Abella Vs PLDT

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Labor Law I | Atty. Balino (AY.

2023-2024)
Arellano University School of Law

G.R. No. 159469               June 8, 2005 Forthwith, after filing the complaint, the security guards formed
the PLDT Company Security Personnel Union with petitioner Zaldy Abella
ZALDY G. ABELLA and the Members of the PLDT SECURITY as union president. A month later, PLDT allegedly ordered PSI to terminate
PERSONNEL union LISTED IN ANNEX "D" OF THIS about 25 members of said union who participated in a protest picket in front
PETITION, Petitioners, of the PLDT Office at the Ramon Cojuangco Building in Makati City.
vs.
PHILIPPINE LONG DISTANCE TELEPHONE COMPANY (PLDT The Labor Arbiter dismissed the complaint for lack of merit. On appeal, the
CO.) and PEOPLE'S SECURITY INC. (PSI), Respondents. NLRC affirmed in toto the Labor Arbiter’s decision. The Court of Appeals,
in turn, affirmed the NLRC’s disquisition.
Part II: Employment Relationship; Topic: Elements of the Relationship
Issue: Whether or not an employer-employee relationship exists between
Doctrine: We considered the following factors in considering the petitioners and respondent PLDT.
existence of an employer-employee relationship: (1) the selection and
engagement of the employee; (2) the payment of wages; (3) the power to Ruling: No. Philippine Airlines, Inc. v. National Labor Relations
dismiss; and (4) the power to control the employee’s conduct. Commission provides the legal yardstick in addressing this issue. We
considered the following factors in considering the existence of an
employer-employee relationship: (1) the selection and engagement of the
employee; (2) the payment of wages; (3) the power to dismiss; and (4) the
Facts: Respondent PSI entered into an agreement with the PLDT to provide
power to control the employee’s conduct. On the first factor, the Labor
the latter with qualified uniformed and properly armed security guards for
Arbiter, the NLRC and the Court of Appeals rendered a consistent finding
the purpose of guarding and protecting PLDT’s installations and properties
that it was the PSI, the security provider of the PLDT, which selected,
from theft, pilferage, intentional damage, trespass or other unlawful acts.
engaged or hired and discharged the security guards. The referral of PSI to
Under the agreement, it was expressly provided that there shall be no
PLDT is nothing but for possible assignment in a designated client which
employer-employee relationship between the PLDT and the security guards,
has the inherent prerogative to accept and reject the assignee for justifiable
which may be supplied to it by PSI, and that the latter shall have the entire
grounds or even arbitrarily.
charge, control and supervision over the work and services of the supplied
security guards. It was likewise stipulated therein that PSI shall also have
the exclusive authority to select, engage, and discharge its security guards, On the second factor, it is PSI that determined and paid the
with full control over their wages, salaries or compensation. petitioners’ wages, salaries, and compensation. As elucidated by the Labor
Arbiter, petitioners’ witness testified that his wages were collected and
withdrawn at the office of PSI and PLDT pays PSI for the security services
On 05 June 1995, sixty-five security guards supplied by
on a lump-sum basis and that the wages of complainants are only a portion
respondent PSI filed a Complaint for regularization against the PLDT with
of the total sum. The signature of the PLDT supervisor in the Daily Time
the Labor Arbiter. The Complaint alleged that petitioner security guards
Records does not ipso facto make PLDT the employer of complainants.
have been employed by from 1982 and that all of them served PLDT
directly for more than 1 year. It was further alleged that PSI or other
agencies supply security to PLDT, which entity controls and supervises the Anent the third and fourth factors, petitioners capitalize on the
complainants’ work through its Security Department. delinquency reports prepared by PLDT personnel against some of the
security guards as well as certificates of participation in trainings. The
Labor Arbiter found that the delinquency reports were nothing but
reminders of the infractions committed by the petitioners while on duty

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Labor Law I | Atty. Balino (AY. 2023-2024)
Arellano University School of Law

which serve as basis for PLDT to recommend the termination of the


concerned security guard from PLDT. As already adverted to earlier,
termination of services from PLDT did not ipso facto mean dismissal from
PSI inasmuch as some of those pulled out from PLDT were merely detailed
at the other clients of PSI as in the case of Jonathan Daguno, who was
merely transferred to PCIBank Makati.

Furthermore, petitioners’ logic that the certificates of appreciation


and/or commendations for good performance issued by PLDT to select
security guards are proof that the latter are under the control and
supervision of PLDT is indeed non sequitur. As the Labor Arbiter has
found, similar certificates are also issued as a matter of practice to non-
PLDT personnel like members of the Philippine National Police (PNP) and
military officers who have rendered exemplary support and assistance to
PLDT.

WHEREFORE, petitioners’ motion for reconsideration of our Resolution


dated 16 March 2005 is hereby DENIED with Finality no compelling
reason having been adduced by petitioners to warrant the reversal thereof.
Accordingly, the Decision dated 31 January 2003 and the

Resolution dated 06 August 2003 of the Court of Appeals are


hereby AFFIRMED. Costs against petitioners.

SO ORDERED.

Separate Opinion/s:
Name, concurring/dissenting:

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