G.R. No. 124643 - NAZARIO M. PONCE, FERMIN ZACATE, JESUS B. RICO, ANICETO B. ESTO AND JOHN GERMAN B. LIMBAGO, VS. NATIONAL LABOR RELATIONS COMMISSION, P & R PARTS MACHINERIES CORPORATION, FERNANDO RAMILLANO AND/OR BRGT AGENCY, ALSO KNOWN AS RIZ-MAN COMPANY, INC.. D E C I S I O N - Supreme Court E-Li

Ruling

WHEREFORE, premises considered, the following orders are hereby entered: "1. Declaring the existence of employer-employee relationship between herein respondent P & R Parts & Machineries Corporation and complainants Nazario Ponce, Fermin Zacate, Jesus Rico, Aniceto Esto and John Herman Limbago; "2. Declaring the termination of herein complainants illegal; "3. Ordering respondent P & R Parts & Machineries Corporation to reinstate complainants Nazario Ponce, Fermin Zacate, Jesus Rico, Aniceto Esto and John Herman Limbago to their former positions with full status and rights of a (sic) regular employees; "4. Ordering respondent P & R Parts & Machineries Corporation and impleaded party respondent BRGT Agency to pay, jointly and severally, unto the complainants the amount appearing below as and for payment of their backwages and wage differentials: 1. Nazario Ponce P35,101.00 2. Fermin Zacate 35,368.00 3. Jesus Rico 40,280.00 4. Aniceto Esto 34,151.00 5. John Herman (Limbago) 32,226.00 Total 177,126.00 and the amount of P17,712.60 as and for attorney's fees. "5. All other claims are hereby dismissed for lack of merit." [2] Respondent P & R, in its appeal to the NLRC, assailed the findings of the Labor Arbiter particularly on the existence of an employer-employee relationship between P & R and petitioners. P & R insisted that petitioners were employees of BRGT Agency, an independent contractor, pursuant to the latters "Job contract" with P & R. This contract provided: "JOB CONTRACT "KNOW ALL MEN BY THESE PRESENTS: "This contract made and entered into by and between: "P & R PARTS & MACHINERIES, INC., a Domestic Company duly authorized and existing under and pursuant to Philippine Laws with business address at A. Bonifacio Ave., Cainta, Rizal, represented in this act by Ruben A. Ramillano, Personnel Manager and hereinafter referred to as FIRST PARTY: "RIZ-MAN COMPANY, INC., a Domestic Company, organized and existing under Philippine Laws, with business address at 2nd Flr. Teruel Bldg., A Bonifacio Ave., Cainta, Rizal represented in this act by MR. REYNALDO MATIAS President and hereinafter referred to as SECOND PARTY: "W I T N E S S E T H "That the SECOND PARTY hereby proposes to the FIRST PARTY [to] perform, execute and accomplish[ed] (sic) the hereunder described job contract with the SECOND PARTY Responsible for providing all Manpower required and such accessory equipment necessary and the FIRST PARTY, hereby accepts such proposal subject to the following terms and condition[s] to wit: "1. This job contract shall be for a period of Five (5) Months from August 16, 1993 to January 16, 1994 which may be renewed and/or extend[ed] at the option of the FIRST PARTY with notice to be served on the SECOND PARTY unless it is sooner terminated by their party [in writing] at least thirty (30) days prior to the extended terminat[ion] date; "2. The SECOND PARTY and the latter's (sic) shall undertake to perform the job schedule mentioned in Annex 'A' hereto at