MANILA - The Supreme Court has ordered the regularization of PLDT's employees who are involved in installation, repair and maintenance services.

In a decision of the 1st Division promulgated on February 14, 2024, the high court affirmed the ruling of the Court of Appeals stating that employees engaged in installation, repair and maintenance services of PLDT lines are performing work directly related to the company’s telecommunication business.

The court further noted that under Article 295 of the Labor Code, what determines regular employment is the reasonable connection between work performed by the employee and the usual business or trade of the employer.

“It cannot be denied that without the work performed by these employees, PLDT would not be able to carry on its business and deliver the services it promised its consumers,” the court said in the decision penned by Associate Justice Rodil Zalameda.

The case stemmed from the petitions filed by the Manggagawa sa Komunikasyon ng Pilipinas and former Department of Labor and Employment Secretary Silvestre Bello against PLDT before the courts.

Following a “Special Assessment and Visit of Establishment” conducted by the DOLE, the company was found to be engaged in labor-only contracting.

Bello then ruled that 7,344 workers of the contractors were regular employees of PLDT from the time of their initial deployment.

Contractors and PLDT were also ordered to solidarily pay the unpaid monetary benefits of the contractual employees amounting to P51.8 million.

The Supreme Court however clarified that labor-only contracting is not illegal per se, following Article 106 of the Labor Code.

The court said the fact that PLDT had contracted out specific jobs, works, or services does not automatically mean that the contractors’ employees are the direct employees of PLDT.

The SC affirmed the ruling of the CA which reversed Bello’s decision on the regularization of the following groups of workers: those performing janitorial, maintenance, security and messengerial services; medical services; other professional services; technology-based services; and employees engaged in sales who are paid on commission.

“An employer is not necessarily engaged in labor-only contracting whenever it farms out specific jobs, works, or services,” the court said.

The Supreme Court however ordered that the DOLE conduct a review to properly determine the effects of the regularization of the workers performing installation, repair and maintenance services.

In a disclosure to the stock exchange, PLDT said it confirms that the Supreme Court upheld the Court of Appeals’ decision setting aside the order of then DOLE Secretary Silvestre Bello III to regularize 7,344 workers of PLDT’s service contractors.

"With regard to those workers performing installation, repair, and maintenance functions, we clarify that the Supreme Court remanded the case to the DOLE Regional Director to determine whether or not regularization is appropriate," the telco giant said.

PLDT's reported net income bounced back to P26.6 billion in 2023, up 154 percent, after falling almost 60 percent in 2022.

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