Del Rosario Vs ABS-CBN - GR 202481 - September 8, 2020
Del Rosario Vs ABS-CBN - GR 202481 - September 8, 2020
Del Rosario Vs ABS-CBN - GR 202481 - September 8, 2020
~upr~1ne <!ourt
ji[antla.
EN BANC
- versus -
ABS-CBN BROADCASTING
CORPORATION,
Respondent.
x------------------------------------------x
ABS-CBN CORPORATION, G.R. Nos. 202495 &
Petitioner, 202497
-versus -
JOURNALIE ·PAYONAN,
ANTONIO MANUEL, JR.,
.MANUEL MENDOZA, JOSEPH R.
ONG, RIEL A. TEODORO, RAMON
CATAHAN, JR., RONNIE
LOZARES, FERDINAND
MARQUEZ, FERDINAND
SUMERACRUZ, DANTE T. VIDAL,
CEZAR ZEA, RICARDO JOY
Decision 2 G.R. Nos. 202481, 202495 &
202497, 210165, 219125, 222057,
224879, 225101 and 225874
- versus -
ABS-CBN BROADCASTING
CORPORATION and/or
EUGENIO LOPEZ,
Respondents.
x------------------------- .. ---------------x
RICARDO JOY CAJOLES, JR., G.R. No. 219125
ANTONIO IMMANUEL CALLE,
RICHARD SISON and
JOURNALIE PAYONAN,
Petitioners,
- versus -
ABS-CBN BROADCASTING
CORPORATION,
Respondent.
x----------------------------- ·------------x
ABS-CBN CORPORATION, G.R. No. 222057
Petitioner,
- versus -
- versus -
RONNIE B. LOZARES,
Respondent.
x------------------------------------------x
ANTONIO BERNARDO S. G.R. No. 225101
PEREZ, JOHN PAUL
PANIZALES, FERDINAND
CRUZ, CHRISTOPHER
lVIENDOZA, DEI'\1NIS REYES,
JUN BENOSA, ROLAND
Decision 4 G.R. Nos. 202481, 202495 &
202497,210165,219125,222057,
224879, 225101 and 225874
,KRISTOFFER DE GUZMAN,
FREDIERICI( GERLAND
DIZON, RUSSEL GALIMA,
ALFRED CHRISTIAN NUNEZ,·
ROMMEL VILLANUEVA,
moNSCHULTZ CONGSON,
ALEX CARLOS, MICHAEL
TOBIAS, Gl;.RONIMO
BANIQUED, RONALDO SAN
PEDRO, and ERIC PAYCANA,
Petitioners,
- versus -
PERALTA,* CJ.,
PERLAS-BERNABE,
LEONEN,
CAQlJIOA,
GESMUNDO,
J. REYES, JR.,
- versus - I-IERNANDO,
CARANDANG,*
LAZARO-IAVIER,*
INTING,
ZALAMEDA,
LOPEZ,
DELOS, SANTOS,
GAERLAN,* and
BALTAZAR-PADILLA,** JJ.
JOSE ZABALLA III, TAUCER
TYCHE BENZONAN and Pro1nulgated:
FISCHERBOB CASAJE,
Respondents.
x------------------------------------------- -· -----x
• No part.
'"* On leave.
Decision 5 G.R. Nos. 202481, 202495 &
202497,210165,219125,222057,
224879, 225101 and 225874
DECISION
CAGUIOA, J.:
This involves eight (8) consolidated Petitions for Review on Certiorari
under Rule 45 of the Revised Rules of Court. The petitions may be divided
into tw<? categories - the regularization cases and the illegal dismissal cases.
Regularization Cases
SO ORDERED. 4
SO ORDERED. 8
Resolution 11 dated December 21, 2015 in CA-G.R. SP. No. 122068 where the
CA declared that respondents-workers were regular employees of ABS-CBN
and were illegally dismissed. Consequently, the CA ordered their immediate
reinstatement to their former positions without loss of seniority rights, coupled
with the pay1nent of their backwages c01nputed frmn the time their salaries
were withheld up to the tilne of their actual reinstatement.. The CA further
awarded 13 th month pay plus attorney's fees of ten percent (10%) of the total
monetary award. 12
8
Rollo (G.R. Nos. 202495 & 202497), Vol. lll, p. 1926.
9
Rollo (G.R. No. 222057), pp. 21-106.
