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SOUTH EAST INT’L RATTAN INC. v. JJ COMING G.R. No. 186621/ MAR 12, 2014 / VILLARAMA, JR., J./ LABOR-Work Relationship Factors or Tests/ AJLCARDEÑO NATURE Petition for Certiorari PETITIONERS South East Int’l Rattan Inc. and/or Estanislao Agbay RESPONDENTS Jesus J. Coming SUMMARY . JJ Coming filed a complaint for illegal dismissal, underpayment of wages, non-payment of holiday pay, 13th month pay and service incentive leave pay, with prayer for reinstatement, back wages, damages and attorney’s fees. Rattan Inc. denied having hired JJ, showing that he failed to present a single payslip, voucher or a copy of a company payroll showing that he rendered service, nor was he in the list of employees reported to the SSS. DOCTRINE. In resolving the issue of whether such relationship exists in a given case, substantial evidence – that amount of relevant evidence which a reasonable mind might accept as adequate to justify a conclusion – is sufficient. Although no particular form of evidence is required to prove the existence of the relationship, and any competent and relevant evidence to prove the relationship may be admitted, a finding that the relationship exists must nonetheless rest on substantial evidence. FACTS. On November 3, 2003, respondent Jesus J. Coming filed a complaint for illegal dismissal, underpayment of wages, non-payment of holiday pay, 13th month pay and service incentive leave pay, with prayer for reinstatement, back wages, damages and attorney’s fees. JJ alleged that he was hired by petitioners as Sizing Machine Operator on March 17, 1984. His work schedule is from 8:00 a.m. to 5:00 p.m. Initially, his compensation was on “pakiao” basis but sometime in June 1984, it was fixed at P150.00 per day which was paid weekly. In 1990, without any apparent reason, his employment was interrupted as he was told by petitioners to resume work in two months’ time. Being an uneducated person, JJ was persuaded by the management as well as his brother not to complain, as otherwise petitioners might decide not to call him back for work. Fearing such consequence, JJ accepted his fate. Nonetheless, after two months he reported back to work upon order of management. Despite being an employee for many years with his work performance never questioned by petitioners, respondent was dismissed on January 1, 2002 without lawful cause. He was told that he will be terminated because the company is not doing well financially and that he would be called back to work only if they need his services again. JJ waited for almost a year but petitioners did not call him back to work. On their part, Rattan denied having hired respondent. That is, Rattan denied that JJ was their employee: JJ alleged that he worked continuously from March 17, 1984 up to January 21, 2002. Records reveal however that Rattan Inc. was incorporated only last July 18, 1986. Moreover, when they started to actually operate in 1987, the company was engaged purely on “buying and exporting rattan furniture” hence no manufacturing employees were hired. Furthermore, from the last quarter of 1989 up to August of 1992, the company suspended operations due to economic reverses as per Certification issued by the SEC. JJ also failed to present a single payslip, voucher or a copy of a company payroll showing that he rendered service during the period indicated therein. Also, JJ’s name does not appear in the list of employees reported to the SSS. There was also an Affidavit of Vicente Coming, JJ’s full brother, attesting that JJ had never been an employee of Rattan. The only connection was that their employer Faustino Apondar supplies finished rattan products to Rattan Inc. Labor Arbiter rendered decision in favor of JJ. NLRC reversed the Decision of the Labor Arbiter. CA overturned NLRC decision, in favor of JJ. Rattan Inc. now raised the issue up to the SC. ISSUES & RATIO.

