Asia Steel Corporation vs. WCC

Asia Steel Corporation, petitioner, vs.
Workmen's Compensation Commission and Ismael

Carbajosa, respondents
Bengzon, J.
G.R. No. L-7636
June 27, 1955
Case Summary: Carbajosa was hired as an apprentice by the Officer-in-Charge of the nail
factory, Kim. Carbajosa got injured while working and the hospital expenses was paid by the
corporation through the direction of the Acting Manager, Atty. Mercado. Carbajosa claimed for
compensation and that WCC held that since he was injured while working as an employee, the
corporation should indemnify him. The question was whether he was actually employed by the
company through Kim. The Court answered in the affirmative and discussed that as a general
rule, an agent, who with authority express, implied, apparent or actual, employs help for the
benefit of his principal's business, thereby creates the relationship of employer and employee
between such help and his principal.
Doctrine:
 “It may be stated as a general rule that an agent, who with authority express, implied,
apparent or actual, employs help for the benefit of his principal's business, thereby creates
the relationship of employer and employee between such help and his principal."
(Schneider, Workmen's Compensation (Permanent Ed.) Vol. I p. 617, citing many cases.)
 The creation of the employer-employee relationship should not be adjudged strictly in
accordance with technical legal rules, but rather according to the actualities and realities
of industrial or business practice
Facts:
 April 9, 1951 – Pablo Sesia, an acquaintance of Ismael Carbajosa, introduced him to Mr.
Kim, in charge of the nail factory for the purpose of employment.
o Kim told the claimant that he would take up the matter with the manager, and
Carbajosa would know the manager's decision as soon as he (the claimant)
returned.
 April 10, 1951 - Carbajosa came back to the factory and was told by Kim that he was
allowed to begin working as an apprentice by Yu Kong Tiong, the president of the
corporation.
o It was further agreed that claimant's wage would be determined upon the arrival
of materials which the manager ordered from Japan.
o The claimant assumed work on the same day, doing odd jobs under the direction
of Sesia.
 April 16, 1951 - while working in said Corporation's steel factory in Grace Park, Manila,
Carbajosa tapped the belt of a running machine to tighten it, but his hand was caught
accidentally by the belt, he stumbled down and his two feet were so seriously injured,
they had to be amputated at the Chinese General Hospital where he was rushed
immediately after the mishap.
o Hospitalization were paid by the corporation through the direction of the acting
manager of the corporation Atty. Mercado.
 Carbajosa claimed for compensation.
 The referee found that Carbajosa was employed as apprentice, and that the accident arose
out of employment, and required the Asia Steel Corporation to indemnify in the total sum
of P2,246.40 and to pay the costs.
Issue/Held:
 Whether or not the petitioner, through Kim, had given employment to Carbajosa. YES
o The Commission found that Yu Kong Tiong was the president of the corporation
and Sy Te the manager; but Yu Kong Tiong was permitted actually to manage its
affairs, (it being a "family" corporation) by remote control from his office in
Manila thru Kim who was "in charge" of the factory in Caloocan. It also declared
that Kim was allowed by Yu Kong Tiong to employ Carbajosa as apprentice.
o From such circumstances, the conclusion flows inevitably that Carbajosa was, at
the time of the occurence, an employee of the petitioning corporation.
o It is undeniable that as president and manager Yu Kong Tiong could legally
employ, by himself, manual laborers to work in the factory. And there is nothing
to prevent him from employing Carbajosa, thru his agent Kim, as the latter did. In
fact it may even be held that in default of proof establishing Yu Kong Tiong's
assent to the employment, inasmuch as Kim the person actually in charge of the
factory represented to Carbajosa that he was authorized by the manager to engage
his (Carbajosa's) services, there was apparent authority of Kim, sufficiently ample
to create the relationship of employer and employee for the purposes of the
Workmen's Compensation Law.
o “It may be stated as a general rule that an agent, who with authority express,
implied, apparent or actual, employs help for the benefit of his principal's
business, thereby creates the relationship of employer and employee between such
help and his principal." (Schneider, Workmen's Compensation (Permanent Ed.)
Vol. I p. 617, citing many cases.)
o The creation of the employer-employee relationship should not be adjudged
strictly in accordance with technical legal rules, but rather according to the
actualities and realities of industrial or business practice
o There is further circumstance, implying ratification of the employment, that the
acting manager of the corporation Atty. Mercado directed the payment by the
corporation of Carbajosa's hospital expenses, amounting to P2,000.00. Mercado's
explanation that he did it out of pity, was not, and could not be accepted since the
Asia Steel Corporation is not a charitable institution.
Decision: In view of the foregoing, and the petitioner not having questioned the amount of
compensation, the order of the Commission, should be, as it is hereby, affirmed with costs. So
ordered.

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Asia Steel Corporation, petitioner, vs.

Workmen's Compensation Commission and Ismael

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