10
Id. at 700-713. Penned. by Associate Justice Elihu A. Ybanez, with Associate Justices Isaias P. Dicdican
and Apolinario D. Bruselas, Jr. concurring.
11
Id. at 772-773. Penn~d by Associate Justice Elihu A. Ybanez, with Associate Justices Apolinario D.
Bruselas, Jr. and Eduardo B. Peralta, Jr. concm,-ing.
12
Id. at 712.
Decision 7 G.R. Nos. 202481, 202495 &
202497,210165,219125,222057,
224879, 225101 and 225874
the same periods plus attorney's fees equivalent to 10% of all the monetary
award[ s] to complaipant[s]. The other monetary claims and damages
claimed by complainant[s] are DENIED for failure to substantiate the same.
The case is hereby remanded to the L3:bor Arbiter for the proper
computation of the monetary awards. The NLRC is hereby DIRECTED to
notify this Court of the computation twenty (20) days from notice. No
pronouncement as to costs.
SO ORDERED. 13
IT IS SO ORDERED. 17
13 Id.
14
Rollo (G.R. No. 224879), pp. 11-62.
15
Id. at 72-80. Penned by Associate Justice Nina q. Antonio-Valenzuela, with Associate Justices Fernanda
Lampas Peralta and Jane Aurora C. Laniion concun-it1g.
16
Id. at 82·83 .· .
17
Id. at 79.
18
Rollo (G.R. No. 225874), Vol. I, pp. 10-72.
19
Rollo (G.R. No. 225874), Vol. II, pp. 715--729. Penned by Associate Justice Samuel H. Gaerlan (now a
Member of this Court), with Associate Justices Normandie B. Pizarro and Ma. Luisa C. Quijano-Padilla
COllCUITing.
20
Id. at 763-764.
Decision 8 G.R. Nos. 202481, 202495 &
202497,210165,219125,222057,
224819, 225101 and 225 874
131576, which affinned the rulings. of the Labor Arbiter (LA) and the NLRC
that the workers are in fact employees of ABS-CBN. Consequently, the CA
awarded holiday pay, and 13 th 1nonth pay computed three years back from the
filing of the complaint. 21
SO ORDERED. 22
SO ORDERED. 28
21
Id. at 727-728.
22
Id. at 728.
23
Rollo (G.R. No. 219125), Vol. I, pp. 11-45.
I - 24
Rollo (G.R. No. 219125), Vol. II, pp. 1347-1359. Penned by Associate Justice Edwin D. Sorongon, with
Associate Justices Rosmari D. Carandang (now a Member of this Court) and Marlene Gonzales-Sison
concurring.
25
Id. at 1376-1377.
26
See id. at 1353 and 1358.
27
Id. at 1358.
zs Id.
',., }
p
SO ORDERED. 35
G. R. No. 210165
j,}
(
Decision 10 G.R. Nos. 202481, 202495 &
202497,210165,219125,222057,
224879, 225101 and 225874
SO ORDERED. 40
The Antecedents
MGULARIZATION CASES:43 I
G.R. Nos. 202495 & 202497 (ABS-CBNCorporation v. Payonan, et al.)
rNAME: DATE HIRED:
Journalie Payonan October 1997
Antonio Manuel, Jr. August 1999
Manuel A.Mendoza March 1999
Joseph R. Ong September 1999
Riel A. Teodoro 1996
Ramon P. Catahan, Jr. 1998
1'
I
,
1
Romiie Lozares 1996
Ferdinand L. Marquez 1998
Ferdinand C. Sumeracruz July 1997
Dante T. Vidal June 1997
Cezar Z. Zea 1997
Ricardo Joy C. Cajoles, Jr. December 1999
Alex R. Carlos May 1999
Jolmschultz A. Congson December 1999
Leslie Rey S. Olpindo December 1999
Armando A. Ramos December 1999'
Rommel V. Villanueva April 1999
Enrico V. Castulo March 1995
Frankie S. Domingo March 1995
Manuel Conde Febrnary 1997
Antonio Immanuel N. Calle January 1999
Oliver J. Chavez December 1999
40
Id. at 65.
41
AN AC'f GRANTING THE ABS-CBN BROADCASTING CORPORATION FRANCHISE TO CONSTRUCT INSTALL
OPERATE AND MAINTAIN TELEVISION AND RADIO BROADCASTING STATIONS IN THE PHILIPPiNES AN~
FOR OTHER PURPOSES, March 30, 1995. ,
42
Republic v. ABS-CBN Corporation, G.R. No. 251358, June 23, 2020 (Resolution).
