G.R.

111501 Case Digest

G.R. No. 111501, March 5, 1996
Phil. Fuji Xerox Corp., Jennifer Bernardo and Atty. Victorino Luis, petitioners
vs NLRC
Ponente: Mendoza

Facts:
This is a petition for certiorari to set aside the decision of NLRC finding Fuji guilty of illegally
dismissing privated respondent Pedro Gerado and ordering him reinstated. NLRC reversed the
decision of Labor Arbiter finding Gerado to be an employee of another firm (Skillpower).

May 1977, Fuji entered into an agreement under Skillpower to operate copier machines of Fuji in its
sales offices where Gerado was assigned as key operator.

February 1983, Gerado went on leave and his place was taken by a substitute. He returned March
and discovered that there was a apoilage of over 600 copies. He tried to talk to the service techinician
of Fuji to stop the meter of the machine but was refused. Fuji then knew about the incident and
reported to Skillpower. Skillpower wrote a letter to Gerado asking for explaination and suspended him
from work. Gerado then filed for illegal dismissal.

Labor Arbiter found that Gerado applied for work to Skillpower and was made to sign a contract.
Although he receives his salaries from Fuji, Skillpower exercises control and supervision over his wrk.
Labor arbiter then held the decision that Gerado was an employee of Skillpower.

NLRC found Gerado to be an employee of Fuji and was illegally dismissed. NLRC found that
Skillpower acted on behalf of Fuji in supervising his work, and that FUji paid his salaries and
Skillpower was just a paymaster-agent.

Here, Fuji petitions that Skillpower is an independent contractor and Gerado is its employee: (1)
Gerado was recruited by Skillpower, (2) work done by Gerado was not necessary to the conduct of
business of Fuji, (3) Gerado's salaries and benefits were paid directly by Skillpower, (4) Gerado
worked under the control of Skillpower and (5) Skillpower is a highly-capitalized business venture.

Issue: (1) Whether Gerado is an employee of Fuji or of Skillpower.

Ruling: Contentions are without merit. Gerado is en employee of Fuji.

(1) Gerado was recruited by Skillpower to be assigned at Fuji. With a contract between Gerado and
Fuji as basis.
(2) The job of Gerado may not generate income directly to Fuji but it is necessary in their products
and promotion of the company's public image.
(3) The letters of the legal and industrial relations officer of Fuji and the union president played the
dismissal of the employee, the order of dismissal was issued as a mere obedience to the decision of
petitioner.
(4) The service being rendered by privated respondent was not a specific or special skill that
Skillpower was in the business of providing. Skillpower is classified under Article 106 of the Labor
Code; where there is "labor only" where the person supplying workers to an employer does not have
suubstantial capital or investment in the forms of tools, equipment, etc. and workers recruited and
placed are performing activities directly related to the principal employer. Skillpower merely supplied
workers to Fuji.
(5) There is an agreement between Fuji and Skillpower that Skillpower has no control over the
workers they supplied with Fuji.