100006015-labor-case-digest.pdf

7/23/2019 100006015-Labor-Case-Digest.pdf

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University of San Carlos - College of Law

LaborStandards

Midterm Case

DigestsAtty. Jefferson M. Marquez

Comiled by! Ma. Ce"elia #imbal Ll$-% &m '(%


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University of San Carlos ) College of Law Labor Standards MidtermCase Digests

ContentsContents ..................................................................................................................... 2

................................................................................................................................... 6PASEI vs Torres (1992) G.R. 101279 ............................................................................ 7

San Juan de Dos !os"ta# vs $%RC (1997) G.R. 126&'& ............................................... '

ASC$ vs $a*areno (2006) G.R. 16+1,6 ................................................................ 21

-ranso vs $%RC (2006) ,00 SCRA 690 .................................................................. 2+

$o/a#es et a#. vs Ca"to# eda# Center (2006) G.R. 1+262, ................................... 26

CoaCo#a ott#ers P#s. vs Dr. C#3ao (2007) G.R. 1+6''1 ....................................2'

Ca#a34a eda# Center vs $%RC (200') G.R. 176+'+ .............................................. 29

................................................................................................................................. &1

5##endor vs A4raa3son (191') G.R. 1&22' ............................................................ &1

De# Cast##o vs R3ond (192+) G.R. %21127 ........................................................... &&

P#""ne Te#e/ra" Te#e"one Co vs $%RC (1997) G.R. 11'97' ........................... &+

Star Pa"er Cor". vs S34o# (2006) G.R. 16+77+ ........................................................ &6

Rvera vs So#d4an8 (2006) G.R. 16&269 .................................................................... &7

E3"#oers Conederaton o te P#s vs $:PC (1991) 201 SCRA 7,9 ....................... +&

a4e*a vs $%RC () 271 SCRA 670 ............................................................................. +,

Jo roters In. vs $:PC (1997) 27& SCRA 622 ...................................................... +7

##ares et a#. vs $%RC () &0, SCRA ,01 .................................................................... ,0

Internatona# Soo# A##ane o Eduators vs ;usu34n/ (2000) &&& SCRA 1& .........,2

an8ard E3"#oees


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$est#e P#s In. vs $%RC (1991) 19& SCRA ,0+ ........................................................ '+

-ve J Ta@ vs $%RC (1992) 2&, SCRA ,,6 .................................................................. '6

an#a E#etr Co vs Se o %a4or (1999) G.R. 127,9' .............................................. ''

P#""ne =eterans an8 vs $%RC (1999) G.R. 1&0+&9 .............................................. '9

P#""ne A""#ane Cor". vs Court o A""ea#s (200+) G.R. 1+9+&+ ..........................91

S"ea# Stee# Produts vs =##area# (200+) G.R. 1+&&0+ .............................................. 92

A/a4on vs $%RC (200+) G.R. 1,'69& ........................................................................ 9+

A3eran :re Ca4#e Da# Rated E3"#oees vs A3eran :re (200,) G.R. 1,,0,9................................................................................................................................. 9,

!onda P#""nes In. vs Sa3aan/ an//a/aa sa !onda (200,) G.R. 1+,,61 ....9,

Produers an8 vs $%RC () &&, SCRA ,06 ................................................................. 96

Jardn vs $%RC (2000) G.R. 11926' ........................................................................... 97

an#a Jo8e C#u4 E3"#oees %a4or


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%a34o vs $%RC (1999) &17 SCRA +20 ..................................................................... 1&0

RE Trans"ort vs %ata/ (200+) G.R. 1,,21+ ............................................................ 1&1

Asan Trans3sson vs Court o A""ea#s (200+) +2, SCRA +7' ................................ 1&2

Auto4us Trans"ort Sste3 vs autsta (200,) G.R. 1,6&6+ ..................................... 1&+

San /ue# Cor". vs De# Rosaro (200,) G.R. 16'19+ .............................................. 1&7

Penaranda vs a/an/a P#ood Cor" (2006) G.R. 1,9,77 ...................................... 1&9

!ouse o Sara %ee vs Re (2006) G.R. 1+901& ......................................................... 1+1

%ete I= E#etr Coo"eratve In. vs %EBEC5 I= E3"#oees


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P#. Journa#st In. vs $%RC (2006) G.R. 166+21 .................................................. 1'6

a#a/tas u#tPur"ose Coo" vs Court o A""ea#s (2006) G.R. 1,926' .....................1'7

St. artn -unera# !o3es vs $%RC (2006) G.R. 1+2&,1 ........................................... 1'9

D5%E P#s. vs Esteva (2006) G.R. 16111, ............................................................... 191

Interontnenta# roadastn/ Cor". vs Pan/an4an (2007) G.R. 1,1+07 ................19&

-ar East A/ru#tura# Su""# vs %e4at/ue (2007) G.R. 162'1& ................................ 19,

%etran Ca#a34a -au#t E3"#oees Assoaton vs $%RC (200') G.R. 1,622, ......196

etro Transt 5r/an*aton vs P/#as $-:


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*AS+, vs #orres //%0 1.&. (%2/

3a"ts!

PASIE s te #ar/est natona# or/an*aton o "rvate e3"#o3ent and rerut3enta/enes du# #ensed and autor*ed 4 te P5EA to en/a/e n te 4usness oo4tann/ overseas e3"#o3ent or -#"no #and4ased or8ers n#udn/ do3este#"ers.

5n June 1991 as a resu#t o "u4#sed stores re/ardn/ te a4uses suered 4 -#"noouse3ads e3"#oed n !on/ on/ D5%E Seretar Ru4en Torres ssued De"art3ent5rder $o. 16 Seres o 1991 te3"orar# sus"endn/ te rerut3ent 4 "rvatee3"#o3ent a/enes o F-#"no do3est e#"ers /on/ to !on/ on/F. Te D5%Etse# trou/ te P5EA too8 over te 4usness o de"#on/ su !on/ on/4oundor8ers.

Pursuant to te a4ove D5%E ru#ar te P5EA ssued e3orandu3 Cru#ar $o. &0Seres o 1991 "rovdn/ G


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soets ra3ed atvtes. It s noteort tat te assa#ed ru#ars do not"ro4t te "ettoner ro3 en/a/n/ n te rerut3ent and de"#o3ent o-#"no #and4ased or8ers or overseas e3"#o3ent. Te "oer to Frestrt andre/u#ate onerred 4 Art#e &6 o te %a4or Code nvo#ves a /rant o "o#e"oer. Te Huestoned ru#ars are tereore a va#d e@erse o te "o#e "oer

as de#e/ated to te e@eutve 4ran o Govern3ent.

San Juan de Dios 4osital vs 5L&C //20 1.&. %6787

3a"ts!

Pettoners ran8and#e e3"#oees and 3e34ers o San Juan de Dos !os"ta#E3"#oees Assoaton sent a + "a/e #etter reHuestn/ and "#eadn/ or te e@"edtous3"#e3entaton and "a3ent 4 te res"ondent !os"ta# o te >+0 !5 t o3"ensa4#e ee8# to (2) das o "rovded or 4 Re"u4# At,901 as #ared or enore3ent 4 te Seretar o %a4or>s Po# Instrutons $o. ,+dated A"r# 12 19''. Res"ondent os"ta# a#ed to /ve a avoura4#e res"onseK tus

"ettoners #ed a o3"#ant re/ardn/ ter L#a3s or statutor 4enets under tea4oveted #a and "o# ssuane. Te %a4or Ar4ter ds3ssed te o3"#ant as a#so onr3ed 4 $%RC ene te "etton under Ru#e 6, o te Ru#es o Court.

,ssue! :5$ Po# Instrutons $o. ,+ ssued 4 ten %a4or Seretar -ran8#n Dr#on sva#d

4eld! It s nva#d.

Te Po# Instruton $o. ,+ re#es and "ur"orts to 3"#e3ent Re"u4# At $o. ,901oterse 8non as LAn At Presr4n/ -ort !ours A :ee8 5 %a4or -or Govern3entand Prvate !os"ta#s 5r C#n Personne# 4ut re#ane to ts RA s 3s"#aed sne tas #on/ 4een re"ea#ed t te "assa/e o te %a4or Code. Aordn/# on# Art#e '&o te %a4or Code a""ears to ave su4stanta## nor"orated or re"rodued te4as "rovsons o Re"u4# At $o. ,901 3a su""ort Po# Instrutons $o. ,+ on te #atter>s va#dt 3a 4e /au/ed.

:at Art#e '& 3ere# "rovdes areM (1) te re/u#ar oe our o e/t ours a dave das "er ee8 or ea#t "ersonne# and (2) ere te e@/enes o serve reHuretat ea#t "ersonne# or8 or s@ das or orte/t ours ten su ea#t "ersonne#sa## 4e entt#ed to an addtona# o3"ensaton o at #east trt "erent o ter re/u#ara/e or or8 on te s@t da. Tere s notn/ n te #a tat su""orts tenSeretar o %a4or>s asserton tat L"ersonne# n su4et os"ta#s and #ns are

entt#ed to a u## ee8# a/e or seven (7) das te ave o3"#eted te +0our,da or8ee8 n an /ven or8ee8.

-urter "ettoners "oston s a#so ne/ated 4 te ver ru#es and re/u#atons"ro3u#/ated 4 te ureau o %a4or Standards 3"#e3ent Re"u4# At $o.,901. Pertnent "ortons o te 3"#e3entn/ ru#es "rovded n Setons 17 and 1, ote sad At.

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I "ettoners are entt#ed to to das o t "a ten tere a""ears to 4e no sense ata## Seton 1, o te 3"#e3entn/ ru#es /rants addtona# o3"ensaton eHuva#entto te re/u#ar rate "#us at #east tentve "erent tereo or or8 "eror3ed onSunda to ea#t "ersonne# or an Laddtona# stra/tt3e "a 3ust 4eeHuva#ent at #east to te re/u#ar rate LNOor or8 "eror3ed n e@ess o ort ours a

ee8 @@@. Po# Instrutons $o. ,+ to our 3nd undu# e@tended te statute. TeSeretar o %a4or 3oreover erred n nvo8n/ te Ls"rt and ntent o Re"u4# At $o.,901 and Art#e '& o te %a4or Code or t s an e#e3entar ru#e o statutoronstruton tat en te #an/ua/e o te #a s #ear and uneHuvoa# te #a 3ust4e ta8en to 3ean e@at# at t sas.

Letran Calamba 3a"ulty and +mloyees Asso"iation vs 5L&C //20 1.&.96%%9

3a"ts!

Te %etran Ca#a34a -au#t and E3"#oees Assoaton ("ettoner) #ed a o3"#anta/anst Co#e/o de San Juan de %etran Ca#a34a In. (res"ondent) or o##eton ovarous 3onetar #a3s due ts 3e34ers. Te %a4or Ar4ter (%A) and#n/ teonso#dated ases dened and ds3ssed te res"etve o3"#ants.

,ssue! :5$ te "a o te au#t 3e34ers or tean/ over#oads sou#d 4e n#udedas 4ass n te o3"utaton o ter 1&t3ont "a

4eld!Tean/ over#oad 3a not 4e onsdered "art o 4as sa#ar.


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su s ate/ora## e@#uded ro3 te denton o 4as sa#ar under teSu""#e3entar Ru#es and Re/u#atons I3"#e3entn/ PD ',1.

In te sa3e 3anner tat "a3ent or overt3e or8 and or8 "eror3ed durn/ s"ea#o#das s onsdered as addtona# o3"ensaton a"art and dstnt ro3 ane3"#oees re/u#ar a/e or 4as sa#ar an over#oad "a on/ to ts ver nature and

denton 3a not 4e onsdered as "art o a teaers re/u#ar or 4as sa#ar 4eauset s 4en/ "ad or addtona# or8 "eror3ed n e@ess o te re/u#ar tean/ #oad.

Asun"ion vs 5L&C %((0 1.&. %/7%/

3a"ts!

5n Au/ 199& Asunon as e3"#oed as an aountant4oo88ee"er 4 te res"ondent(a4n eda# C#n). Ater te ns"eton onduted n te res"ondent>s o3"an"re3ses or a vo#aton o te #4or standards or nonovera/e on Au/ 199+ "rvateres"ondent eda# Dretor :rdo Juo ssued a 3e3orandu3 to "ettoner ar/n/er t ron a4sentees3 a4tua# tardness #otern/ and astn/ o o3"ant3e /ettn/ sa#ar o an a4sent e3"#oee tout a8no#ed/n/ or s/nn/ or t anddso4edene and nsu4ordnaton or ontnued reusa# o s/nn/ 3e3os /ven to er.Pettoner as ten reHured to e@"#an tn 2 das se ## not 4e ter3nated.

Tree das #ater "ettoner su43tted er res"onse to te 3e3o 4ut as a#sods3ssed on /round o dso4edene o #au# orders and a#ure to su43t er re"# n 2das. Ts "ro3"ted "ettoner to #e or a ase o ##e/a# ter3naton as ud/ed4 te %a4or Ar4ter to 4e true.

,ssue! :5$ $%RC erred n ndn/ tat te "ettoner as ds3ssed 4 te "rvateres"ondent or a ust or autor*ed ause

4eldM Pettoner as 4een ##e/a## ter3natedK se s neessar# entt#ed torenstate3ent to er or3er "revous "oston tout #oss o senort and te "a3ento 4a8a/es.

