Macy N Marcelo Legal Research

JD 1G.R. No. 204944-45               December 3, 2014

FUJI TELEVISION NETWORK, INC., Petitioner, vs.ARLENE S. ESPIRITU, Respondent.

In 2005, Arlene S. Espiritu ("Arlene") was engaged by Fuji Television Network, Inc. ("Fuji") as a news correspondent/producer "tasked to report Philippine news to Fuji through its Manila Bureau field office."  Arlene’s employment contract initially provided for a term of one (1) year but was successively renewed on a yearly basis with salary adjustment upon every renewal. Sometime in January 2009, Arlene was diagnosed with lung cancer. She informed Fuji about her condition. In turn, the Chief of News Agency of Fuji, Yoshiki Aoki, informed Arlene "that the company will have a problem renewing her contract" since it would be difficult for her to perform her job. She "insisted that she was still fit to work as certified by her attending physician."1

After several verbal and written communications, Arlene and Fuji signed a non-renewal contract on May 5, 2009 where it was stipulated that her contract would no longer be renewed after its expiration on May 31, 2009. The contract also provided that the parties release each other from liabilities and responsibilities under the employment contract.1

In consideration of the non-renewal contract, Arlene "acknowledged receipt of the total amount of US$18,050.00 representing her monthly salary from March 2009 to May 2009, year-end bonus, mid-year bonus, and separation pay."1 However, Arlene affixed her signature on the nonrenewal contract with the initials "U.P." for "under protest."1

On May 6, 2009, the day after Arlene signed the non-renewal contract, she filed a complaint for illegal dismissal and attorney’s fees with the National Capital Region Arbitration Branch of the National Labor Relations Commission. She alleged that she was forced to sign the nonrenewal contract when Fuji came to know of her illness and that Fuji withheld her salaries and other benefits for March and April 2009 when she refused to sign.1

Arlene claimed that she was left with no other recourse but to sign the non-renewal contract, and it was only upon signing that she was given her salaries and bonuses, in addition to separation pay equivalent to four (4) years.

The NLRC ruled in favour of the respondent. Said decision was affirmed by the Court of Appeals, hence this petition.

ISSUE :

Whether or not the respondent, Arlene Espiritu, is a regular employee of Fuji and therefore entitled to security of tenure.

Held:

Macy N Marcelo Legal Research

JD 1Yes.

Ratio decidendi

The employment status of a person is defined and prescribed by law and not by what the parties say it should be. Equally important to consider is that a contract of employment is impressed with public interest such that labor contracts must yield to the common good. Thus, provisions of applicable statutes are deemed written into the contract, and the parties are not at liberty to insulate themselves and their relationships from the impact of labor laws and regulations by simply contracting with each other

Arlene was a regular employee with a fixed-term contract. Her contract indicating a fixed term did not automatically mean that she could never be a regular employee. An employee can be a regular employee with a fixed-term contract. The law does not preclude the possibility that a regular employee may opt to have a fixed-term contract for valid reasons.

Further, Fuji’s argument that Arlene was an independent contractor under a fixed-term contract is contradictory. Employees under fixed-term contracts cannot be independent contractors because in fixed-term contracts, an employer-employee relationship exists.

The same ruling was also applied in the following cases:

Date promulgated Case (Title)September 26, 2006(G.R. No. 164156 )

ABS CBN vs Nazareno

May 9, 2003(G. R. No. 148492)

Magsalin vs National Organization of Working Men

February 5, 1990

(G.R. No. L-48494) Brent vs Zamora

April 26, 1989(G.R. No. 57822)

Escudero vs. Office of the President

March 31, 1977(G.R. No. L-44360)

Biboso v. Victorias Milling Company, Inc.

June 30, 1956(G.R. No. L-8715)

Philippine Air Lines, Inc. v. Philippine Air Lines Employees Association

Primary Sources:

Labor Code The 1987 Constitution Supreme Court cases

Macy N Marcelo Legal Research

JD 1