G.R. No. 243812 , July 07, 2021
Freddie B. Laurente, Petitioner, vs. Helenar Construction and Joel Argarin, Respondents.

FACTS

Petitioner Freddie B. Laurente filed a complaint for illegal dismissal with money claims against respondents Helenar Construction and its owner Joel Argarin. He alleged he was a regular employee, continuously working as a painter since April 2012 on respondents’ various construction projects. In October 2014, respondents’ foreman, William Bragais, required him to sign a three-month labor contract renewable upon evaluation. Freddie refused to sign, believing it violated his security of tenure. On November 7, 2014, he was barred from entering the worksite. Respondents countered that Freddie was not their employee but was recruited by their subcontractor, William Bragais, and that Freddie refused to sign the contract and stopped reporting for work. The Labor Arbiter ruled in favor of Freddie, finding him a regular employee illegally dismissed and awarding monetary claims. The NLRC reversed, finding no employer-employee relationship between Freddie and respondents, holding William Bragais was the true employer. The Court of Appeals affirmed the NLRC’s decision.

ISSUE

Whether an employer-employee relationship existed between petitioner Freddie B. Laurente and respondents Helenar Construction and Joel Argarin, and consequently, whether he was illegally dismissed.

RULING

Yes. The Supreme Court granted the petition, reversing the CA and NLRC decisions and reinstating the Labor Arbiter’s decision with modifications. The Court ruled that Freddie was a regular employee of respondents. The determination of regular employment depends on whether the employee performs activities necessary or desirable in the usual business of the employer, not merely on the employment contract. Freddie’s work as a painter was necessary to respondents’ construction business. The fact that respondents prepared the labor contract and issued an identification card bearing the company name and logo indicated control and employer relationship. Respondents’ failure to submit a termination report to the DOLE as required for project employees further negated their claim that Freddie was a project employee. His refusal to sign the fixed-term contract, which would have circumvented his security of tenure, was valid. His dismissal without just or authorized cause and without due process constituted illegal dismissal. The Court awarded backwages, separation pay in lieu of reinstatement due to strained relations, service incentive leave pay, 13th month pay, attorney’s fees (10% of the total award), and legal interest on the total monetary award at 6% per annum from the finality of the decision until fully paid.