PNOC-ENERGY DEVELOPMENT CORPORATION, petitioner, vs. NATIONAL LABOR RELATIONS COMMISSION (Third Division) and DANILO MERCADO, respondents. PARAS, J.:

FACTS:
Danilo Mercado, an employee of herein petitioner was dismissed on the ground of dishonesty and violation of company rules and regulations. He filed an illegal dismissal complaint before the NLRC who ruled on his favor, despite the motion to dismiss of petitioner that the Civil Service Commission has jurisdiction over the case.

ISSUE:
WON NLRC has jurisdiction over the case.

HELD:
​Yes. Employees of GOCCs, whether created by special law or formed as subsidiaries under the Corporation Law are governed by the Civil Service Law and not the Labor Code, under the 1973 Constitution has been supplanted by the present Constitution. Thus, under the present state of the law, the test in determining whether a GOCC is subject to the Civil Service Law is 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. PNOC has its special charter, but its subsidiary, PNOC-EDC, having been incorporated under the General Corporation Law was held to be a GOCC whose employees are subject to the provisions of the Labor Code.