Professional Documents
Culture Documents
1.
It is possible for a dual juridical relationship to exist that of employer-employee and vendor-vendee,
or that of employer-employee and corporation-stockholder. Control of the employees conduct is the most
crucial and determinative indicator of the presence or absence of an employer-employee relationship. The
existence of a different kind of juridical relationship between the parties does not necessarily extinguish the
employer-employee relationship. In the same way, the existence of an employer-employee relationship cannot
be negated by expressly repudiating it in a contract.
2.
The submission of reports and recommendations regarding work progress on a regular basis does not
amount to control over the means and methods of work. Not all rules are equivalent to control, that gives rise
to an employer-employee relationship. There is a difference between rules and guidelines towards the
achievement of the mutually desired result without dictating the means or methods to be employed in attaining
it, and those that control or fix the methodology and bind or restrict the party hired to the use of such means.
The first create no employer-employee relationship.
3.
Exclusivity of service does not necessarily mean that the purported employer exercised control over the
means and methods of the purported employees work. This feature is not meant to change the nature of the
relationship between the parties, nor does it necessarily imbue such relationship with the quality of control
envisioned by law as giving rise to an employer-employee relationship.
4.
A person may be paid on the basis of results or time expended on the work, and may or may not acquire
an employment status. Payment by results is merely a method of computing compensation and not a basis for
determining the existence of employer-employee relationship. Hence, payment by commission or on per-trip
basis will not negate the existence of an employer-employee relationship.
5.
A party may render services for another, no matter how necessary for the latters business, even without
being hired as an employee. The fact that the worker performs work that is usually necessary and desirable to
the business of the employer is not determinative of the existence of an employer-employee relationship.
Article 280 of the Labor Code is not the yardstick for determining the existence of an employer-employee
relationship. The provision merely distinguishes between the two (2) kinds of employees (regular and nonregular), in an employment relationship that is not in dispute.
6.
The mere presence of the contractors supervisor in the work premises does not necessarily mean that
the contractor had control over the work of the employees. The test to determine the existence of independent
contractorship is whether one claming to be an independent contractor has contracted to do the work on its own
account, under its own responsibility, according to its own methods and without being subject to the control of
the principal, except only as to the results.
7.
It is not enough to show substantial capitalization or investment in the form of tools and equipment, to
be considered as an independent contractor. In determining the existence of an independent contractor
relationship, several factors might be considered such as: whether the contractor is carrying on an independent
business; the nature and extent of the work; the skill required; the term and duration of the relationship; the
right to assign the performance of specified pieces of work, the control and supervision of the workers; the
power of the employer with respect to hiring, firing and payment of the workers of the contractor; the control of
the premises; the duty to supply premises, tools, appliances, materials and labor; and the mode, manner and
terms of payment.
8.
In legitimate job-contracting, the law creates an employer-employee relationship for a limited purpose,
i.e., to ensure that the employees are paid their wages. The principal employer becomes jointly and severally
liable with the job contractor, only for the payment of the employees wages whenever the contractor fails to
pay the same. In labor-only contracting, the law creates an employer-employee relationship for a
comprehensive purpose: to prevent a circumvention of labor laws. The contractor is considered merely an
agent of the principal employer and the latter is responsible to the employees of the contractor as if such
employees had been directly employed by the principal.
9.
For employees in a contracting arrangement, the actual source of the payment of their wage does not
matter as long as they are paid. As creditors, the employees may collect from anyone of the solidary debtors.
Solidary liability does not mean that two solidary debtors are liable for only half of the payment. The
employees immediate recourse, however, is with their direct employer.
10.
The Constitution declares that the State affirms labor as a primary social economic force. It shall
protect the rights of workers and promote their welfare. The State shall afford full protection to labor, local and
overseas, organized and unorganized, and promote full employment and equality of employment opportunities
for all.
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