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Case Digest: ALU-TUCP, et.al., vs. NLRC et.al., G.R. No. 109902


ALU-TUCP, et.al., vs. NLRC et.al., G.R. No. 109902 August 2, 1994

Subject: Statutory Construction


FACTS

On 5 July 1990, Petitioners, as employees of private respondent National Steel Corporation (NSC), filed separate complaints for unfair labor practice, regularization and monetary benefits with the NLRC, Sub-Regional Arbitration Branch XII, Iligan City. The complaints were consolidated and after hearing, the Labor Arbiter declared petitioners “regular project employees who shall continue their employment as such for as long as such [project] activity exists,” but entitled to the salary of a regular employee pursuant to the provisions in the collective bargaining agreement. It also ordered payment of salary differentials.

The NLRC in its questioned resolutions modified the Labor Arbiter’s decision. It affirmed the Labor Arbiter’s holding that petitioners were project employees since they were hired to perform work in a specific undertaking — the Five Years Expansion Program, the completion of which had been determined at the time of their engagement and which operation was not directly related to the business of steel manufacturing. The NLRC, however, set aside the award to petitioners of the same benefits enjoyed by regular employees for lack of legal and factual basis.

The law on the matter is Article 280 of the Labor Code, where the petitioners argue that they are “regular” employees of NSC because: (i) their jobs are “necessary, desirable and work-related to private respondent’s main business, steel-making”; and (ii) they have rendered service for six (6) or more years to private respondent NSC.

ISSUE:

whether or not petitioners are properly characterized as "project employees" rather than "regular employees" of NSC.

Ruling:

YES.

The present case therefore strictly falls under the definition of "project employees" on paragraph one of Article 280 of the Labor Code, as amended. Moreover, it has been held that the length of service of a project employee is not the controlling test of employment tenure but whether or not "the employment has been fixed for a specific project or undertaking the completion or termination of which has been determined at the time of the engagement of the employee.

In this case, the employment of each "project worker" is dependent and co-terminus with the completion or termination of the specific activity or undertaking for which he was hired which has been pre-determined at the time of engagement. Since, there is no showing that they (13 complainants) were engaged to perform work-related activities to the business of respondent which is steel making, there is no logical and legal sense of applying to them the proviso under the second paragraph of Article 280 of the Labor Code, as amended

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