Phil Geothermal vs. NLRC

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PHILIPPINE GEOTHERMAL, INC.

vs.
NATIONAL LABOR RELATIONS COMMISSION, TEODULO C. CUEBILLAS, ARMANDO CILOT,
MARIANO CORULLO, YOLANDA CAL, EFREN CLERIGO, FELICISSIMO VARGAS, et al
G.R. Nos. 82643-67 August 30, 1990
Paras, J.

FACTS:

Private respondents are employees of herein petitioner occupying various positions ranging
from carpenter to Clerk II who had worked with petitioner company under individual contracts,
categorized as contractual employment, for a period ranging from fifteen (15) days to three (3)
months. These contracts were regularly renewed to the extent that individual private
respondents had rendered service from three (3) to five (5) years until 1983 and 1984 when
petitioner started terminating their employment by not renewing their individual contracts.

ISSUE:

Whether or not private respondents may be considered regular and permanent employees due
to their length of service in the company despite the fact that their employment is on
contractual basis.

HELD:
                  
Yes. While the actual regularization of these employees entails the mechanical act of issuing
regular appointment papers and compliance with such other operating procedures, as may be
adopted by the employer, it is more in keeping with the intent and spirit of the law to rule that
the status of regular employment attaches to the casual employee on the day immediately after
the end of his first year of service. It is not difficult to see that to uphold the contractual
arrangement between the employer and the employee would in effect be to permit employers
to avoid the necessity of hiring regular or permanent employees indefinitely on a temporary or
casual status, thus to deny them security of tenure in their jobs.

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