It 4ears stressn/ tat a or8er>s e3"#o3ent s "ro"ert n te onsttutona# sense.!e annot 4e de"rved o s or8 tout due "roess. In order or te ds3ssa# to 4eva#d not on# 3ust t 4e 4ased on ust ause su""orted 4 #ear and onvnn/evdene te e3"#oee 3ust a#so 4e /ven an o""ortunt to 4e eard and deend

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3se#. It s te e3"#oer o as te 4urden o "rovn/ tat te ds3ssa# as tust or autor*ed ause. Te a#ure o te e3"#oer to dsar/e ts 4urden 3eanstat te ds3ssa# s not usted and tat te e3"#oee s entt#ed to renstate3ent and4a8 a/es.

In te ase at 4ar 4ot te andrtten #stn/ and o3"uter "rntouts 4en/ uns/ned

te autentt tereo s /# sus"et and devod o an ratona# "ro4atve va#uees"ea## n te #/t o te e@stene o te oa# reord 4oo8 o te "ettoner>sa##e/ed a4senes and tardness n te "ossesson o te e3"#oer o3"an. In te3e3orandu3 ar/n/ "ettoner and note o ter3naton "rvate res"ondentsreerred to te reord 4oo8 as ts 4ass or "ettoner>s a##e/ed a4sentees3 andtardness. Interestn/# oever te reord 4oo8 as never "resented n evdene.Prvate res"ondents ad "ossesson tereo and te o""ortunt to "resent tesa3e. Tus "rvate res"ondents> une@"#aned and unusted non"resentaton o tereord 4oo8 s te 4est evdene n ts "ossesson and ontro# o te ar/esa/anst te "ettoner asts serous dou4ts on te atua# 4ass o te ar/es oa4sentees3 and tardness. Prvate res"ondents #a3ed tat te sent severa# notesto te "ettoner arnn/ er o er a4senes oever "ettoner reused to reeve te

sa3e. Te Court #8ese ta8es note o te at tat te toda "erod /ven to"ettoner to e@"#an and anser te ar/es a/anst er as 3ost unreasona4#eonsdern/ tat se as ar/ed t severa# oenses and nratons (&, a4senes2& a#das and 10' tardness) so3e o ere a##e/ed# o33tted a#3ost a ear4eore not to 3enton te at tat te ar/es #eve##ed a/anst er #a8ed"artu#art.

Te #a 3andates tat ever o""ortunt and assstane 3ust 4e aorded to tee3"#oee 4 te 3ana/e3ent to ena4#e 3 to "re"are adeHuate# or s deense. InRuffy v. NLRC, te Court e#d tat at ou#d Hua# as suent or La3"#eo""ortunt as reHured 4 #a ou#d 4e Lever 8nd o assstane tat 3ana/e3ent3ust aord to te e3"#oee to ena4#e 3 to "re"are adeHuate# or s deense.

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Singer Sewing Ma":ine vs 5L&C 0 /7 SC&A %2

3a"ts!

Sn/er ane Co##etors s "oston tat te unon 3e34ers arende"endent ontrators.

,ssue! :5$ tere e@sts an e3"#oere3"#oee re#atons" 4eteen te "artes.

4eld! Res"ondents are not e3"#oees o te o3"an.

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Te "resent ase a##s or te a""#aton o te ontro# test not satsed ou#d#ead to te on#uson tat no e3"#oeee3"#oer re#atons" e@sts. I te unon3e34ers are not e3"#oees no r/t to or/an*e or te "ur"ose o 4ar/ann/ or as a4ar/ann/ a/ent annot 4e reo/n*ed.

Te o##on/ e#e3ents are /enera## onsdered n te deter3naton o tere#atons"M te se#eton and en/a/e3ent o te e3"#oee "a3ent o a/es "oero ds3ssa# and te "oer to ontro# te e3"#oee>s ondut s te 3ost3"ortant e#e3ent.

Te nature o te re#atons" 4eteen a o3"an and ts o##etn/ a/ents de"ends onte ru3stanes o ea "artu#ar re#atons". $ot a## o##etn/ a/ents aree3"#oees and neter are a## o##etn/ a/ents nde"endent ontrators. Tea/ree3ent onr3s te status o te o##etn/ a/ents as nde"endent ontrator. TereHure3ent tat o##eton a/ents ut#*e on# ree"t or3s and re"ort or3s ssued 4te o3"an and tat re"orts sa## 4e su43tted at #east one a ee8 s not neessar#

an ndaton o ontro# over te 3eans 4 te o4 o##eton s to 4e "eror3ed.Even re"ort reHure3ents are to 4e a##ed ontro# 3easures an ontro# s on# tres"et to te end resu#t o te o##eton sne te reHure3ents re/u#ate te tn/s to4e done ater te "eror3ane o te o##eton o4 or te rendton o serve.

Te "#an #an/ua/e o te a/ree3ent revea#s tat te des/naton as o##eton a/entdoes not reate an e3"#o3ent re#atons" and tat te a""#ant s to 4e onsderedat a## t3es as an nde"endent ontrator.

Te ourt nds tat sne "rvate res"ondents are not e3"#oees o te o3"an teare not entt#ed to te onsttutona# r/t to or3 or on a #a4or or/an*aton or te

"ur"oses o o##etve 4ar/ann/. Tere s no onsttutona# and #e/a# 4ass or terunon to 4e /ranted ter "etton or dret ertaton.

Manila 1olf ; Country Club< ,n".< vs ,AC and 3ermin Llamar //'0 1.&. 6'/'8

3a"ts!

Res"ondents ere addes and e3"#oees o an#a Go# Countr C#u4 o or/na###ed a "etton t te Soa# Seurt Co33sson (SSC) or overa/e and ava#3ent o4enets under te Soa# Seurt At. Te a##e/ed tat a#tou/ te "ettoners eree3"#oees o te an#a Go# and Countr C#u4 a do3est or"oraton te #atter adnot re/stered te3 as su t te SSS.

In te ase 4eore te SSC te res"ondent C#u4 a##e/ed tat te "ettoners addes 4ou"aton ere a##oed nto te C#u4 "re3ses to render serves as su to tendvdua# 3e34ers and /uests "#an/ te C#u4s /o# ourse and o te3se#ves "ad

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or su servesK tat as su addes te "ettoners ere not su4et to te dretonand ontro# o te C#u4 as re/ards te 3anner n te "eror3ed ter or8K andene te ere not te C#u4s e3"#oees.

,ssue!:5$ tere e@st an e3"#oere3"#oee re#atons" 4eteen te ades and teGo# C#u4

4eld! $o e@stene o e3"#oere3"#oee re#atons".

In te ver nature o tn/s addes 3ust su43t to so3e su"ervson o ter ondut#e enon/ te "rv#e/e o "ursun/ ter ou"aton tn te "re3ses and/rounds o atever #u4 te do ter or8 n. -or a## tat s 3ade to a""ear teor8 or te #u4 to te atta te3se#ves on suerane 4ut on te oter anda#so tout avn/ to o4serve an or8n/ ours ree to #eave ant3e te "#ease tosta aa or as #on/ te #8e. It s not "retended tat ound re3ss n teo4servane o sad ru#es an ds"#ne 3a 4e 3eted te3 4eond 4arrn/ te3 ro3te "re3ses t 3a 4e su""osed te C#u4 3a do n an ase even a4sent an4rea o te ru#es and tout vo#atn/ an r/t to or8 on ter "art. A## tese

onsderatons #as ronta## t te one"t o e3"#o3ent.

Te IAC ou#d "ont to te at tat te C#u4 su//ests te rate o ees "aa4#e 4 te"#aers to te addes as st## anoter ndaton o te #atters status as e3"#oees. Itsee3s to te Court oever tat te ntend3ent o su at s to te ontrarson/ tat te C#u4 as not te 3easure o ontro# over te ndents o te addesor8 and o3"ensaton tat an e3"#oer ou#d "ossess. Court a/ree tat te /rou"rotaton sste3 soa##ed s #ess a 3easure o e3"#oer ontro# tan an assurane tatte or8 s ar# dstr4uted a add o s a4sent en s turn nu34er s a##eds3"# #osn/ s turn to serve and 4en/ ass/ned nstead te #ast nu34er or te da.

oreover as "onted out 4 "ettoner as never reuted tatM as no 3eans o

o3"e##n/ te "resene o a add. A add s not reHured to e@erse s ou"atonn te "re3ses o "ettoner. !e 3a or8 t an oter /o# #u4 or e 3a see8e3"#o3ent a add or oterse t an entt or ndvdua# tout restrton 4"ettoner.

+n"y"loaedia $ritanni"a *:il0 ,n".< vs 5L&C //60 1.&. 82(/8

3a"ts!

Prvate res"ondent ena3n %3oo as a Sa#es Dvson ana/er o "ettonerEn#o"aeda rtanna and as n ar/e o se##n/ "ettoner>s "roduts trou/so3e sa#es re"resentatves. As o3"ensaton "rvate res"ondent reevedo33ssons ro3 te "roduts so#d 4 s a/ents. !e as a#so a##oed to use

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"ettoner>s na3e /ood## and #o/o. It as oever a/reed u"on tat oe e@"ensesou#d 4e deduted ro3 "rvate res"ondent>s o33ssons. Pettoner ou#d a#so 4enor3ed a4out a""ont3ents "ro3otons and transers o e3"#oees n "rvateres"ondent>s dstrt.

5n June 197+ %3oo res/ned ro3 oe to "ursue s "rvate 4usness. !e ten #ed

a o3"#ant a/anst "ettoner En#o"aeda rtanna t D5%E #a3n/ or non"a3ent o se"araton "a and oter 4enets and a#so ##e/a# deduton ro3 s sa#eso33ssons.

Pettoner a##e/ed tat %3oo as not ts e3"#oee 4ut an nde"endent dea#erautor*ed to "ro3ote and se## ts "roduts and n return reeved o33ssons terero3. %3oo dd not ave an sa#ar and s no3e ro3 te o3"an as de"endenton te vo#u3e o sa#es ao3"#sed. !e a#so ad s on se"arate oe naned te4usness e@"enses and 3antaned s on or8ore. Te sa#ares o s seretarut#t 3an and sa#es re"resentatves ere ar/ea4#e to s o33ssons. Tus"ettoner ar/ued tat t ad no ontro# and su"ervson over te o3"#anant as to te3anner and 3eans e onduted s 4usness o"eratons 3oreover te #atter dd not

even re"ort to te oe o te "ettoner and dd not o4serve @ed oe ours

,ssue! :5$ tere e@st an e3"#oere3"#oee re#atons" and neessar# entt#es%3oo o s #a3s

4eld! Prvate res"ondent as 3ere# an a/ent or an nde"endent dea#er o te"ettoner.

In asertann/ eter te re#atons" s tat o e3"#oere3"#oee or one onde"endent ontrator ea ase 3ust 4e deter3ned 4 ts on ats and a## eatureso te re#atons" are to 4e onsdered.

Res"ondent as ree to ondut s or8 and e as ree to en/a/e n oter 3eans o#ve#ood. At te t3e e as onneted t te "ettoner o3"an "rvateres"ondent as a#so a dretor and #ater te "resdent o te -ar3ers> Rura# an8. !ade 4een an e3"#oee o te o3"an e ou#d not 4e e3"#oed e#seere and eou#d 4e reHured to devote u## t3e or "ettoner. I "rvate res"ondent as ndeed ane3"#oee t as rater unusua# or 3 to at or 3ore tan a ear ro3 s se"aratonro3 or8 4eore e deded to #e s #a3s. As e "onted out n s res/naton#etter %3oo as aare o Lon#t t oter nterests @@@ ave nreasn/#reHured 3 "ersona# attenton. At te ver #east t ou#d ndate tat "ettoner asno eetve ontro# over te "ersona# atvtes o %3oo o as ad3tted 4 te#atter ad oter Lon#t o nterest reHurn/ s "ersona# attenton.

As "onted out Lte e#e3ent o ontro# s a4sentK ere a "erson o or8s or anoterdoes so 3ore or #ess at s on "#easure and s not su4et to dente ours orondtons o or8 and n turn s o3"ensated aordn/ to te resu#t o s eorts andnot te a3ount tereo.

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Carung"ong vs 5L&C< Sun Life Assuran"e Co. of Canada //20 1.&. 8(86

3a"ts!

