G.R. No. 148848 -

Ruling

WHEREFORE , the assailed resolutions of the National Labor Relations Commission dated March 8, 1999 and July 22, 1999 are hereby REVERSED and SET ASIDE , and the decision of Labor Arbiter Newton R. Sancho dated March 10, 1998 is REINSTATED . No costs." [4] The assailed Resolution denied petitioners' Motion for Reconsideration. The Facts The facts of the case are narrated by the CA in this manner: "Private respondent, Insular Builders, Inc., is a family-owned corporation managed and operated principally by Antonio Murillo, father, and his son, Rodolfo Murillo. It is engaged in the construction business. Petitioners, on the other hand, were workers who have rendered services in various corporations of private respondents, namely Mindanao Integrated Builders, Inc., Sta. Clara Plywood, Inc., Insular Builders, Inc. and Queen City Builders, Inc. "Early 1993, at the height of the feud between private respondents Antonio Murillo and Rodolfo Murillo, the former discharged the latter from his position as manager of Insular Builders, Inc. and assumed control of the company. Petitioners found themselves in the middle of the crossfire and were told to temporarily stop working. Later, or on July 26, 1993, private respondent Antonio Murillo dismissed petitioners and reported the matter to the Department of Labor and Employment (DOLE). Petitioners were however made to continue their work, rendering the same services, in the same place, locality and at the same office but under a different company, the Queen City Builders, Inc., managed and controlled by private respondent Rodolfo Murillo. "On August 3, 1993, petitioners filed with the NLRC, Regional Arbitration Branch No. X, Davao City, a complaint for illegal dismissal, non-payment of wages, 13 th month pay, and retirement pay as regards petitioner Abdon Dayson. Petitioners averred that they were terminated from employment on July 26, 1993 without prior notice and also in absence of any valid cause. They alleged that their termination was an off-shoot of the supposed personal rift and disagreements between private respondents Antonio Murillo and Rodolfo Murillo. "On the other hand, private respondents Insular Builders, Inc. and Antonio Murillo deny having employed petitioners Baltazar Quilat, Abdon Dayson and Eleuterio Ensalada as they were personal employees of and rendering services to private respondent Rodolfo Murillo." [5] On December 19, 1994, Labor Arbiter Newton R. Sancho rendered a Decision finding private respondents guilty of illegal dismissal. On June 21, 1996, the NLRC (Fifth Division) of Cagayan de Oro City denied their appeal and affirmed the labor arbiter's Decision in toto . On reconsideration, however, the NLRC set aside in a Resolution dated July 31, 1996, the Decision it had issued on June 21, 1996. It then remanded the case to the labor arbiter for further proceedings. Subsequently, Labor Arbiter Sancho, in his March 10, 1998 Decision, ruled in this wise: "WHEREFORE, judgment is hereby rend