On Equal Footing

2016 February 10

In a case for illegal dismissal filed by members of a Health Service Team against La Salle Greenhills, Inc., the Supreme Court set aside the finding of said members’ fixed-term employment.

The parties to the fixed-term employment contract were not on equal footing.

The Court emphasized that the ruling in Brent School, Inc. v. Zamora1G.R. No. L-48494, February 5, 1990, 260 PHIL 747-765 should be strictly construed, in that it should apply to cases where it appears that the employer and employee are on equal footing. In the present case, the Court found that this was not so for the members of the Health Services Team.

  • The uniform one-page Contracts of Retainer signed by the Health Service Team members were prepared by La Salle Greenhills, Inc.
  • While the Health Service Team members were medical professionals, this fact had not placed them on equal footing with La Salle Greenhills, Inc. According to the Court, the Health Service Team members obviously did not want to lose their jobs that they had stayed in for fifteen years.
  • The contracts had no specificity regarding terms and conditions of employment that would indicate that the Health Service Team members and La Salle Greenhills, Inc. were on equal footing in negotiating it. The Court stated that without specifying what the tasks assigned to each Health Service Team member were, La Salle Greenhills, Inc. “may upon prior written notice to the retainer, terminate [the] contract should the retainer fail in any way to perform his assigned job/task to the satisfaction of La Salle Greenhills, Inc. or for any other just cause.”

Power of control was exercised over the Health Service Team members.

The power of control refers to the existence of the power and not necessarily to the actual exercise thereof, nor is it essential for the employer to actually supervise the performance of duties of the employee. It is enough that the employer has the right to wield that power.

In ruling that La Salle Greenhills, Inc. exercised control over the Health Services Team members, the Court took into account:

  • The repeated renewal of each Health Service Team member’s contract for fifteen years, interrupted only by the close of the school year;
  • The necessity of the work performed by the Health Service Team members as school physicians and dentists; and
  • The control exercised by La Salle Greenhills, Inc. over the means and method pursued by the Health Service Team members in the performance of their job.

The repeated renewals of each Health Service Team member’s fixed-term employment contract made for a regular employment.

Finally, the Court noted the repeated renewals of the Contracts of Retainer of the Health Service Team members spanning a decade and a half. Said the Court: “The repeated engagement under contract of hire is indicative of the necessity and desirability of the [employee’s] work in respondent’s business and where employee’s contract has been continuously extended or renewed to the same position, with the same duties and remained in the employ without any interruption, then such employee is a regular employee.”

The Court thus declared the Health Service Team members’ regular employment status. They were entitled to security of tenure and could only be dismissed for just and authorized causes.

Further reading:

  • Samonte v. La Salle Greenhills, Inc., G.R. No. 199683, February 10, 2016.

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