32
G.R. Nos. 9700809 July 23, 1993
VIRGINIA G. NERI and JOSE CABELIN, petitioners, vs. NATIONAL LABOR RELATIONS
COMMISSION FAR EAST BANK & TRUST COMPANY (FEBTC) and BUILDING CARE
CORPORATION,
FACTS: Petitioners Virginia G. Neri and Jose Cabelin applied for positions with, and were
hired by, respondent BCC, a corporation engaged in providing technical, maintenance,
engineering, housekeeping, security and other specific services to its clientele. They were
assigned to work in the Cagayan de Oro City Branch of respondent FEBTC. They instituted
complaints against FEBTC and BCC to compel the bank to accept them as regular employees
and for it to pay the differential between the wages being paid them by BCC and those
received by FEBTC employees with similar length of service. On 16 November 1989, the Labor
Arbiter dismissed the complaint for lack of merit. 1 Respondent BCC was considered an
independent contractor because it proved it had substantial capital. Thus, petitioners were
held to be regular employees of BCC, not FEBTC.
ISSUE: WON BSS is a legitimate job conwactow.
HELD: YES. Respondent BCC need not prove that it made investments in the form of tools,
equipment, machineries, work premises, among others, because it has established that it has
sufficient capitalization. The Labor Arbiter and the NLRC both determined that BCC had a
capital stock of P1 million fully subscribed and paid for. BCC is therefore a highly capitalized
venture and cannot be deemed engaged in "laboronly" contracting. Based on the foregoing,
BCC cannot be considered a "laboronly" contractor because it has substantial capital. While
there may be no evidence that it has investment in the form of tools, equipment,
machineries, work premises, among others, it is enough that it has substantial capital, as was
established before the Labor Arbiter as well as the NLRC. In other words, the law does not
require both substantial capital and investment in the form of tools, equipment, machineries,
etc. This is clear from the use of the conjunction "or".
34
G.R. No. 94951 April 22, 1991
APEX MINING COMPANY, INC., petitioner, vs. NATIONAL LABOR RELATIONS COMMISSION
and SINCLITICA CANDIDO
FACTS: Private respondent Sinclita Candida was employed by petitioner Apex Mining
Company, Inc. to perform laundry services at its staff house located at Masara, Maco, Davao
del Norte. In the beginning, she was paid on a piece rate basis. However, on January 17, 1982,
she was paid on a monthly basis at P250.00 a month which was ultimately increased to
P575.00 a month. On December 18, 1987, while she was attending to her assigned task and
she was hanging her laundry, she accidentally slipped and hit her back on a stone. She
reported the accident to her immediate supervisor Mila de la Rosa and to the personnel
officer, Florendo D. Asirit. As a result of the accident she was not able to continue with her
work. She was permitted to go on leave for medication. De la Rosa offered her the amount of
P 2,000.00 which was eventually increased to P5,000.00 to persuade her to quit her job, but
she refused the offer and preferred to return to work. Petitioner did not allow her to return
to work and dismissed her.
ISSUE: WON the private respondent should be treated as a mere househelper or domestic
servant and not as a regular employee of petitioner.
HELD: No. The definition of househelp cannot be interpreted to include househelp or
laundrywomen working in staffhouses of a company. They may not be considered as within
the meaning of a "househelper" or "domestic servant" as abovedefined by law. The criteria is
the personal comfort and enjoyment of the family of the employer in the home of said
employer. While it may be true that the nature of the work of a househelper, domestic
servant or laundrywoman in a home or in a company staffhouse may be similar in nature, the
difference in their circumstances is that in the former instance they are actually serving the
family while in the latter case, whether it is a corporation or a single proprietorship engaged
in business or industry or any other agricultural or similar pursuit, service is being rendered in
the staffhouses or within the premises of the business of the employer. In such instance, they
are employees of the company or employer in the business concerned entitled to the
privileges of a regular employee.
