G.R. No. 112877; February 26, 1996
Sandigan Savings and Loan Bank, Inc., and Sandigan Realty Development Corporation, petitioners, vs. National Labor Relations Commission and Anita M. Javier, respondents.

FACTS

Private respondent Anita M. Javier worked as a realty sales agent for petitioner Sandigan Realty Development Corporation from 1982 to 1986 under an agreement entitling her to a 5% sales commission or a P500 monthly allowance if no sale was made. On December 1, 1986, she was hired as a marketing collector by petitioner Sandigan Savings and Loan Bank, receiving a monthly salary and allowance, while continuing her sales agent role for Sandigan Realty on the side, earning commissions but no longer the monthly allowance. On April 20, 1990, Angel Andan, President of both corporations, effectively dismissed Javier by instructing personnel to prepare her termination papers, then a resignation letter, and ordering her not to report for work. Javier filed a complaint for illegal dismissal.
The Labor Arbiter ruled in Javier’s favor, ordering reinstatement, full backwages, damages, and attorney’s fees. The NLRC affirmed but modified the decision, deleting damages and attorney’s fees, and computing separate awards for backwages and separation pay from both corporations. Petitioners challenged the NLRC’s findings, particularly that Javier was a regular employee of Sandigan Realty entitled to backwages and separation pay, and the computation of her monthly salary from the bank.

ISSUE

Whether the NLRC gravely abused its discretion in: (1) finding Javier was a regular employee of Sandigan Realty entitled to backwages and separation pay; and (2) computing her monthly salary from the bank at P2,400 for separation pay over six years.

RULING

The Supreme Court found no grave abuse of discretion. On the first issue, the Court upheld the NLRC’s finding that Javier was a regular employee of Sandigan Realty. The determinative factor is the reasonable connection between the particular activity performed and the usual business of the employer. Sandigan Realty’s business is realty development and sales; Javier’s role as a sales agent was clearly necessary and desirable to this business. Her continued engagement for several years, even after her bank employment began, indicated regularity, not a mere sporadic or project-based relationship. The P500 monthly allowance payable when no sale was made further evidenced an employer-employee relationship, providing economic protection and indicating control over her work arrangements.
On the second issue, the Court sustained the salary computation. The NLRC based the P2,400 monthly rate on Javier’s latest adjusted salary of P1,840 plus her monthly allowance of P510, totaling P2,350, rounded to P2,400. This computation was supported by evidence, including the “Notice of Salary Adjustment.” The period of six years for separation pay from the bank, from December 1, 1986 to April 20, 1993, was also correct, as her dismissal was effectively in 1990, and backwages and separation pay are computed up to the finality of the decision. The NLRC’s factual findings, being supported by substantial evidence, are accorded respect and finality. The petition was dismissed for lack of merit.