G.R. No. 267217 (Formerly UDK No. 17695) - ALVIN G. CARPIO, VS. GREEN ERA BIOTECH CORP./MR. JOHNSON LI* [OWNER], GREAT VALUE MANAGEMENT AND SERVICES CORPORATION/MS. NINAY P. RILE [PRESIDENT].

Ruling

WHEREFORE , premises considered, judgment is hereby rendered dismissing the complaint for illegal dismissal for lack of merit. However, respondent Great Value Mgt. Services Corporation is ordered to indemnify complainant Alvin G. Carpio in the sum of [PHP] 30,000.00 as nominal damages for violating his right to procedural due process. Additionally, complainant is hereby entitled to 13 th month pay and Service Incentive Leave Pay in the aggregate amount of [PHP] 4,970.61 . All other claims are dismissed for lack of merit. SO ORDERED . [23] (Emphasis in the original) The Labor Arbiter, citing an earlier regularization case filed by Carpio and other individuals, ruled that it is already settled that Great Value is an "independent contractor." Thus, the Labor Arbiter determined that the only issue to be resolved is the legality of Carpio's dismissal. [24] In this regard, the Labor Arbiter ruled that Carpio failed to prove that he was dismissed from employment, and that he abandoned his work due to his prolonged absences without the prior consent or knowledge of his employer. [25] Nevertheless, the Labor Arbiter found that there is no proof that Carpio received the First Notice to Explain from Green Era Biotech and Great Value. Thus, Green Era Biotech and Great Value failed to comply with the procedural due process requirement of a written notice informing Carpio of the grounds for his termination and giving him reasonable opportunity to be heard. [26] Aggrieved by the Decision of the Labor Arbiter, Carpio appealed to the NLRC. The Ruling of the NLRC In a Decision, dated December 10, 2019, the NLRC modified the Decision of the Labor Arbiter and ruled that Green Era Biotech and Great Value are engaged in labor-only contracting: WHEREFORE , premises considered, the Decision of Labor Arbiter Jennifer R. Santos[,] dated June 27, 2019[,] is hereby MODIFIED . Respondents Green Era Bio-Tech Corporation and Great Value Managements Services Corporation are declared to be engaged in labor-only contracting. As such, both respondents are solidarily liable to pay complainant nominal damages in the amount of [PHP] 30,000.00, and his 13 th month pay and service incentive leave pay in the aggregate amount of [PHP] 4,970.61. SO ORDERED . [27] (Emphasis in the original) According to the NLRC, the following circumstances show that Great Value is engaged in prohibited labor-only contracting: (1) Great Value failed to prove that it has other clients other than Green Era Biotech; (2) Great Value failed to show that it has tools and equipment which were actually utilized by Carpio in performing his job at Green Era Biotech; (3) Copies of the service agreements were never presented; and (4) the Certificate of Approval of Increase of Capital Stock and Treasurer's Affidavit, which stated that Great Value has paid up capital of more than the required PHP 3 million under Department Order 18-A, may not be used as proof of substantial capital since both documents were issued in 20