WHEREFORE, judgment is hereby rendered in favor of complainants, directing respondents R.V.M. and CDSPB to pay jointly and severally to complainants their unpaid salaries and wages due them for the month of May 1987, amounting to P67,139.84, plus 10% thereof or P6,713.98 as attorney’s fees for the complainants’ counsel of record.

KNOW ALL MEN BY THESE PRESENTS

This instrument is made and entered into by and between --

W I T N E S S E T H : THAT -

WHEREAS, the Parish of Obando, Bulacan, under and within the jurisdiction of the BISHOP, has and owns a parochial school called ST. PASCUAL INSTITUTION, with a Boys’ and Girls’ Department occupying separate quarters and premises;

WHEREAS, the Girls Department of ST. PASCUAL INSTITUTION is situated at and occupies a parcel of land in Obando, Bulacan, owned by the BISHOP and more particularly described as follows:

WHEREAS, the CONGREGATION is competent to run, administer and operate an educational institution, and the CONGREGATION has the BISHOP’s permission to reside in Obando, Bulacan, where the CONGREGATION is engaged in educational work;

NOW, THEREFORE, for and in consideration of the foregoing premises and the covenants and stipulations, terms and conditions hereunder set forth, the parties have agreed, as they hereby agree as follows: Calrsc

1. The BISHOP has appointed and designated, as he hereby appoints and designates, and the CONGREGATION has accepted, as it hereby accepts, the aforesaid appointment and designation, to run, administer and operate the Girls’ Department of ST. PASCUAL INSTITUTION; PROVIDED, however, that during the entire period of this Agreement, the parish Priest of Obando, Bulacan, shall remain as and be the DIRECTOR of the ST. PASCUAL INSTITUTION, including the Girls’ Department;

2. By virtue of, in connection with and in furtherance of the purposes of the aforesaid appointment and designation of the CONGREGATION, by the BISHOP, to run, administer and operate the Girls’ Department of the ST. PASCUAL INSTITUTION, the BISHOP does hereby entrust and cede into the CONGREGATION, and the CONGREGATION does hereby accept, the use and care of the parcel of land mentioned in the Second WHEREAS above, including the buildings mentioned therein;

3. The CONGREGATION undertakes as its sole responsibility and expense the administration, management and operation of the Girls’ Department of ST. PASCUAL INSTITUTION, (Hereinafter, the word "School" shall refer to the Girls’ Department of St. Pascual Institution); Sppedsc

4. The CONGREGATION shall provide the school with Sisters qualified to handle the direction and the teaching of the different courses and classes of the school, and if necessary, employ other qualified teachers;

5. The expenses of operating and maintaining the school including, but not limited to, the upkeep of equipment, buildings and other property located in the school; salaries, allowances and other benefits due to teachers and other personnel of the school; repairs and improvements of the school; and all expenses relative to the school shall be for the exclusive account and responsibility of the CONGREGATION;

6. The school shall be operated at all times with a view to serving the needs of the ordinary children of the parish and its vicinity and for that reason, the tuition and other school fees should be as moderate as possible; Sdjad

7. The CONGREGATION shall at its sole expenses, comply with all laws, ordinances, regulations or circulars of the government, whether national, provincial or municipal, and instrumentalities thereof, relating to the land, school and its building and improvements;

8. Whatever net profit that may result from the operation of the school, after deducting the expenses of management, administration and supervision, as above-mentioned shall belong exclusively to the CONGREGATION, except as herein under provided; and any loss shall be borne by the CONGREGATION exclusively;

9. Upon failure of the CONGREGATION to comply with the provisions of this Agreement, the BISHOP may declare this contract terminated; Misact

10. Unless otherwise earlier terminated under the provisions of paragraph 8 above, this Agreement shall be valid and effective for a period of ten (10) school years, commencing with the school year 1983-1984;

11. Upon the termination or expiration of this contract, or of its renewal, it is agreed:

COLEGIO DE SAN PASCUAL BAYLON
Girls’ Department
Obando, Bulacan

July 14, 1986

You are hereby appointed classroom teacher in the Colegio de San Pascual Baylon at the rate of Eighteen thousand five hundred forty eight and forty centavos (P18,548.40) per annum. Jjlex

This appointment shall be deemed in full force and subsisting unless expressly terminated by either party for a valid cause or causes and after due process, and approved by the Regional Director.

(Sgd.) Mila Loredo, RVM
(Signature of Principal)

CONFORME:

(Sgd). Susan V. Del Mundo

For Permanent employment only.