Susan Carun/on/ 4e/an as an a/ent o Sun %e n 197+ se s/ned an LA/ent>sA/ree3ent and as des/nated to so#t a""#atons or nsurane and annut

serves. Te ontrat set out n deta# te ter3s and ondtons "artu#ar# toseonernn/ te o33ssons "aa4#e to er under er re#atons" t teo3"an ou#d 4e /overned. -ve ears #ater sad ontrat as su"erseded 4 2 nea/ree3entsM rst s te FCareer Agent's (or Unit Manager's) AgreementF dea#t tsu 3atters as te a/ents o33ssons s o4#/atons #3tatons on s autortand ter3naton o te a/ree3ent 4 deat or 4 rtten note Ft or toutause.F It de#ared tat te FA/ent sa## 4e an nde"endent ontrator and none o teter3s o a/ree3ent sa## 4e onstrued as reatn/ an e3"#oere3"#oee re#atons"Kseond as tt#ed FA$AGERS upplementary Agreement.F a8n/ e@"#t reereneto te rst a/ree3ent F 4ea3e eetve on te 1st da o Ju# 1979F sadseond ontrat e@"#t# desr4ed as a Furter a/ree3entF ontaned "rovsonsre/ardn/ re3uneraton (overrdn/ o33ssons n aordane t a @ed sedu#e)

#3taton o autort and ter3naton o te a/ree3ent inter alia4 rtten noteFtout ause.F

Su4seHuent# Carun/on/ and Sun %e e@euted anoter A/ree3ent 4 teor3er as na3ed Ne! "usiness Managert te unton /enera## Fto 3ana/e a$e usness 5e esta4#sed 4 er and to o4tan a""#atons or #e nsurane"o#es and oter "roduts oered 4 or dstr4uted trou/ Sun %e and to "eror3su oter dutes n onneton teret as Sun %e 3a reHure ro3 t3e to t3e.F

Ts #atest A/ree3ent stressed tat te F$e usness ana/er n "eror3ane o sdutes dened eren sa## 4e onsdered an nde"endent ontrator and not . . ane3"#oee o Sun %eF and tat Funder no ru3stane sa## te $e usnessana/er andor s e3"#oees 4e onsdered e3"#oees o Sun %e.F

Ater reevn/ re"orts o ano3a#es n re#aton tereto ro3 unt 3ana/ers and a/ents4 te o3"an>s =P te ana/er o Sun %es Interna# Audt De"art3ent o33enedan nHur nto te s"ea# und ava#3ents o Carun/on/ and oter $e usnessana/ers #ater "ro3"ted te "ettoner>s ter3naton. Se ten nsttuted"roeedn/s or vndaton n te Ar4traton ran o te $atona# %a4or Re#atonsCo33sson ere se sueeded n o4tann/ a avora4#e ud/3ent ndn/ tat teree@sted an e3"#oere3"#oee re#atons" 4eteen er and Sun %eK ru#ed tat sead 4een ##e/a## ds3ssed tus entt#ed to renstate3ent tout #oss o senortr/ts and oter 4enets.

,ssue! :5$ tere e@sted an e3"#oere3"#oee re#atons" 4eteen Carunon/ andSun#e

4eld! Carun/on/ as an nde"endent ontrator and not an e3"#oee o Sun %e.

Te ontrats se ad ##n/# and 8non/# s/ned t Sun %e re"eated# and#ear# "rovded tat sad a/ree3ents ere ter3na4#e 4 eter "art 4 rtten notet or tout ause.

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$oteort s tat ts #ast a/ree3ent t as e3"as*ed #8e te FCareer Agent's (orUnit Manager's) AgreementF rst s/ned 4 er tat n te "eror3ane o er dutesdened eren. Carun/on/ ou#d 4e onsdered an nde"endent ontrator and not . .an e3"#oee o Sun %eF and tat F(u)nder no ru3stane sa## te $e usnessana/er andor s e3"#oees 4e onsdered e3"#oees o Sun %e.F

&amos vs Court of Aeals 0 78( SC&A '62

3a"ts!

Pettoner Er#nda Ra3os as advsed to under/o an o"eraton or te re3ova# oer stone n te /a## 4#adder. Se as reerred to Dr. !osa8a a sur/eon oa/reed to do te o"eraton. Te o"eraton as sedu#ed on June 17 19', n te

De #os Santos eda# Center. Er#nda as ad3tted to te 3eda# enter te da4eore te o"eraton. 5n te o##on/ da se as read or o"eraton as ear# as7M&0 a3. Around 9M&0 Dr. !osa8a as not et arrved. 10 a3 Ro/e#o anted to"u## out s e ro3 te o"eratn/ roo3. Dr. !osa8a na## arrved at 12M10 "33ore tan & ours o te sedu#ed o"eraton.

Dr. Guterres tred to ntu4ate Er#nda. Te na# 4eds o Er#nda ere 4#usdso#oraton n er #et and. At & "3 Er#nda as 4en/ ee#ed to te Intensveare


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Te os"ta# does not re onsu#tants 4ut t aredts and /rants 3 te "rv#e/eo 3antann/ a #n andor ad3ttn/ "atents. It s te "atent o "as teonsu#tants. Te os"ta# annot ds3ss te onsu#tant 4ut e 3a #ose s"rv#e/es /ranted 4 te os"ta#. Te os"ta#>s o4#/aton s #3ted to "rovdn/te "atent t te "reerred roo3 ao33odaton and oter tn/s tat ##

ensure tat te dotor>s orders are arred out.Te ourt nds tat tere s no e3"#oere3"#oee re#atons" 4eteen tedotors and te os"ta#.

Sonza vs A$S-C$5 %(('0 1.&. 78(9

3a"ts!

In a 199+ ASC$ s/ned an a/ree3ent t e# Ja ana/e3ent andDeve#o"3ent Cor" or a rado and te#evson "ro/ra3. ASC$ a/reed to "a orS5$QA>s serves a 3ont# ta#ent ee o P&10000 or te rst ear and P&17000 orte seond and trd ear o te A/ree3ent. ASC$ ou#d "a te ta#ent ees on te10t and 2,t das o te 3ont.

5n A"r# 1996 Son*a rote a #etter to ASC$ Presdent Eu/eno %o"e* III a4out a

reent event onernn/ s "ro/ra3s and areer and tat te sad vo#aton o teo3"an as 4reaed te a/ree3ent tus te note o ressson o A/ree3ent assent.

At te end o te sa3e 3ont Son*a #ed a o3"#ant a/anst ASC$ 4eore teD5%E or non"a3ent o sa#ares se"araton "a serve nentve #eave "a 1&t3ont "a s/nn/ 4onus trave# a##oane and a3ounts due under te E3"#oeesSto8 5"ton P#an (ES5P) as o""osed 4 ASC$ on te /round tere as noe3"#oere3"#oee re#atons" e@sted 4eteen te "artes.

,ssue! :5$ Son*a as an e3"#oee or nde"endent ontrator

4eld! Tere as no e3"#oere3"#oee re#atons" tat e@sted 4ut tat o annde"endent ontrator.

Case #a as onsstent# e#d tat te e#e3ents o an e3"#oere3"#oee re#atons"areM

(a) #:e sele"tion and engagement of t:e emloyee ASC$ en/a/ed S5$QA>sserves to oost ts te#evson and rado "ro/ra3s 4eause o S5$QA>s "eu#ars8##s ta#ent and e#e4rt status. Te s"e se#eton and rn/ o S5$QA

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because of his unique skills, talent and celebrity status not possessed byordinary employees, s a ru3stane ndatve 4ut not on#usve o annde"endent ontratua# re#atons".

(b) #:e ayment of wages ASC$ dret# "ad S5$QA s 3ont# ta#ent eest no "art o s ees /on/ to JDC. A## te ta#ent ees and 4enets "ad toS5$QA ere te resu#t o ne/otatons tat #ed to te A/ree3ent. I S5$QA ere

ASC$>s e3"#oee tere ou#d 4e no need or te "artes to st"u#ate on4enets su as FSSS edare @ @ @ and 1&t 3ont "aF te #aauto3ata## nor"orates nto ever e3"#oere3"#oee ontrat.

(c) #:e ower of dismissal -or vo#aton o an "rovson o te A/ree3ent eter"art 3a ter3nate ter re#atons". Durn/ te #e o te A/ree3ent ASC$a/reed to "a S5$QA>s ta#ent ees as #on/ as FAGE$T and Ja Son*a sa## atu##and o3"#ete# "eror3 ea ondton o ts A/ree3ent.F Even t sueredsevere 4usness #osses ASC$ ou#d not retren S5$QA 4eause ASC$re3aned o4#/ated to "a S5$QA>s ta#ent ees durn/ te #e o te A/ree3ent.

(d) #:e emloyer=s ower to "ontrol t:e emloyee on t:e means and met:odsby w:i": t:e wor> is a""omlis:ed Te ontro# test s te most imortanttest. Ts test s 4ased on te e@tent o ontro# te rer e@erses over a or8er.

Te /reater te su"ervson and ontro# te rer e@erses te 3ore #8e# teor8er s dee3ed an e3"#oee. Te onverse o#ds true as e## ? te #ess ontro#te rer e@erses te 3ore #8e# te or8er s onsdered an nde"endentontrator.

-rst ASC$ en/a/ed S5$QA>s serves s"ea## to oost te Fe# JaF"ro/ra3s. ASC$ dd not ass/n an oter or8 to S5$QA. To "eror3 s or8S5$QA on# needed s s8##s and ta#ent. !o S5$QA de#vered s #nes a""earedon te#evson and sounded on rado ere outsde ASC$>s ontro#. S5$QA dd notave to render e/t ours o or8 "er da. Te A/ree3ent reHured S5$QA toattend on# reearsa#s and ta"n/s o te sos as e## as "re and "ost"roduton sta 3eetn/s. ASC$ ou#d not dtate te ontents o S5$QA>ssr"t. !oever te A/ree3ent "ro4ted S5$QA ro3 rt*n/ n s sos ASC$ or ts nterests. Te #ear 3"#aton s tat S5$QA ad a ree and on at tosa or dsuss n s sos "rovded e dd not atta8 ASC$ or ts nterests.

Seond Te A/ree3ent st"u#ates tat S5$QA sa## a4de t te ru#es andstandards o "eror3ane F"overing talentsF o ASC$. Te A/ree3ent doesnot reHure S5$QA to o3"# t te ru#es and standards o "eror3ane"resr4ed or e3"#oees o ASC$. Te ode o ondut 3"osed on S5$QAunder te A/ree3ent reers to te FTe#evson and Rado Code o te a"sanan n/3/a roadaster sa P#"nas (P) as 4een ado"ted 4 te C5PA$B (ASC$) as ts Code o Ets.F Te P ode a""#es to 4roadasters not to e3"#oeeso rado and te#evson statons. roadasters are not neessar# e3"#oees orado and te#evson statons. C#ear# te ru#es and standards o "eror3ane

reerred to n te A/ree3ent are tose a""#a4#e to ta#ents and not to e3"#oeeso ASC$.

%ast# 4en/ an e@#usve ta#ent does not 4 tse# 3ean tat S5$QA s ane3"#oee o ASC$. Even an nde"endent ontrator an va#d# "rovde sserves e@#usve# to te rn/ "art. In te 4roadast ndustr e@#usvt s notneessar# te sa3e as ontro#. Te rn/ o e@#usve ta#ents s a des"read andae"ted "rate n te entertan3ent ndustr. Ts "rate s not des/ned toontro# te 3eans and 3etods o or8 o te ta#ent 4ut s3"# to "rotet te

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nvest3ent o te 4roadast staton. Te 4roadast staton nor3a## s"endssu4stanta# a3ounts o 3one t3e and eort Fn 4u#dn/ u" ts ta#ents as e## aste "ro/ra3s te a""ear n and tus e@"ets tat sad ta#ents re3an e@#usvet te staton or a o33ensurate "erod o t3e.F $or3a## a 3u /er ee s"ad to ta#ents o a/ree to or8 e@#usve# or a "artu#ar rado or te#evsonstaton. In sort te u/e ta#ent ees "arta## o3"ensates or e@#usvt.

Lazaro vs So"ial Se"urity Commission %(('0 1.&. 78%9'

3a"ts!

Rosa#na %audato #ed a "etton 4eore te SSC or soa# seurt overa/e andre3ttane o un"ad 3ont# soa# seurt ontr4utons a/anst er tree (&)e3"#oers. A3on/ te3 as An/e#to %a*aro "ro"retor o Roa# Star s en/a/edn te 4usness o se##n/ o3e a""#anes. %audato a##e/ed tat des"te ere3"#o3ent as sa#es su"ervsor o te sa#es a/ents or Roa# Star ro3 A"r# o 1979 toar o 19'6 %a*aro ad a#ed durn/ te sad "erod to re"ort er to te SSC or

o3"u#sor overa/e or re3t %audato>s soa# seurt ontr4utons.

%a*aro dened tat %audato as a sa#es su"ervsor o Roa# Star averrn/ nstead tatse as a 3ere sa#es a/ent o3 e "ad "ure# on o33sson 4ass. %a*aroa#so 3antaned tat %audato as not su4eted to dente ours and ondtons oor8. As su se ou#d not 4e dee3ed an e3"#oee o Roa# Star.

,ssue! ?@5 %audato s onsdered e3"#oee o Roa# Star ar8etn/

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4eld! %audato s an e3"#oee o Roa# Star and as su s entt#ed to te overa/e oSoa# Seurt %a.

It s an ae"ted dotrne tat or te "ur"oses o overa/e under te Soa# SeurtAt te deter3naton o e3"#oere3"#oee re#atons" arrants te a""#aton ote "ontrol test


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Coordnate arran/e "ersona#tes or ar ntervesK "0Coordnate "re"are sedu#e ore"orters or sedu#ed nes re"ortn/ and #eadn or no3n/ re"ortsK d0-a#tate"re"are and arran/e art3e sedu#e or "u4# serve announe3ent and o3"#antsKe0Assst anor "ro/ra3 nterve etK and f0Reord #o/ #era# re"orts 3an 4asedontro# rado.