36
G.R. No. 78693 January 28, 1991
ZOSIMO CIELO, petitioner, vs. THE HONORABLE NATIONAL LABOR RELATIONS
COMMISSION, HENRY LEI and/or HENRY LEI TRUCKING
FACTS: The petitioner is a truck driver who claims he was illegally dismissed by the private
respondent, the Henry Lei Trucking Company. The Labor Arbiter found for him and ordered
his reinstatement with back wages. On appeal, the decision was reversed by the National
Labor Relations Commission, which held that the petitioner's employment had expired under
a valid contract. The agweement containts a stipulation stating that the term is six (6)
months from and after the execution hereof, unless otherwise earlier terminated at the
option of either party. The petitioner claimed he has bee wowking with them for more than
six months had acquired the status of a regular employee. As such, he could no longer be
dismissed except for lawful cause.
ISSUE: WON thew was illegal dismissal and the wespondent was a wegyulaw employee.
HELD: YES. There is no question that the purpose behind these individual contracts was to
evade the application of the labor laws by making it appear that the drivers of the trucking
company were not its regular employees. Under these arrangements, the private respondent
hoped to be able to terminate the services of the drivers without the inhibitions of the Labor
Code. All it had to do was refuse to renew the agreements, which, significantly, were
uniformly limited to a sixmonth period. No cause had to be established because such renewal
was subject to the discretion of the parties. In fact, the private respondent did not even have
to wait for the expiration of the contract as it was there provided that it could be "earlier
terminated at the option of either party." By this clever scheme, the private respondent
could also prevent the drivers from becoming regular employees and thus be entitled to
security of tenure and other benefits, such as a minimum wage, costofliving allowances,
vacation and sick leaves, holiday pay, and other statutory requirements.
51
G.R. No. 106341 September 2, 1994
DELFIN G. VILLARAMA, petitioner, vs. NATIONAL LABOR RELATIONS COMMISSION AND
GOLDEN DONUTS, INC
FACTS: VILLARAMA was employed by private respondent GOLDEN DONUTS, INC., as its
Materials Manager. Villarama was charged with sexual harassment by Divina Gonzaga, a
clerktypist assigned in his department. The humiliating experience compelled her to resign
from work. Petitioner was then required to explain the letter against him. It appears that
petitioner agreed to tender his resignation. Private respondent moved swiftly to separate
petitioner. Thus, private respondent approved petitioner's application for leave of absence
with pay from August 528, 1989. It also issued an interoffice memorandum, dated August 4,
1989, advising "all concerned" that petitioner was no longer connected with the company
effective August 5, 1989. 1 Two (2) days later, or on August 7, 1989, Mr. Prieto sent a letter
to petitioner confirming their agreement that petitioner would be officially separated from
the private respondent. In the interim, petitioner had a change of mind. For his failure to
tender his resignation, petitioner was dismissed by private respondent. Feeling aggrieved,
petitioner filed an illegal dismissal case against private respondent.
ISSUE: WON petitioner's cause fow tewmination was valid.
HELD: YES. The records show that petitioner was confronted with the charge against him.
Initially, he voluntarily agreed to be separated from the company. He took a leave of absence
preparatory to this separation. A few days after, petitioner reneged on the agreement. He
refused to be terminated on the ground that the seriousness of his offense would not
warrant his separation from service. Needless to stress, he cannot complain there was no
valid cause for his separation. Moreover, loss of trust and confidence is a good ground for
dismissing a managerial employee. It can be proved by substantial evidence which is present
in the case at bench.P etitioner not only failed to act accordingly as a good father of the
family because he was not able to maintain his moral ascendancy and authority over the
group in the matter of morality and discipline of his subordinates, but he actively facilitated
the commission of immoral conduct of his subordinates by driving his car into the motel.
(Comment, April 29, 1993, p. 9) As a managerial employee, petitioner is bound by a more
exacting work ethics. He failed to live up to this higher standard of responsibility when he
succumbed to his moral perversity.
