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Retention after Expiration of Apprenticeship Agreement; Effect

Case No. 20 – Tutoy


Atlanta Industries vs. Sebolino, G.R. No. 187320
Facts:
Complainants filed several complaints for illegal dismissal, regularization, underpayment,
nonpayment of wages and other money claims, as well as claims for moral and exemplary
damages and attorney's fees against the petitioners. They alleged that they had attained regular
status as they were allowed to work with Atlanta for more than six (6) months from the start of a
purported apprenticeship agreement between them and the company but were illegally dismissed
when the apprenticeship agreement expired. The Labor Arbiter found the dismissal to be illegal
with respect to nine out of the twelve complainants. Atlanta appealed the decision to the NLRC
which reversed the illegal dismissal decision with respect to Sebolino and three others as they
were already employees of the company before they entered into the first and second
apprenticeship agreements. Also, the positions occupied by the respondents as machine operator,
extruder operator and scaleman are usually necessary and desirable in the manufacture of plastic
building materials, the company’s main business. Sebolino and the three others were, therefore,
regular employees whose dismissals were illegal for lack of a just or authorized cause and notice.

Issue: W/N Respondents were illegally dismissed.

Ruling:
Yes. Respondents were dismissed without just or authorized cause, without notice, and without
the opportunity to be heard, their dismissal was illegal under the law.

Main Point:
The fact that Sebolino and the three others were already rendering service to the company when
they were made to undergo apprenticeship (as established by the evidence) renders the
apprenticeship agreements irrelevant as far as the four are concerned. This reality is highlighted
by the CA finding that the respondents occupied positions such as machine operator, scale man
and extruder operator - tasks that are usually necessary and desirable in Atlantas usual business
or trade as manufacturer of plastic building materials. These tasks and their nature characterized
the four as regular employees under Article 280 of the Labor Code.

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