Fact: Private Respondent Mercado went to the Labor Arbiter to complain his illegal dismissal committed by the Petitioner. Petitioner filed a motion to dismiss claiming that it is a GOCC, hence the LA has no jurisdiction over them. LA rendered a decision in favor of Mercado. Respondent appeal to the NLRC to which it denied its appeal and affirmed the decision of the LA. Hence, Respondent raised the issue to the SC for review.
Issue: Whether the LA and NLRC as no jurisdiction over the Respondent
Held: No, Thus, under the present state of the law, the test in determining whether a government-owned or controlled corporation is subject to the Civil Service Law are the manner of its creation, such that government corporations created by special charter are subject to its provisions while those incorporated under the General Corporation Law are not within its coverage. Specifically, the Respondent having been incorporated under the General Corporation Law was held to be a government owned or controlled corporation whose employees are subject to the provisions of the Labor Code