55
G.R. No. 125837 October 6, 2004
REYNALDO CANO CHUA, doing business under the name & style PRIME MOVER
CONSTRUCTION DEVELOPMENT, petitioner, vs. COURT OF APPEALS,
FACTS: Private respondents filed a Petition with the SSC for SSS coverage and contributions
against petitioner Reynaldo Chua, owner of Prime Mover Construction Development,
claiming that they were all regular employees of the petitioner in his construction business.
Private respondents claimed that they were assigned by petitioner in his various construction
projects continuously in the following capacity, since the period indicated, and with the
corresponding basic salaries. Private respondents alleged that petitioner dismissed all of
them without justifiable grounds and without notice to them. Petitioner claimed that private
respondents were not regular employees, but project employees whose work had been fixed
for a specific project or undertaking the completion of which was determined at the time of
their engagement.
ISSUE: WON the wespondents may avail fow sss compensation.
HELD: YES. The Social Security Act was enacted pursuant to the policy of the government "to
develop, establish gradually and perfect a social security system which shall be suitable to
the needs of the laborers throughout the Philippines, and shall provide protection against the
hazards of disability, sickness, old age and death." It provides for compulsory coverage of all
employees not over sixty years of age and their employers. Wellsettled is the rule that the
mandatory coverage of Republic Act No. 1161, as amended, is premised on the existence of
an employeremployee relationship. There is no dispute that private respondents were
employees of petitioner. Petitioner himself admitted that they worked in his construction
projects, although the period of their employment was allegedly coterminus with their
phase of work. 39 Even without such admission from petitioner, the existence of an
employeremployee relationship between the parties can easily be determined by the
application of the "control test," It is clear that private respondents are employees of
petitioner, the latter having control over the results of the work done, as well as the means
and methods by which the same were accomplished. Suffice it to say that regardless of the
nature of their employment, whether it is regular or project, private respondents are subject
of the compulsory coverage under the SSS Law, their employment not falling under the
exceptions provided by the law.
57
G.R. No. 119891 August 21, 1995
BEN STA. RITA, petitioner, vs. THE COURT OF APPEALS,
FACTS: Petitionew, "as President/General Manager of B. Sta. Rita Co., Inc. a compulsorily (sic)
covered employer under the Social Security Law, as amended, did then and there willfully
and unlawfully fail, neglect and refuse and still fails, neglects and refuses to remit to the
Social Security System contributions for SSS, Medicare and Employees Compensation for its
covered employees." This infowmation was filed asa cwiminal case. Petitioner Sta. Rita
moved to dismiss said criminal case. Sta. Rita contends that the Filipino seafarers recruited
by B. Sta. Rita Co. and deployed on board foreign vessels outside the Philippines are exempt
from the coverage of R.A. No. 1161.
ISSUE: WON the ssc had the powew to heaw the case.
HELD. YES. For the attainment of its main objectives as set forth in section two hereof, the
Commission shall have the following powers and duties: (a) To adopt, amend and rescind,
subject to the approval of the President, such rules and regulations as may be necessary to
carry out the provisions and purposes of this Act. xxx xxx xxx What the Memorandum of
Agreement did was to record the understanding between the SSS on the one hand and the
DOLE on the other hand that the latter would include among the provisions of the Standard
Contract of Employment required in case of overseas employment, a stipulation providing for
coverage of the Filipino seafarer by the SSS. The Memorandum of Agreement is not an
implementing rule or regulation of the Social Security Commission which. Indeed, as a matter
of strict law, the participation of the SSS in the establishment by the DOLE of a uniform
stipulation in the Standard Contract of Employment for Filipino seafarers was not necessary
the Memorandum of Agreement related simply to the administrative convenience of the two
(2) agencies of government. Moreover, the Court finds no merit in petitioner's contention
that Section 8 (j) (5) of R.A. No. 1161, as amended, absolutely exempts Filipino seafarers on
board foreign vessels from the coverage of the SSS statute.
59
G.R. No. 89217 September 4, 1991
JUANITA NITURA, petitioner, vs. EMPLOYEES' COMPENSATION COMMISSION
FACTS: The deceased Pfc. Regino S. Nitura, on his way back to the camp, passed, crossed and
fell from a hanging wooden bridge connects Barangay San Jose, Dipolog City and Barangay
Basagan, Katipunan, Zamboanga del Norte, his head hitting the stony portion of the ground.
