What is a Contract of Adhesion? | 26 April 20245

A contract of adhesion is defined as one where one of the parties imposes a ready-made form of contract which the other party may accept or reject, but which the latter cannot modify. (South Pachem Development, Inc. vs. Honorable Court of Appeals, G.R. No. 126260, December 16, 2004)

Author

Alburo Law
April 26, 2024

What is a Contract of Adhesion?

A contract of adhesion is defined as one where one of the parties imposes a ready-made form of contract which the other party may accept or reject, but which the latter cannot modify. (South Pachem Development, Inc. vs. Honorable Court of Appeals, G.R. No. 126260, December 16, 2004) 

SUPREME COURT DECISION: PLDT WORKERS PERFORMING INSTALLATION, REPAIR, AND MAINTENANCE OF SERVICE LINES HOLD REGULAR EMPLOYMENT STATUS

Issue at hand:

G.R. No. 244695

  1. MKP alleges that CA failed to consider the totality of the circumstances of every contractor’s contracting agreement with PLDT, and instead, sweepingly categorized them as either labor-only or legitimate contracting, based only on their contracted-out services.

  2. MKP claims that the CA erred in holding that the specific group of contracted workers that perform work not “directly related to the core activities” of PLDT, such as janitors, and security guards, among others, cannot be regularized by PLDT.

  3. MKP asserts that the CA made the correct ruling, albeit, hinged on the wrong legal basis, when it declared as regular employees of PLDT workers of contractors engaged in the installation, repair, and maintenance of telephone or data lines.

  4. MKP also found as an error the appellate court’s declaration that sales workers of PLDT’s contractors are outside the coverage of DO 18-A. 

  5. MKP claims that the CA “should not have exempted contractors of PLDT providing information technology-enabled services and sales agents from the coverage of DO 18-A.

Ruling:

THE SUPREME COURT SUSTAINED THE DECISION OF THE COUT OF APPEALS AND, THUS, DISMISSED THE CONSOLIDATED PETITIONS.

A. The extent of the Court’s judicial review of labor cases vis-à-vis the scope of the Court of Appeal’s certiorari review of the decisions of the Secretary of Labor and the labor tribunals

The CA did not err in finding grave abuse of discretion on the part of Sec. Bello in issuing his assailed Resolutions. As will be discussed, the CA correctly ruled that the Resolutions of Sec. Bello were not supported by substantial evidence.

Why choose ALBURO LAW?

Alburo Alburo & Associates Law Offices:

• Have labor law and business law as our main fields of practice. For almost a decade now, we have been helping businesses improve their productivity and profitability by helping them comply with relevant laws, rules, and regulations.

• Observe high standards of excellence.

• Always consider innovative approaches to effectively address the legal concerns of our clients, covering a wide range of industries such as food, manufacturing, chemicals, real estate, retail and wholesale trade, and services in fields such as information technology, human resources, security, training, process outsourcing and other manpower services, among many others.

Contact us: 09778050020 | 09778050015 | (02) 7745-4391

MAY 2024 TRAINING PROGRAM