FORTUNATO MERCADO (and 15 others) v.
NLRC o Petitioners cannot be deemed to be
& AURORA CRUZ
FACTS:
 Petitioners: agricultural workers utilized by
private respondents (Aurora Cruz, Francisco
Borja, Leticia Borja and Sto. Nino Realty
Inc.) in all agricultural phases of work on
the 7 ½ ha of rice land and 10 ha of sugar
land owned by the latter
 Aurora Cruz: petitioners NOT regular EEs
o Services were engaged through
supply workers (mandarols [Sps
Fortunato and Rosa Mercado]) to
do particular phase of agricultural
work necessary in rice production
and/or sugar cane production, after
which they are free to render
services to other farm owners
 LA: NOT regular EEs
o Nature of hiring  phases of work
for definite period of time, after
which services available to other
farm ownrs
o Sworn statement of one of
petitioners, Fortunato Mercado Jr.:
they were hired only as casuals,
on on and off basis, thus it was
within prerogative of Aurora WON
to take them in for further work
after phase is completed
o Real cause of complaint probably
because of filing of criminal
complaint for theft against
Reynaldo Mercado, son of the
mandarols (petitioners are all
related)
 NLRC: affirmed LA
 Petitioners: employment, even if seasonal,
continued for so many years that by
express provision of A280 LC, they have
become regular and permanent employees
o Also invoke Policy Ins #12: what
determines regularity or casualness
is not emp contract, but NATURE of
job
o >1yr : regular
o They have been doing all phases of
agricultural work for so many yrs,
activities necessary, desirable and
indispensable to business
 Respondents: only hired as casuals
o Chief of Special Task force of NLRC
Regional office had same finding –
rule on findings of fact of admin
agencies
 NLRC filed separate comment
regular: they fall under EXCEPTION
in A280
 “except x x x where work
or services to be
performed is seasonal in
nature and the
employment is for the
duration of the season.”
ISSUE: WON petitioners are regular employees. NO.
casual only
HELD:
First par of A280 LC degines regular employees:
regular where activities are necessary or desirable to
business, EXCEPT for project employees
 Project employee:
1. Fixed for specific project or
undertaking, termination determined @
time of engagement
2. Work SEASONAL IN NATURE,
employment for duration of season
2nd par of A280 LC: casual employees who have
rendered >1yr service: REGULAR
 Petitioners contend that this proviso is
applicable to their case
Proviso applicable only to employees who are
deemed casuals, but not to the project
employees nor te regular EEs treated in
A280(1)1
Petitioners are SEASONAL employees
 Employment ends upon completion of
project or season
 Termnation NOT illegal dismissal
1 Office of proviso: qualify or modify only phrase immediately
preceding it or restrain or limit generality of clause that it immediately
follows. To be construed with regerence to imm preceding part of
provision to which it is attached, not to statute itself or to other
exceptions. Only exception: clear legislative intent. P.I. 12.: Proviso in
A280(2) not designed to stifle small-scale businesses nor to oppress
agricultural land owners to further interests of laborers. Only seeks to
eliminate abuses of ERs against EEs