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HILARIO DASCO v. PHILTRANCO SERVICE ENTERPRISES INC/CENTURION SOLANO

FACTS:

In this case, a group of petitioners, who were bus drivers and conductors employed by Philtranco Service Enterprises Inc. (PSEI), filed a complaint against PSEI and its manager, Centurion Solano. The petitioners claimed that they were already qualified for regular employment status, but were not paid adequately and were not given their yearly five-day service incentive leave (SIL). PSEI argued that the petitioners were paid a fixed salary rate and were seasonal employees.

The Labor Arbiter declared the petitioners as regular employees but denied their other claims. The National Labor Relations Commission (NLRC) granted the petitioners' appeal, ruling in their favor and ordering PSEI to pay wage differentials, SIL pay, and overtime benefits. PSEI filed a motion for reconsideration, but it was denied.

While the case was pending before the Court of Appeals (CA), the petitioners filed a motion for a writ of execution, resulting in the levying and sale of two units of buses owned by PSEI. However, the CA reversed the NLRC's decision. It considered the petitioners as field workers and declared the writ of execution, levy, auction sale, and certificate of sale as null and void.

ISSUES:

  1. Whether the petitioners are regular employees of the respondents.

  2. Whether the petitioners are entitled to underpayment of wages, non-payment of service incentive leave (SIL) pay, and overtime benefits.

RULING:

  1. The Court of Appeals reversed and set aside the National Labor Relations Commission's decision and reinstated the Labor Arbiter's decision. The CA considered the petitioners as field workers and denied their claims for underpayment of wages, non-payment of SIL pay, and overtime benefits. The writ of execution, levy, auction sale, and certificate of sale of the respondents' properties were declared null and void.

PRINCIPLES:

  • Regular employment status is acquired by an employee who has rendered at least one year of service, regardless of the nature of the duties performed.

  • Field personnel are those whose working hours are not supervised by the employer and whose time outside the company premises cannot be determined with reasonable certainty. They are not entitled to holiday pay and SIL pay.