336 Phil. 265
ROMERO, J.:
"WHEREFORE, judgement (sic) is rendered directing respondents Progress Homes and Ermelo Almeda jointly and severally liable to pay the petitioners within ten (10) days from receipt hereof thru this Branch the aggregate amount of EIGHTY THREE THOUSAND EIGHT HUNDRED PESOS (P83,800.00) as Backwages and Separation pay.Petitioner Progress Homes Subdivision (Progress Homes), is a housing project undertaken by the Ermelo M. Almeda Foundation, Inc., a non-stock organization duly registered with the Securities and Exchange Commission (SEC). When it engaged in constructing low-cost housing units for low-income employees, it named its project "Progress Homes Subdivision" in Camarines Sur. The other petitioner, Ermelo Almeda, is the President and General Manager of Progress Homes and the owner of the land where the Progress Homes Subdivision is located.
All other claims are denied for lack of merit.
SO ORDERED."
"This Branch holds that herein petitioners were illegally dismissed by the respondents, it being an established fact that employer-employee relationship exists. Respondents hired all the petitioners thru the former's foreman Rodolfo Badillo. Although this foreman denied hiring the petitioners an admission was made that oftentimes said foreman saw these petitioners working in the residential units which the respondents were constructing at that time. The affidavit of foreman Rodolfo Badillo to the contrary is without merit for being self-serving, particularly in the light that the same was never alleged and/or utilized when the amicable settlement was entered into by and between the respondents and the other co-employees/co-petitioners of herein petitioners. To argue that the affiant considers the latter employees who opted to amicably settle their disputes with the same respondents, as having 'actually work (sic) for Progress Homes Subdivision' while maintaining that the former (petitioners) were not, without any other basis other than said self-serving allegation, is patently untenable. The least that the respondents could have done was to present the alleged written contracts of all the petitioners expressly stating therein the terms and conditions of their employment if indeed they were executed. Finding none in the records except a xerox copy of one supposedly entered by a certain Salvador B. AƱonuevo, who is not even one of the petitioners in the instant cases respondents' argument not only lack factual basis but borders on insult to ones (sic) sensibility. Apparently, said piece of document (Annex 'D') together with the xerox copy of the alleged Certificate of Filing of Amended Articles of Incorporation from the Securities and Exchange Commission (SEC) were not even certified true copies and/or properly authenticated."The evidence on record fails to convince the Court that private respondents were indeed employed by petitioners. The Labor Arbiter does not give credence to the affidavit of petitioners' foreman that he did not hire private respondents.
(1) the selection and engagement of the employee;Under the so-called "right of control" test, the person for whom the services are performed reserves a right to control, not only the end to be achieved, but the means to be used in reaching such an end. In addition, this Court has also considered the existing economic conditions prevailing between the parties, such as the inclusion of the employee in the payroll.[2]
(2) the payment of wages;
(3) the power of dismissing; and
(4) the power to control the employee's conduct.[1]
"Section 4. Determination of Necessity of Hearing. - Immediately after the submission by the parties of their position papers/memorandum, the Labor Arbiter shall motu proprio determine whether there is need for a formal trial or hearing. At this stage, he may, at his discretion and for the purpose of making such determination, ask clarificatory questions to further elicit facts or information, including but not limited to the subpoena of relevant documentary evidence, if any from any party or witness.In Greenhills Airconditioning and Services, Inc. v. NLRC,[3] whose issues are similar to instant case, we stated that there was grave abuse of discretion on the part of the labor arbiter when he submitted the case for decision solely on the basis of the position papers:
Section 5. x x x.
(b) If the Labor Arbiter finds no necessity of further hearing after the parties have submitted their position papers and supporting documents, he shall issue an Order to that effect and shall inform the parties, stating the reasons therefor. In any event, he shall render his decision in the case within the same period provided in paragraph (a) hereof."
"It is of note that certain important issues are raised by the position papers filed before the labor arbiter among which are:1. whether respondent Abellano was a project employee whose employment was deemed ended when the project was cancelled or whether he was a regular employee;
In rendering his now assailed decision, the labor arbiter relied solely on the bare allegations of the parties in their position papers. There is nothing in the labor arbiter's decision to show how he arrived at the conclusion that it was respondent Abellano's allegations that deserved belief. The prudent and logical action which the labor arbiter should have taken was to set the case for hearing particularly on the abovementioned three (3) issues to avoid any impression of denial of due process to either or both of the parties.The same issues are raised in the instant case and the Labor Arbiter should have set the case for further presentation of evidence considering the dearth of evidence supporting private respondents' claims.
While it is true that the employer has the burden of proving the presence of valid grounds for dismissal of a worker, the abovestated issues in this case require a hearing and reception of evidence before the issue of the validity of Abellano's dismissal can be resolved. The respondent NLRC in sustaining and affirming the decision of the labor arbiter which was arrived at without hearing on the vital issues involved, itself committed grave abuse of discretion."