Pettoner and te ASC$ Ran8and-#e E3"#oees e@euted a Co##etve ar/ann/A/ree3ent (CA) to 4e eetve durn/ te "erod ro3 De 11 1996 to De 11 1999.!oever sne "ettoner reused to reo/n*e PAs as "art o te 4ar/ann/ untres"ondents ere not n#uded to te CA.

Due to a 3e3orandu3 ass/nn/ PA>s to nondra3a "ro/ra3s and tat te DBAstudo o"eratons ou#d 4e and#ed 4 te studo tenan. Tere as a revson o tesedu#e and ass/n3ents and tat res"ondent Ger*on as ass/ned as te u##t3e PAo te T= $es De"art3ent re"ortn/ dret# to %eo %ast3osa.

5n 5t 12 2000 res"ondents #ed a Co3"#ant or Reo/nton o Re/u#ar E3"#o3entStatus


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of servi"e eter ontnuous or 4ro8en t res"et to te atvtes n teare e3"#oed.

:at deter3nes eter a ertan e3"#o3ent s re/u#ar or oterse s t%e c%aracterof t%e activities performed in relation to t%e particular trade or usiness taing intoaccount all t%e circumstances, and in some cases t%e lengt% of time of its performance

and its continued e&istence.

Te e3"#oere3"#oee re#atons" 4eteen "ettoner and res"ondents as 4een"roven 4 te M

irst.In te se#eton and en/a/e3ent o res"ondents no "eu#ar or unHue s8##ta#ent or e#e4rt status as reHured ro3 te3 4eause te ere 3ere#red trou/ "ettoner>s "ersonne# de"art3ent ust #8e an ordnar e3"#oee.econd.Te soa##ed Lta#ent ees o res"ondents orres"ond to a/es /ven asa resu#t o an e3"#oere3"#oee re#atons". Res"ondents dd not ave te"oer to 4ar/an or u/e ta#ent ees a ru3stane ne/atn/ nde"endent

ontratua# re#atons".*%ird.Pettoner ou#d a#as dsar/e res"ondents sou#d t nd ter or8unsatsator and res"ondents are /# de"endent on te "ettoner orontnued or8.ourt%.Te de/ree o ontro# and su"ervson e@ersed 4 "ettoner overres"ondents trou/ ts su"ervsors ne/ates te a##e/aton tat res"ondents arende"endent ontrators.

%he presumption is that 'hen the 'ork done is an inte(ral part of the re(ularbusiness of the employer and 'hen the 'orker, relati)e to the employer, doesnot furnish an independent business or professional ser)ice, such 'ork is a

re(ular employment of such employee and not an independent contractor.

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3ran"is"o vs 5L&C %((60 9(( SC&A 6/(

3a"ts!

Pettoner as red 4 ase Cor"oraton durn/ te nor"oraton sta/e. Se asdes/nated as aountant and or"orate seretar and as ass/ned to and#e a## teaountn/ needs o te o3"an. Se as a#so des/nated as %ason 5er to te Cto an#a to seure "er3ts or te o"eraton o te o3"an.

In 1996 Pettoner as des/nated as Atn/ ana/er. Se as ass/ned to and#ererut3ent o a## e3"#oees and "eror3 3ana/e3ent ad3nstraton untons. In2001 se as re"#aed 4 %*a -uentes as ana/er. ase Cor"oraton redued ersa#ar to P2,00 "er 3ont as unt# Se"te34er. Se as8ed or er sa#ar 4utas nor3ed tat se as no #on/er onneted to te o3"an. Se dd not an3ore

re"ort to or8 sne se as not "ad or er sa#ar. Se #ed an aton or onstrutveds3ssa# t te %a4or Ar4ter.

Te %a4or Ar4ter ound tat te "ettoner as ##e/a## ds3ssed. $%RC ar3ed tedeson #e CA reversed t.

,ssue! :5$ tere as an e3"#oere3"#oee re#atons".

4eld! Pettoner s an e3"#oee o ase Cor"oraton.

Te ourt e#d tat n ts ursdton tere as 4een no unor3 test to deter3ne tee@stene o an e3"#oere3"#oee re#aton. Genera## ourts ave re#ed on te so

a##ed r/t o ontro# test ere te "erson or o3 te serves are "eror3edreserves a r/t to ontro# not on# te end to 4e aeved 4ut a#so te 3eans to 4eused n rean/ su end. In addton to te standard o r/toontro# te e@stn/eono3 ondtons "reva#n/ 4eteen te "artes #8e te n#uson o te e3"#oeen te "aro##s an e#" n deter3nn/ te e@stene o an e3"#oere3"#oeere#atons".

Te 4etter a""roa ou#d tereore 4e to ado"t a totered test nvo#vn/M (1) te"utatve e3"#oer>s "oer to ontro# te e3"#oee t res"et to te 3eans and3etods 4 te or8 s to 4e ao3"#sedK and (2) te under#n/ eono3rea#tes o te atvt or re#atons".

In evilla v. Court of Appeals te ourt o4served te need to onsder te e@stn/eono3 ondtons "reva#n/ 4eteen te "artes n addton to te standard o r/toontro# #8e te n#uson o te e3"#oee n te "aro##s to /ve a #earer "ture ndeter3nn/ te e@stene o an e3"#oere3"#oee re#atons" 4ased on an ana#sso te tota#t o eono3 ru3stanes o te or8er.

Tus te deter3naton o te re#atons" 4eteen e3"#oer and e3"#oee de"endsu"on te ru3stanes o te o#e eono3 atvt su asM (1) te e@tent to

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te serves "eror3ed are an nte/ra# "art o te e3"#oer>s 4usnessK (2) te e@tent ote or8er>s nvest3ent n eHu"3ent and a#tesK (&) te nature and de/ree oontro# e@ersed 4 te e3"#oerK (+) te or8er>s o""ortunt or "rot and #ossK (,)te a3ount o ntatve s8## ud/3ent or ores/t reHured or te suess o te#a3ed nde"endent enter"rseK (6) te "er3anen and duraton o te re#atons"

4eteen te or8er and te e3"#oerK and (7) te de/ree o de"enden o te or8eru"on te e3"#oer or s ontnued e3"#o3ent n tat #ne o 4usness. Te "ro"erstandard o eono3 de"endene s eter te or8er s de"endent on te a##e/ede3"#oer or s ontnued e3"#o3ent n tat #ne o 4usness.

a""#n/ te ontro# test tere s no dou4t tat "ettoner s an e3"#oee o aseCor"oraton 4eause se as under te dret ontro# and su"ervson o Se a3urate or"oraton>s Tena# Consu#tant. It s tereore a""arent tat "ettoner seono3a## de"endent on res"ondent or"oraton or er ontnued e3"#o3ent nte #atter>s #ne o 4usness.

Tere an 4e no oter on#uson tat "ettoner s an e3"#oee o res"ondent ase

Cor"oraton. Se as se#eted and en/a/ed 4 te o3"an or o3"ensaton and seono3a## de"endent u"on res"ondent or er ontnued e3"#o3ent n tat #ne o4usness. !er 3an o4 unton nvo#ved aountn/ and ta@ serves rendered toRes"ondent Cor"oraton on a re/u#ar 4ass over an ndente "erod o en/a/e3ent.Res"ondent Cor"oraton red and en/a/ed "ettoner or o3"ensaton t te "oerto ds3ss er or ause. ore 3"ortant# Res"ondent Cor"oraton ad te "oer toontro# "ettoner t te 3eans and 3etods 4 te or8 s to 4eao3"#sed.

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5ogales et al.< vs Caitol Medi"al Center %((60 1.&. '%6%9

3a"ts!Cora*on as under te e@#usve are o Dr 5sar Estrada 4e/nnn/ te ourt 3onto er "re/nan. :#e on er #ast tr3ester o "re/nan Dr Estrada noted annrease o er 4#ood "ressure and deve#o"3ent o #e/ ede3a ndatn/ "ree#a3"sa s a dan/erous o3"#aton o "re/nan.

Around 3dn/t o 2, a 1976 Cora*on started to e@"erene 3#d #a4or "ans"ro3"tn/ S"ouses $o/a#es to see Dr. Estrada at s o3e. Ater e@a3nn/ Cora*onDr. Estrada advsed er 33edate ad3sson to te Ca"to# eda# Center. Eventua##Cora*on ded ater /vn/ 4rt to te #d "ro3"ted te "ettoners to #e ao3"#ant or da3a/es a/anst CC Dr. Estrada and oter "sans and a ertannurse or Cora*on>s deat. Pettoners 3an# ontended tat deendant "sans andCC "ersonne# ere ne/#/ent n te treat3ent and 3ana/e3ent o Cora*ons

ondton. Pettoners ar/ed CC t ne/#/ene n te se#eton and su"ervson odeendant "sans and os"ta# sta.

,ssue! :5$ CC s varous# #a4#e or te ne/#/ene o Dr. Estrada

4eld! CC s varous# #a4#e.

In Ramos v. Court of Appeals Court ad te oason to deter3ne te re#atons"4eteen a os"ta# and a onsu#tant or vstn/ "san and te #a4#t o suos"ta# or tat "sans ne/#/eneM

:#e Fonsu#tantsF are not tena## e3"#oees a "ont res"ondent os"ta#

asserts n denn/ a## res"ons4#t or te "atents ondton te ontro# e@ersedte rn/ and te r/t to ter3nate onsu#tants a## u### te 3"ortant a##3ar8s oan e3"#oere3"#oee re#atons" t te e@e"ton o te "a3ent o a/es. Inassessn/ eter su a re#atons" n at e@sts te ontro# test s deter3nn/.Aordn/# on te 4ass o te ore/on/ e ru#e tat or te "ur"ose o a##oatn/res"ons4#t n 3eda# ne/#/ene ases an e3"#oere3"#oee re#atons" n eete@sts 4eteen os"ta#s and ter attendn/ and vstn/ "sans.

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:#e te Court n Ramosdd not e@"ound on te ontro# test su test essenta##deter3nes eter an e3"#o3ent re#atons" e@sts 4eteen a "san and aos"ta# 4ased on te e@erse o ontro# over te "san as to deta#s. S"ea##te e3"#oer (or te os"ta#) 3ust ave te r/t to ontro# 4ot te 3eans and tedeta#s o te "roess 4 te e3"#oee (or te "san) s to ao3"#s s tas8

In te "resent ase te Court nds no sn/#e evdene "ontn/ to CCs e@erse oontro# over Dr. Estradas treat3ent and 3ana/e3ent o Cora*ons ondton. It sunds"uted tat trou/out Cora*ons "re/nan se as under te e@#usve "renata#are o Dr. Estrada. At te t3e o Cora*ons ad3sson at CC and durn/ er de#vert as Dr. Estrada asssted 4 Dr. =##a#or o attended to Cora*on. Tere as noson/ tat CC ad a "art n da/nosn/ Cora*ons ondton. :#e Dr. Estradaenoed sta "rv#e/es at CC su at a#one dd not 3a8e 3 an e3"#oee o CC.CC 3ere# a##oed Dr. Estrada to use ts a#tes en Cora*on as a4out to /ve4rt CC onsdered an e3er/en. Consdern/ tese ru3stanes Dr.Estrada s not an e3"#oee o CC 4ut an nde"endent ontrator.

In /enera# a os"ta# s not #a4#e or te ne/#/ene o an nde"endent ontrator

"san. Tere s oever an e@e"ton to ts "rn"#e. Te os"ta# 3a 4e #a4#e te "san s te Fostens4#eF a/ent o te os"ta#. Ts e@e"ton s a#so 8non aste Fdotrne o a""arent autort.F In #ilert v. ycamore Municipal +ospital teI##nos Su"re3e Court e@"#aned te dotrne o a""arent autort n ts seM

eeEress reresentations to t:e atient t:at t:e treating :ysi"ian is anemloyee of t:e :ositalF rat:er a reresentation may be general and

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imlied.In te nstant ase CC 3"#ed# e#d out Dr. Estrada as a 3e34er o ts3eda# sta. Trou/ CCs ats CC #oted Dr. Estrada t a""arent autorttere4 #eadn/ te S"ouses $o/a#es to 4e#eve tat Dr. Estrada as an e3"#oee ora/ent o CC. CC annot no re"udate su autort.

#:e se"ond fa"tor fo"uses on t:e atients relian"e.It s so3et3es arater*ed

as an nHur on eter te "#ant ated n re#ane u"on te ondut o te os"ta#or tsagent onsstent t ordnar are and "rudene.

Te reords so tat te S"ouses $o/a#es re#ed u"on a "ereved e3"#o3entre#atons" t CC n ae"tn/ Dr. Estradas serves. Ro/e#o tested tat e ands e s"ea## ose Dr. Estrada to and#e Cora*ons de#ver not on# 4eause oter rends reo33endaton 4ut 3ore 3"ortant# 4eause o Dr. EstradasFonneton t a re"uta4#e os"ta# te NCCO.F In oter ords Dr. Estradasre#atons" t CC "#aed a s/nant ro#e n te S"ouses $o/a#es deson nae"tn/ Dr. Estradas serves as te o4stetran/neo#o/st or Cora*ons de#ver.oreover as ear#er stated tere s no son/ tat 4eore and durn/ Cora*onsonne3ent at CC te S"ouses $o/a#es 8ne or sou#d ave 8non tat Dr. Estrada

as not an e3"#oee o CC.

