THELMA DUMPIT-MURILLO, PETITIONER,

- VERSUS COURT OF APPEALS, ASSOCIATED BROADCASTING COMPANY, JOSE JAVIER AND

EDWARD TAN, RESPONDENTS.
G.R. No. 164652 June 8, 2007

FACTS:
Thelma Dumpit Murillo was employed as a newscaster and a co-anchor for Balitang-Balita by
the Associated Broadcasting Company on October 2, 1995. The contract was for a period of
three months. On September 30, 1999, after four years of repeated renewals, Petitioners talent
contract expired. No contract was again entered into by the parties to the previous contract. The
petitioners then wrote a letter demanding her reinstatement to her former position, payment of
backwages and services. On December 30, 1999, petitioner filed a case against ABC for illegal
constructive dismissal. The labor arbiter ruled in favor of ABC. The NLRC however reversed the
decision and ruled that an employer-employee relationship existed between petitioner and
respondent and that the petitioner was a regular employee illegally dismissed. When the case
reached the Court of Appeals, the latter decided that Petitioner should not be allowed to renege
from the stipulations she had voluntarily and knowingly executed by invoking the security of
tenure of the Labor Code, hence this appeal.

ISSUE:
WON an employee-employer relationship existed between ABC and Petitioner and was she
illegally dismissed.

HELD:
The CA committed reversible error when it held that petitioner was a fixed term employee.
Petitioner was a regular employee under the contemplation of law. The practice of having fixed
term contracts in the industry does not automatically make all talent contracts valid and
compliant with labor law. In Manila Water Company vs. Pena, the elements to determine the
existence of an employer employee relationship are: (a) the selection and engagement of the
employee (b) the payment of wages, (c) the power of dismissal, (d) the employers power to
control. The duties of the Petitioner as enumerated in her employment contract indicate that
ABC had control over the work of the Petitioner. Aside from control, ABC also dictated the work
assignments and payment of Petitioners wages. ABC also had the power to dismiss her. All
these being present, clearly there existed an employer-employee relationship between
Petitioner and ABC. Concerning regular employment, the Law provides for two kinds of

employees. (1) those engaged to perform activities which are usually necessary or desirable to
the usual business or trade of the employer, (2) those who have rendered at least one year of
service, whether continuous broken. The Petitioners work was necessary or desirable in the
usual business or trade of the employer which includes its participation in the Governments
news and public information dissemination. In addition, her work was continuous for four years.
Her contract was renewed for over 15 times. This repetitive renewal was indicative of
Petitioners works desirability and necessity. Hence it is concluded that she is a regular
employee.