43
Rollo (G.R. No. 202481), Vol. II, pp. 890-892; rollo (G.R. Nos. 202495 & 202497), pp. 3251, 3311-
3315; and rollo (G.R. No. 210165), Vol. I, pp. 12-13.
Decision 11 G.R. Nos. 202481, 202495 &
202497,210165,219125,222057,
224879, 225101 and 225874
44
Rollo (G.R. No. 210165), Vol. I, pp. 12-13; rollo (G.R. No. 219125), Vol. I, pp. 13-14; rollo (G.R. No.·
222057), pp. 389, 701; i~olfo (G.R. No. 224879), p. 73; rollo (G.R. No. 225101), Vol. III, pp. 1451-1452;
rollo (G.R. No. 225874), Vol. II, p. 716; and rollo (G.R. Nos. 202495 & 202497), Vol. VI, p. 3682.
Decision 13 G.R. Nos. 202481, 202495 &
202497,210165,219125,222057,
224879, 225101 and 225874
45
Rollo (G.R. Nos. 2024.95 & 202497), Vol. VI, p. 3683; rollo (G.R. No. 225874), Vol. II, p. 716.
46
Id.; rollo (G.R. Nos. 202495 & 202497), Vol. IV, p. 2233; rollo (G.R. No. 225874), Vol. II, p. 717.
47
Rollo (G.R. No. 225874), Vol. II, p. 717., ·
48
Rollo (G.R. Nos. 202495 & 202497), Vol. IV, p. 2232.
49 Id.
50
Id.
Decision 14 G.R. Nos. 202481:i 202495 &
202497,210165,219125,222057,.
224879, 225101 and 225874
Finally, the OB van and PA van drivers were tasked to drive the vans,
which served as the studios outside of the ABS-CBN premises. 51 These make-
shift studios were used for taping and shooting programs in remote areas. 52
In exchange for the services they rendered, the workers were paid
salaries twice a month, as evidenced by pay slips bearing ABS-CBN's
corporate nan1e. 55
Due to the creation of the IJM System, the workers were asked to sign
a contract that would place them all under the IJM Work Pool. They were
s1 Id.
s2 Id.
iI .• 53 Id.
54
See id. at 2229.
55
Rollo (G.R. No. 225874), Vol. II, p. 717.
56
Rollo (G.R. No. 225101), Vol. I, p. 542.
57
Id. at 542-543.
58
Rollo (G.R. No. 225101), Vol. II, p. 856.
59 Id.
60
Rollo (G.R. No. 225101), Vol. I, p. 543.
61
Rollo (G.R. No. 225101), Vol. II, p. 856.
' ) r
included in the pool without their c nsent or over their vehement objections. 62
Upon the implementation of the IJM System, each of the workers was given
an hourly rate. 63 Consequently, be~nni_ng_ January 2?02, th~y were paid based
on the actual hours they worked, 111ult1phed by the1r specified hourly rate. 64
They did not receive overtime pay, Jremium pay, and holiday pay for the work
they rendered during rest days, spe ial holidays, and regular holidays. 65
Clamoring for better rights, the workers formed the ABS-CBN IJM
Workers' Union. 66 Thereafter, they started demanding recognition as regular ·
employees. Thus, in the later part °if 2002 up to the first quarter of 2003, the·
workers filed cases for regularization before the LA. 67 The workers claimed
that ABS-CBN compelled them I to sign a document denominated as
"Accreditation in the Internal [Job j Market System." 68 With this document,
the workers were relegated to mer¢ talents. 69 ABS-CBN maintained that an
accreditation under the IJM system tlid not create an employ1nent relationship
between it and the "talent".
62
See rollo (G. R. No. 219125), Vol. I, p. 24.
63 Id.
64 Id.
65 Id.
66
See id, at 16.
67
Rollo (G.R. No. 202481), Vol. I, p. 13.
68
Id. at 59.
69
Rollo (G.R. No. 202481), Vol. I, p. 13.
70
April 28, 2003 in other parts of the rollo.
71
Rollo (G.R. No. 21.9125), Vol. I, p. 25.
72 Id. .
73
See id. at 26.
74
Rollo (G.R. Nos. 202495 & 202497), Vol. III, p. 1913.
75
Id. at 1913-1914.
' ' .
· Over a span of almost eight years, various rulings have been rendered
by the LA, the NLRC, and the CA involving the instant petitions.
