21/03/2024
PLDT Linemen are Regular Employees
SC: PLDT Employees Engaged in Installation, Repair, and Maintenance of Service Lines are Regular Employees |
The Supreme Court has ordered the regularization of employees of PLDT, Inc. (PLDT) engaged in installation, repair, and maintenance services of PLDT lines.
In a Decision penned by Associate Justice Rodil V. Zalameda, the Supreme Courtβs First Division dismissed the consolidated petitions for review on certiorari filed by Manggagawa sa Komunikasyon ng Pilipinas, PLDT, and Silvestre Bello Ill (Sec. Bello), in his capacity as then Secretary of the Department of Labor and Employment (DOLE). The petitions assailed the rulings the Court of Appeals (CA) affirming, with substantial modifications, the resolutions issued by Sec. Bello finding labor violations by PLDT and its contractor.
PLDT, a corporation engaged in the telecommunications business, engaged the services of several contractors and sub-contractors to provide services in various areas or phases of its operations.
In affirming the rulings of the CA, the Court clarified that labor contracting is not per se illegal, following Article 106 of the Labor Code expressly allowing an employer to engage in legitimate labor contracting, which the DOLE implements through DO 18-A and DO 174-2017.
An employer is not necessarily engaged in labor-only contracting whenever it farms out specific jobs, works, or services, stressed the Court.
Reiterating its 2010 ruling in Aliviado v. Procter & Gamble Phils, Inc. the Court held that it is management prerogative to farm out any of its activities, regardless of whether such activity is peripheral or core in nature. For such outsourcing to be valid, it must be made to an independent contractor because the current labor rules expressly prohibit labor-only contracting.
Read more at https://sc.judiciary.gov.ph/sc-pldt-employees-engaged-in-installation-repair-and-maintenance-of-service-lines-are-regular-employees/