Rural Bank of Coron vs Cortes (Labor Law)

Rural Bank of Coron (Palawan) Inc. vs Cortes 

GR No. 164888

December 6, 2006

FACTS:

Annalisa Cortes was hired as the Corporate Secretary and Personnel Officer of the Rural Bank of Coron, and a Personnel Officer of both Empire Cold Storage and Development Corporation, and Citizens Development Inc. Upon inspection of the books of the said corporations where Annalisa was hired as a personnel officer, it was discovered that the latter was involved in several anomalies, prompting them to terminate her services from the corporations. Annalisa stated her willingness to abide the decision regarding her termination but stressed her right to separation pay. When her demand went unheeded, she filed a complaint for illegal dismissal and non-payment of salaries and other benefits. The petitioners moved for the dismissal of the complaint on the ground that it was an intracorporate controversy involving the removal of a corporate officer. The LA found that Annalisa was not a corporate officer, and thus the case falls within the ambit of the jurisdiction of the LA. 

ISSUE: 

Does the Labor Arbiter has jurisdiction over Cortes' complaint?

RULING: 

Yes. While Cortes was the Corporate Secretary of the Rural Bank of Coron, she was also its Financial Assistant and the Personnel Officer of the two other petitioner corporations. Jurisprudence instructs that a corporation can engage its corporate officers to perform services under a circumstance which would make them employees. The Labor Arbiter has thus jurisdiction over Cortes' complaint.