Even s3"#e ne/#/ene s not su4et to 4#an8et re#ease n avor o esta4#s3ents #8eos"ta#s 4ut 3a on# 3t/ate #a4#t de"endn/ on te ru3stanes. :en a"erson needn/ ur/ent 3eda# attenton ruses to a os"ta# e annot 4ar/an oneHua# ootn/ t te os"ta# on te ter3s o ad3sson and o"eraton. Su a "ersons #tera## at te 3er o te os"ta#. Tere an 4e no #earer e@a3"#e o a ontrat oadeson tan one arsn/ ro3 su a dre stuaton. Tus te re#ease or3s o CCannot re#eve CC ro3 #a4#t or te ne/#/ent 3eda# treat3ent o Cora*on.

Co"a-Cola $ottlers *:ils.< vs Dr. Clima"o %((20 1.&. '688

3a"ts!

Dr. Dean C#3ao s a 3eda# dotor o as red 4 "ettoner CoaCo#a ott#ersP#s. In. 4 vrtue o a Retaner A/ree3ent or a "erod o 1 ear t a 3ont#sa#ar o Tree Tousand E/t !undred (P&'00.00).

Te Retaner A/ree3ent 4e/an on Januar 1 19'' as reneed annua##. Te#ast one e@"red on Dee34er &1 199&. Des"te te nonrenea# o te RetanerA/ree3ent res"ondent ontnued to "eror3 s untons as o3"an dotor to CoaCo#a unt# e reeved a #etter ro3 "ettoner o3"an on#udn/ ter retaners"a/ree3ent eetve &0 das ro3 ree"t tereo.

Pettoner as a#read 3a8n/ nHures re/ardn/ s status t te o3"an. -rst erote a #etter addressed to Dr. :##e S te Atn/ Presdent and Car"erson o teCo33ttee on e34ers" P#""ne Co##e/e o 5u"atona# edne. In res"onseDr. S rote a #etter to te Personne# 5er o CoaCo#a ott#ers P#s. ao#od Ctstatn/ tat res"ondent sou#d 4e onsdered as a re/u#ar "artt3e "san avn/served te o3"an ontnuous# or our (+) ears. !e #8ese stated tat res"ondent3ust reeve a## te 4enets and "rv#e/es o an e3"#oee under Art#e 1,7 (4) o te%a4or Code.

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,ssue! :5$ tere e@sts an e3"#oere3"#oee re#atons" 4eteen CoaCo#a andDr. C#3ao

4eld! $o e3"#oere3"#oee re#atons" e@sts 4eteen te "artes.

Te Court n deter3nn/ te e@stene o an e3"#oere3"#oee re#atons" as

nvara4# adered to te ouro#d testM (1) te se#eton and en/a/e3ent o tee3"#oeeK (2) te "a3ent o a/esK (&) te "oer o ds3ssa#K and '0t:e ower to"ontrol t:e emloyee=s "ondu"t< or t:e so-"alled G"ontrol tests o4etvesdutes and o4#/atons does not te## res"ondent Fo to ondut s "sa#e@a3naton o to 33un*e or o to da/nose and treat s "atents e3"#oees oCoaCo#a n ea ase.F

Te Co3"reensve eda# P#an "rovded /ude#nes 3ere# to ensure tat te endresu#t as aeved 4ut dd not ontro# te 3eans and 3etods 4 res"ondent"eror3ed s ass/ned tas8s. It s "rese# 4eause te o3"an #a8s te "oer oontro# tat te ontrat "rovdes tat res"ondent sa## 4e dret# res"ons4#e to tee3"#oee onerned and ter de"endents or an nur ar3 or da3a/e ausedtrou/ "roessona# ne/#/ene no3"etene or oter va#d auses o aton.

Co3"#anant does not ds"ute te at tat outsde o te to (2) ours tat e sreHured to 4e at res"ondent o3"an>s "re3ses e s not at a## urter reHured to

ust st around n te "re3ses and at or an e3er/en to our so as to ena4#e 3ro3 usn/ su ours or s on 4enet and advanta/e. In at o3"#anant 3antanss on "rvate #n attendn/ to s "rvate "rate n te t ere e serves s

"atents 4##s te3 aordn/# and t s an e3"#oee o res"ondent o3"an os attended to 4 3 or s"ea# treat3ent tat needs os"ta#*aton or o"eraton tss su4et to a s"ea# 4##n/. ore oten tan not an e3"#oee s reHured to sta n tee3"#oer>s or8"#ae or "ro@3ate# #ose tereto tat e annot ut#*e s t3eeetve# and /anu## or s on "ur"ose.

Calamba Medi"al Center vs 5L&C %((80 1.&. 26'8'

3a"ts!

Ca#a34a eda# Center en/a/ed te serves o 3eda# dotorss"ouses Dr.

Rona#do and Dr. eredta %an*anas as "art o ts tea3 o resdent "sans.Re"ortn/ at te os"ta# teaee8 on tentourour sts res"ondents ere"ad a 3ont# FretanerF o P+'00.00 ea. A#so resdent "sans ere a#so /ven a"erenta/e sare out o ees ar/ed or out"atent treat3ents o"eratn/ roo3assstane and dsar/e 4##n/s n addton to ter @ed 3ont# retaner.

Te or8 sedu#es o te 3e34ers o te tea3 o resdent "sans ere @ed 4"ettoners 3eda# dretor Dr. Des"eda and te ere ssued ID enro##ed n te SSSand te#d ta@ ro3 te3.

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Ater an ndent ere Dr. Trndad overeard a "one onversaton 4eteen Dr.Rona#do and a e##o e3"#oee Dosdado sa#a te or3er as /ven a "reventvesus"enson and s e Dr. eredta as not /ven an sedu#e ater sendn/ tee3orandu3. 5n ar 199' Dr. Rona#do #ed a o3"#ant or ##e/a# sus"enson andDr. eredta or ##e/a# ds3ssa#.

,ssue! :5$ tere e@sts an e3"#oere3"#oee re#atons" 4eteen "ettoner and tes"ousesres"ondents

4eld! Drs. %an*anasare de#ared e3"#oee 4 te "ettoner os"ta#.


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@llendorff vs Abra:amson /80 1.&. 7%%8

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3a"ts!

An a/ree3ent as entered nto 4 5##endor and A4raa3son ere4 teor3era/reed to e3"#o A4raa3son and te #atter 4ound 3se# to or8 or 3 or a "erodo 2rs t a sa#ar o P,0 "er ee8. In#uded n te a/ree3ent s a "ro4ton oA4raa3son ro3 en/a/n/ n a s3#ar or o3"ettve 4usness to anere tn te

P#""ne Is#ands or a "erod o ve ears. Te dutes "eror3ed 4 te deendant eresu to 3a8e t neessar or 3 to 4e /enera## 8no#ed/ea4#e o 5##endor>s4usness 3oreover e ad 4een en/a/ed n s3#ar or8 or severa# ears even 4eores e3"#o3ent o te "#ant>s e34roder 4usness.

Ater so3e 3onts ro3 s de"arture or te


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restrtons as tat no under onsderaton are rtten nto ontrats o e3"#o3ent.Ter "ur"ose s te "roteton o te e3"#oer and te do not /o 4eond at sreasona4# neessar to eetuate ts "ur"ose te sou#d 4e u"e#d.

Del Castillo vs &i":mond /%'0 1.&. L-%%2

3a"ts!

Sannon R3ond and A#onso de# Cast##o entered nto a LContrat o Rendern/Serves ere4 de# Cast##o a/rees to enter te e3"#o o R3ond as a "ar3astt a 3ont# re3uneraton o P12, ea 3ont.

Para/ra" & o te sad ontrat read as o##osM&. Tat n onsderaton o te at tat te sad A#onso de# Cast##o as ust /raduated as

a "ar3ast and u" to te "resent t3e as not 4een e3"#oed n te a"at o a"ar3ast and n onsderaton o ts e3"#o3ent and te 3ont# sa#ar 3entoned

n ts ontrat te sad A#onso de# Cast##o a#so a/rees not to o"en nor on nor avean nterest dret# or ndret# n an oter dru/store eter n s on na3e or nte na3e o anoterK nor ave an onneton t or 4e e3"#oed 4 an oterdru/store stuated tn a radus o our 3#es ro3 te dstrt o %e/as" 3un"a#tand Provne o A#4a #e te sad Sannon R3ond or s ers 3a on or aveo"en a dru/store or ave an nterest n an oter one tn te #3ts o te dstrtso %e/as" A#4a and Dara/a o te 3un"a#t o A#4a Provne o A#4a.

Te "#ant a##e/es tat te "rovsons and ondtons ontaned n te trd "ara/ra"o sad ontrat onsttute an ##e/a# and unreasona4#e restrton u"on s #4ert toontrat are ontrar to "u4# "o# and are unneessar n order to onsttute a ustand reasona4#e "roteton to te deendantK and as8ed tat te sa3e 4e de#ared nu##and vod and o no eet.

,ssue! :5$ te "rovsons and ondtons ontaned n te &rd "ara/ra" o sadontrat onsttute an ##e/a# and unreasona4#e restrton u"on "#ants> #4ert toontrat

4eld! Te ontrat te annu#3ent o s sou/t 4 te "#ant s netero""ressve to 3 nor unreasona4# neessar to "rotet te deendants 4usness nor"reuda# to te "u4# nterest.

Te #a onernn/ ontrats tend to restran 4usness or trade as /one trou/a #on/ seres o an/es ro3 t3e to t3e t te an/n/ ondtons o trade ando33ere. :t tr#n/ e@e"tons sad an/es ave 4een a ontnuous deve#o"3ento a /enera# ru#e. %ater te ru#e 4ea3e e## esta4#sed tat te restrant as#3ted to Fa ertan t3eF and tn Fa ertan "#aeF su ontrats ere va#d andnot Fa/anst te 4enet o te state.F %ater ases and e tn8 te ru#e s no e##esta4#sed ave e#d tat a ontrat n restrant o trade s va#d "rovdn/ tere s a#3taton u"on eter t3e or "#ae. A ontrat oever restrans a 3an ro3entern/ nto a 4usness or trade tout eter a #3taton as to t3e or "#ae ## 4ee#d nva#d.

I te ontrat s reasona4# neessar to "rotet te nterest o te "artes t ## 4eu"e#d. (llendorff vs. Ara%amson, - /%il., 00.)

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In tat ase e e#d tat a ontrat 4 an e3"#oee a/rees to reran or a /ven#en/t o t3e ater te e@"raton o te ter3 o s e3"#o3ent ro3 en/a/n/ n a4usness o3"ettve t tat o s e3"#oer s not vod as 4en/ n restrant o trade te restrant 3"osed s not /reater tan tat s neessar to aord areasona4#e "roteton. In a## ases #8e te "resent te Hueston s eter under te

"artu#ar ru3stanes o te ase and te nature o te "artu#ar ontrat nvo#vedn t te ontrat s or s not unreasona4#e

*:iliine #elegra: ; #ele:one Co vs 5L&C //20 1.&. 8/28

3a"ts!

See8n/ re#e trou/ te e@traordnar rt o certiorari "ettoner P#""neTe#e/ra" and Te#e"one Co3"an (ereater PTT) nvo8es te a##e/ed onea#3ento v# status and dea#aton o o3"an unds as /rounds to ter3nate te serves oan e3"#oee. Tat e3"#oee eren "rvate res"ondent Grae de Gu*3an ontrar#ar/ues tat at rea## 3otvated PTT to ter3nate er serves as er avn/

ontrated 3arra/e durn/ er e3"#o3ent s "ro4ted 4 "ettoner n tso3"an "o#es. Se tus #a3s tat se as dsr3nated a/anst n /ross vo#atono #a su a "rosr"ton 4 an e3"#oer 4en/ out#aed 4 Art#e 1&6 o te %a4orCode.

,ssue! :5$ te "o# o not ae"tn/ or onsdern/ as dsHua#ed ro3 or8 ano3an or8er o ontrats 3arra/e s va#d

4eld! Pettoner>s "o# o not ae"tn/ or onsdern/ as dsHua#ed ro3 or8 ano3an or8er o ontrats 3arra/e runs aou# o te test o and te r/t a/anstdsr3naton aorded a## o3en or8ers 4 our #a4or #as and 4 no #ess tan teConsttuton.

Te Consttuton o/n*ant o te ds"art n r/ts 4eteen 3en and o3en n a#3osta## "ases o soa# and "o#ta# #e "rovdes a /a3ut o "rotetve "rovsons.A8no#ed/ed as "ara3ount n te due "roess se3e s te onsttutona# /uaranteeo "roteton to #a4or and seurt o tenure. Tus an e3"#oer s reHured as aondton sine 1ua non"ror to severane o te e3"#o3ent tes o an ndvdua# unders e3"#o to onvnn/# esta4#s trou/ su4stanta# evdene te e@stene o ava#d and ust ause n ds"ensn/ t te serves o su e3"#oee one>s #a4or 4en/re/arded as onsttutona## "roteted "ro"ert. Te /overn3ent to re"eat a4ors anst"u#aton or "o# n te nature o tat ado"ted 4 "ettoner PTT. Te %a4or Codestates n no unertan ter3s as o##osM

LART. 1&6. tipulation against marriage. It sa## 4e un#au# or an e3"#oer toreHure as a ondton o e3"#o3ent or ontnuaton o e3"#o3ent tat a o3an

sa## not /et 3arred or to st"u#ate e@"ress# or tat# tat u"on /ettn/ 3arred ao3an e3"#oee sa## 4e dee3ed res/ned or se"arated or to atua## ds3ssdsar/e dsr3nate or oterse "reude a o3an e3"#oee 3ere# 4 reason o3arra/e.