In view of the similarity of facts and issues raised in the eight petitions,
on February 27, 2019, · the Court issued a Resolution 81 ordering the
consolidation of all eight petitions.
Issues
76
Rollo (G.R. No. 225874), Vol. II, p. 717.
77
Id.; rollo (G.R. No. 225101), Vol. I, p. 530; and rollo (G.R. No. 219125), Vol. I, p. 16.
78
Rollo (G.R. No. 225101), Vol. I, p. 531; rollo (G.R. No. 219125), Vol. I, pp. 16-17; rollo (G.R. No.
222057), p. 702; rollo (G.R. No. 224879), p. 391; and rollo (G.R. No. 225874), Vol. II, p. 717.
79
Rollo (G.R. No. 224879), pp. 391-392; and rollo (G.R. No. 219125), Vol. 1, p. 17.
80
See rollo (G.R. No. 225101), Vol. I, p. 531; and rollo (G.R. No. 225874), Vol. I, p. 24.
81
Rollo (G.R. No. 202481), Vol. II, pp. 1429-1430.
82
See rollo (G.R. Nos. 202495 & 202497), Vol. III, pp. 2027-2028 and rollo (G.R. Nos. 202495 &
202497), Vol. IV, pp. 2066-2086.
Decision 17 G.R. Nos. 202481, 202495 &
202497,210165,219125,222057, · r
the instant.petitions;
5. Whether or not the workers in G.R. Nos. 202495 & 202497 (ABS-
CBN Corporation v. Pay~nan, et al.) and G.R. No. 202481 (Del
Rosario, et al. v. ABS-CBN Broadcasting Corporation) are entitled
to the benefits under the iollective Bargaining Agreement (CBA)
with ABS-CBN; and I,
On the other side, ABS-CBN primarily seeks the dismissal of the petitions
on procedural grounds, claiming that the failure of the workers to file a Motion
for Reconsideration before the CA, and their cormnission of forum shopping,
render the instant petitions defective; hence, dismissible. Similarly, ABS-CBN
claiJ.ns that the ruling of the Court in Jalog should be applied to the workers
herein due to the similarity of facts in the said case and the instant petitions.
Procedural Issues
[3.] Where there is an urgent necessity for the resolution of the question
and any further dJlay would prejudice the interests of the
Govennnent or of th~ petitioner or the subject matter of the action
1
is perishable; •
[5.] Where petitioner wa~ deprived of due process and there is extreme
1
[7.] Where the proceeditigs in the lower comi are a nullity for lack of
due process; ·
I
[8.] Where the proceeding was ex parte or in which the petitioner had no
opportunity to object; and
[9.] Where the issue raisdd is one purely of law or where public interest
is involved. 85 (Emphhsis in the original)
I
The second exception apblies here. The issues raised before the NLRC,
which pertain to the existence of
an employment relationship between ABS-
CBN and the workers and the fact of illegal dis1nissal, were the very same
questions raised in the speciai civil action for certiorari before the CA. 86
Certainly? it would be futile to strictly require the filing of a motion for
reconsideration when the very issues raised before the CA were exactly
~imilar to those passed upon and resolved by the NLRC. 87
83
Olores v. Manila Doctors College, 731 Phil. 45, 58 (2014).
84
Id. at 58.
85
Id. at 58-59.
86
See CA Decision, rollo (G.R. No. 222057), pp. 700-713.
87
See NLRC Decision, id. at 387-399.
Decision 19 G.R. Nos. 202481, 202495 &
202497,210165,219125,222057,
224879, 225101 and 225874
Here, although it is true that the parties in the regularization and the
illegal dismissal cases are identical, the reliefs sought and the causes of action
are different. There is no identity of causes of action between the first set of
cases and the second set of cases.
The test to. detennine whether the causes of action are identical is to.
ascertain whether the same evidence would support both actiqns, or whether
88
These were the issues raised in the cases of ABS-CBN Corporation v. Ong, et al. (G.R. No. 222057) and
Cajoles, Jr., et al. v. ABS-CBN Broadcasting Corporation (G.R. No. 219125).
89
Coca-Cola Bottlers (Phils.), Inc. v. Social Security Commission, 582 Phil. 686, 699 (2008).
90
Id. at 697, citing Guevara v. BPI Securities Corporation, 530 Phil. 342, 366-367 (2006).
91
Id. at 696, citing Spouses Abines v. Bank ofthe Philippine Islands, 517 Phil. 609, 616 (2006).
