JOSE SONZA vs.

ABS-CBN BROADCASTING CORPORATION

G.R. No. 138051 June 10, 200
FACTS:
In May 1994, ABS-CBN signed an agreement with the Mel and Jay Management
and e!el"#ment C"r#"rati"n $MJMC%& ABS-CBN was re#resented 'y its
("r#"rate "))i(ers while MJMC was re#resented 'y S"n*a, as +resident and
general manager, and Tiang(" as its ,-+ and treas.rer& /e)erred t" in the
agreement as agent, MJMC agreed t" #r"!ide S"n*a0s ser!i(es e1(l.si!ely t"
ABS-CBN as talent )"r radi" and tele!isi"n& ABS-CBN agreed t" #ay S"n*a a
m"nthly talent )ee ") +213, 333 )"r the )irst year and +214, 333 )"r the se("nd
and third year&
5n A#ril 1996, S"n*a wr"te a letter t" ABS-CBN7s +resident, ,.geni" 8"#e* III,
where he irre!"(a'ly resigned in !iew ") the re(ent e!ents ("n(erning his
#r"gram and (areer& The a(ts ") the stati"n are !i"lati!e ") the Agreement and
said letter will ser!e as n"ti(e ") res(issi"n ") said ("ntra(t& The letter als"
("ntained the wai!er and ren.n(iati"n )"r re("!ery ") the remaining am".nt
sti#.lated '.t reser!es the right t" see9 re("!ery ") the "ther 'ene)its .nder said
Agreement&
A)ter the said letter, S"n*a )iled with the e#artment ") 8a'"r and ,m#l"yment a
("m#laint alleging that ABS-CBN did n"t #ay his salaries, se#arati"n #ay, ser!i(e
in(enti!e #ay,12th m"nth #ay, signing '"n.s, tra!el all"wan(e and am".nts
.nder the ,m#l"yees St"(9 5#ti"n +lan $,S5+%& ABS-CBN ("ntended that n"
em#l"yee-em#l"yer relati"nshi# e1isted 'etween the #arties& :"we!er, ABS-
CBN ("ntin.ed t" remit S"n*a0s m"nthly talent )ees '.t "#ened an"ther a((".nt
)"r the same #.r#"se&
The 8a'"r Ar'iter dismissed the ("m#laint and )".nd that there is n" em#l"yee-
em#l"yer relati"nshi#& The 8A r.led that he is n"t an em#l"yee 'y reas"n ") his
#e(.liar s9ill and talent as a T- h"st and a radi" 'r"ad(aster& ;nli9e an "rdinary
em#l"yee, he was )ree t" #er)"rm his ser!i(es in a(("rdan(e with his "wn style&
N8/C and CA a))irmed the 8A& Sh".ld there 'e any ("m#laint, it d"es n"t arise
)r"m an em#l"yer-em#l"yee relati"nshi# '.t )r"m a 'rea(h ") ("ntra(t&
ISS;,: <hether "r n"t there was em#l"yer-em#l"yee relati"nshi# 'etween the
#arties&
:,8:
There is no em#l"yer-em#l"yee relati"nshi# 'etween S"n*a and ABS-CBN&
+etiti"n denied& J.dgment de(isi"n a))irmed&

Case law has ("nsistently held that the elements ") an em#l"yee-em#l"yer
relati"nshi# are sele(ti"n and engagement ") the em#l"yee, the #ayment ")
wages, the #"wer ") dismissal and the em#l"yer0s #"wer t" ("ntr"l the em#l"yee
"n the means and meth"ds 'y whi(h the w"r9 is a(("m#lished& The last element,
the s"-(alled =("ntr"l test=, is the m"st im#"rtant element&
A. Selection and Engagement of Employee
ABS-CBN engaged S5N>A0s ser!i(es t" ("-h"st its tele!isi"n and radi"
#r"grams 'e(a.se ") S5N>A0s #e(.liar s9ills, talent and (ele'rity stat.s&
S5N>A ("ntends that the ?dis(reti"n .sed 'y res#"ndent in s#e(i)i(ally sele(ting
and hiring ("m#lainant "!er "ther 'r"ad(asters ") #"ssi'ly similar e1#erien(e
and @.ali)i(ati"n as ("m#lainant 'elies res#"ndent0s (laim ") inde#endent
("ntra(t"rshi#&A
:"we!er, inde#endent ("ntra(t"rs ")ten #resent themsel!es t" #"ssess .ni@.e
