After years of waiting the Supreme Court handed down its
decision involving veteran newscaster Mel Tiangco’s claims for separation pay,
damages and attorney’s fees from ABS-CBN on the ground that she is not an
employee of the broadcast giant that suspended her for three months in 1996 for
appearing in a TV ad for a laundry detergent.
The SC dismissed the case in favor of the Lopez-owned ABS-CBN
Corporation.
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| (photo credit to owner) |
What happened before: Tiangco appeared in a Tide
commercial in December 1995, in a supposed violation of a ABS-CBN memorandum
issued in February of the same year barring employees and contractual talents,
like her, in the Radio and the News and Public Affairs Departments from
appearing in ads.
- As a result,
ABS-CBN suspended Tiangco without pay for three months from being
co-anchor of TV Patrol and the DZMM radio program Mel & Jay.
- In written
negotiations between Tiangco and ABS-CBN following the suspension, she
maintained that the TV network gave her verbal approval to appear in the
ad and that the suspension was “harsh and unjust.” ABS-CBN denied ever
giving Tiangco the go signal and said the suspension was decided after
“lengthy and careful” deliberation.
- With no amicable
ending to the suspension drama in sight, Tiangco filed a complaint against
ABS-CBN and its officers for illegal dismissal, illegal suspension, and
claims for back wages, separation pay, 13th month pay, travel, vacation
benefits of P150,000, shares of stocks, damages and attorney’s fees.
- Tiangco triumphed
over ABS-CBN before the labor arbiter, who ruled that the TV network owed
her:
- P1,254,000 in
salaries
- P4,170,000 as
separation pay
- P972,249.66 as
13th month pay
- P500,000 as
signing bonus
- P1,100,000 as
refund of her contributions to employee stocks
- P300,000 for
travel expenses
- P3,000,000 as
moral damages
- 10% of all these
awards as attorney’s fees
- The National
Labor Relations Commission, however, reversed the labor arbiter’s ruling
and sided with ABS-CBN which argued that Tiangco is not its employee, but
just an independent contractor much like her co-host Jay Sonza who had
also unsuccessfully sued the broadcast giant.
- Tiangco elevated
the case to the Court of Appeals, which ended with a settlement between
her and ABS-CBN where she agreed that the network has fully paid her
salaries, 13th month pay, travel allowance and employee stock
refund.
- With this, the CA
did not rule on whether Tiangco was an ABS-CBN employee as the issue had
become moot and academic.
- Unsatisfied,
Tiangco took the case to the SC where we are now.
What happened now: Tiangco
raised two issues for the SC to resolve: Whether the settlement between her and
ABS-CBN actually settled all her claims and whether she is an employee or
independent contractor of the network.
- The SC agreed
with Tiangco that the settlement did not cover all of her monetary claims
as it did not include separation pay, damages and attorney’s fees.
- But the SC also
ruled that she was not entitled to these as she is not an ABS-CBN employee
and is only an independent contractor.
Why is Tiangco only an
independent contractor: The SC cites four reasons why it considers the
veteran broadcaster as an independent contractor and not an employee, as she
asserts.
- She was hired
because of her peculiar talents, skills, personality and celebrity status.
“A unique skill, expertise, or talent is one of the factors in determining
the nature of a person’s status at work,” said the SC.
- She was paid an
“extraordinarily high rate” — P410,000 in the first year of her last
contract and then P417,000 in the second and third years — because of her
unique skills, expertise or talent. The SC said: “Unlike ordinary employees,
who are usually in a position of weakness, petitioner had a say on the
terms of her engagement.”
- While her
suspension was “incorrect” as ABS-CBN should have terminated her contract
instead, the SC said this has been rectified by the settlement agreement
between the two parties.
- ABS-CBN had no
control over Tiangco’s work. The SC said she had control over her voice,
stature and manner in delivering the news, which was not dictated by the
network.
Why this matters: In dismissing
her appeal against ABS-CBN, the SC reiterated its ruling in the suit filed by
Sonza against ABS-CBN where it was held that he is not an employee of the
network and is only an independent contractor, largely for the same reasons
stated by the court in Tiangco's case.
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