CASE DIGEST
Laurente v. Helenar
Construction
G.R. No. 243812, [July
7, 2021]
SECOND, LOPEZ, M.
Illegal Dismissal;
Security of tenure; Regular Employment; Strained Relationship test
The determination of regular employment is based on the nature of the job performed, not the employment contract.
Freddie B. Laurente, a painter, filed a
complaint for Illegal Dismissal with Money Claims against Helenar Construction
and its owner Joel Argarin before the Labor Arbiter. Freddie claimed that he
was a regular employee performing necessary and desirable work for the
construction business of the respondents. He narrated that he had been
continuously working as a painter for respondents' various projects since April
2012. However, on October 24, 2014, he was required to sign a labor contract
for a period of three months, which he refused to sign. Subsequently, he was
barred from entering the construction site.
Respondents argued that Freddie was not their regular employee but a subcontractor hired by William Bragais. They claimed that it is a common practice in the construction industry to hire subcontractors for specific works. The Labor Arbiter ruled in favor of Freddie, declaring him as a regular employee and ordering respondents to pay him backwages, separation pay, service incentive leave pay, and 13th month pay.
Whether Freddie is a regular employee
of respondents.
YES. The Court emphasized that the determination of regular employment is based on the nature of the job performed, not the employment contract. The test is the reasonable connection between the employee's activity and the usual business of the employer. In this case, Freddie's work as a painter was necessary and desirable for respondents' construction business, making him a regular employee.BThe Court rejected the argument that Freddie was a project employee, as there was no evidence that he was adequately informed of his status as a project employee at the time of his engagement. The labor contract presented by respondents was deemed an afterthought to deny Freddie the benefits of a regular employee.
As a regular employee, Freddie can only
be dismissed for just or authorized causes and with due process. The Court
found that Freddie was illegally dismissed, and due to the strained
relationship between the parties, awarded him separation pay in lieu of
reinstatement. Backwages, service incentive leave pay, and 13th month pay were
also awarded to Freddie. The Court further granted attorney's fees and ordered
the total monetary award to earn interest at the rate of 6% per annum from the
date of finality of the decision until it is fully paid.
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