s9ills, e1#ertise "r talent t" disting.ish them )r"m "rdinary em#l"yees& The
s#e(i)i( sele(ti"n and hiring ") S5N>A, 'e(a.se ") his .ni@.e s9ills, talent and
(ele'rity stat.s n"t #"ssessed 'y "rdinary em#l"yees, is a (ir(.mstan(e
indi(ati!e, '.t n"t ("n(l.si!e, ") an inde#endent ("ntra(t.al relati"nshi#& I)
S5N>A did n"t #"ssess s.(h .ni@.e s9ills, talent and (ele'rity stat.s, ABS-CBN
w".ld n"t ha!e entered int" the Agreement with S5N>A '.t w".ld ha!e hired
him thr".gh its #ers"nnel de#artment B.st li9e any "ther em#l"yee&
B. Payment of Wages
ABS-CBN dire(tly #aid S5N>A his m"nthly talent )ees with n" #art ") his )ees
g"ing t" MJMC& S5N>A asserts that this m"de ") )ee #ayment sh"ws that he
was an em#l"yee ") ABS-CBN& S5N>A als" #"ints ".t that ABS-CBN granted
him 'ene)its and #ri!ileges ?whi(h he w".ld n"t ha!e enB"yed i) he were tr.ly the
s.'Be(t ") a !alid B"' ("ntra(t&A
All the talent )ees and 'ene)its #aid t" S5N>A were the res.lt ") neg"tiati"ns that
led t" the Agreement& I) S5N>A were ABS-CBN0s em#l"yee, there w".ld 'e n"
need )"r the #arties t" sti#.late "n 'ene)its s.(h as ?SSS, Medi(are, 1 1 1 and
12th m"nth #ayA whi(h the law a.t"mati(ally in("r#"rates int" e!ery em#l"yer-
em#l"yee ("ntra(t& <hate!er 'ene)its S5N>A enB"yed ar"se )r"m ("ntra(t and
n"t 'e(a.se ") an em#l"yer-em#l"yee relati"nshi#& In additi"n, S5N>A0s talent
)ees are s" h.ge and ".t ") the "rdinary that they indi(ate m"re an inde#endent
("ntra(t.al relati"nshi# rather than an em#l"yer-em#l"yee relati"nshi#& ABS-
CBN agreed t" #ay S5N>A s.(h h.ge talent )ees #re(isely 'e(a.se ") S5N>A0s
.ni@.e s9ills, talent and (ele'rity stat.s n"t #"ssessed 'y "rdinary em#l"yees&
C. Power of Dismissal
F"r !i"lati"n ") any #r"!isi"n ") the Agreement, either #arty may terminate their
relati"nshi#& S5N>A )ailed t" sh"w that ABS-CBN (".ld terminate his ser!i(es
"n gr".nds "ther than 'rea(h ") ("ntra(t, s.(h as retren(hment t" #re!ent
l"sses as #r"!ided .nder la'"r laws&
.ring the li)e ") the Agreement, ABS-CBN agreed t" #ay S5N>A0s talent )ees
as l"ng as ?AC,NT and Jay S"n*a shall )aith).lly and ("m#letely #er)"rm ea(h
("nditi"n ") this Agreement&A ,!en i) it s.))ered se!ere '.siness l"sses, ABS-
CBN (".ld n"t retren(h S5N>A 'e(a.se ABS-CBN remained "'ligated t" #ay
S5N>A0s talent )ees d.ring the li)e ") the Agreement& This (ir(.mstan(e
indi(ates an inde#endent ("ntra(t.al relati"nshi# 'etween S5N>A and ABS-
CBN&
S5N>A admits that e!en a)ter ABS-CBN (eased 'r"ad(asting his #r"grams,
ABS-CBN still #aid him his talent )ees& +lainly, ABS-CBN adhered t" its
.nderta9ing in the Agreement t" ("ntin.e #aying S5N>A0s talent )ees d.ring the
remaining li)e ") the Agreement e!en i) ABS-CBN (an(elled S5N>A0s #r"grams
thr".gh n" )a.lt ") S5N>A&
D. Power of Control
First, S5N>A ("ntends that ABS-CBN e1er(ised ("ntr"l "!er the means and
meth"ds ") his w"r9& S5N>A0s arg.ment is mis#la(ed& ABS-CBN engaged
S5N>A0s ser!i(es s#e(i)i(ally t" ("-h"st the ?Mel D JayA #r"grams& ABS-CBN
did n"t assign any "ther w"r9 t" S5N>A& T" #er)"rm his w"r9, S5N>A "nly
needed his s9ills and talent& :"w S5N>A deli!ered his lines, a##eared "n
