Benigno Vigilla, et al. v Philippine College of Criminology, Inc. GR No. 200094, June 10, 2013

Law Principle:

Anything favorable to the labor-only contractor redounds to the benefit of the employer under the principle of solidary liability

Facts:

The petitioners work for the Philippine College of Criminology Inc. (PCCr) as janitors, janitress and supervisor in its maintenance department. The petitioners were made to understand by the respondent PCCr that they are under the Metropolitan Building Services, Inc. (MBMSI) which is a corporation engaged in providing janitorial services. PCCr terminated the services of MBMSI on 2009 which resulted in the dismissal of the petitioners. An illegal dismissal complaint was then filed against PCCr by the petitioners contending that it is their real employer and not MBMSI. Subsequently, the PCCr submitted to the Labor Arbiter waivers, releases and quitclaims that were executed by the petitioners in favor to MBMSI.

The Labor Arbiter and NLRC ruled in favor of the petitioner, however upon filing the petition for review on certiorari before the Court of Appeals, the CA ruled that the quitclaims, releases and waivers executed by the petitioners in favor to MBMSI redounds to the benefit of PCCr by virtue of solidary liability under Article 1217 of the NewCivil Code. The petitioners contend that under Article 106 of the Labor Code a labor-only contractor's liability is not solidary as it is the employer who should be directly responsible to the supplied worker.

Issue

Whether or not the quitclaims, releases and waivers executed by the petitioners in favor to MBMSI redounds to the benefit of PCCr?

Held

Yes.

The Supreme Court held that the basis of the solidary liability of the principal with those engaged in labor-only contracting is the last paragraph of Article 106 of the Labor Code that provides, "In such cases of labor-only contracting, the person or intermediary shall be considered merely as an agent of the employer who shall be responsible to the workers in the same manner and extent as if the latter were directly employed by him."

It also pointed out D.O. No. 18-A, s. 2011 section 27 providing for the effects of labor-only contracting "where upon the finding by competent authority of labor-only contracting shall render the principal jointly and severally liable with the contractor to the latter's employees, in the same manner and extent that the principal is liable to employees directly hired by him/her, as provided in Article 106 of the Labor Code."

Hence, the PCCr's solidary liability was already expunged by virtue of the releases, waivers and quitclaims executed by the petitioners in favor of MBMSI by virtue of Article 1217 of the Civil Code providing that "payment made by one of the solidary debtors extinguishes the obligation."

SSS Employee Asso. v CA 175 SCRA 686 (July 28, 1989)

Facts: The petitioners went on strike after the SSS failed to act upon the union’s demands concerning the implementation of their CBA. SSS filed before the court action for damages with prayer for writ of preliminary injunction against petitioners for staging an illegal strike. The court issued a temporary restraining order pending the resolution of the application for preliminary injunction while petitioners filed a motion to dismiss alleging the court’s lack of jurisdiction over the subject matter.  Petitioners contend that the court made reversible error in taking cognizance on the subject matter since the jurisdiction lies on the DOLE or the National Labor Relations Commission as the case involves a labor dispute. The SSS contends on one hand that the petitioners are covered by the Civil Service laws, rules and regulation thus have no right to strike. They are not covered by the NLRC or DOLE therefore the court may enjoin the petitioners from striking.

Issue: Whether or not SSS employers have the right to strike

            Whether or not the CA erred in taking jurisdiction over the subject matter.