Television and Production Exponents, Inc. v. Servana January 28, 2008 G.R. No. 167648 542 SCRA 578

Facts: Television and Production Exponents (TAPE) is a domestic corporation engaged in the production of television programs, such as the long-running variety program, “Eat Bulaga”. Servana had served as a security guard for TAPE. Respondent filed a complaint for illegal dismissal and non-payment of benefits against TAPE. He alleged that he was first connected with Agro-Commercial Security Agency but was later absorbed by TAPE as a regular company guard.

On March 2, 2000, respondent received a memorandum informing him of his impending dismissal on account of TAPE’s decision to contract the services of a professional security agency. At the time of his termination, respondent was receiving a monthly salary P6,000. Servana contended that his dismissal was undertaken without due process and violation of existing labor laws, aggravated by non-payment of separation pay. He insisted that he was a regular employee having been engaged to perform an activity that is necessary and desirable to TAPE’s business for 13 years.

TAPE contended that there is no employer-employee relationship between the parties. TAPE engaged respondent’s services, as part of the support group to provide security service and it was agreed that complainant would render his services until such time that respondent company shall have engaged the services of a professional security agency. TAPE started negotiations for the engagement of a professional security agency , the Sun Shield Security Agency.

TAPE averred that respondent was an independent contractor falling under the talent group category and was working under a special arrangement which is recognized in the industry.

Issue: WON the Servana is an independent contractor.

Ruling:

                TAPE failed to establish that respondent is an independent contractor.

Jurisprudence is abound woith casesn that recite the factors to be considered in determining the existence of employer-employee relationship, namely:

a.       The selection and engagement of the employee

Respondent was first connected with Agro-Commercial Security Agency, which assigned him to assist TAPE in its live productions. When the security agency’s contract with RPN-9 expired, respondent was absorbed by TAPE , or in the latter’s language, “retained as talent”. Clearly, respondent was hired by TAPE. Respondent presented his identification card. It has been in  held that in business establishment, an identification card is usually provided not just as a security measure but to mainly identify the holder thereof as a bona fide employee of the firm who issues it.

b.      The payment of wages

Respondent claims to have been receiving P5,444.44 as his monthly salary while TAPE prefers to designate such amount as talent fees.  Wages, as defined in the Labor Code, are remuneration or earnings, however designated, capable of being expressed in terms of money, whether fixed or ascertained on a time, task, piece or commission basis, or other method of calculating the same, which is payable by an employer to an employee under a written or unwritten contract of employment for work done or to be done, or for service rendered or to be rendered.

c.       The power of dismissal

The Memorandum informing respondent of the discontinuance of his service proves that TAPE had the power to dismiss respondent.

d.      The employer’s power to control the employee with respect to the means and method by which the work is to be accomplished.

Control is manifested in the bundy cards submitted by respondent in evidence. He was required to report daily and observe definite work hours.