Merdicar Fishing Corp Vs NLRC

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• Merdicar Fishing Corp v.

NLRC, 297 SCRA 440 (1998)

This case originated from a complaint filed on September 20, 1990 by private respondent Fermin Agao,
Jr. against petitioner for illegal dismissal, violation of P.D. No. 851, and non-payment of five day-
service incentive leave for 1990.

Private respondent had been employed as a bodegero or ships quartermaster on February 12, 1988. He
complained that he had been constructively dismissed by petitioner when the latter refused him
assignments aboard its boats after he had reported to work on May 28, 1990.1cräläwvirtualibräry

Labor Arbiter – reinstate and pay 13th month and incentive leave pay

NLRC – dismissed appeal by Merdicar Fishing.

ISSUE: whether field personnel or not. Employer argues essentially that since the work of the employee
Agao is performed away from its principal place of business whose actual hours of work cannot be
determined, he should be classified as field personnel who has no statutory right to service incentive leave
pay.

RULING – petition not meritorious. Respondent is not field personnel. He is not deemed unsupervised.
As non-field personnel, he is entitled to incentive leave pay.

Art. 82 of the Labor Code provides:

ART. 82. Coverage. - The provisions of this Title [Working Conditions and Rest Periods] shall apply to
employees in all establishments and undertakings whether for profit or not, but not to government
employees, field personnel, members of the family of the employer who are dependent on him for
support, domestic helpers, persons in the personal service of another, and workers who are paid by
results as determined by the Secretary of Labor in appropriate regulations.

..........

Field personnel shall refer to non-agricultural employees who regularly perform their duties away from
the principal place of business or branch office of the employer and whose actual hours of work in the
field cannot be determined with reasonable certainty.

In the case of Union of Filipro Employees (UFE) v. Vicar,5 this Court explained the meaning of the
phrase whose actual hours of work in the field cannot be determined with reasonable certainty in
Art. 82 of the Labor Code, as follows:

Moreover, the requirement that actual hours of work in the field cannot be determined with
reasonable certainty must be read in conjunction with Rule IV, Book III of the Implementing Rules
which provides:

Rule IV Holidays with Pay

Section 1. Coverage - This rule shall apply to all employees except:

..........
(e) Field personnel and other employees whose time and performance is unsupervised by the employer
xxx (Italics supplied)

Contrary to the contention of the petitioner, the Court finds that the aforementioned rule did not add
another element to the Labor Code definition of field personnel. The clause whose time and
performance is unsupervised by the employer did not amplify but merely interpreted and
expounded the clause whose actual hours of work in the field cannot be determined with reasonable
certainty. The former clause is still within the scope and purview of Article 82 which defines field
personnel. Hence, in deciding whether or not an employee’s actual working hours in the field can be
determined with reasonable certainty, query must be made as to whether or not such employees time and
performance is constantly supervised by the employer.6cräläwvirtualibräry

In contrast, in the case at bar, during the entire course of their fishing voyage, fishermen employed by
petitioner have no choice but to remain on board its vessel. Although they perform non-agricultural
work away from petitioners business offices, the fact remains that throughout the duration of their
work they are under the effective control and supervision of petitioner through the vessels patron or
master as the NLRC correctly held.8cräläwvirtualibräry

WHEREFORE, the petition is DISMISSED.

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