GR 121948; (October, 2001) (Digest)
G.R. No. 121948; October 8, 2001
PERPETUAL HELP CREDIT COOPERATIVE, INC., petitioner, vs. BENEDICTO FABURADA, SISINITA VILLAR, IMELDA TAMAYO, HAROLD CATIPAY, and the NATIONAL LABOR RELATIONS COMMISSION, respondents.
FACTS
Private respondents filed a complaint for illegal dismissal and monetary claims against petitioner Perpetual Help Credit Cooperative, Inc. (PHCCI). Petitioner moved to dismiss, arguing no employer-employee relationship existed as the complainants were cooperative members and co-owners, and that they failed to exhaust intra-cooperative remedies under its by-laws and the Cooperative Development Authority Law. The Labor Arbiter denied the motion, finding an employer-employee relationship and holding labor laws paramount. After trial, the Arbiter ruled for private respondents, declaring them illegally dismissed and awarding backwages, separation pay, and other benefits. The NLRC affirmed this decision on appeal.
ISSUE
Whether an employer-employee relationship existed between the cooperative and the private respondents, and consequently, whether they were illegally dismissed.
RULING
The Supreme Court affirmed the NLRC decision, finding an employer-employee relationship. The Court applied the four-fold test: (1) the power to hire; (2) the payment of wages; (3) the power to dismiss; and (4) the employer’s power of control, which is the most determinative element. The evidence, including the complainants’ affidavits detailing their hiring by the cooperative manager, regular work schedules, specific duties, receipt of regular wages, and supervision by management, satisfied all elements. Their membership in the cooperative did not negate this relationship, as they performed functions as regular employees, not as volunteers or in a purely proprietary capacity. The Court also held that the requirement for prior conciliation under cooperative law does not preclude the application of the Labor Code and the jurisdiction of labor tribunals over termination disputes involving employees. Since the dismissals were without just or authorized cause and due process, they were illegal. The awards for backwages and separation pay were upheld, with modification to compute backwages in full until the finality of the Court’s decision.