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June 1, 2022

Supreme Court Decisions


What is substantial capital or investment?


 

Substantial capital or investment was defined in DOLE Department Order No. 18-02 as capital stocks and subscribed capitalization in the case of corporations, tools, equipment, implements, machineries and work premises, actually and directly used by the contractor or subcontractor in the performance or completion of the job, work or service contracted out.

 

Mago vs. Sun Power Manufacturing Limited, G.R. No. 210961, January 24, 2018, [853 SCRA 1]

 

 

 


Can you terminate a managerial employee based on loss of trust and confidence?


 

In terminating managerial employees based on loss of trust and confidence, proof beyond reasonable doubt is not required, but the mere existence of a basis for believing that such employee has breached the trust of his employer suffices.

 

Casco vs. National Labors Commission, Sixth Division, G.R. No. 200571,, February 19, 2018, [856 SCRA 12]

 

 

 

 

 


Who are managerial employees?


 

Managerial employees refer to those whose primary duty consists of the management of the establishment in which they are employed, or of a department or a subdivision thereof, and to other officers or members of the managerial staff.

 

Casco vs. National Labors Commission, Sixth Division, G.R. No. 200571,, February 19, 2018, [856 SCRA 12]

 

 

 

 


What is the effect if the contractor is found to be a labor-only contractor?


 

A finding that a contractor is a labor-only contractor, as opposed to permissible job contracting, is equivalent to declaring that there is an employer-employee relationship between the principal and the employees of the supposed contractor, and the labor-only contractor is considered as a mere agent of the principal, the real employer.

 

Allied Banking Corporation , now merged with Philippine National Bank vs. Calumpang, G.R. No.219435, January 17, 2018, [852 SCRA 1]

 

 

 

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