LabStan 1st Meeting Atty.

y. Nazareno Youre in second year, you have seen the very long tradition of Civil Law and Criminal Law. And now you are entering the tradition of Labor Law, which has issue; you have to compare Labor with the various principles that you have gone through in Civil and Criminal Law because Labor is not quite the same, because it has a shorter history. In the civil code, there is a particular section that you call the list of services. It is a contract by which a person renders services to another and yet it is not covered by the Labor Code. Why? Because labor registration began just about 250 years ago with the concept of the industrial revolution; that is the beginning of labor legislation. Civil Law began with Plato and Aristotle 300 years B.C. Plato and Aristotle say those who lived in the cities, lived according to law. Those who live outside of the city lived or tried to stay alive because there is no law outside the city. Imagine, you are swinging in the trees and you see the fruit, you go and somebody is already after that fruit, and you should be ready to defend that fruit and repel or kill that other someone who wants the fruit because there is no law. When you enter the city, there are a set of rules that you have to act, so you can live together and sleep not wondering whether somebody will come up to you in the middle of the night and cause the death of you; that is the life in the city. Those who live in the cities are called citizens and they live a civil life not a barbaric life. Thats why coming down to our language, when a person is civil, hi is recius? Not war like. So thats the tradition of civil law. _______ without law, there is no city. An important question that can be raised is this Did the city necessitate the publication of laws? Laws began as the city came about. In other words, the people swinging in the tress, then why did they come down from the trees? Because all of a sudden, change came by. Something grew on the land, better nutrition than you get from the tress. Suddenly, man found out that you can eat the cat fish that is in the farm. The big debate is, how did man come to the use of tools? Did he stand erect so he could move faster, when he stand erect, his hands were free why he began to make tools; or he stood erect because precisely he was using tools. Anthropologist cant answer that question just like the chick and the egg. Thats the same question does law makes society or does society makes the law? Which came first? Was because they arrived at an arrangement of law thats why they came from the tress? Or they came down the tress because it was necessary to have laws? What does it have to do with labor and constitution? Quite a lot! Our constitution is not like the US Constitution or Roman Civil Law. Our constitution has the fundamental admission that our society is radically effective. ________ so many has so little and so few have so much. There is a wide gap. Our society is an imbalanced society. You will correct that? How? By SOCIAL JUSTICE. What is social justice? It is the trust that command, the underlying principle in the constitution commanding the state to pass laws to give more to those who have less in life and to grant more right to those who have less. Its so knowing that you correct the imbalance of the society. What is the basis there? It is the law that makes society, not the society makes the law, thats the basis of the constitution. What is SOCIAL JUSTICE? Social justice is the principle of the constitution to grant in law to those who have less in life. Example is an person

living on a lot not his. Can you be ejected without any place to be relocated? You cannot under the law. What is the basis of that law? It is SOCIAL JUSTICE. Another example, A hires B and have an agreement. Each day that B work for A, he will pay him 200 Pesos. After he is hired, the following, there is now a new wage order that a minimum wage is 300 Pesos. What happens now to the agreement? It is amended by the law. What happens to the provision of the Bill of Rights that says No law shall be passed impairing the obligations and contracts. That does not apply when it comes to social justice because when a law is passed according to the social cannot impair obligations and contracts. Thats an exemption from the general rule from the Civil code that No law should transgressed vested interest. If you have that right on something and that right has ripened, the law should not take away from you. Social justice is a very powerful mandate of the constitution. Who originated social justice? Plato and Aristotle rescinded from the issues of social justice but they did not originated social justice. Athens was 50% free and 50% of slaves. Where did the slaves come from? They were spoils from the war. They begin to work until they are drop dead. And sometimes the tragedy is that the slaves were more educated than their conquerors. The romans were great in war fair, thats why they conquer the lands, and their prizes fair are the slaves. The Greeks who would teach their generaks and future politicians. The greeks were more intelligent. They were good in philosophy but not in mathematics. And when they defeated Carthage, very good mathematicians. So was there already social justice problem of inequality at the time of the Greeks? Yes! Was there social justice issue among the romans? Yes! The consciousness of man was not yet _______ as to address. It was not right ___________ The civil code then, was made on 1954 the origin of the civil code is ________civil and its origin is the napolionic code. Napoleon was the first in modern times to unite Europe. Whats the basis of the Napoleonic code? The Justinian Code. After the fall of the Roman Empire, the entire Europe went to what we call, the Dark Ages. In Europe, there was no order. They fell to disarray. In the history of man, those who come up as winners do not necessarily mean they are the wise and the good. It is the object of law, the wise and the good. Sometime in the late 17th century, there was rise on technological advancement, like the invention of cotton gin, spinning wheel which made threads faster. Before, the clothes that you wore are hand made by your parents or the adults and because it took a long time to create, each one has only one pair. With technology came the inventions that change the life of man especially in the early 19th century, when the locomotive was invented, when the internal combustion was invented. Then mass production became possible then work became regimented. Just think of this, because of speed by which textiles could now thread, they needed more wool which they could sell it now. Because of this, they have what this called, the inclusion over they put more and more land under fence, so people would grace more, so many of the tenants were dispossessed, wala na sila mabungkalan ug yuta, dili na