1. To carry out the objectives of the school and my department in my area(s) of responsibility.

2. To fulfill and carry out my rules and functions as specified in the Faculty Handbook.

3. To attend all official school functions such as meetings, seminars, conferences, programs, etc.

4. To be regular and punctual in the admission of requirements.

5. To follow faithfully the provisions of the Faculty Handbook.

WHEREFORE, judgment is hereby rendered in favor of the complainants, ordering respondent Colegio de San Pascual Baylon to pay the sum of P67,139.84, to the complainants plus ten per cent (10%) attorney’s fees in the amount of P6,713.98 [in] favor of Atty. Liberato C. Taneza, counsel of the complainants

From the standpoint of this Office, respondent RVM, may, in the wider spectrum of labor relations, be considered an independent contractor. It exercised greater degree of autonomy and independence in running the affairs of respondent CDSPB, with whose real owner/operator it had an Agreement. The hiring and paying of salaries of the complainants primarily rest on it and eventually, the substantial attributes of a direct employer were exercised by it. The respondent CDSPB had actually exercised minimal supervision although it could exercise substantial supervision and control over respondent RVM, as it did when the former preterminated the Agreement it had with the latter. Thus, respondent CDSPB may be considered the statutory or indirect employer of the complainants, insofar as the operation of that institution of learning is concerned. As indirect employer, CDSPB shall be jointly and severally liable with its contractor, the respondent RVM, for the unpaid wages and salaries of the latter’s employees, the herein complainants. It is for this reason that the indirect employer is allowed to require the contractor or sub-contractor to post/furnish a bond at least equal to the cost of labor under contract on condition that the bond will answer for the wages due the employees should the contractor or sub-contractor fail to pay the same.10 [Id., Rollo, pp. 67-68.]

1. THE COMPLAINT A QUO BEING A REMANDED CASE ON THE GROUND THAT THE OTHER RESPONDENT BELOW COLEGIO DE SAN PASCUAL BAYLON WAS DENIED DUE PROCESS OF LAW AND THE PARTIES HAVE NOT PRESENTED ANY NEW EVIDENCE BEFORE SECOND LABOR ARBITER IRENEO B. BERNARDO, IT WAS GRAVE ERROR ON THE PART OF THE NLRC TO AFFIRM THE DECISION OF ARBITER BERNARDO WHICH DISREGARDED THE EARLIER DECISION OF THIS CASE RENDERED BY FIRST LABOR ARBITER CRESENCIO J. RAMOS DATED OCTOBER 20, 1987. Rtcspped

2. THE OTHER RESPONDENT BELOW COLEGIO DE SAN PASCUAL BAYLON IS THE EMPLOYER OF THE PRIVATE RESPONDENTS HEREIN AND NOT THE PETITIONER HEREIN RVM CONGREGATION WHICH WAS MERELY THE ADMINISTRATOR OR MANAGER OF THE GIRLS’ DEPARTMENT OF THE SCHOOL DULY APPOINTED BY THE BISHOP OF MALOLOS AS OWNER OF THE SCHOOL. Korte

3. THE RVM CONGREGATION’S APPOINTMENT AS ADMINISTRATOR OR MANAGER FOR THE GIRLS’ DEPARTMENT OF THE SCHOOL WAS REVOKED OR TERMINATED ON APRIL 10, 1987 AND SO, IT HAD NO MORE ACCESS TO THE INCOME OF THE GIRL’S DEPARTMENT FOR THE MONTHS OF APRIL AND MAY 1987 WITH WHICH TO PAY THE MAY 1987 SALARIES OF THE HEREIN PRIVATE RESPONDENTS.

4. THE RVM CONGREGATION IS NOT AN INDEPENDENT CONTRACTOR.

1. RESPONDENT CDSPB ALSO ASSAILS THE DECISION DATED 18 NOVEMBER 1991 OF THE THIRD DIVISION OF THE NLRC. Sclaw

2. PETITIONER RVM CONGREGATION, BEING THE EMPLOYER OF THE COMPLAINANTS, IS SOLELY RESPONSIBLE FOR THE LATTER’S PAY FOR MAY 1987.

3. PETITIONER RVM CONGREGATION, NONETHELESS, RECOGNIZES ITS LEGAL AND MORAL OBLIGATIONS TO PAY THE COMPLAINANTS’ SALARIES FOR MAY 1987

4. TO HOLD RESPONDENT CDSPB JOINTLY AND SEVERALLY LIABLE WITH PETITIONER RVM CONGREGATION IS CLEARLY UNJUST AND PREJUDICIAL TO THE FORMER.

COLEGIO DE SAN PASCUAL BAYLON
Pag-Asa, Obando, Bulacan
THE DIRECTOR

1. He shall have general control and supervision over all academic and administrative matters.

2. All officers, faculty members and employees of the institution shall be responsible to and shall be under the direction of the Director.