Decision 20 G.R. Nos. 202481, 202495 &
20249~2i0165,219Ii5,222057,
224879, 225101 and 225874
there is an identity in the facts essen~al to the maintenance of the two actions.
If the saine facts or evidence would support both actions, then they are
considered the same; a judgment m the first case would be a bar to the
subsequent action. 92 This is absent li.ere. The facts or the pieces of evidence
that would detennine whether the workers were illegally dismissed are not the
same as those that would support thdir clamor for regularization.
Substantive Issues
should be applied to those that follow, if the facts are substantially the same,
even though the parties may be different. 94 Simply stated, like cases ought to
be decided alike. Accordingly, "whete the same questions relating to the same'
event have been put forward by the parties similarly situated as in a previous
case litigated and decided by a cmnpetent court, the rule of stare decisis is a
bar to any attempt to relitigate the s~me issue."95
However, the CA' s decision in Jalog was affirmed by the Court through
a minute resolution. The binding nature of a minute resolution and its ability
to establish a lasting judicial precedent have already been settled in Deutsche
Bank AG Manila Branch v. Commissioner of Internal Revenue. 96 There, the
Court explained that a minute resolution constitutes res judicata only insofar ·
as it involves the "san1e subject matter and the same issues concerning the
same parties." 97 However, it will not set a binding precedent "if other parties
or another subject matter (even with the saine parties and issues) is
involved." 98 Thus, the ruling in Jalog, which involves different litigants, may
not be applied to the parties in the instant petition.
ABS-CBN further argues that the workers are talents and not its
employees. They claim that this is evident from the nature of work they
performed and the contracts they signed. ABS-CBN also staunchly 1naintains
that its main business is broadcasting, and not the production of programs. It
explains that as a broadcasting co1npany, it avails itself ~f various options. in
airing its content and generating revenues. Among these schemes are "block.-
timing," availment of foreign canned shows and licensed programs, as well as
line production, co-production, self-production, and live coverages. 99
94
Lazatin v. Hon. Desierto, 606 Phil. 271, 282 (2009), citing Chinese Young Men's Christian Association
ofthe Philippine Islands v. Remington Steel Corporation, 573 Phil. 320, 337 (2008). .
95
Id. at 282-283, citing Chinese Yqung Men's Christian Association ofthe Philippine Islands v. Remington'
Steel Corporation, id. at 337.
96
716 Phil. 676 (2013).
97
Id. at 687. Emphasis omitted.
98
Id. Emphasis omitted.
99
Seerollo (G.R. No. 225874), Vol. I, pp. 13-14; rollo (G.R. Nos. 202495 & 202497), Vol. III, p. 1914.
Decision 22 G.R. Nos. 202481, 202495 &
202497,210165,219125,222057,
224879, 22510J and 225874
power of dismissal; and (iv) •the• power of control over the employee's
conduct, or the so-called "control test'' 100
This is not the first time the four-fold test is being applied to ABS-CBN ,
workers. The Court has ruled in Begino v. ABS-CBN Corporation 101 (Begino ), q·
xxxx
100
South East International Rattan, Inc. v. Coming, 729 Phil. 298, 306 (2014), citing Atok Big Wedge Co.,
Inc. v. Gison, 670 Phil. 615, 626-627 (2011), further citing Philippine Global Communication, Inc. v.
De Vera, 498 Phil. 301, 308-309 (2005).
IOI 758 Phil. 467 (2015).
Decision 23 G.R. Nos. 202481, 202495 & .
202497,210165,219125,222057,
224879, 225101 am;l 225874
The Court's ruling in Begino is applicable here. The workers here are
employees of ABS-CBN.
The records show that the workers were hired by ABS-CBN through its
personnel department. In fact, the workers presented certificates of
compensation, payment/tax withheld (BIR Form 2316), Social Security
System (SSS), Pag-ibig Fund documents, and Health Maintenance Cards,
which all indicate that they are employed by ABS-CBN. 103
In the same vein, the workers received their salaries from ABS-CBN
twice a month, as proven through the pay slips bearing the latter's corporate
name. Their rate of wages was detennined solely by ABS-CBN. 104 ABS-CBN
likewise withheld taxes and granted the workers PhilHealth benefits. 105 These
clearly show that the workers were salaried personnel of ABS-CBN, not
independent contractors.
And just like in Regino, the fact that the workers signed a "Talent
102
Id. at 480-482.
