employment report, the CA observed
that the payrolls submitted were only from January 1, 1999 to December 29, 2000 and not
the entire period of eighteen years when respondent claimed he worked for SEIRI. It further
noted that the names of the ve a ants, whom petitioners admitted to be their former
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employees, likewise do not appear in the aforesaid documents. According to the CA, it is
apparent that petitioners maintained a separate payroll for certain employees or willfully
retained a portion of the payroll. SEcADa
Petitioners' admission that the ve a ants were their former employees is binding
upon them. While they claim that respondent was the employee of their suppliers Mayol
and Apondar, they did not submit proof that the latter were indeed independent
contractors; clearly, petitioners failed to discharge their burden of proving their own
a rmative allegation. 4 0 There is thus no showing that the ve former employees of SEIRI
were motivated by malice, bad faith or any ill-motive in executing their a davit supporting
the claims of respondent.
In any controversy between a laborer and his master, doubts reasonably arising
from the evidence are resolved in favor of the laborer. 4 1
As a regular employee, respondent enjoys the right to security of tenure under
Article 279 4 2 of the Labor Code and may only be dismissed for a just 4 3 or authorized 4 4
cause, otherwise the dismissal becomes illegal.
Respondent, whose employment was terminated without valid cause by petitioners,
is entitled to reinstatement without loss of seniority rights and other privileges and to his
full back wages, inclusive of allowances and other bene ts or their monetary equivalent,
computed from the time his compensation was withheld from him up to the time of his
actual reinstatement. Where reinstatement is no longer viable as an option, back wages
shall be computed from the time of the illegal termination up to the nality of the decision.
Separation pay equivalent to one month salary for every year of service should likewise be
awarded as an alternative in case reinstatement in not possible. 4 5
WHEREFORE , the petition for review on certiorari is DENIED . The Decision dated
February 21, 2008 and Resolution dated February 9, 2009 of the Court of Appeals in CA-
G.R. No. CEB-SP No. 02113 are hereby AFFIRMED and UPHELD .
Petitioners to pay the costs of suit. acHDTE
SO ORDERED.
Sereno, C.J., Leonardo-de Castro, Bersamin and Reyes, JJ., concur.
Footnotes
1.Estaneslao and Estan Eslao in some parts of the records.
8.Id. at 44-45.
9.Id. at 42-43.
10.Id. at 23, 51.
11.Id. at 62.
17.Id. at 313-318.
18.Id. at 318.
19.Id. at 345-347.
20.Rollo, p. 46.
21.Id. at 16.
22.Manila Water Co., Inc. v. Pena , 478 Phil. 68, 77 (2004), citing Fleischer Co., Inc. v. NLRC , 407
Phil. 391, 399 (2001).
23.Basay v. Hacienda Consolacion , G.R. No. 175532, April 19, 2010, 618 SCRA 422, 434, citing
Lopez v. Bodega City (Video-Disco Kitchen of the Phils.) and/or Torres-Yap , 558 Phil.
666, 673 (2007).
24.Jao v. BCC Products Sales, Inc., G.R. No. 163700, April 18, 2012, 670 SCRA 38, 44.
25.Id. at 45.
26.Atok Big Wedge Company, Inc. v. Gison , G.R. No. 169510, August 8, 2011, 655 SCRA 193,
202, citing Philippine Global Communications, Inc. v. De Vera , 498 Phil. 301, 308-309
(2005).
27.Masing and Sons Development Corporation v. Rogelio , G.R. No. 161787, July 27, 2011, 654
SCRA 490, 498, citing Section 5, Rule 133 of the Rules of Court, People's Broadcasting
(Bombo Radyo Phils., Inc.) v. Secretary of the Department of Labor and Employment ,
G.R. No. 179652, May 8, 2009, 587 SCRA 724, 753 and Opulencia Ice Plant and Storage
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v. NLRC, G.R. No. 98368, December 15, 1993, 228 SCRA 473, 478.
28.Records, pp. 27-43, 56, 101-287.
29.Id. at 44.
30.Id. at 42.
31.Id. at 43.
32.Id. at 62.
33.Id. at 314-315, 317-318.
34.Rollo, p. 43.
35.436 Phil. 190, 204-205 (2002), citing Lambo v. NLRC, 375 Phil. 855, 862 (1999).
36.Id. at 205, citing Spouses Santos v. NLRC, 354 Phil. 918, 932 (1998).
37.Opulencia Ice Plant and Storage v. NLRC, supra note 27.
38.CA rollo, p. 205.
39.Id. at 241-242.
40.Masing and Sons Development Corporation v. Rogelio, supra note 27, at 502.
41.Id.
42.ART. 279. Security of Tenure. — In cases of regular employment, the employer shall not
terminate the services of an employee except for a just cause or when authorized by this
Title. An employee who is unjustly dismissed from work shall be entitled to
reinstatement without loss of seniority rights and other privileges and to his full
backwages, inclusive of allowances, and to his other bene ts or their monetary
equivalent computed from the time his compensation was withheld from him up to the
time of his actual reinstatement.