National Service Corp. v. NLRC, 168 SCRA 125 (1988) -- The civil service does not include Government owned or controlled
corporations (GOCC) which are organized as subsidiaries of GOCC under the general corporation law.
F: Eugenio Credo was an employee of the National Service Corporation. She claims she was illegally dismissed. NLRC ruled ordering her reinstatement. NASECO argues that NLRC has no jurisdiction to order her reinstatement. NASECO as a government corporation by virtue of its being a subsidiary of the NIDC, which is wholly owned by the Phil. National Bank which is in turn a GOCC, the terms and conditions of employment of its em¬ployees are governed by the Civil Service Law citing National Housing v Juco.
ISSUE: W/N employees of NASECO, a GOCC without original charter, are governed by the Civil Service Law.
HELD: NO. The holding in NHC v Juco should not be given retro¬active effect, that is to cases that arose before its promulga¬tion of Jan 17, 1985. To do otherwise would be oppressive to Credo and other employees similarly situated because under the 1973 Consti but prior to the ruling in NHC v Juco, this court recognized the applicability of the Labor jurisdiction over disputes involving terms and conditions of employment in GOCC's, among them NASECO.
In the matter of coverage by the civil service of GOCC, the 1987 Consti starkly differs from the 1973 consti where NHC v Juco was based. It provides that the "civil service embraces all branches, subdivisions, instrumentalities, and agencies of the Government, including government owned or controlled corporation with origi¬nal charter." Therefore by clear implication, the civil service does not include GOCC which are organized as subsidiaries of GOCC under the general corporation law. For more case digests and law school notes visit lizajamarga.com.