103
Rollo (G.R. No. 219125), Vol. I, p. 15. -
104
Rollo (G.R. No. 225874), Vol. II, p. 717; rollo (G.R. No. 219125), Vol. I, p. 22; rollo (G.R. No. 225101),
Vol. I, p. 32.
10s Id.
106
See rollo (G.R. No. 219125), VoL I, p. 22.
W7 Id.
108
See id.
109
Id.; rollo (G.R. No. 225101), Vol. I~ p. 532.
110
Rollo (G.R. No. 219125), Vol. I, pp. 22-23.
Decision 24 G.R. Nos. 202481, 202495 &
202497,210165,219125,222057,
224879, 225101 and 225874
Contract and/or Project Assignment Form" does not ipso facto make them .
talents. It is settled that. a talent contract does not necessarily prevent an
employee from acquiring a regular employment status. 1 u The nature of the
employment does not depend on the will or word of the employer or on the
procedure for hiring and the manner of designating the employee, but on the
activities performed by the employee in relation to the employer's business. 112
Having established that the workers are employees -of ABS-CBN, the
Court proceeds to determine the kind of employees they are.
The Labor Code classifies four (4) kinds of employees, as follows: (i)
regular employees, or those who have been engaged to perfonn activities
which are usually necessary or desirable in the usual business or trade of the
employer; (ii) project employees, or those whose employment has been fixed
for a specific project or undertaking, the completion or termination of which
has been detennined at the time of the employees' engagement; (iii) seasonal
employees, or those who perfonn services which are seasonal in nature, and
whose employment lasts during the duration of the. season; and (iv) casual
employees, or those who are not regular, project, or seasonal employees.
Jurisprudence added a fifth kind - fixed-term employees, or thos_e hired only
for a definite period oftime. 114
lll Begino v. ABS-CBN Corporation, supra note 101, at 482, Dumpit-Murillo v. CA, 551 Phil. 725~
735 (2007).
Ill Universal Rob.ina Sugar Milling Corp. v. Acibo, 724 Phil. 489, 503-504 (2014).
113
Begino v. ABS-CBN Corporation, supra note 101, at 479.
114
See GMA N,etwqrk, Inc. v. Pabriga, 722 Phil. 161, 169-170 (2013), citing Brent School, Inc. v. Zamora,
260 Phil. 747 (1990).
Decision 25 G.R. Nos. 202481, 202495 &
202497,210165,219125,222057,
224879, 225101 and 225874
Again, this is not the first time the Court has determined that certain
workers of ABS-CBN are regular employees given the tasks that they were
engaged in. In ABS-CBN Broadcasting Corporation v. Nazareno 119
(Nazareno), the workers involved were production assistants who were
repeatedly hired but treated as talents. The Court therein ruled that the
production assistants were regular employees as follows:
120
Id. at 333-334.
121
Rollo (G.R. No. 222057), p. 110.
122
Id. 111.
~/ ! I
In Sonza, Jose Sonza (Sonza) was a talent who was engaged on the basis
of his expertise in his craft. 128 His possession of unique skills and celebrity
status gave him the distinct privilege to bargain with ABS-CBN's officials ori
the terms of his agreement with the latter. These negotiations resulted to a
hefty talent fee. Also, the payment of his salaries did not depend on the amount
of work he performed or the number of times he reported for duty, but was
based solely on the terms of the agreement. More than t):iis, ABS-CBN was
duty-bound to continue paying him his talent fees during the lifetime of the
agreement, regardless of any business losses it may suffer, and even if it
ceased airing his programs. 129
Sonza should refrain from criticizing ABS-CBN and its interests. In short,
Sonza enjoyed an untrammeled artistic creativity on the contents and delivery
of his lines and spiels. 131
Equally telling, the worl~ers did not enjoy the same level of impunity
granted to Sonza. It bears stressing that an independent contractor is endowed
with a certain level of skill and talent that is not available on-the-job. 133
Obviously, the workers do not hold this level of distinction.
tasks.
131
See id. at 557.
132
Rollo (G.R. No. 222057), p. 276.
133
Sonza v. ABS-CBN Broadcasting Corp., supra note 127, at 555, citing Alberty-Velez v. Corporaci6n De
Puerto Rico Para La D£fusi6n Publica ("WIPR"), 361 F.3d 1, March 2, 2004.
134
Rollo (G.R. No. 225101), Vol. I, p. 529.
