Olympia Housing, Inc. v. Allan Lapastora and Irene Ubalubao

Olympia Housing, Inc. v.
Allan Lapastora and Irene Ubalubao

G.R. No. 187691
January 13, 2016
REYES, J.:

Facts:
A complaint for illegal dismissal, payment of backwages and other benefits, and regularization of
employment filed by Allan Lapastora (Lapastora) and Irene Ubalubao (Ubalubao) against Olympic
Housing, Inc. (OHI), the entity engaged in the management of the Olympia Executive Residences (OER), a
condominium hotel building situated in Makati City. Lapastora and Ubalubao alleged that they worked
as room attendants of OHI from March 1995 and June 1997, respectively, until they were placed on
floating status on February 24, 2000, through a memorandum sent by Fast
Manpower.chanroblesvirtuallawlibrary

To establish employer-employee relationship with OHI, Lapastora and Ubalubao alleged that they were
directly hired by the company and received salaries directly from it. They also claimed that OHI
exercised control over them as they were issued time cards, disciplinary action reports and checklists of
room assignments. It was also OHI which terminated their employment after they petitioned for
regularization. Prior to their dismissal, they were subjected to investigations for their alleged
involvement in the theft of personal items and cash belonging to hotel guests and were summarily
dismissed by OHI despite lack of evidence.chanroblesvirtuallawlibrary

For their part, OHI and Limcaoco alleged that Lapastora and Ubalubao were not employees of the
company but of Fast Manpower, an independent contractor with which it had a contract of services,
particularly, for the provision of room attendants.

Reinforcing OHI's claims, Fast Manpower reiterated that it is a legitimate manpower agency and that it
had a valid contract of services with OHI, pursuant to which Lapastora and Ubalubao were deployed as
room attendants. Lapastora and Ubalubao were, however, found to have violated house rules and
regulations and were reprimanded accordingly. It denied the employees' claim that they were dismissed
and maintained they were only placed on floating status for lack of available work assignments.

During the pendency of the case, Ubalubao, on her own behalf, filed a Motion to Dismiss/Withdraw
Complaint and Waiver.

Issue:
Whether or not Lapastora was illegally dismissed.

Ruling:
The court ruled in the affirmative.

Indisputably, Lapastora was a regular employee of OHI. As found by the LA, he has been under the
continuous employ of OHI since March 3, 1995 until he was placed on floating status in February 2000.
His uninterrupted employment by OHI, lasting for more than a year, manifests the continuing need and
desirability of his services, which characterize regular employment.

By the nature of its petitioner’s business, it is necessary that it maintains a pool of housekeeping staff to
ensure that the premises remain an uncluttered place of comfort for the occupants. It is no wonder why
Lapastora, among several others, was continuously employed by OHI precisely because of the
indispensability of their services to its business.

The argument that formal notices of investigation were not complied with since he was not an employee
of OHI but of Fast Manpower does not hold because Lapastora was under the effective control and
supervision of OHI through the company supervisor. She gave credence to the pertinent records of
Lapastora's employment, i.e., timecards, medical records and medical examinations, which all indicated
OHI as his employer. That there is an existing contract of services between OHI and Fast Manpower
where both parties acknowledged the latter as the employer of the housekeeping staff, including
Lapastora, did not alter established facts proving the contrary.

To justify fully the dismissal of a regular employee, the employer must, as a rule, prove that the
dismissal was for a just cause and that the employee was afforded due process prior to dismissal. As a
complementary principle, the employer has the burden of proving with clear, accurate, consistent, and
convincing evidence the validity of the dismissal.

It appears that OHI failed to prove that Lapastora's dismissal was grounded on a just or authorized
cause. While it claims that it had called Lapastora's attention several times for his infractions, it does not
appear from the records that the latter had been notified of the company's dissatisfaction over his
performance and that he was not given an opportunity to explain. In the same manner, allegations
regarding Lapastora's involvement in the theft of personal items and cash belonging to hotel guests
remained unfounded suspicions as they were not proven despite OHI's probe into the incidents.

In the present case, Lapastora was not informed of the charges against him and was denied the
opportunity to disprove the same. He was summarily terminated from employment.

Olympia Housing, Inc. v. Allan Lapastora and Irene Ubalubao

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