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Philippine Airlines, Inc. vs. National Labor Relations Commission, et al.

PHILIPPINE AIRLINES, INC., petitioner, vs. NATIONAL LABOR RELATIONS COMMISSION, LABOR ARBITER MANUEL ASUNCION; MANUEL PARENAS, DANIEL GACO, RODOLFO SIARON, ALFREDO C. MONTILLA, ROMULO S. CASTRO, ELSA CASTRO, MARCELO PARAGAS, ROMULO PARANE, RAFAEL SANCHEZ, INOCENCIO ALCANTARA, REYNALDO PARAISO, ROBERTO GERONIMO, NOMER E. PESCANTE, BENEDICTO SANTOS, ALBERTO TOMAS, BONIFACIO BAYETA JR., DANILO RODRIGUEZ, CARLETO DE LA CRUZ, RAFAEL BEQUIO, EDUARDO SITJAR, RUBEN TANSECO, TODORO K. DISCAYA, ERNESTO EVARDONE, ARNULFO LAVILLA, GLECERIO ELABARIN, MARCELINO CANEDA, EPIFANIO GALIBO, BENJAMIN GANDELARIA, LINO B. DAHOHOY, AVELINO MULLET, JIMMY M. CORDERO, IVANHOE MAGINO, FELIX V. CATINDOY, RUBEN DALUZ, ABENIR YARA, SANTIAGO CORTEZ JR., ARMANDO P. LUCIDO, ALBERTO MONTILLA, RENERIO CAPON, LEONARDO BARROZO, IRENEO FRONDOZO, DIONESIO BANARES, MARCELO MARZON, ALFREDO STA. MARIA, BERNARDO MAMARIL, CARLOS DELLORO, ALCON DE LA TORRE, FLORENTINO PESTIDO and STELLAR INDUSTRIAL SERVICES, INC., respondents.

G.R. No. 125792 | 1998-11-09

D E C I S I O N


PANGANIBAN, J.:

In legitimate job contracting, an independent contractor undertakes to perform work on its own account, under its own responsibility and according to its own manner and method, free from the control and direction of the principal. No employment relationship arises between its employees and the principal. Consequently, the said employees can claim separation pay only from the independent contractor, and not from the principal.

The Case

These principles are used by the Court in granting this special civil action for certiorari, seeking to nullify the July 13, 1994 Decision and the June 27, 1996 Resolution...