Taxi driver won before NLRC-NCR Labor Arbiter for illegal dismissal

Posted February 04,2019 18:25:10

 In a Decision on January 2013, an NCR Labor Arbiter ruled in favor of the taxi driver against JJPNB Transport Services for illegal dismissal.

           The complainant filed a complaint for illegal dismissal against the company.

           The complainant was a driver of JJPNB transport Services under a “boundary system” wherein he drives a taxi for the carriage of passengers at his personal time and discretion for as long as he remains the sum agreed upon per day.                   

           “Complainant was a regular employee of respondent and entitled to due process of law before his termination. He was hired by respondent as regular driver in one of the latter’s jeepney units, for years continuously without interruption,” the Labor Arbiter said.

           The Labor Arbiter ruled that the complainant is deemed to have been illegally dismissed from employment, thus, entitled to reinstatement and payment of full backwages. In lieu of reinstatement due to strained relationship, payment of separation pay equivalent to one (1) month pay per year of service.

           It is well-settled rule that the relationship between owners/operators and drivers under the boundary system is that of employer-employee. The fact that the drivers do not receive fixed wages but get only that in excess of the so-called “boundary” that they pay to the owner/operator is not sufficient to withdraw the relationship between them from that of employer and employee.  

           The Labor Arbiter has exclusive jurisdiction over illegal dismissal, money claims and other claims arising from employer-employee relationship, among others.

           If no appeal is filed, the decision or order of the Labor Arbiter becomes final and executory after ten (10) calendar days from receipt thereof.


Research, Information and Publication Division

National Labor Relations Commission