G.R. No. 119500 - PAGUIO TRANSPORT CORPORATION, VS. NATIONAL LABOR RELATIONS COMMISSION AND WILFREDO MELCHOR.

Ruling

WHEREFORE, premises considered, the appeal insofar as it seeks reversal of the finding on illegal dismissal is denied for lack of merit. The decision declaring that complainant was illegally dismissed is affirmed. The decision is however partially modified insofar as liability therefor is concerned. The liability shall inure against PAGUIO TRANSPORT CORPORATION, subject to the provision of the Corporation Code and the Rules of Court on matters taken herein. The backwages as computed in the assailed decision is set aside, and a new one is hereby provided in the amount of P86,400.00 as computed in the immediately preceding paragraph. Petitioner also impugns the February 21, 1995 NLRC Resolution [2] denying the motion for reconsideration. The June 28, 1994 Decision of the labor arbiter, [3] which the NLRC modified as to the amount of back wages, disposed as follows: WHEREFORE, the respondents are hereby ordered to reinstate the complainant with full backwages from the time his salaries were withheld from him until his actual reinstatement. The respondents are further ordered to pay him his 13th month pay in the amount of P5,600.00. Complainants backwages up to the date of this Decision as computed by LEILANI E. CALALANG of the Commissions NLRC NCR Branch is: 11/28/93 - 6/28/94 = 7 mos P800.00 x 3 days x 4 weeks = P9,600.00 P9,600.00 x 7 mos. = P67,200.00 The aspect of reinstatement either in the job or payroll at the option of the employers being immediately executory pursuant to Article 223 of the Labor Code, the respondents are hereby directed to so reinstate him when he reports for work by virtue of this Decision. Other claims are hereby dismissed for lack of evidence. The Facts The facts, as summarized in the challenged Decision, are as follows: Complainant Wilfredo Melchor was hired by respondent company as a taxi driver on 25 December 1992 under the [b]oundary [s]ystem. He [was] engaged to drive the taxi unit assigned to him on a 24-hour schedule per trip every two (2) days, for which he used to earn an average income from P500 to P700 per trip, exclusive of the P650.00 boundary and other deductions imposed on him. On 24 [sic] November 1993, complainant allegedly met a vehicular accident along Quirino Avenue near the PNR Station and Plaza Dilao when he accidentally bumped a car which stopped at the intersection even when the traffic light was green and go. After he submitted the traffic accident report to the office of respondents, he was allegedly advised to stop working and have a rest. After several days[,] he allegedly reported for work only to be told that his service was no longer needed. Hence, the complaint for illegal dismissal, among others. Respondent[s] for their part maintained that complainant was not illegally dismissed, there being in the first place no employer-employee relationship between them. In amplification, it was argued that the element of control which [was] a paramount test to determine the existence of