3. He shall determine and prepare the agenda of all meetings of the Board without prejudice to the right of any member of the Board to have any matter included therein. Scmis

4. He shall preside at commencement exercises and other functions of the Colegio.

5. All letters, appeal, complaints, etc. by the dean, principals, faculty members, employees, and students of the Colegio shall be coursed through him, otherwise they shall not be recognized by the Board; provided, however, that the Director may not withhold from the Board any communication addressed to it.

6. Upon consultation with the dean and principals concerned as the case may be, he shall appoint qualified persons to fill vacancies.

7. More specifically, as academic and administrative head, the Director shall exercise the following powers, subject to confirmation by the Board of Trustees.

The Director shall inform the Board of Trustees of all actions taken by him in accordance with these functions.

8. He shall hold officers, faculty members, and employees, to the full discharge of their duties; if in his judgment the necessity arises, he shall, after consultation with the dean or principal concerned, in proper cases, initiate the necessary proceedings, for the separation from service of any of them.

9. He shall submit through the Board, an annual report of the operation of the Colegio at the close of the school year, and make recommendations thereto, said report to be given to MECS.

10. He shall submit to the Board of Trustees the annual budget of the Colegio with estimates of income and expenses as prepared by the dean, the principals and the treasurer. Spped

11. He shall make, sign, deliver, and execute contracts, agreements and other documents wherein the Colegio is a party in the name and in behalf of the school.

12. He shall sign all checks, negotiable instruments, and other evidence of payments in the name of the school.

13. He shall have the power to authorize expenses from the miscellaneous items in the budget for maintenance and repairs or remodeling and modification of buildings and grounds and equipment without prior action by the Board of Trustees, provided the total amount does not exceed ____________ pesos (P _______)

14. As the academic leader of the Colegio, he shall represent it in meetings, conferences, conventions in which the Colegio may be interested and speak when occasion arises.

15. Within the limits of the law and proper decorum, he shall try to secure for the Colegio, aside from the parish appropriation, additional funds and/or property in the form of prizes, scholarships, donations, and endowments and land grants to enable the Colegio to accomplish better the purpose of its establishment. Jospped

16. For the proper conduct of the business of the Colegio, for the implementation of all resolutions of the Board, for the maintenance of the highest possible standard of instruction in the Colegio, for the promotion of peace and order, for the development of cordial relations among the three components of the Colegio - Administration, Faculty and Student Body - the Director shall have such other powers as specially authorized by the Board of Trustees and such as are inherent in or usually pertaining to the Office of the Director of a Colegio. He is also authorized to delegate in writing any of his specific functions to any office under his control and supervision, provided that he shall, at all times, be responsible for the acts of his delegates to the Board of Trustees. Sppedjo

...[T]he designation of the parish priest as director was not unilateral but by mutual agreement between the diocese of Malolos and [petitioner]. This being the case, the parish priest’s designation as such director merely makes him, in effect, a member of the school administration which is under the actual and direct control and supervision of the congregation.16 [Comment, p. 9; Rollo, p. 42.]

In determining the existence of an employer-employee relationship the following elements must be present: (1) selection and engagement of the employee; (2) payment of wages; (3) power of dismissal; and (4) the power to control the employee’s conduct. Of the above, control of employee’s conduct is commonly regarded as the most crucial and determinative indicator of the presence or absence of an employer-employee relationship. Under the control test, an employer-employee relationship exists where the person for whom the services are performed reserves the right to control not only the end to be achieved, but also the manner and means to be used in reaching that end.

Under Section 8, Rule VIII, Book III, of the Omnibus Rules Implementing the Labor Code, an independent contractor is one who undertakes "job contracting," i.e., a person who (a) carries on an independent business and undertakes the contract work on his own account under his own responsibility according to his own manner and method, free from the control and direction of his employer or principal in all matters connected with the performance of the work except as to the results thereof, and (b) has substantial capital or investment in the form of tools, equipment, machineries, work premises, and other materials which are necessary in the conduct of the business. Jurisprudential holdings are to the effect that in determining the existence of an independent contractor relationship, several factors might be considered such as, but not necessarily confined to, whether or not the contractor is carrying on an independent business; the nature and extent of the work; the skill required; the term and duration of the relationship; the right to assign the performance of specified pieces of work, the control and supervision of the work to another; the employer’s power with respect to the hiring, firing and payment of the contractor’s workers; the control of the premises; the duty to supply premises, tools, appliances, materials and labor; and the mode, manner and terms of payment. Ncm