In te ase at 4ar t an eas# 4e seen ro3 te 3e3orandu3 sent to "rvateres"ondent 4 te 4ran su"ervsor o te o3"an t te re3nder tat Lou>reu## aare tat te o3"an s not ae"tn/ 3arred o3en e3"#oee (s) as t asver4a## nstruted to ou. A/an n te ter3naton note sent to er 4 te sa3e

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4ran su"ervsor "rvate res"ondent as 3ade to understand tat er severane ro3te serve as not on# 4 reason o er onea#3ent o er 3arred status 4ut overand on to" o tat as er vo#aton o te o3"an>s "o# a/anst 3arra/e (Landeven to#d ou tat 3arred o3en e3"#oees are not a""#a4#e NsO or ae"ted n ouro3"an.

Pettoner>s "o# s not on# n dero/aton o te "rovsons o Art#e 1&6 o te %a4orCode on te r/t o a o3an to 4e ree ro3 an 8nd o st"u#aton a/anst 3arra/e nonneton t er e3"#o3ent 4ut t #8ese assau#ts /ood 3ora#s and "u4# "o#tendn/ as t does to de"rve a o3an o te reedo3 to oose er status a "rv#e/etat 4 a## aounts neres n te ndvdua# as an ntan/4#e and na#ena4#er/t. !ene #e t s true tat te "artes to a ontrat 3a esta4#s ana/ree3ents ter3s and ondtons tat te 3a dee3 onvenent te sa3e sou#dnot 4e ontrar to #a 3ora#s /ood usto3s "u4# order or "u4# "o#. Carred tots #o/a# onseHuenes t 3a even 4e sad tat "ettoner>s "o# a/anst #e/t3ate3arta# 4onds ou#d enoura/e ##t or o33on#a re#atons and su4vert tesara3ent o 3arra/e.

Dun"an Asso. @f Detailman-*#1?@ vs 1laEo ?ell"ome *:ils.< %(('0 1.&.6%//'

3a"ts!

Pettoner Pedro Teson as red 4 res"ondent G#a@o as 3eda# re"resentatve aterTeson ad under/one trann/ and orentaton. Tereater Teson s/ned a ontrat oe3"#o3ent st"u#ates a3on/ oters t%at %e agrees to study and aide ye&isting company rules2 to disclose to management any e&isting or future relations%ipy consanguinity or affinity !it% co3employees or employees of competing drugcompanies and s%ould management find t%at suc% relations%ip poses a possile conflictof interest, to resign from t%e company. Te E3"#oee Code o Condut o G#a@os3#ar# "rovdes t%at an employee is e&pected to inform management of any e&istingor future relations%ip y consanguinity or affinity !it% co3employees or employees ofcompeting drug companies.

Teson as nta## ass/ned to 3ar8et G#a@o>s "roduts n te Ca3arnes SurCa3arnes $orte sa#es area. Su4seHuent# Teson entered nto a ro3ant re#atons"t etts an e3"#oee o Astra a o3"ettor o G#a@o. Se as Astra>s ranCoordnator n A#4a and su"ervsed te dstrt 3ana/ers and 3eda# re"resentatveso er o3"an and "re"ared 3ar8etn/ strate/es or Astra n tat area. Te to3arred even t te severa# re3nders /ven 4 te Dstrt ana/er to Teson. In

Januar 1999 Teson>s su"erors nor3ed 3 tat s 3arra/e to etts /ave rse toa on#t o nterest. Teson>s su"erors re3nded 3 tat e and etts sou#d dede one o te3 ou#d res/n ro3 ter o4s a#tou/ te to#d 3 tat te

anted to retan 3 as 3u as "oss4#e 4eause e as "eror3n/ s o4 e##. Tsstuaton eventua## #ed to s onstrutve ds3ssa#.

,ssue! :5$ G#a@o>s "o# "ro4tn/ ts e3"#oees ro3 3arrn/ an e3"#oee o ao3"ettor o3"an s va#d

4eld! G#a@o>s "o# "ro4tn/ an e3"#oee ro3 avn/ a re#atons" t ane3"#oee o a o3"ettor o3"an s a va#d e@erse o 3ana/e3ent "rero/atve.

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Teson>s ontrat o e3"#o3ent t G#a@o 4en/ Huestoned st"u#ates tat Tesona/rees to a4de 4 te e@stn/ o3"an ru#es o G#a@o and to stud and 4eo3eaHuanted t su "o#es. In ts re/ard te E3"#oee !and4oo8 o G#a@oe@"ress# nor3s ts e3"#oees o ts ru#es re/ardn/ on#t o nterest. $o revers4#eerror an 4e asr4ed to te Court o A""ea#s en t ru#ed tat G#a@o>s "o#"ro4tn/ an e3"#oee ro3 avn/ a re#atons" t an e3"#oee o a o3"ettor

o3"an s a va#d e@erse o 3ana/e3ent "rero/atve. G#a@o as a r/t to /uard tstrade serets 3anuaturn/ or3u#as 3ar8etn/ strate/es and oter ondenta#"ro/ra3s and nor3aton ro3 o3"ettors es"ea## so tat t and Astra are rva#o3"anes n te /# o3"ettve "ar3aeuta# ndustr.

Te "ro4ton a/anst "ersona# or 3arta# re#atons"s t e3"#oees o o3"ettoro3"anes u"on G#a@o>s e3"#oees s reasona4#e under te ru3stanes 4eausere#atons"s o tat nature 3/t o3"ro3se te nterests o te o3"an. In #an/don te assa#ed o3"an "o# G#a@o on# a3s to "rotet ts nterests a/anst te"oss4#t tat a o3"ettor o3"an ## /an aess to ts serets and "roedures.

Tat G#a@o "ossesses te r/t to "rotet ts eono3 nterests annot 4e dened. $o#ess tan te Consttuton reo/n*es te r/t o enter"rses to ado"t and enore su

a "o# to "rotet ts r/t to reasona4#e returns on nvest3ents and to e@"anson and/rot. Indeed #e our #as endeavor to /ve #e to te onsttutona# "o# on soa#uste and te "roteton o #a4or t does not 3ean tat ever #a4or ds"ute ## 4ededed n avor o te or8ers. Te #a a#so reo/n*es tat 3ana/e3ent as r/ts are a#so entt#ed to res"et and enore3ent n te nterest o ar "#a.

Star *aer Cor.< vs Simbol %((60 1.&. 6'22'

3a"ts!

S34o# as e3"#oed 4 te o3"an on 5t 199&. !e 3et A#3a Dart a#so ane3"#oee o te o3"an o3 e 3arred. Pror to te 3arra/e 5n/sto advsedte ou"#e tat sou#d te dede to /et 3arred one o te3 sou#d res/n "ursuantto a o3"an "o# to S34o# o3"#ed.

1. $e a""#ants ## not 4e a##oed to 4e red n ase ese as NaO re#atve u" toNteO &rd de/ree o re#atons" a#read e3"#oed 4 te o3"an.

2. In ase o to o our e3"#oees (4ot sn/#es NsicO one 3a#e and anoter e3a#e)deve#o"ed a rend# re#atons" durn/ te ourse o ter e3"#o3ent and tendeded to /et 3arred one o te3 sou#d res/n to "reserve te "o# stated a4ove.

,ssue! :5$ te "o# o te e3"#oer 4annn/ s"ouses ro3 or8n/ n te sa3eo3"an vo#ates te r/ts o te e3"#oee under te Consttuton and te %a4or Code

or s a va#d e@erse o 3ana/e3ent "rero/atve

4eld! Pettoners> so#e ontenton tat Fte o3"an dd not ust ant to ave to or3ore o ts e3"#oees re#ated 4eteen te trd de/ree 4 ant andoronsan/untFs #a3e.

Art#e 1&6 o te %a4or Code "rovdesM

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It sa## 4e un#au# or an e3"#oer to reHure as a ondton o e3"#o3ent orontnuaton o e3"#o3ent tat a o3an e3"#oee sa## not /et 3arred or tost"u#ate e@"ress# or tat# tat u"on /ettn/ 3arred a o3an e3"#oee sa## 4edee3ed res/ned or se"arated or to atua## ds3ss dsar/e dsr3nate oroterse "reude a o3an e3"#oee 3ere# 4 reason o er 3arra/e.

Te reHure3ent tat a o3"an "o# 3ust 4e reasonableunder te ru3stanesto Hua# as a va#d e@erse o 3ana/e3ent "rero/atve. It s s/nant to note tat nte ase at 4ar res"ondents ere red ater te ere ound t or te o4 4ut ereas8ed to res/n en te 3arred a oe3"#oee. Pettoners a#ed to so o te3arra/e o S34o# ten a Seetn/ ane 5"erator to A#3a Dart ten ane3"#oee o te Re"a8n/ Seton ou#d 4e detr3enta# to ts 4usness o"eratons. e.

Te "o# s "re3sed on te 3ere ear tat e3"#oees 3arred to ea oter ## 4e#ess eent. I e u"o#d te Huestoned ru#e tout va#d ustaton te e3"#oeran reate "o#es 4ased on an un"roven "resu3"ton o a "ereved dan/er at tee@"ense o an e3"#oee>s r/t to seurt o tenure.

Te Huestoned "o# 3a not aa## vo#ate Art#e 1&6 o te %a4or Code 4ut treates a ds"ro"ortonate eet and under te ds"arate 3"at teor te on# a tou#d "ass uda# srutn s a son/ tat t s reasonable des"te tedsr3nator a#4et ds"ro"ortonate eet. Te a#ure o "ettoners to "rove a#e/t3ate 4usness onern n 3"osn/ te Huestoned "o# annot "reude tee3"#oee>s r/t to 4e ree ro3 ar4trar dsr3naton 4ased u"on stereot"es o3arred "ersons or8n/ to/eter n one o3"an.

&ivera vs Solidban> %((60 1.&. 67%6/

3a"ts!

Rvera ad 4een or8n/ or te So#d4an8 sne 1977. In De 199+ dedn/ to devotes t3e and attenton to s "ou#tr 4usness n Cavte Rvera a""#ed or retre3ent.Su4seHuent# So#d4an8 reHured Rvera to s/n an undated Re#ease :aver and;ut#a3 Rvera a8no#ed/ed ree"t o te net "roeeds o s se"araton andretre3ent 4enets and "ro3sed tat FNeO ou#d not at an t3e n an 3anneratsoever dret# or ndret# en/a/e n an un#au# atvt "reuda# to tenterest o So#d4an8 ts "arent a#ate or su4sdar o3"anes ter sto8o#dersoers dretors a/ents or e3"#oees and ter suessorsnnterest and ## notds#ose an nor3aton onernn/ te 4usness o So#d4an8 ts 3anner or o"eratonts "#ans "roesses or data o an 8nd.F

5n a 199, te EHuta4#e e3"#oed Rvera as ana/er o ts Credt Invest/aton andA""rasa# Dvson o ts Consu3ers> an8n/ Grou".


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oterse a""ro"rate #e/a# aton ou#d 4e ta8en a/anst 3 en Rvera reusedSo#d4an8 #ed o3"#ant.

,ssue! :5$ te one ear e3"#o3ent 4an 3"osed 4 So#d4an8 u"on Rvera s nu##and vod or 4en/ unreasona4#e and o""ressve and or onsttutn/ restrant o trade

4eld!Te "ostretre3ent o3"ettve e3"#o3ent 4an s unreasona4#e 4eause t asno /eo/ra"a# #3ts.

Art#e 1&06 o te $CC "rovdes tat te ontratn/ "artes 3a esta4#s sust"u#atons #auses ter3s and ondtons as te 3a dee3 onvenent "rovded teare not ontrar to #a 3ora#s /ood usto3s "u4# order or "u4# "o#. 5n te aeo te s ndustrK and te oter s te nur to te"art 3se# 4 4en/ "re#uded ro3 "ursun/ s ou"aton and tus 4en/ "reventedro3 su""ortn/ 3se# and s a3#.

In ases ere an e3"#oee assa#s a ontrat ontann/ a "rovson "ro4tn/ 3 orer ro3 ae"tn/ o3"ettve e3"#o3ent as a/anst "u4# "o# te e3"#oer asto addue evdene to "rove tat te restrton s reasona4#e and not /reater tanneessar to "rotet te e3"#oer>s #e/t3ate 4usness nterests. Te restrant 3a not4e undu# ars or o""ressve n urta#n/ te e3"#oee>s #e/t3ate eorts to earn a#ve#ood and 3ust 4e reasona4#e n #/t o sound "u4# "o#.

Hrasuegui vs *:iliine Airlines %((80 1.&. 68(8

3a"ts!

Pettoner Brasue/u an nternatona# #/t steard o P#""ne Ar#nes In. (PA%) asds3ssed 4eause o s a#ure to adere to te e/t standards o te ar#neo3"an.