tele!isi"n, and s".nded "n radi" were ".tside ABS-CBN0s ("ntr"l& S5N>A did
n"t ha!e t" render eight h".rs ") w"r9 #er day& The Agreement re@.ired S5N>A
t" attend "nly rehearsals and ta#ings ") the sh"ws, as well as #re- and #"st-
#r"d.(ti"n sta)) meetings& ABS-CBN (".ld n"t di(tate the ("ntents ") S5N>A0s
s(ri#t& :"we!er, the Agreement #r"hi'ited S5N>A )r"m (riti(i*ing in his sh"ws
ABS-CBN "r its interests& The (lear im#li(ati"n is that S5N>A had a )ree hand
"n what t" say "r dis(.ss in his sh"ws #r"!ided he did n"t atta(9 ABS-CBN "r its
interests&
Se("nd, S5N>A .rges .s t" r.le that he was ABS-CBN0s em#l"yee 'e(a.se
ABS-CBN s.'Be(ted him t" its r.les and standards ") #er)"rman(e& S5N>A
(laims that this indi(ates ABS-CBN0s ("ntr"l ?n"t "nly E"!erF his manner ") w"r9
'.t als" the @.ality ") his w"r9&= The Agreement sti#.lates that S5N>A shall
a'ide with the r.les and standards ") #er)"rman(e ?("!ering talentsA ") ABS-
CBN& The Agreement d"es n"t re@.ire S5N>A t" ("m#ly with the r.les and
standards ") #er)"rman(e #res(ri'ed )"r em#l"yees ") ABS-CBN& The ("de ")
("nd.(t im#"sed "n S5N>A .nder the Agreement re)ers t" the ?Tele!isi"n and
/adi" C"de ") the Ga#isanan ng mga Br"ad(aster sa +ili#inas $GB+%, whi(h has
'een ad"#ted 'y the C5M+ANH $ABS-CBN% as its C"de ") ,thi(s&A The GB+
("de a##lies t" 'r"ad(asters, n"t t" em#l"yees ") radi" and tele!isi"n stati"ns&
Br"ad(asters are n"t ne(essarily em#l"yees ") radi" and tele!isi"n stati"ns&
Clearly, the r.les and standards ") #er)"rman(e re)erred t" in the Agreement are
th"se a##li(a'le t" talents and n"t t" em#l"yees ") ABS-CBN&
In any e!ent, n"t all r.les im#"sed 'y the hiring #arty "n the hired #arty indi(ate
that the latter is an em#l"yee ") the )"rmer& In this (ase, S5N>A )ailed t" sh"w
that these r.les ("ntr"lled his #er)"rman(e& <e )ind that these general r.les are
merely g.idelines t"wards the a(hie!ement ") the m.t.ally desired res.lt, whi(h
are t"#-rating tele!isi"n and radi" #r"grams that ("m#ly with standards ") the
ind.stry&
8astly, S5N>A insists that the ?e1(l.si!ity (la.seA in the Agreement is the m"st
e1treme )"rm ") ("ntr"l whi(h ABS-CBN e1er(ised "!er him& This arg.ment is
).tile& Being an e1(l.si!e talent d"es n"t 'y itsel) mean that S5N>A is an
em#l"yee ") ABS-CBN& ,!en an inde#endent ("ntra(t"r (an !alidly #r"!ide his
ser!i(es e1(l.si!ely t" the hiring #arty& In the 'r"ad(ast ind.stry, e1(l.si!ity is
n"t ne(essarily the same as ("ntr"l&
The hiring ") e1(l.si!e talents is a wides#read and a((e#ted #ra(ti(e in the
entertainment ind.stry& This #ra(ti(e is n"t designed t" ("ntr"l the means and
meth"ds ") w"r9 ") the talent, '.t sim#ly t" #r"te(t the in!estment ") the
'r"ad(ast stati"n& The 'r"ad(ast stati"n n"rmally s#ends s.'stantial am".nts ")
m"ney, time and e))"rt ?in '.ilding .# its talents as well as the #r"grams they
a##ear in and th.s e1#e(ts that said talents remain e1(l.si!e with the stati"n )"r
a ("mmens.rate #eri"d ") time&A N"rmally, a m.(h higher )ee is #aid t" talents
wh" agree t" w"r9 e1(l.si!ely )"r a #arti(.lar radi" "r tele!isi"n stati"n& In sh"rt,
the h.ge talent )ees #artially ("m#ensates )"r e1(l.si!ity, as in the #resent (ase&