Decision 29 G.R. Nos. 202481, 202495 &
202497,210165,219125,222057,
224879, 225101 and 225 87 4
The first of which are the regular station employees characterized as:
137
EMPLOYER-EMPLOYEE RELATIONSHIP, HOURS OF WORK AND DISPUTE SETTLEMENT IN THE BROADCAST
INDUSTRY, January 8, 1979. .
Decision 30 G.R. Nos. 202481, 202495 &
202497,210165,219125,222057,
224879, 225101 a11d 225874
The Court is mindful that, in order to strike a balance between the rights
of labor and capital and, more importantly, to contend with the volatility of
the broadcasting industry, various employment agreements may be forged
between the broadcasting company and the workers. These may range from
regular employment, if the employees are continuously hired from one
program to another, with their tenure unaffected by any changes in programs,
ratings, or fonnats, to project employment, wherein the employees are
i I
executing the shots and angles on their own accord and discretion. In this .
respect, a distinction must be drawn between the cameramen who are talents,
versus the cameramen in the instant case, who are regular employees of ABS-
CBN.
143
Dacles v. Millenium Erectors Corporation, 763 Phil. 550, 558 (2015), citing Omni Hauling Services,
Inc. v. Bon, 742 Phil.-335, 343-344 (2014).
144 Id. at 558.
Decision 32 G.R. Nos. 202481, 202495 &
202497,210165,219125,222057,
224879, 225101 and 225874
i
I
The Court finds that a work pool indeed existed, but its members,
!
consistent with the rulings in Begino and Nazareno, were regular employees,
and not independent contractors.
The broadcast industry is a business that is allied with the film industry. ,
Similar to the business of producing and creating films, the production of
programs in the broadcast industry likewise involves periods with a·
foreseeable suspension of work. In fact, the description of a work pool
perfectly suits the distinct nature of the broadcast industry:
A work pool may exist although the workers in the pool do not
receive salaries and are free to seek other employment during temporary
breaks in the business, provided that the worker shall be available when
called to report for a project. Although primarily applicable to regular
seasonal workers, this set-up can likewise be applied to project workers
insofar as the effect of temporary cessation of work is concerned. [It is said
that this arrangement] is beneficial to both the employer and employee for
it prevents the unjust situation of "coddling labor at the expense of capital"
and at the same time enables the workers to attain the status of regular
employees. [In Lao, the Comi held that] the continuous rehiring of the same
set of employees within the framework of the Lao Group of Companies is
strongly indicative that private respondents were an integral part of a work
pool from which petitioners. drew its workers for its various projects. 148
(Citations omitted)
145
Exocet Security and Allied Services C01p., et al. v. Serrano, 744 Phil. 403,418 (2014).
146 Supra note 118. p
147
Id. at 605.
148
Id. at 604, citing Tomas Lao Construction v. NLRC, 344 Phil. 268, 280 ( 1997).
Decision 33 G.R. Nos. 202481, 202495 &
202497,210165,219125,222057,
224879, 225101 and 225874
to achieve its purpose. However, in order to ensure that the work pool
arrangement is not used as a scheme to circumvent the employees' security of
tenure, the employer 1nust. prove that (i) a work pool in fact exists, and (ii) the
members therein are free to leave anytime and offer their services to other
~mployers. These requirements are critical in defining the precise nature of
the workers' employment. 149
Both parties acknowledged the existence of the IJM Syste1n work pool
and the workers' inclusion therein. On the part of ABS-CBN, it gave the
workers an ABS-CBN identificati_on card, placed them under the supervision
of its officers and managers, allowed them to use its facilities and equipment,
and continuously e1nployed them in the production of television programs. On
the part of the workers, they formed the ABS-CBN IJM System Worker's
Union, recognizing that they were in fact part of the IJM System work pool.
149
See Raycor Aircontrol Systems, Inc. v. 330 Phil. 306, 320-322 (1996).
1so Id.
151
Id.at321.
152
Maraguinot, Jr. v. NLRC, supra note 118, at 606.
153
Rollo (G.R. Nos. 202495 & 202497), Vol. III, p. 1915.
1s4 Id.
