GR 97747; (March, 1993) (Digest)
G.R. No. 97747 March 31, 1993
PHILIPPINE NATIONAL OIL COMPANY-ENERGY DEVELOPMENT CORPORATION/FRANCIS PALAFOX, petitioners, vs. NATIONAL LABOR RELATIONS COMMISSION and FRANCISCO MATA, respondents.
FACTS
Petitioner Philippine National Oil Company-Energy Development Corporation (PNOC-EDC) hired private respondent Francisco Mata as a Service Driver on November 11, 1980, for its Bacon-Manito Geothermal Project in Bonga, Sorsogon. He worked there until his termination on September 1, 1985, via a letter citing “contract expiration.” Mata filed a complaint for illegal dismissal, claiming backwages, overtime pay, and separation pay. The Labor Arbiter initially dismissed the complaint for lack of jurisdiction, ruling PNOC-EDC was governed by Civil Service Law. The NLRC reversed this and assumed jurisdiction. The Executive Labor Arbiter ruled Mata was a regular employee, not a project employee, and was illegally dismissed, awarding backwages, overtime pay, separation pay, moral and exemplary damages, and attorney’s fees. The NLRC, on appeal, modified the decision, affirming only the awards for backwages and separation pay, dismissing all other claims. Petitioners filed a motion for reconsideration, which was denied, leading to this petition for certiorari.
ISSUE
1. Whether the NLRC committed grave abuse of discretion in ruling that Francisco Mata was a regular employee.
2. Whether the NLRC committed grave abuse of discretion in ruling that he was illegally terminated.
3. Whether the NLRC committed grave abuse of discretion in awarding him backwages and separation pay.
RULING
The Supreme Court dismissed the petition and ordered petitioners to pay Mata backwages and separation pay.
1. On the first issue, the Court ruled that Mata was a project employee, not a regular employee. Applying the guidelines from Brent School v. Zamora, the fixed-term employment contract was knowingly and voluntarily agreed upon by Mata without force, duress, or vitiated consent. His employment was for a specific project—the well-completion project, which was part of the exploration stage of the geothermal project. Upon completion of that specific project, his services were no longer needed. He was not part of a “work pool” for assignment to other projects.
2. On the second issue, as a project employee, his termination upon project completion was legal in principle. However, the termination was deemed illegal for procedural reasons. Under Policy Instruction No. 20, since the project duration was more than one year and Mata was employed for at least one year, his termination prior to project completion required a written clearance from the Secretary of Labor. Petitioners failed to secure this clearance.
3. On the third issue, due to the failure to secure the required clearance, the awards of backwages and separation pay by the NLRC were affirmed. The other awards (overtime pay, moral damages, exemplary damages, attorney’s fees) were correctly dismissed by the NLRC for lack of merit.