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Benares vs. Pancho

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61. BENARES VS.

PANCHO
Facts: Respondent Hacienda Maasin II is a sugar cane plantation located in Negros Occidental, owned and
managed by Josefina Benares, individual co-respondent.
Complainants alleged to have been terminated without being paid termination benefits by Benares in
retaliation to what they have done in reporting to the DOLE their working conditions vis-à-vis wages and other
mandatory benefits. A formal complaint for illegal dismissal with money claims was filed before the NLRC.
After submission of their position papers, the Labor Arbiter issued an order to the effect that the case is
submitted for resolution.

The LA dismissed the complaint for lack of merit. NLRC reversed the LA’s decision. The NLRC held that
respondents attained the status of regular seasonal workers of Hacienda Maasin II having worked therein from
1964-1985. It found that petitioner failed to discharge the burden of proving that the termination of
respondents was for a just or authorized cause. Motion for reconsideration was denied. CA affirmed the
NLRC’s decision.

Issue: Whether or not respondents are regular employees of Hacienda Maasin II and thus entitled to
monetary claims.

Ruling: Yes. The law provides for three kinds of employees: (1) regular employees or those who have been
engaged to perform activities which are usually necessary or desirable in the usual business or trade of the
employer; (2) project employees or those whose employment has been fixed for a specific project or
undertaking, the completion or termination of which has been determined at the time of the engagement of
the employee or where the work or service to be performed is seasonal in nature and the employment is for
the duration of the season; and (3) casual employees or those who are neither regular nor project employees.

A seasonal employee is considered a regular employee when the employee has been performing the
job for at least a year, even if the performance is not continuous and merely intermittent, the law deems
repeated and continuing need for its performance as sufficient evidence of the necessity if not indispensability
of that activity to the business. Hence, the employment is considered regular, but only with respect to such
activity and while such activity exists.

We find no reason to disturb the finding that respondents were illegally terminated. When there is no
showing of clear, valid and legal cause for the termination of employment, the law considers the matter a case
of illegal dismissal and the burden is on the employer to prove that the termination was for a just or
authorized cause. In this case, as found both by the NLRC and the Court of Appeals, petitioner failed to prove
any such cause for the dismissal of respondents.

Test for determining regular employment: The reasonable connection between the particular activities
performed by the employee vis-à-vis the usual trade or business of the employer. This connection can be
determined by the nature of the work performed in relation to the scheme of the particular business.

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