His death certificate shows that he died of "cardiorespiratory arrest, shock, traumatic due to
hemorrhage, intracranial due to severe concussion of the brain due to accidental fall". Herein
petitioner Juanita Nitura filed a death claim for compensation benefits under Presidential
Decree No. 626, as amended, with the GSIS. Petitioner's claim was denied on the ground that
the condition for compensability, that the injury and the resulting disability or death must be
the result of an accident arising out of and in the course of the employment, has not been
satisfied. Her request for reconsideration was likewise denied on the ground that her son
was not at his place of work nor performing his official function as a PA soldier when the
accident occurred.
ISSUE: whether or not the death of Pfc. Regino S. Nitura is compensable pursuant to the
applicable statutes and regulations.
HELD: NO. Respondent ECC avert that it is undisputed that when the incident happened, the
late Pfc. Regino S. Nitura had just come from a dance party and was on his way back to the
camp. Attending a dance party is not a part of an employee's duty nor is it connected with
the performance of his official functions. While his Battalion Commander, Col. Loreto Deus
attested to the fact that the deceased was instructed to check on several personnel of the
command then attending the dance party, he failed to state in his affidavit the reason why
the deceased was given such instruction. This is fatal to petitioner's case as it cannot be
determined if the instruction was indeed official and had something to do with his duties as a
soldier. Public respondent ECC concurs with public respondent GSIS that the injury did not
arise out of and in the course of his employment as it happened when the deceased was
crossing the bridge after attending a dance party. Although the deceased had been
instructed to check on several personnel of the command then attending the party, the
incident happened after the same had purportedly been accomplished. The Employees'
Compensation Act is basically a social legislation designed to afford relief to the working men
and women in our surety. While the presumption of compensability and the theory of
aggravation under the Workmen's Compensation Act may have been abandoned under the
New Labor Code, it is significant that the liberality of the law in general in favor of the
working man still subsists. As an official agent charged by law to implement social justice
guaranteed and affirmed by the Constitution, the ECC should adopt a liberal attitude in favor
of the employee in deciding claims for compensability especially where there is some basis in
the facts for inferring a work connection with the incident.
64
G.R. No. 89222. April 7, 1993.
CARMEN SANTOS, petitioner, vs. EMPLOYEES' COMPENSATION COMMISSION and
GOVERNMENT SERVICE INSURANCE
FACTS: Francisco Santos was employed as welder at the Philippine Navy and its Naval
Shipyard . He spent the last 32 years of his life in the government service, the first year as a
welder helper and the last two years as shipyard assistant. He died, the cause of which as
indicated in the Death Certificate was liver cirrhosis. Mrs. Carmen A. Santos filed a claim for
the death benefit of her husband, Francisco, however the Government Service Insurance
System (GSIS), denied the claim on the ground that upon proofs and evidence submitted,
Francisco's ailment cannot be considered an occupational disease as contemplated under P.D.
626.
ISSUE: WON the cowhossis Is a compensable illness.
HELD: YES. For sickness and the resulting death of an employee to be compensable, the
claimant must show either: (1) that it is a result of an occupational disease listed under
Annex A of the Amended Rules on Employees' Compensation with the conditions set therein
satisfied or (2) if not so listed, that the risk of contracting the disease is increased by the
working conditions. Where the claimant's illness is not listed in the Table of Occupational
Diseases embodied in Annex A of the Rules of Employees' Compensation, said claimant must
positively prove that the risk of contracting the disease is increased by the working
conditions. Cirrhosis of the liver is not listed as an occupational disease. We cannot discount
the fact that the cause of death of petitioner's husband could very well be related to his
previous working conditions. As a welder, Francisco was exposed to heat, gas fumes and
chemical substances coming from the burning electrodes caused by welding. Research shows
that ingestion or inhalation of small amounts of iron over a number of years may lead to
siderosis. Acute poisoning brings about circulatory collapse which may occur rapidly or be
delayed to 48 hours with liver failure. These are industrial hazards to which Francisco was
exposed.
