CASE DIGEST: Geraldo v. The Bill Sender Corporation

 


REYNALDO S. GERALDO, petitioner, vs.
THE BILL SENDER CORPORATION/MS. LOURDES NER CANDO, respondents
G. R. No. 222219               October 3, 2018

 

FACTS:

Petitioner Reynaldo S. Geraldo has been employed by The Bill Sender Corporation as a delivery/messenger man to deliver the bills of its client since June 20, 1987. He was paid on a “per piece basis,” the amount of his salary depending on the number of bills he delivered. On August 2, 2011, the company’s operations manager suddenly informed him that his employment was being terminated because he failed to deliver certain bills. He explained that he was not the messenger assigned to deliver the said bills but the manager refused to reconsider and proceeded with his termination. Thus, he claims that his dismissal was illegal for being done without the required due process under the law.

The company countered that Geraldo was only a piece-rate worker not a full-time employee and that he reported to work only as he pleased and that it was a usual practice for messengers to transfer from one company to another to similarly deliver bills and mail matters. As such, he would only be given bills to deliver if he reports to work, otherwise, the bills would be assigned to other messengers. Moreover, contrary to Geraldo’s claims, the company asserts that he was not illegally dismissed for he was the one who abandoned his job when he no longer reported for work. Thus, the burden was on him to substantiate his claims for illegal dismissal.

ISSUE:

Whether or not a piece-rate employee is not an employee of the respondent company and is not entitled to security of tenure.

RULING:

Art. 280 of the Labor Code describes a regular employee as one who is either (1) engaged to perform activities which are necessary or desirable in the usual business or trade of the employer; and (2) those casual employees who have rendered at least one year of service, whether continuous or broken, with respect to the activity in which he is employed. The test to determine whether employment is regular or not is the reasonable connection between the particular activity performed by the employee in relation to the usual business or trade of the employer. If the employee has been performing the job for at least one year, even if the performance is not continuous or merely intermittent, the law deems the repeated and continuing need for its performance as sufficient evidence of the necessity, if not indispensability, of that activity to the business.

In this case, the company cannot deny the fact that Geraldo was performing activities necessary or desirable in its usual business or trade for without his service, for without his services, its fundamental purpose of delivering bills and other mail matters in behalf of its customers cannot be accomplished. On this basis alone, the law deems Geraldo as a regular employee of the company.

But even considering that he is not a full-time employee as the company insists, the law still deems his employment as regular due to the fact that he had been performing the activities for more than one year. In fact, Geraldo has been working as a messenger man for the company for more than 14 years. While length of time may not be the controlling test to determine if an employee is indeed a regular employee, it is vital in establishing if he was hired to perform tasks which are necessary and indispensable to the usual business or trade of the employer.

The payment on a piece-rate basis does not negate regular employment. Payment by the piece is just a method of compensation and does not define the essence of the relations. Thus, the fact that Geraldo is paid on the basis of his productivity does not render his employment as contractual.

Notwithstanding any agreements to the contrary, what determines whether a certain employment is regular is not the will and word of the employer, much less the procedure of hiring the employee or the manner of paying his salary, but the nature of the activities performed in relation to the particular business or trades considering all circumstances, and in some cases the length of time of its performance and its continued existence.


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