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SOUTH EAST INTL RATTAN INC. v. JJ COMINGG.R. No. 186621/ MAR 12, 2014 / VILLARAMA, JR., J./ LABOR-Work Relatio!"i#$a%tor! or &e!t!/ AJL'AR()*ONA&+R) ,etitio -or 'ertiorari,)&I&ION)R.South East Intl Rattan Inc. and/or Estanislao AgbayR).,ON()N&. Jesus J. ComingSUMMARY. JJ 'o/i0 1le2 a %o/#lait -or ille0al 2i!/i!!al, 32er#a4/eto- 5a0e!,o-#a4/eto-"oli2a4 #a4, 16t"/ot"#a4a2 !er7i%ei%eti7elea7e#a4, 5it"#ra4er -or rei!tate/et, 8a%k5a0e!,2a/a0e! a2 attore49! -ee!. Ratta I%. 2eie2 "a7i0 "ire2 JJ, !"o5i0t"at "e -aile2 to #re!et a !i0le #a4!li#, 7o3%"er or a %o#4 o- a %o/#a4#a4roll !"o5i0 t"at "e re2ere2 !er7i%e, or 5a! "e i t"e li!t o-e/#lo4ee! re#orte2 to t"e ....DOCTRINE. I re!ol7i0 t"e i!!3e o- 5"et"er !3%" relatio!"i# e:i!t! i a0i7e %a!e, !38!tatial e7i2e%e ; that amount of relevant evidence whicha reasonable mind might accet as ade!uate to "ustify a conclusion; i!!3i0Ma%"ieO#eratoroMar%"1?, 1@84. Ai!5ork!%"e23lei!-ro/8B00a./. to CB00 #./. Iitiall4, "i! %o/#e!atio 5a! o D#akiaoE 8a!i! 83t !o/eti/e iJ3e1@84, it 5a! 1:e2at ,1C0.00#er 2a45"i%"5a! #ai25eekl4. I1@@0, 5it"o3t a4 a##aret rea!o, "i! e/#lo4/et 5a!iterr3#te2 a! "e 5a! tol2 84 #etitioer! to re!3/e 5ork i t5o/ot"!9 ti/e. Bei0 a 3e23%ate2 #er!o, JJ 5a! #er!3a2e2 84 t"e/aa0e/et a! 5ell a! "i! 8rot"er ot to %o/#lai, a! ot"er5i!e#etitioer! /i0"t 2e%i2e ot to %all "i/ 8a%k -or 5ork. $eari0!3%"%o!e=3e%e, JJ a%%e#te2"i!-ate. Noet"ele!!,a-ter t5o /ot"! "e re#orte2 8a%k to 5ork 3#o or2er o-/aa0e/et. (e!#ite 8ei0 a e/#lo4ee -or /a4 4ear! 5it" "i! 5ork#er-or/a%ee7er =3e!tioe284#etitioer!, re!#o2et 5a!2i!/i!!e2 o Ja3ar4 1, 2002 5it"o3t la5-3l %a3!e. Ae 5a! tol2 t"at "e 5ill 8e ter/iate2 8e%a3!e t"e %o/#a4 i!ot2oi05ell 1a%iall4a2t"at"e5o3l28e%alle28a%kto5ork ol4 i- t"e4 ee2 "i! !er7i%e! a0ai.JJ 5aite2 -or al/o!t a4ear 83t #etitioer! 2i2 ot %all "i/ 8a%k to 5ork. Ot"eir#art, Ratta2eie2"a7i0"ire2re!#o2et. &"ati!,Ratta 2eie2 t"at JJ 5a! t"eir e/#lo4eeB JJ alle0e2 t"at "e 5orke2 %oti3o3!l4 -ro/ Mar%"1?, 1@84 3# to Ja3ar4 21, 2002. Re%or2! re7eal"o5e7er t"at Ratta I%. 5a! i%or#orate2 ol4 la!tJ3l4 18, 1@86. Moreo7er, 5"e t"e4 !tarte2 to a%t3all4 o#erate i1@8?, t"e %o/#a4 5a! e0a0e2 #3rel4 o D834i0a2 e:#orti0 ratta -3rit3reE "e%e o/a3-a%t3ri0 e/#lo4ee! 5ere "ire2. $3rt"er/ore, -ro/t"ela!t=3artero-1@8@3#toA303!t o- 1@@2, t"e %o/#a4 !3!#e2e2o#eratio! 23e to e%oo/i% re7er!e! a! #er'erti1%atio i!!3e2 84 t"e .)'. JJ al!o -aile2 to #re!et a !i0le #a4!li#, 7o3%"er ora %o#4 o- a %o/#a4 #a4roll !"o5i0 t"at "ere2ere2 !er7i%e 23ri0 t"e #erio2 i2i%ate2t"erei. Al!o, JJ9! a/e 2oe! ot a##ear i t"e li!t o-e/#lo4ee! re#orte2 to t"e .... &"ere 5a! al!o a Ae2 %a3!e, ot"er5i!e t"e 2i!/i!!al 8e%o/e! ille0al.E(rt. )*+, $abor CodeSecurity of #enure. K I %a!e! o- re03lar e/#lo4/et, t"e e/#lo4er !"allot ter/iate t"e !er7i%e! o- a e/#lo4ee e:%e#t -or a F3!t %a3!e or 5"ea3t"ori>e2 84 t"i! &itle. A e/#lo4ee 5"o i! 3F3!tl4 2i!/i!!e2 -ro/ 5ork!"all 8e etitle2 to rei!tate/et 5it"o3t lo!! o- !eiorit4 ri0"t! a2 ot"er#ri7ile0e!a2to"i!-3ll 8a%k5a0e!, i%l3!i7eo- allo5a%e!, a2to"i!ot"er 8ee1t!or t"eir/oetar4e=3i7alet%o/#3te2-ro/ t"e ti/e"i!%o/#e!atio 5a! 5it""el2 -ro/"i/3# to t"e ti/e o- "i! a%t3alrei!tate/et.


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