G.R. No. 162839. October 12, 2006

FACTS:

Natividad and Quejada’s employment were terminated by Innodata since the employment contract had expired which is effective for a fixed period of one (1) year. They filed a complaint for illegal dismissal and for damages. Claiming that their job was necessary and desirable to the usual business of the company which is data processing/conversion and that their employment is regular pursuant to Article 280 of the Labor Code.

Petitioner contends that the regularity of the employment of respondents does not depend on whether their task may be necessary or desirable in the usual business of the employer. It argues that the use of fixed-term employment contracts has long been recognized by this Court.

The Labor Arbiter rendered a judgment in favor of the complainants – Natividad and Quejada to have been illegally dismissed by Innodata and ordered to reinstate them to their former position without loss of seniority rights, and to pay them backwages computed from the time they were illegally dismissed up to the date of the decision.