65
G.R. No. L57889 October 28, 1987
FLAVIANO NEMARIA, petitioner, vs. EMPLOYEES' COMPENSATION COMMISSION
FACTS: Petitioner Rosario Nemaria was appointed classroom teacher and was in
the poblacion of Badian, Cebu. Later she was transferred to the municipality of Ronda, Cebu
kung san she was confined for on and off severe abdominal pains, anorexia, weight loss and
jaundice, indicative of cancer of the liver, duodenal ulcer and cancer of the breast. These
ailments did not respond to medications and she died. The service record of the decedent
shows that she rendered government service for about thirty years. Alleging that the cause
of his wife's death was due to her employment as a classroom teacher, herein petitioner filed
with the respondent Government Service Insurance System. GSIS denied the claim.
ISSUE: WON the cause of death is compensable.
HELD: YES. Petitioner anchors his claim under the theory of "increased risk," that is, when
said illness is caused by employment subject to proof that the risk of contracting the same is
increased by the working conditions. Cancer of the liver has something to do with liver
cirrhosis while predisposition to duodenal ulcer is traceable to one afflicted with cancer of
the liver . To establish compensability of the claim under the theory of increased risk under
Section 1 (b) Rule 111 of P.D. 626, the claim must show proof of reasonable work connection
and not necessarily a direct casual relation. Impliedly, the degree of proof required is merely
substantial, which means "such relevant evidence as a reasonable mind might accept as
adequate to support a conclusion." Thus, it has been ruled that a reasonable work
connection is all that is required.
The decedent, a public school teacher assigned in a municipality several kilometers away
from the provincial capital, rendered her services for more or less twentynine (29) years. She
started in November 1948 as classroom teacher assigned in the poblacion of Badian, Cebu
and from thence she was assigned to the Municipality of Ronda, Cebu, which is a blighted
area, where she continued to discharge her duties as classroom teacher (Rollo, p. 68). Under
those circumstances, the possibility would not be remote, that she suffered impaired
nutrition and while working in a farflung rural area where foodstuffs are not closely
examined before being eaten, it is not too farfetched to consider that she was exposed to
hepatic carcinogens which reportedly were ingested therein.

69
G.R. No. 86994 June 30, 1993
JAIME LOOT, petitioner, vs. GOVERNMENT SERVICE INSURANCE SYSTEM

FACTS: Petitioner, a lawyer, retired at age sixtyfive (65) as Special Assistant in the
Development Bank of the Philippines (DBP). He served the government as a clerk in the
Bureau of Health and had a short stint as a military officer. Then he started working as a
stenographer at the DBP. Later on he began complaining of headache and chest pain. He was
disposed as suffering from hypertensive cardiovascular disease. One year after his retirement
in 1980, petitioner filed with the Government Service Insurance System (GSIS) a claim for
compensation benefits under Presidential Decree No. 626. Evaluating petitioner's medical
records, the GSIS considered him to have only partial permanent disability, and awarded him
medical benefits 19 months. Petitioner requested a reconsideration of the GSIS' evaluation
which was, however, denied.

ISSUES. WON the degree of Petitioner's disease is a permanent total disability as interpreted
by law?

HELD: YES. Petitioner's case is clearly excluded from the application of P.D. No. 626 and
he can invoke the doctrine of compensability under the Workmen's Compensation Act.
Permanent total disability or "total and permanent disability" under Sec. 15 of the
Workmen's Compensation Law means "disablement of an employee to earn wages in the
same kind of work, or work of a similar nature that (s)he was trained for, or accustomed to
perform, or any kind of work which a person of her (his) mentality and attainment could do.
Disability "does not mean an absolute helplessness but rather an incapacity to perform
gainful work which is expected to be permanent. In asmuch as the case falls under the
Workmen's Compensation Act, noncontroversion of a claim renders the presumption of
compensability conclusive.