Perpetual Help Credit Cooperative, Inc. vs Faburada, GR No. 121948, October 8, 2001

 

Facts:

Private respondents Faburada et. al. filed a complaint against   PHCCI for illegal dismissal, premium pay, separation pay, wage differential, moral damages and attorney’s fees PHCCI filed a motion to dismiss on the ground that noemployer-employee relationship exists since privaterespondents are all members and co-owners of thecooperative. Also, private respondents have not exhausted the remedies provided in the coop by laws. PHCCI also filed a supplemental motion to dismiss alleging that RA 6939, the Cooperative Development Authority Law, requires conciliation or mediation within the cooperative before a resort to judicial proceeding. The Labor Arbiter ruled in favor of the private respondents, holding that the case is impressed with employer-employee relationship and that the laws on cooperatives is subservient to the Labor Code. The NLRC affirmed.

 

Issue: 

Whether or not there is an employer-employee relationship between the parties and WON private respondents were regular employees

 

Held:

Yes. Elements in determining existence of employer-employee relationship:

1) Selection and engagement of the worker or the power to hire

2) The power to dismiss

3) Payment of wages by whatever means

4) Power to control the worker’s conduct. 

The   above elements are present here. PHCCI through its Manager Mr. Edilberto Lantaca, Jr. hired respondents as Computer   programmer and clerks. They worked regular working hours, were assigned specific duties, were paid regular wages, and made to accomplish regular time records, and worked under the supervision of the manager.