sila katanum, they went to the towns and the towns became cities. What did they do in towns? They started working on factories on making wools; then thats the birth of the working class. People who have lost everything, no more land, no more wealth how will they survive? By renting themselves out; by working for somebody. That arrangement scandalized KARL MARX. These people are no higher than prostitutes. You work for somebody and you are paid, you are just like a prostitute; it gave birth to SOCIAL JUSTICE. And it took 100 years before Karl Marx was translated to a political system by a lawyer name Vlademir Lenin. The most radical form of social justice was the Communist. From there on, only one owns the means of production, THE STATE. Thats the most radical. To each according to his needs, to each according to his ability. Workers of the world unite; you have nothing to lose but change. Of course you know that that kind of system does not last, just crumble. So, these labor institution road out from that system. It made the industrial revolution at the beginning of the (inaudible) there must no minimum age of employment. Now people are using coals to heat their homes. coals are mined in the earth by pulleys, motors and other machines. A coal is burned in your house, you have a chimney and the smoke comes out in the chimney. For you to clean the chimney, adult should do it, but a child is better, so they started hiring children. Then you have abuses CHILD LABOR! Dira nagsugod. So they say no more child labor, easier said than done. there is still child labor in different parts of the world. If you hire somebody that time, when the sun rise, sugod agad ang trabaho, but kung walay suga, undang dayong ang trabaho. 12 hours of work. How many hours is a maximum full pay now? 8 hours! At that time it was 12, finally they said it was not good for man to work in 12 hours. The law was passed! If you work in the coal mine. It was very dangerous. (Inaudible ni na part 46:20) Then they established employee compensation. Employee must have insurance against liability for accidents. It is the insurance company who pays not the employer. No fault. Proceeding. You dont have to prove that the employer is at fault. All you have to do is sustain the injury, work in time at the work place and you will be paid. Those are the laws that came out of the excesses of Industrial revolution, that is the beginning of LABOR CODE. Now, the most extreme expression of Social Justice is the socialist communist experiment. The socialist experiment in Russia also in China, so many died on both. The complete account has not been written because the weapons have not been made attainable. Where it may be told there are many historians who say that once the story may be told, man will wake up to the lesson that the communist experiment is the most expensive and painful so far of the human race. Now, there are shades of socialism and social justice and I risk that any of this which is not politically correct at this day of time but I will say this because it is what the data points us. Well you know when a town is in bad shape, before they thought the founder of Europe were just the PIGS (Portugal, Ireland, Greece and Spain). Why? Because these countries battled heavily to sustain the respects among their people which translate social justice. For instance, the Pension plan, while you are working

they deduct 10% - 20% from your pay, you contribute so when you retire after 30 years of working, you will be receiving a sum almost equivalent to your last pay. Your contribution has no connection with the amount that you receive, it is much much more. The system was built in such a way that more must contributing to it rather than claiming from it. What happened is that fewer and fewer people have been contributing to the pension plan in Europe. Why? Because most of these countries are reaching zero population growth and the workiers are retiring sooner than actually anticipated by the bank. If you finish high school at 18, rather standing on the assembly line, you marry at 20 and have a child or two. At the time you are 40- 45, your child has reached 18, so he is no longer your responsibility when he is already working. What the use of continue working when you already have the pension. That is why, the middle aged from 45 55 in many European countries close on 50% on disability benefits, they will claim disability. And so the pension system is already to in debt, and it is the biggest pyramiding scam. The government system is biggest Ponzi scam. There is no pension system in the world that is guaranteed to answer even accrued liabilities. It is postponing its liabilities. There are few who contribute and more who ask from pension system, what happens, the responsibility of the state is keep on borrowing. That is how the different European states are now in deep debt. In a short time, it learned to live beyond its means in the name of Social Justice. Europe fear that it would be like Russia, so it opted certain features of the socialist system: Pensions, Entitlements, thirteen month Pay, which began in Greece. This is the end. In the Philippines, what did Abad announced as the next years budget of the Philippines? 2 Trillion Pesos. How much is collected on Taxes? Not even 1 trillion pesos How did we get this? Through borrowing I will read to you the constitutional provision that reflects the understand of what the fundamental law respect to the economy. Article 12, section 1, which is a general provision of the constitution. the goal of the national economy is the more equitable distribution of the income and wealth, a sustain increase on the goods produce by the nation for the people, and expanding productivity can this be done? In the United States, during the 1950s to 60s, it was the great time when the great labor unions were organized. After that it came down because right now, less than 10% US private labors is unionized. The (inaudible) in labor plan, is the Assembly Plan in Labor Worker in the big four ( ford, Chrysler, GM) They got concessions like a collective bargaining agreement that will cover you health benefits even after you retire from work, it would continuous. Until you die, you will receive benefits. Many recognize the success of labor defeated itself because all the while the car factories went to the South. All the companies moved south because they convinced all the law makers there to pass The Right to Work Laws, the Union no longer exclusively have the right to represent workers. Practically, it made impossible for Union representation. What is worse some of the jobs are exported to the abroad. Fewer and fewer on the private sector went to the union. The unions were concentrated on the government sector. Now 70% of the entire government full force is unionized, like firemen, policemen they keep demanding, and what does the government do, it keeps borrowing, what is the