In onseHuene tereo "ettoner #ed a o3"#ant or ##e/a# ds3ssa# a/anst PA%4eore te %a4or Ar4ter (%A). Te %a4or Ar4ter ru#ed tat te "ettoner as ##e/a##ds3ssed. It a#so ssued a rt o e@euton dretn/ te renstate3ent o te "ettonertout #oss o senort and oter 4enets and a#so te "a3ent o 4a8a/es.

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Res"ondent PA% a""ea#ed to te $%RC ar3ed te %A>s deson. Res"ondentPA% a""ea#ed to te Court o A""ea#s. CA reversed te $%RC ase.

,ssue! :eter te ds3ssa# o te "ettoner va#d.

4eld!Te Court u"e#d te #e/a#t o te "ettoner>s ds3ssa#.

Se"araton "a oever sou#d 4e aarded n avor o te e3"#oee as an at osoa# uste or 4ased on eHut. Ts s so 4eause s ds3ssa# s not serous3sondut. $eter s t re#etve o s 3ora# arater.

Te o4est o "ettoner en "#aed n te onte@t o s or8 as #/t attendant4eo3es an ana#o/ous ause under Art#e 2'2 (e) o te %a4or ode. !s o4est 3anot 4e unntended 4ut s nonete#ess vo#untar. L=o#untarness 4asa## 3eans tatte ust ause s so#e# attr4uta4#e to te e3"#oee tout an e@terna# oren#uenn/ or ontro##n/ s atons. Ts e#e3ent runs trou/ a## ust auses underArt. 2'2 eter te 4e n nature o a ron/u# aton or o3sson. Gross and a4tua#ne/#et a reo/n*ed ust ause s onsdered vo#untar a#tou/ t #a8s te e#e3ento ntent ound n Art. 2'2 (a) () and (d).

E3"#o3ent n "artu#ar o4s 3a not 4e #3ted to "ersons o a "artu#ar se@ re#/onor natona# or/n un#ess te e3"#oer an so tat se@ re#/on or natona# or/n san atua# Hua#aton or "eror3n/ te o4. Te Hua#aton s a##ed a 4ona deou"atona# Hua#aton (-5;). In te


40/199


,law at $u>lod Manggagawa vs 5L&C //0 /8 SC&A 986

3a"ts!

+0 a . C e e # a T 3 4 a # % # ? 2R 3 + 0 2


41/199


Te unon 8non as I#a at u8#od $/ an//a/aa (I) sad to re"resent +,00e3"#oees o San /ue# Cor"oraton 3ore or #ess or8n/ at te varous "#antsoes and areouses #oated at te $atona# Ca"ta# Re/on "resented to teo3"an a Fde3andF or orreton o te s/nant dstorton n te or8ers a/es.

In tat de3and te


42/199


dstorton sa## not n an a de#a te a""#a4#t o an nrease n "resr4ed a/erates "ursuant to te "rovsons o #a or :a/e 5rder.

Te #e/s#atve ntent tat so#uton o te "ro4#e3 o a/e dstortons sa## 4e sou/t 4vo#untar ne/otaton or ar4traton and not 4 str8es #o8outs or oter onertedatvtes o te e3"#oees or 3ana/e3ent s 3ade #ear n te ru#es 3"#e3entn/ RA6727 ssued 4 te Seretar o %a4or and E3"#o3ent "ursuant to te autort/ranted 4 Seton 1& o te At. Seton 16 Ca"ter I o tese 3"#e3entn/ ru#esater reteratn/ te "o# tat a/e dstortons 4e rst sett#ed vo#untar# 4 te"artes and eventua## 4 o3"u#sor ar4traton de#ares tat FAn ssue nvo#vn/a/e dstorton sa## not 4e a /round or a str8e#o8out.F

+2 a . C e e # a T 3 4 a # % # ? 2R 3 + 0 2


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+mloyers Confederation of t:e *:ils vs 5?*C //0 %( SC&A 29/

3a"ts!

EC5P Huestoned te va#dt o te a/e order ssued 4 te RT:P dated 5to4er 2&1990 "ursuant to te autort /ranted 4 RA 6727. Te a/e order nreased te3n3u3 a/e 4 P17.00 da# n te $atona# Ca"ta# Re/on.

Te a/e order s a""#ed to a## or8ers and e3"#oees n te "rvate setor o annrease o P 17.00 n#udn/ tose o are "ad a4ove te statutor a/e rate. EC5Pa""ea#ed t te $:PC 4ut ds3ssed te "etton.

Te So#tor Genera# n ts o33ent "osts tat te oard u"on te ssuane o tea/e order @ed 3n3u3 a/es aordn/ to te sa#ar 3etod. Pettoners nsst tatte "oer o RT:P as de#e/ated trou/ RA 6727 to /rant 3n3u3 a/e

adust3ents and n te a4sene o autort t an on# adust #oor a/es.,ssue! :5$ te a/e order ssues 4 RT:P dated 5to4er 2& 1990 s va#d.

4eld! :a/e order s va#d.

Te Court a/rees t te So#tor Genera#. It noted tat tere are to as n tedeter3naton o a/e tese are #oor a/e 3etod and sa#ar e#n/ 3etod. Te#oor a/e 3etod nvo#ves te @n/ o deter3nate a3ount tat ou#d 4e added tote "reva#n/ statutor 3n3u3 a/e #e te sa#ar e#n/ 3etod nvo#ves erete a/e adust3ent s a""#ed to e3"#oees reevn/ a ertan deno3nated sa#are#n/.

RA 6727 /ave statutor standards or @n/ te 3n3u3 a/e.

ART. 12+. StandardsCrtera or n3u3 :a/e -@n/ Te re/ona# 3n3u3 a/esto 4e esta4#sed 4 te Re/ona# oard sa## 4e as near# adeHuate as s eono3a##eas4#e to 3antan te 3n3u3 standards o #vn/ neessar or te ea#teen and /enera# e##4en/ o te e3"#oees tn te ra3eor8 o tenatona# eono3 and soa# deve#o"3ent "ro/ra3. In te deter3naton o sure/ona# 3n3u3 a/es te Re/ona# oard sa## a3on/ oter re#evant atorsonsder te o##on/M

(a) Te de3and or #vn/ a/esK

(4) :a/e adust3ent vsavs te onsu3er "re nde@K

() Te ost o #vn/ and an/es or nreases terenK

(d) Te needs o or8ers and ter a3#esK

(e) Te need to ndue ndustres to nvest n te ountrsdeK

() I3"rove3ents n standards o #vn/K

+& a . C e e # a T 3 4 a # % # ? 2R 3 + 0 2


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(/) Te "reva#n/ a/e #eve#sK

() -ar return o te a"ta# nvested and a"at to "a o e3"#oersK

() Eets o e3"#o3ent /eneraton and a3# no3eK and

() Te eHuta4#e dstr4uton o no3e and ea#t a#on/ te 3"eratves o

eono3 and soa# deve#o"3ent.F

Te a/e order as not ated n e@ess o 4oard>s autort. Te #a /ave reasona4#e#3tatons to te de#e/ated "oer o te 4oard.

++ a . C e e # a T 3 4 a # % # ? 2R 3 + 0 2


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Mabeza vs 5L&C 0 %2 SC&A 62(

3a"ts!

Pettoner $or3a a4e*a ontends tat on te rst ee8 o a 1991 se and er oe3"#oees at te !ote# Su"re3e n a/uo Ct ere as8ed 4 te ote#s 3ana/e3entto s/n an nstru3ent attestn/ to te #atters o3"#ane t 3n3u3 a/e and oter#a4or standard "rovsons o #a. Pettoner s/ned te adavt 4ut reused to /o to teCt Proseutors 5e to sear to te verat and ontents o te adavt asnstruted 4 3ana/e3ent. Te adavt as neverte#ess su43tted on te sa3e dato te Re/ona# 5e o te De"art3ent o %a4or and E3"#o3ent n a/uo Ct.

Te adavt as dran 4 3ana/e3ent or te so#e "ur"ose o reutn/ ndn/s o te%a4or Ins"etor o D5%E a""arent# adverse to te "rvate res"ondent. Ater sereused to "roeed to te Ct Proseutors 5e "ettoner states tat se asordered 4 te ote# 3ana/e3ent to turn over te 8es to er #vn/ Huarters and to

re3ove er 4e#on/n/s ro3 te ote# "re3ses. Aordn/ to er res"ondent stron/#ded er or reusn/ to "roeed to te Ct Proseutors 5e to attest to teadavt. Se tereater re#utant# #ed a #eave o a4sene ro3 er o4 asdened 4 3ana/e3ent. :en se atte3"ted to return to or8 on a 1991 teote#s aser nor3ed er tat se sou#d not re"ort to or8 and nstead ontnuet er unoa# #eave o a4sene.

ConseHuent# tree das ater er atte3"t to return to or8 "ettoner #ed ao3"#ant or ##e/a# ds3ssa# 4eore te Ar4traton ran o te $atona# %a4orRe#atons Co33sson CAR a/uo Ct. In addton to er o3"#ant or ##e/a#ds3ssa# se a##e/ed under"a3ent o a/es non"a3ent o o#da "a servenentve #eave "a 1&t 3ont "a n/t derenta# and oter 4enets.

Res"ondn/ to te a##e/atons or ##e/a# ds3ssa# "rvate res"ondent Peter $/ a##e/ed4eore %a4or Ar4ter tat "ettoner surre"ttous# #et er o4 tout note to te3ana/e3ent and tat se atua## a4andoned er or8. !e 3antaned tat tere asno 4ass or te 3one #a3s or under"a3ent and oter 4enets as tese ere "adn te or3 o a#tes to "ettoner and te ote#s oter e3"#oees.

%a4or Ar4ter ds3ssed te o3"#ant. 5n A"r# 199+ res"ondent $%RC "ro3u#/ated tsassa#ed Reso#uton ar3n/ te %a4or Ar4ters deson.

,ssue! :5$ te e3"#oer>s e@erted "ressure n te or3 o restrant ntererene oroeron a/anst s e3"#oees r/t to nsttute onerted aton or 4etter ter3s and

ondtons o e3"#o3ent onsttutes unar #a4or "rate.

4eld!Te Court ru#ed tat tere as unar #a4or "rate.

:tout dou4t te at o o3"e##n/ e3"#oees to s/n an nstru3ent ndatn/ tatte e3"#oer o4served #a4or standards "rovsons o #a en e 3/t ave notto/eter t te at o ter3natn/ or oern/ tose o reuse to oo"erate t tee3"#oers se3e onsttutes unar #a4or "rate. Te rst at #ear# "ree3"ts ter/t o te ote#s or8ers to see8 4etter ter3s and ondtons o e3"#o3ent trou/

+, a . C e e # a T 3 4 a # % # ? 2R 3 + 0 2


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onerted aton. -or reusn/ to oo"erate t te "rvate res"ondents se3e"ettoner as o4vous# e#d u" as an e@a3"#e to a## o te ote#s e3"#oees tatte ou#d on# ause trou4#e to 3ana/e3ent at /reat "ersona# nonvenene. I3"#tn te at o "ettoners ter3naton and te su4seHuent #n/ o ar/es a/anst eras te arnn/ tat te ou#d not on# 4e de"rved o ter 3eans o #ve#ood 4ut

a#so "oss4# ter "ersona# #4ert.Grantn/ tat 3ea#s and #od/n/ ere "rovded and ndeed onsttuted a#tes sua#tes ou#d not 4e deduted tout te e3"#oer o3"#n/ rst t ertan #e/a#reHure3ents. :tout satsn/ tese reHure3ents te e3"#oer s3"# annotdedut te va#ue ro3 te e3"#oees a/es. -rst "roo 3ust 4e son tat sua#tes are usto3ar# urnsed 4 te trade. Seond te "rovson o dedut4#ea#tes 3ust 4e vo#untar# ae"ted n rtn/ 4 te e3"#oee. -na## a#tes 3ust4e ar/ed at ar and reasona4#e va#ue. Tese reHure3ents ere not 3et n tenstant ase.

ore s/nant# te ood and #od/n/ or te e#etrt and ater onsu3ed 4 te

"ettoner ere not a#tes 4ut su""#e3ents. A 4enet or "rv#e/e /ranted to ane3"#oee or te onvenene o te e3"#oer s not a a#t. Te rteron n 3a8n/ adstnton 4eteen te to not so 3u #es n te 8nd (ood #od/n/) 4ut te "ur"ose.Consdern/ tat ote# or8ers are reHured to or8 derent sts and are e@"eted to4e ava#a4#e at varous odd ours ter read ava#a4#t s a neessar 3atter n teo"eratons o a s3a## ote# su as te "rvate res"ondents ote#.

+6 a . C e e # a T 3 4 a # % # ? 2R 3 + 0 2


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Joy $rot:ers ,n".< vs 5?*C //20 %27 SC&A 6%%

3a"ts!

:a/e 5rder $o. $CR0& "rovdn/ or a tentseven "eso a/e nrease or a##"rvate setor or8ers and e3"#oees n te $atona# Ca"ta# Re/on reevn/ oneundred tour "esos (P1,+.00) and 4e#o da# as a""roved $ove34er 29 199&.

