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Facts:
Issue:
Does the Ministry of Labor and Employment have jurisdiction over the cases involving
employees of Government subsidiaries?
Held:
Yes.
Under the present state of law, the test in determining whether a GOCC is subject to Civil
Service Law is the manner of its creation such as government corporations created by special
charter are subject to its provisions while those incorporated under general Corporation Law are
not within its coverage.
In NASECO vs NLRC, the Court ruled that NLRC has jurisdiction over the employees of
NASECO being a corporation without an original charter; the employees of NASECO are subject
to the provision of LC.
We hold therefore, that the PNOC-EDC having been incorporated under general
Corporation Law, is a GOCC whose employees are subject to the provisions of the LC. This is
apparently the intendment of NASECO case notwithstanding the fact that the NASECO are
therein was a subsidiary of the PNB, a government-owned corporation.