total of debt of the US, it is, as of last year, 13 Trillion Dollars. There is a wise economist said that, of all those in debt, the US is the luckiest because it iis the only country whose debt is denominated in dollars, they can simply print money to satisfy their debt but once they do it, thats the end of their economy. If the US cannot sustain its social justice trust of raising the benefits of the people by rising amount of goods and services, where does it take the Philippines? We go back to the question it is not enough that you know the law, you must have some idea on what came first, the egg or the chick, or the law or society because you have some understanding of these two entities and how they interact which each other. Does law make society or does society makes law? Because it is institutionalized, if you think my main responsibility is to make the law and thats it? Then you commit the same mistake that Renato Corona made. He said, I have 80 million under my name but I dont have to disclose it because it does not belong to me. It is said on the law that ALL PUBLIC OFFICERS MUST DISCLOSE no one exempted; yes you disclose only what is yours. The 80 million is not mine, it is from the Basa Estate, which is not mine, I dont have to disclose it. Is he correct? The disclosure provided in the law is SALN (Statement of Assets, Liabilities and Net Worth). Any sophomore in accounting will tell you that the basic formula is Assets = Liabilities, or the derivative formula provided that you dont have an equity account, Assets Liabilities = Net Worth. How will you find net worth if you do not reveal your liabilities. The 80 million belonging to the Basa Estate, that is liability. You have to disclose it because it is asset and liabilities. Not what is yours, you have to disclose it also. You add up, that is you gross asset and deduct the liabilities that is your net worth. Simple accounting! He did not know it, that is his reason. Is that a law? No it is not the law. It is the GAAP, which is a principle not a law. So, there is more to read than the law. You cannot escape what you have learned in college. Law catch across everything, from womb to tomb. So, there is there is this trust on the social justice. First it is the command to the state. What happens if congress does not pass laws that will grant rights to the poor? Can you go to supreme court and force the law makers to pass laws? You cannot because social justice is not in the bill of rights, it needs implementation. Social justice is a policy. What is your remedy? It is political. You elect people who will pass laws according to social justice. Now social justice if it is granted should not transgressed the basic constitutional principle. Social Justice although it must be followed as compelling cannot outweigh the basic of the constitution, all those you learned in the Bill of Rights. If a law is passed that a minimum wage earner is exempt from paying income taxes, and you are now a minimum wage earner or a manager and exceeds of your income, you will still pay tax thru withholding tax. Can that be challenged from the equal protection? Constitution. Social justice. Equal Protection. When is Equal protection violated? It can be violated when the law itself is not reasonable and a product of undue classification and discriminatory. Because social justice was supposed to drag more in to those who have less in life, it has a concomitant principle for the interpretation of the law. What is that? In cases

