CASE DIGEST: Martinez v. NLRC

 


NELLY ACTA MARTINEZ, petitioner, vs. NATIONAL LABOR RELATIONS COMMISSION, DOMINADOR CORRO, PASTOR CORRO, CELESTINO CORRO, LUIS CORRO, EREBERTO CORRO, JAIME CRUZ, WENCESLAO DELVO, GREGORIO DELVO, HERMIJIAS COLIBAO, JOSE OGANA and ALONSO ALBAO, respondents.
G. R. No. 117495               May 29, 1997

FACTS:

Raul Martinez was operator of 4 taxicab units -- 2 under the business name PAMA TX and 2 under the name P.J. Tiger TX. Private respondents all worked for him as drivers.  On March 18, 1992 Raul Martinez died leaving behind his mother, Nelly Acta Martinez, as his sole heir.

Private respondents lodged a complaint against Raul Martinez and petitioner Nelly Acta Martinez for violation of PD 851 and illegal dismissal. They alleged that they have been regular drivers of Raul Martinez since October 20, 1989, earning no less than P400.00 per day driving 24 hours every other day. For the duration of employment not once did they receive a 13th month pay. On June 22, 1992 petitioner informed them that because of difficulty in maintaining the business, she was selling the units together with the corresponding franchises. However, petitioner did not proceed with plan and instead assigned the units to other drivers.

Petitioner avers that the private respondents are not entitled to 13th month pay as the IRR of PD 851 is explicit that employers of those who are paid on purely boundary basis are not covered therein and that the relationship between her son and private respondents was not that of employer-employee but of lessor-lessee. The operation of the business ceased upon the death of her son and that she did not continue the business because she did not know how to run it.

ISSUE:

Whether or not taxi drivers or those paid based on boundary system are entitled to 13th month pay

RULING:

In NLRC v. Dinglasan, the court ruled that the relationship between jeepney owners/operators on one hand and jeepney drivers on the other under the boundary system is that of employer-employee and not of lessor-lessee. In the lease of chattels, the lessor loses complete control over the chattel leased although the lessee cannot be reckless in the use thereof, otherwise he would be responsible for the damages to the lessor. In the case of jeepney owners/operators and jeepney drivers, the former exercise supervision and control over the latter. The fact that the drivers do not receive fixed wages but get only that in excess of the so-called “boundary” they pay to the owner/operator is not sufficient to withdraw the relationship between them from that of employer and employee.

The doctrine is applicable by analogy to the present case. Thus, private respondents were employees of Raul Martinez because they had been engaged to perform activities which were usually necessary or desirable in the usual business or trade of the employer.


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