Songco, et al. vs. National Labor Relations Commission
application for clearance to terminate terminate the services of Songco, and others, on the ground ground of FACTS: Zuelig filed an application retrenchment due to financial losses. During the hearing, the parties agreed that the sole issue to be resolved was the basis of the separation pay due. The salesmen received monthly salaries of at least P400.00 and commission for every sale they made. The ollective !argaining "greements between Zuelig and the union of which Songco, et al. were members contained the following provision# provision# $"ny employee who is separated from employment due to old age, sic%ness, death or permanent lay&off, not due to the fault of said employee, shall receive from the company a retirement gratuity in an amount e'uivalent to one ()* month+s salary per year of service.$
The abor "rbiter ordered Zuelig to pay Songco et al., separation pay e'uivalent to their one month salary (e-clusive of commissions, allowances, etc.* for every year of service with the company. The ational abor /elations ommission sustained the "rbiters decision
1hether or not earned sales commissio commissions ns and allowanc allowances es should be included included in the monthly salary salary of ISSUE: 1hether Songco, et al. for the purpose of computing their separation pay.
RULING:
2n the computation of computation of bac%wages and separation pay, account must be ta%en not only of the basic salary of the employee, but also of the transportation and emergency living allowances. 3ven if the commissions were in the form of incentives or encouragement, so that the salesman would be inspired to put a little more industry on obs particularly assigned to them, still these commissions commissions are direct remunerations for services serv ices rendered rendered whic which h contr contribute ibuted d to the incre increase ase of incom incomee of the employee. employee. omm ommissi ission on is the reco recompens mpensee compensation or reward of an agent, salesman, e-ecutor, trustee, receiver, factor, bro%er or bailee, when the same is calculated as a percentage percentage on the amount of his transactions transactions or on the profit to the principal. principal. The nature of the wor% of a salesman and the reason for such type of remuneration for services rendered demonstrate that commissions are part of Songco, et al+s wage or salary. salary. The ourt ta%es udicial notice of the fact that some salesmen do not receive any basic salary, but depend on commissions and allowances or commissions alone, although an employer&em employer&employee ployee relationships e-ists. 2f the opposite view is adopted, i.e., that commissions do not form part of the wage or salary, then in effect, we will be saying that this %ind of salesmen do not receive any salary and, therefore, not entitled to separation pay in the event of discharge from employment. employment. This narrow interpretation interpretation is not in accord with the liberal spirit spirit of the labor laws, and considering the purpose of separation pay which is, to alleviate the difficulties which confront a dismissed employee thrown to the streets to face the harsh necessities of life. 2n Sorian ()55 S/" )64*, we held that the commissions also claimed by the employee (override Soriano o vs. NLRC ()55 commission plus net deposit incentive* are not properly includible in such base figure since such commissions must be earned by actual mar%et transactions attributable to the petitioner 7salesman8. Since the commissions in the present case were earned by actual transactions attributable to Song, et al., these should be included in their separation pay. pay. 2n the computation thereof, what should be ta%en into account is the average commission commission earned during their last year of employment.
EASTERN SHIING LINES, INC. ,vs. HILIINE !"ERSEAS E#L!$#ENTA%#INISTRATI!N &!EA' ()) SCRA *++, G.R. No. ))++, !ctober (-,
ru9, :. Facts: ;italiano Saco was hief
; 3astern Polaris when he was %illed in an accidentin To%yo, :apan on =arch )5, )[email protected] widow sued for damages under 3-ecutive
2<2< A23S3 <==3/2" SA<<vs. 3<
Cacts# Santiago Cabrigar had been employed as a anitor&messenger of the respondent 2loilo hinese ommercial School. Ais wor% includes sweeping and scrubbing the floors, cleaning the classrooms and the school premises, and other anitorial chores.
there was no causal connection between the cause of death and the said employment. The decision was appealed. The 1or%mens compensation ommission concluded that he had been suffering from such disease and his employment as a anitor aggravated his pre&e-isting illness. "nd although there was a discrepancy between the cause of death Gberiberi adultH and the testimony of Dr. ;illareal, the latter was given credence. The commission ordered hinese ommercial School, 2nc. to pay the claimant. The decision was appealed. Petitioner contended that the ommission erred in finding that the cause of death was tuberculosis and as a result of his employmentM holding that the petitioner was the employer of the deceased. 2ssue# whether there is an employee&employer relationship when the former is employed and paid by its !oard of Directors that would warrant the heirs of the deceased employer compensation under 1or%mens compensation lawN Aeld# Ees. There was an employee&employer relationship between the respondent school and the deceased. "lthough it is true that the !oard of Directors, the hinese hamber of ommerce was the one who pays for the anitorial service of the school, it was still the latter who e-ercised supervision and control over the performance of the deceased. "nd the court held that power to control employees conduct is the most important test of employer&employee relation. The decision appealed from was dismissed.
