Abesco Construction And Development Corporation v. Ramirez

CORONA, J.:

Petitioner company was engaged in a construction business where respondents were hired on different dates from 1976 to 1992 either as laborers, road roller operators, painters or drivers. In 1997, respondents filed two separate complaints1 for illegal dismissal against the company and its General Manager, Oscar Banzon, before the Labor Arbiter (LA). Petitioners allegedly dismissed them without a valid reason and without due process of law.

The complaints also included claims for non-payment of the 13th month pay, five days' service incentive leave pay, premium pay for holidays and rest days, and moral and exemplary damages. The LA later on ordered the consolidation of the two complaints.2 Petitioners denied liability to respondents and countered that respondents were "project employees" since their services were necessary only when the company had projects to be completed.

Petitioners argued that, being project employees, respondents' employment was coterminous with the project to which they were assigned. They were not regular employees who enjoyed security of tenure and entitlement to separation pay upon termination from work. After trial, the LA declared respondents as regular employees because they belonged to a "work pool"

from which the company drew workers for assignment to different projects, at its discretion. He ruled that respondents were hired and re-hired over a period of 18 years, hence, they were deemed to be regular employees. He likewise found that their employment was terminated without just cause.

In a decision dated January 7, 1998, he stated:

WHEREFORE, judgment is hereby rendered declaring respondents guilty of illegal dismissal and ordering the latter to reinstate complainants to their former positions with backwages and other benefits from the time their compensation was withheld from them up to the time their actual reinstatement which as of the date of this decision amounted to: NAME 1. Alberto Ramirez ₱49,764.00 2. Manuel B. Loyola 46,695.22 3. Hernando Diwa 49,764.00 4. Reynaldo Acodesin 46,695.22 5. Alexander Bautista 45,285.24 6. Edgar Tajonera 62,985.00 7. Gary Dison 53,911.00 TOTAL