In today’s gig economy, many companies label workers as “freelancers”, “talents”, or “project-based hires”. However, in Paragele vs. GMA Network, Inc., the Supreme Court reiterated a long-standing principle in labor law - what matters is not what the contract says, but what actually happens in the workplace.
In this case, GMA Network hired camera operators and classified them as freelancers or project workers. Because of this label, they were treated as if they had no security of tenure. The camera operators challenged this, arguing that they were in fact regular employees. What began as a complaint for regularization later evolved into claims for illegal dismissal, non-payment of wages, and other benefits.
The Supreme Court sided with the workers. It ruled that they were regular employees, based on two key factors:
NATURE OF THEIR WORK - Camera operations are clearly necessary and essential to GMA Network’s broadcasting business
CONTROL OF PERFORMANCE OF WORK - GMA Network exercised control over how the camera operators performed their tasks, including schedules and supervision
A particularly important part of the decision is the Supreme Court’s clarification of a common misconception. Employers often argue that a worker must first complete one year of service to become regular. The Supreme Court rejected this blanket view. Instead, it clarified:
If the work performed is necessary or desirable to the employer’s business, the worker is regular from the start
The so-called “one-year rule” applies only to casual employees, not to workers doing core business functions such as the camera operators
Since the camera operators were regular employees, they were entitled to security of tenure. This means that they cannot be dismissed without valid cause, and without due process.
GMA Network failed to show a valid reason for the termination of the camera operator. As a result, the Supreme Court declared their dismissal as illegal.
(Please see G.R. No. 235315, July 13, 2020.)