5n -e4ruar 199+ "ettoner a""#ed or e@e3"ton ro3 sad a/e order on te/round tat t as a dstressed esta4#s3ent. Te RT:P dened "ettonersa""#aton or e@e3"ton ater o#dn/ tat te or"oraton au3u#ated "rotsa3ountn/ to P&'&'1.'0 or te "erod under reve. Pettoners 3oton orreonsderaton as #8ese dened 4 te :a/es and Produtvt oard on Januar ,199,. 5n a""ea# to te $atona# :a/es and Produtvt Co33sson "ettoner asa/an dened re#e.

ore s"ea## "ettoner ontends tat te nter3 "erod to 4e re8oned t s ro3Januar 1 199& to Dee34er 1, 199& and not 3ere# u" to Se"te34er &0 199& ase#d 4 res"ondent Co33sson. S/nant# te "erod u" to Dee34er &1 199& ##re#et #osses n "ettoner or"oratons 4oo8s 4ut not te overed nter3 "erod s

on# u" to Se"te34er &0 199&.

,ssue! :5$ "ettoner Cor"oraton a##s tn te e@e3"ton or dstressedesta4#s3ents.

4eld!Te "ettoner o3"an s not entt#ed to e@e3"ton o te a/e order sne t snot a dstressed esta4#s3ent.


48/199


"reedn/ te eetvt o te 5rder n te ase o "artners"s and sn/#e"ro"retors"s. Esta4#s3ents o"eratn/ or #ess tan to (2) ears 3a 4e /rantede@e3"ton en au3u#ated #osses or sad "erod ave 3"ared 4 at #east 2, te"adu" a"ta# or tota# nvested a"ta# as te ase 3a 4e.F

Seton ' "ara/ra" a o te Ru#es I3"#e3entn/ :a/e 5rder $o. $CR0& "rovdestat e@e3"ton ro3 o3"#ane t te a/e nrease 3a 4e /ranted to dstressedesta4#s3ents ose "adu" a"ta# as 4een 3"ared 4 at #east tentve "erent(2,) or re/sters a"ta# deen or ne/atve net ort.

Te Gude#nes e@"ress# reHure nter3 Huarter# nana# state3ents or te "erod33edate# "reedn/ Dee34er 16 199&. Te #ast to u## aountn/ "erods ereare 1991 and 1992 or ears "ettoner nurred net "rots o P,&607.00 andP601''.00 res"etve#.

*ruban>ers Asso"iation vs *rudential $an> ///0 7(% SC&A 2'

3a"ts!

Te RT:P Re/on = ssued :a/e 5rder $o. R 0,0& "rovded or a Cost o%vn/ A##oane (C5%A) to or8ers n te "rvate setor o ad rendered serve orat #east tree (&) 3onts 4eore ts eetvt and or te sa3e "erod tereater n teo##on/ ate/oresM P17.,0 n te tes o $a/a and %e/as"K P1,.,0 n te3un"a#tes o Ta4ao Dara/a P# and te t o Ir/aK and P10.00 or a## oter areasn te o# Re/on.

5n $ove34er 199& RT:P Re/on =II ssued :a/e 5rder $o. R =II0& dretedte nte/raton o te C5%A 3andated "ursuant to :a/e 5rder $o. R5 =II02A nto te4as "a o a## or8ers. It a#so esta4#sed an nrease n te 3n3u3 a/e rates ora## or8ers and e3"#oees n te "rvate setor as o##osM 4 Ten Pesos (P10.00) n tetes o Ce4u andaue and %a"u#a"uK -ve Pesos (P,.00) n te 3un"a#tes oCo3"oste#a %#oan Conso#aon Cordova Ta#sa n/#an##a $a/a and te tes oDavao To#edo Du3a/uete as Can#aon and Ta/4#aran. Te 4an8 /ranted a C5%A oP17.,0 to ts e3"#oees at ts $a/a ran te on# 4ran overed 4 :a/e 5rder $o.R ,0& and nte/rated te P1,0.00 "er 3ont C5%A nto te 4as "a o ts ran8and#e e3"#oees at ts Ce4u a4o#o and P. de# Rosaro 4ranes te 4ranes overed4 :a/e 5rder $o. R =II0&.

5n June 7 199+ Pru4an8ers Assoaton rote te "ettoner reHuestn/ tat te %a4orana/e3ent Co33ttee 4e 33edate# onvened to dsuss and reso#ve te a##e/eda/e dstorton reated n te sa#ar struture u"on te 3"#e3entaton o te sada/e orders. It de3anded n te %a4or ana/e3ent Co33ttee 3eetn/s tat te"ettoner e@tend te a""#aton o te a/e orders to ts e3"#oees outsde Re/ons =and =II #a3n/ tat te re/ona# 3"#e3entaton o te sad orders reated a a/edstorton n te a/e rates o "ettoners e3"#oees natonde. As te /revaneou#d not 4e sett#ed n te sad 3eetn/s te "artes a/reed to su43t te 3atter tovo#untar ar4traton.

+' a . C e e # a T 3 4 a # % # ? 2R 3 + 0 2


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,ssue! :5$ a a/e dstorton resu#ted ro3 res"ondents 3"#e3entaton o te :a/e5rders.

4eld! Te ourt ru#ed tat tere s no a/e dstorton sne te a/e order3"#e3entaton overs a## te 4ranes o te 4an8.

Te erar o "ostons as st## "reserved. Te #eve#s o derent "a #asses asnot e#3nated. Te statutor denton o a/e dstorton s ound n Art#e 12+ o te%a4or Code as a3ended 4 Re"u4# At $o. 6727 readsM tandards5Criteria forMinimum 6age i&ing . . .FAs used eren a a/e dstorton sa## 3ean a stuatonere an nrease n "resr4ed a/e resu#ts n te e#3naton or severe ontraton ontentona# Huanttatve derenes n a/e or sa#ar rates 4eteen and a3on/e3"#oee /rou"s n an esta4#s3ent as to eetve# o4#terate te dstntonse34oded n su a/e struture 4ased on s8##s #en/t o serve or oter #o/a#4ases o derentaton.F

:a/e dstorton nvo#ves our e#e3entsM (1) An e@stn/ erar o "ostons torres"ondn/ sa#ar ratesK (2) A s/nant an/e n te sa#ar rate o a #oer "a

#ass tout a ono3tant nrease n te sa#ar rate o a /er oneK (&)Tee#3naton o te dstnton 4eteen te to #eve#s and (+) Te e@stene o tedstorton n te sa3e re/on o te ountr.

A ds"art n a/es 4eteen e3"#oees o#dn/ s3#ar "ostons 4ut n derentre/ons does not onsttute a/e dstorton as onte3"#ated 4 #a. As stated t s teerar o "ostons and te ds"art o ter orres"ondn/ a/es and otere3o#u3ents tat are sou/t to 4e "reserved 4 te one"t o a/e dstorton.

+9 a . C e e # a T 3 4 a # % # ? 2R 3 + 0 2


50/199


Millares et al.< vs 5L&C 0 7(9 SC&A 9(

3a"ts!

Pettoners nu34ern/ one undred s@teen ou"ed te "ostons o Tena# Sta


51/199


"aa4#e 4 an e3"#oer to an e3"#oee under a rtten or unrtten ontrat oe3"#o3ent or or8 done or to 4e done or or serves rendered or to 4e renderedand n#udes te ar and reasona4#e va#ue as deter3ned 4 te Seretar o %a4or o4oard #od/n/ or oter a#tes usto3ar# urnsed 4 te e3"#oer to tee3"#oee.

:en an e3"#oer usto3ar# urnses s e3"#oee 4oard #od/n/ or oter a#teste ar and reasona4#e va#ue tereo as deter3ned 4 te Seretar o %a4or andE3"#o3ent s n#uded n Fa/e.F Custo3ar s ounded on #on/esta4#sed andonstant "rate onnotn/ re/u#art. Te ree"t o an a##oane on a 3ont# 4assdoes not "so ato arater*e t as re/u#ar and or3n/ "art o sa#ar 4eause tenature o te /rant s a ator ort onsdern/. Te ourt a/rees t te o4servatono te 5e o te So#tor Genera# tat te su4et a##oanes ere te3"orar# notre/u#ar# reeved 4 "ettoners. A#tou/ t s Hute eas to o3"reend F4oardF andF#od/n/F t s not so t Fa#tes.F Tus Se. , Ru#e =II oo8 III o te Ru#esI3"#e3entn/ te %a4or Code /ves 3eann/ to te ter3 as n#udn/ art#es orserves or te 4enet o te e3"#oee or s a3# 4ut e@#udn/ too#s o te trade orart#es or serve "r3ar# or te 4enet o te e3"#oer or neessar to te onduto te e3"#oers 4usness.

In deter3nn/ eter a "rv#e/e s a a#t te rteron s not so 3u ts 8nd 4utts "ur"ose. Revenue Audt e3o 5rder $o. 1'7 "ertnent# "rovdes &.2trans"ortaton re"resentaton or entertan3ent e@"enses sa## not onsttute ta@a4#eo3"ensaton M (a) It s or neessar trave##n/ and re"resentaton or entertan3ente@"enses "ad or nurred 4 te e3"#oee n te "ursut o te trade or 4usness o tee3"#oer and (4) Te e3"#oee s reHured to and does 3a8e anaountn/#Hudaton or su e@"ense n aordane t te s"e reHure3ents osu4stantaton or su ate/or or e@"ense.oard and #od/n/ a##oanes urnsed to

an e3"#oee not n e@ess o te #atters needs and /ven ree o ar/e onsttuteno3e to te #atter e@e"t su a##oanes or 4enets are urnsed to te e3"#oeeor te onvenene o te e3"#oer and as neessar ndent to "ro"er "eror3aneo s dutes n ase su 4enets or a##oanes do not onsttute ta@a4#eno3e.

Te Seretar o %a4or and E3"#o3ent under Se. 6 Ru#e =II oo8 III o te Ru#esI3"#e3entn/ te %a4or Code 3a ro3 t3e to t3e @ n a""ro"rate ssuanes teFar and reasona4#e va#ue o 4oard #od/n/ and oter a#tes usto3ar# urnsed 4an e3"#oer to s e3"#oees.F Pettoners a##oanes do not re"resent su ar andreasona4#e va#ue as deter3ned 4 te "ro"er autort s3"# 4eause te

Staana/ers a##oane and trans"ortaton a##oane ere a3ounts /ven 4res"ondent o3"an n #eu o atua# "rovsons or ousn/ and trans"ortaton needsereas te s#/ a##oane as /ven n onsderaton o 4en/ ass/ned to te ost#eenvron3ent ten "reva#n/ n s#/. Te nevta4#e on#uson s tat su4eta##oanes dd not or3 "art o "ettoners a/es.

,1 a . C e e # a T 3 4 a # % # ? 2R 3 + 0 2


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,nternational S":ool Allian"e of +du"ators vs Iuisumbing %(((0 777 SC&A 7

3a"ts!

Internatona# Soo# In. "ursuant to PD 7&2 s a do3est eduatona# nsttutonesta4#sed "r3ar# or de"endents o ore/n d"#o3at "ersonne# and oterte3"orar resdents. To ena4#e te Soo# to ontnue arrn/ out ts eduatona#"ro/ra3 and 3"rove ts standard o nstruton Seton 2() o te sa3e dereeautor*es te Soo# to e3"#o ts on tean/ and 3ana/e3ent "ersonne# se#eted4 t eter #oa## or a4road ro3 P#""ne or oter natona#tes su "ersonne# 4en/e@e3"t ro3 oterse a""#a4#e #as and re/u#atons attendn/ ter e3"#o3ente@e"t #as tat ave 4een or ## 4e enated or te "roteton o e3"#oees.

Te Soo# res 4ot ore/n and #oa# teaers as 3e34ers o ts au#t #assn/te sa3e nto toM (1) ore/nres and (2) #oa#res. Te Soo# e3"#os our tests todeter3ne eter a au#t 3e34er sou#d 4e #assed as a ore/nre or a #oa#

,2 a . C e e # a T 3 4 a # % # ? 2R 3 + 0 2


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reM (a) :at s ones do3#e (4) :ere s ones o3e eono3 () To ountr does one oe eono3 a##e/ane (d) :as te ndvdua# red a4roads"ea## to or8 n te Soo# and as te Soo# res"ons4#e or 4rn/n/ tatndvdua# to te P#""nes Sou#d te anser to an o tese Hueres "ont to teP#""nes te au#t 3e34er s #assed as a #oa# reK oterse e or se s

dee3ed a ore/nre.Te Soo# /rants ore/nres ertan 4enets not aorded #oa# res. Tese n#udeousn/ trans"ortaton s""n/ osts ta@es and o3e #eave trave# a##oane.-ore/nres are a#so "ad a sa#ar rate tentve "erent (2,) 3ore tan #oa#res. Te Soo# ustes te derene on to Fs/nant eono3 dsadvanta/esFore/nres ave to endure na3e#M (a) te Fds#oaton atorF and (4) #3ted tenure.

Te o3"ensaton se3e s s3"# te Soo#s ada"tve 3easure to re3ano3"ettve on an nternatona# #eve# n ter3s o attratn/ o3"etent "roessona#s nte e#d o nternatona# eduaton.

,ssue! :

100006015-labor-case-digest.pdf

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