G.R. No. 179256 - FIRST PHILIPPINE INDUSTRIAL CORPORATION, VS. RAQUEL M. CALIMBAS AND LUISA P. MAHILOM.D E C I S I O N - Supreme Court E-Library

Ruling

Accordingly, on July 9, 2001, Priscilla de Leon, Treasurer of DGMS, formally notified both the petitioners that their respective work assignments in FPIC were no longer available to them effective July 31, 2001, citing the termination of the Project Contract with FPIC as the main reason thereof. On August 3, 2001, petitioners Calimbas and Mahilom signed quitclaims, releasing and discharging DGMS from whatever claims that they might have against it by virtue of their past employment, upon receipt of the sums of P17,343.10 and P23,459.14, respectively. Despite having executed the said quitclaims, the petitioners still filed on August 16, 2001 a Complaint against FPIC for illegal dismissal and for the collection of monetary benefits, damages and attorneys fees, alleging that they were regular employees of FPIC after serving almost five (5) years, and that they were dismissed without cause. The Complaint was docketed as NLRC NCR Case No. 00-08-04331-01 and was raffled to Labor Arbiter Joel Lustria. After conducting three (3) mandatory conferences, the parties failed to reach any amicable settlement; thus, they were required to submit their respective position papers, together with their documentary evidence. In their Position Paper, the petitioners posited that they were regular employees of FPIC for having served the same for almost five (5) years, rendering services which were usually necessary or desirable in the usual business or trade of FPIC. They claimed that they were illegally dismissed when they were relieved from their work assignments on July 31, 2001 without valid and serious reasons therefor. The petitioners maintained and (sic) that their real employer was FPIC, and that DGMS was merely its agent for having been engaged in prohibited labor-only contracting. The petitioners averred that DGMS did not have substantial capital or investment by way of tools, equipment, machines, work places and other materials. They claimed that they only used office equipment and materials owned by FPIC at its offices in Ortigas Center, Pasig City. DGMS never exercised control over them in all matters related to the performance of their work. In fact, DGMS never maintained any representative at the FPICs office to supervise or oversee their work. They insisted that their direct superiors, who were managerial employees of FPIC, had control over them since the latter made sure that they always complied with the policies of FPIC. Upon the other hand, FPIC insisted in its Position Paper/ Motion to Dismiss that the Complaint should be dismissed considering that the Labor Arbiter had no jurisdiction over the case because there was absolutely no employer-employee relationship between it and the petitioners. FPIC claimed that the petitioners had never been its employees. FPIC insisted that their true employer was DGMS considering that the petitioners were hired by DGMS and assigned them to the Company to render services based on their Contract; that they receive