a. The State and its Political Subdivisions

Employer

An employer includes any person acting directly or indirectly in the interest of an employer in relation to an employee and shall include the government and all its branches, subdivisions, and instrumentalities, all government-owned or controlled corporations and institutions, as well as non-profit private institutions, or organizations. (PD 442, Art. 97)

What are the Limitations Imposed by The State:

• Eminent Domain;
• Police Power;
• Taxation

What are the Limitations Imposed by The State:

• Eminent Domain;
• Police Power;
• Taxation

Aspects of liability of the State

• Public/Governmental – Where the State is liable only for the tortious acts of its special agents. The State has voluntarily assumed liability for acts done through special agents.
• Private/Non-governmental – When the State is engaged in private business or enterprise, it becomes liable as an ordinary employer. (NIA v. Fontanilla, G.R. No. 61045, December 1, 1989)

NOTE: For acts in the exercise of governmental functions, the State is liable under Article 2180 of the Civil Code for torts committed through a special agent. This does not exclude liability when the State acts in a private or proprietary capacity, or an LGU’s liability under Article 2189 of the Civil Code for defective roads and public works.

Lack of knowledge not a defense

The LGU cannot be relieved of liability based on its purported lack of knowledge of the excavation and the condition of the road when the accident occurred. Its duty to regulate excavation within its territory applies even when the work is not on a municipal road; liability for a defective public work under Article 2189 of the Civil Code requires its control or supervision. (Municipality of San Juan v. CA, G.R. No. 121920, 9 Aug 2005)