Shipside Vs. Nlrc Case Digest

Myla Ruth N. Sara

Shipside v NLRC FACTS: Shipside is a domestic corporation engaged in the handling in bulks all kinds of materials. It entered into a contact with STEVEDORES, a stevedoring company, wherein Shipside shall give exclusive right to handle stevedoring services to STEVEDORE. The business relations between Shipside and STEVEDORES were finally terminated and as a result, several stevedores and office personnel were dismissed. Thus, these respondents filed a complaint against Shipside and STEVEDORES for not paying them separation benefits.

ISSUE: W/N an employer-employee relationship exists between Shipside and respondents W/N Shipside can be held liable for the money benefits

HELD: No. Shipside has no participation for the selection and engagement of every stevedores who constitutes the labor force of STEVEDORES. There is no direct employment relationship between Shipside and respondents. Payment of salary is made by STEVEDORES to the individual stevedores. Also, Shipside has no power to dismiss them. Since there is no employer-employee relationship between Shipside and respondents, Shipside cannot be held liable for the money benefits. There is no termination of employment, but merely a termination of Shipside’s contract for services with STEVEDORES.