Begino et al vs ABS-CBN Corp.

G.R. No. 199166, April 20, 2015

FACTS
Petitioners in this case were employed by ABS-CBN Corp., through its Regional
Network Group in Naga. Their engagements were covered by Talent Contracts that
stipulated employment periods from three months to one year and were regularly
renewed over the years. They were given Project Assignment Forms that described
the duration of a particular project, its budget and technical requirements.
Although their contracts stated that nothing therein shall be deemed or construed
to establish an employer-employee relationship between the parties, they had to
perform their work in accordance with ABS-CBNs professional standards, and were
barred from engaging in similar work for a person or entity directly in competition
with or adverse to the interests of ABS-CBN or promoting any product or service
without its prior written consent. Their remuneration was described as talent fees
and deducted a contractors tax.
Claiming regular employee status, they filed a complaint with the National Labor
Relations Commission (NLRC) against the company for regularization,
underpayment of overtime pay, holiday pay, 13th month pay, service incentive
leave pay and damages.
ABS-CBN countered that the complainants were independent contractors, or talents,
who informed of the company of their availability and were required to accomplish
Talent Information Forms to facilitate their engagement on designated project days.
The company also stated that, since they were engaged on the basis of their skills
or expertise, the degree of control it exercised on them was limited to the
imposition of general guidelines on conduct and performance, simply for the
purpose of upholding the standards of the company and the strictures of the
industry.
While the complaint was pending, ABS-CBN terminated their employment.
ISSUE
Whether or not petitioners and ABS-CBN had an employer-employee relationship
RULING
Petitioners are regular employees of ABS-CBN.
The practice of having fixed-term contracts in the industry does not automatically
make all talent contracts valid and compliant with labor law, it has, consequently,
been ruled that the assertion that a talent contract exists does not necessarily
prevent a regular employment status.
It was immaterial their services were engaged for specific periods to sustain the
companys TV Patrol Bicol newscast and that they were paid according to the
budget allocated for the program. The fact remains that, from their initial

engagement as cameramen, editors and reporters, they were continuously re-hired

by the company over the years.
The Supreme Court said that if the employee has been performing the job for at
least one year, even if the performance is not continuous or merely intermittent, the
law deems the repeated or continuing performance as sufficient evidence of the
necessity, if not indispensability of that activity in the business. On the issue of
control and supervision over the employees work, which is critical in determining
the existence of employer-employee relationship, the justices said the companys
own rules validated the employees claim.
They were required to attend and participate in all promotional campaigns of their
assigned programs, and to perform their functions at the locations and in
accordance with the schedules set by the company. It was shown that the
petitioners perform functions necessary and essential to the business of ABS-CBN
which repeatedly employed them for a long-running news program of its Regional
Network Group in Naga City. In the course of said employment, petitioners were
provided the equipment they needed, were required to comply with the Company's
policies which entailed prior approval and evaluation of their performance.
For these reasons, the tribunal upheld the ruling of the NLRC that the complainants
are regular employees of ABS-CBN, not independent contractors or talents, and
therefore entitled to all the rights and benefits that accrue to that status.