Juco v. National Labor Relations Commission
G.R. No. 98107. August 18, 1997
Petitioner Benjamin C. Juco, a project engineer of respondent National Housing Corporation (NHC) was separated from the service for being implicated in a crime of theft and/or malversation of public funds. Petitioner filed a complaint for illegal dismissal but it was dismissed by the Department of Labor on the ground that it had no jurisdiction over the case. Since NLRC reversed the decision of the Labor Arbiter, respondent NHC appealed before this Court and the questioned decision of the respondent NLRC is SET ASIDE. On April 11, 1989, petitioner filed with the Civil Service Commission (CSC) a complaint for illegal dismissal but it was dismissed. On 1990, respondent NLRC thru Labor Arbiter ruled that petitioner was illegally dismissed, the criminal case against him was purely fabricated. Thereafter, respondent NHC appealed at NLRC which reversed the decision of Labor Arbiter on the ground of lack of jurisdiction.
Whether or not public respondent is governed by the Labor Code.
Yes. NLRC erred in dismissing petitioner’s complaint for lack of jurisdiction because the rule now under Article IX-B, Section 2 of the 1987 Constitution is that the Civil Service covers only government-owned or controlled corporations with original charters. Having been incorporated under the Corporation Law, its relations with its personnel are governed by the Labor Code and come under the jurisdiction of the National Labor Relations Commission.
National Housing Corporation is a organized in accordance with Executive Order No. 399 and its shares of stock are and have been (100%) owned by the Government from its incorporation under Act 1459, the former corporation law, it is a government-owned or controlled corporation whose employees are subject to the provisions of the Labor Code. This observation is reiterated in TUPAS v. NHC, where NHA is within the jurisdiction of the Department of Labor and Employment, it being a government-owned and/or controlled corporation without an original charter.