Decision 34 G.R. Nos. 202481, 202495 &
202497,210165,219125,222057,
224879, 225101 and 225874
As in Tomas Lao Construction v. NLRC, 155 the Court affirmed that the
members of a work pool shall still be regarded as regular employees, even if
they are allowed to seek employment elsewhere during lulls in the business. 156 '
The Court stressed that, during the cessation of ,work, the e1nployees shall·
silnply be treated as being on leave of absence without pay until their next
project. Correlatively, the e1nployer shall not be obliged to pay the employees
during the suspension of operations, viz.:
It bears stressing that similar to the caveat laid down in Maraguinot, the
Court wishes to allay any fears that the instant ruling unduly burdens an
employer, or that it unreas·onably coddles labor at the expense of capital. This
decision is simply a "judicial recognition of the employment status of a project
or work pool employee in accordance with what is fait accompli, i.e., the
continuous re-hiring by the e1nployer of project or work pool employees who
perform tasks necessary or desirable to the employer's usual business or
trade." 158
The facts show that ABS-CBN failed to prove the existence of just or
authorized causes for terminating the services of the workers, save for its
claim that they are talents. Without any notice or warning, the workers were
simply barred from entering the company premises.
159
In the petitions for regularization (G.R. Nos. 202481 and 202495 & 202497), the workers likewise
beseech the· Court for their inclusion in the CBA with ABS-CBN.
160
624 Phil. 562 (2010).
161
Rollo (G.R. Nos. 202495 & 202497), Vol. IV, p. 2510.
162
LABOR CODE OF THE PHILIPPINES, Alt. 294.
Decision 36 G.R. Nos. 202481, 202495 &
202497,210165,219125,222057,
224879, 225101 and 225874
However, consistent with the .finding that the workers are regular work
pool employees, then, following Maraguinot, the workers are deemed
reinstated to the work pool and are entitled to backwages, subject to
deductions as stated below, and other benefits.
163
JCT Marketing Services, Inc. v. Sales, 769 Phil. 498, 524 (2015), citing Reyes v. RP Guardians Security
Agency, Inc., 708 Phil. 598, 604-605 (2013).
164
Presidential Decree No. 851, REQUIRING ALL EMPLOYERS TO PAY THEIR EMPLOYEES A IJTH MONTH
PAY; Revised Guidelines on the Implementation of the 13 th Month Pay Law; and R.A. No. 10963 or the
"TAX REFORM FOR ACCELERATION AND INCLUSION (TRAIN) LAW," Sec. 9.
165
Loon v. Power Master Inc., 723 Phil. 515, 531-532 (2013).
1
<• •
However, as to the workers' claims for overti1ne pay, premium pay for.
holidays and rest days, and night shift differential pay, the burden is shifted
on the employee, as these· monetary claims are not incurred in the normal
course of business. 166 Considering that the workers failed to prove that they
actually rendered service in excess of the regular eight working hours a day,
and that they in fact worked on holidays and rest days, 167 the Court is
constrained to deny their claim for these benefits.
As for the workers' prayer for moral and exemplary damages, the Court
denies these reliefs for lack of factual and legal basis. Nonetheless, the
workers are entitled to attorney's fees equivalent to ten percent ( 10%) of the
total monetary award, since the instant case includes a claim for unlawfully
withheld wages, and the workers were forced to litigate to protect their
rights. 168 All amounts due shall earn a legal interest of six percent (6%) per
annum. 169
the Resolution dated July 15, 2016 of the Court of Appeals, in CA-
G.R. SP No. 131576 are AFFIRMED. -
Let this case be remanded to the1 Labor Arbiter for the proper
computation of the monetary benefits due to Fach of the workers in accordance
with the guidelines in this Decision. All amounts awarded shall earn a legal
I
interest of six percent (6%) per annum , . om the date of finality of this
Decision until full pay1nent.
SO ORDERED. I
stice
Decision 39 G.R. Nos. 202481, 202495 &
202497,210165,219125,222057;
224879, 225101 and 225874
WE CONCUR:
(No part)
DIOSDADO M. PERALTA
Chief Justice
ESTELA ~-~-BERNAB -:
Associate Justice· Associate Justice
~d~ (!_~~ ,
A L ~ ~ G. GESMUNDO EC. ~YIE ' JR.
..( Associate Justice ssociate Jus ce
(No part)
ROSMARI D. CARANDANG
Associate Justice Associate Justice
(No part)
AMY C. LAZARO-JAVIER HEN
Associate Justice Associate Justice
(No part)
EDG~LOSSANTOS SAMUEL H. GAERLAN
Associate Justice Associate Justice
Decision 40 G.R. Nos. 202481, 202495 &
202497,210165,219125,222057,
224879, 225101 and 225874
(On leave)
PRISCILLA BALTAZAR-PADILLA
Associate Justice
; '
\
CERTIFICATION