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THELMA DUMPIT-MURILLO v. CA

FACTS:

Thelma Dumpit-Murillo was hired by Associated Broadcasting Company (ABC) as a newscaster and co-anchor under a talent contract. The contract was renewed multiple times and eventually expired on September 30, 1999. After the expiration of the contract, Murillo sent a letter to ABC expressing her interest in renewing her contract with a salary increase. When she did not receive a formal response, she deemed it as a constructive dismissal and stopped reporting for work. She later demanded reinstatement, unpaid wages, backwages, 13th month pay, and other monetary benefits. ABC argued that her claims had no basis in fact or in law. Murillo then filed a complaint against ABC for illegal constructive dismissal and nonpayment of various benefits. The Labor Arbiter dismissed the complaint, but the National Labor Relations Commission (NLRC) later reversed the decision and ruled in favor of Murillo, stating that an employer-employee relationship existed. The Court of Appeals, however, overturned the NLRC's ruling, declaring Murillo as a fixed-term employee and not a regular employee. Murillo then filed a petition for review with the Supreme Court, raising issues regarding the reviewability of the Court of Appeals' findings and whether the Court of Appeals committed reversible error.

ISSUES:

  1. Whether or not the Supreme Court can review the findings of the Court of Appeals.

  2. Whether or not the Court of Appeals committed reversible error in its Decision regarding the employment status of the petitioner.

RULING:

  1. Yes. The Supreme Court can review the findings of the Court of Appeals when there is no congruence in the findings of the NLRC and the Court of Appeals regarding a matter of fact or substance.

  2. Yes. The Court of Appeals committed reversible error when it held that the petitioner was a fixed-term employee. The petitioner was a regular employee under the contemplation of law, not just a talent under a fixed-term contract. The repeated renewals of her contract for four years indicated her regular employment status, entitling her to security of tenure and benefits.

PRINCIPLES:

  • Employment Relationship Test The existence of an employment relationship is determined by selection and engagement of the employee, payment of wages, the power of dismissal, and the employer's power to control the employee's conduct. The most important element is the control over the means and methods of the performance of work.

  • Regular Employment Employment is considered regular if the employee's job is necessary or desirable in the usual business of the employer, or if the employee has rendered at least one year of service, whether continuous or broken.

  • Fixed-Term Employment Fixed-term employment contracts are valid only when entered into voluntarily and knowingly by both parties without force, duress, or improper pressure. Fixed-term contracts that prevent the acquisition of tenurial security are invalid.

  • Constructive Dismissal An employee's resignation is considered involuntary and thus a constructive dismissal if the termination was due to the employer's unbearable or unjust conduct, making conditions so difficult that the employee had no other choice but to resign.

  • Security of Tenure Regular employees are entitled to security of tenure and can only be dismissed for just cause and with due compliance with procedural due process.