of doubt labor, legislation is interpreted as in favor of labor. If there is a doubt, that is a command that spreads from social justice. If there is doubt to the facts, and it is labor legislation to be applied, then you have to interpret it in favor, even if there are possibilities of more than one interpretation of the labor. Question, what does that do with the rules of construction? Is it superior to the rules of construction? When the law unambiguous, the you will reapply the law interpreting the provision of the law, can be interpreted as to negate another interpretation of the law, what should your interpretation should be. To give force and effect to all provision, not just one. The interpretation in favor of labor in case of doubt is just an additional interpretation rule. Again, this is by way giving more to those who has less in life. It does not cancel or negate rules of interpretation. Labor involves a contract. You have a seller and a buyer. The seller is the one who labors, and the seller is the employer. Now, labor contract has the general outline of contracts. There are parties of the contract; there is the subject, which the labor; and the consideration, the price pay. But that is about the sub total of its similarities, why, because for instance, in civil code, contracts are the meeting of the minds, if there in no meeting of minds, there is no contract. You will out in the labor code, that even if you dont agree, there is a labor contract. There is a supplied consent. The language of labor law is such that If you allow someone that will suffer and permit someone to work, there is labor contract. There are times that you will you say that even if you dont put in writing, that there is no labor contract that will not hold you. The law will say that there is labor contract. In the civil code, there is freedom to contract, that is the general assumption, and parties are free to put such stipulations in the contract that is not contrary to law, custom and traditions. Sometimes, in labor contract, the law itself dictates what the consideration is. Sometimes, the law itself will force you to enter in contract even if you dont like him anymore. The labor arbiter finds that you have illegal dismissed him/ her. The decision is final, even if cannot stomach him anymore, he will be back and demand what is at stake for him, without loss of benefits. You say I only need you for two or three years, that is how long I need. Even if you put that in writing, if he/she fulfills the requisite of regular employment, his/her engagement to you is indefinite, even if you agree on a limited period only. These are the differences of the civil and labor especially when it comes to the expression of contracts and its features. You should appreciate its differences. You might think it is not a labor contract but it is, then you file a case on regular courts, on a wrong court. Labor Standards, it establishes the floor, without which labor agreements cannot be ____. You can give more but you cannot give less. Example, in our labor law, the most number of hours that you can require of an employee to work in a day is 8 hours; if you keep him more than 8 hours, you must pay over time pay. If you make him work 10 in the evening to 6 in the morning, you must add nigh shift. There are so many laws. Suppose in practice, an employer allows an employee less than 8 hours, and he is syill given full pay. How does that happen? You punch in the morning at 8, and punch out because of lunch. 8 12, that is 4 hours. Technically speaking, the law requires the

employer an hour of lunch. You have to come back at 1pm and punch in and work until 5pm, so that 4+4 = 8, thats the maximum. Now, suppose you allow your employees to punch back not at 1 but at 2pm. Not by law but by practice. Suppose, you allow them to leave at 5pm, that is only 3 hours, amounting to 7 hours of work. What has happened? That practice has ripened as a matter of right. You cant take it away anymore. If you want it to be 8 hours, they can demand over time pay because equivalently, you have paid them the maximum up to 7 hours. You can make them work less but you cannot make them work more. That the the rule. It is funny that the labor code, actually punishes the generous employer.
LABOR STANDARDS Lecture of Atty. Nazareno July 13, 2012 We were taking up the EE ER relationship cases. We have taken up the landmark case of LVN vs. Philippines Musicians Guild, and this is the one case, the most important labor case of the whole labor. Do not go through the whole of labor without having read this case. This is where the Court declares what it means to be covered by the labor code that very narrow, strict, considering the whole spectrum of services being rendered to another. There are several laws which cover, including the laws you have already taken up like Family law. List of services, independent contracting, self made labor, tenancy and Agency. We take up agency in the Civil Code. The contract involves services rendered to one. Now, LVN vs. PMG brings out that even if the three first requisites for the existence of the EE ER relationship are not squarely met, if the fourth requisite which the power of control test is met, then it is enough to establish the EE ER relationship. So it is important therefore that the examine while EE ER relationship depends on the test for the exact compliance of the fourth requisite. How should we understand its scope and limitation? In the case of certain Sterling Pharmacy vs Sole, you have this radio monitor, and she is an employee of the pharmaceutical company. She is engaged to do one job, to determine whether or not the advertisement of the company is actually aired according the contract signed with its broadcasting agent that is she contracted with other radio station. And so this particular woman sought that she is given a radio. She does not have to report to the office; so she just stays at home. Is the work that she is given or the kind of work constitutes an EE ER relationship? That is the issue. Now, of course there are other secondary facts of instance. There are strings of evidences by which the employer has admitted its employee because she is given an ID card; even the certain admission that she borrows from the SSS that she is an employee. Now, because of the secondary evidences, Sterling has precluded from arguing the contrary; because she has already admitted something contrary to the suppose _________. But taking that aside, the issue whether or not the power of control is compliment if there is a separation from the employer and the putative employee physically? Can you exercise control when he/she is not within your premises? That is why the employer denies the existing of the EE ER relationship. The employer said that how can we control them as the means of method, that we do not see them, nakikinig sya sa radio, pero naga.suso sya ng anak nya, is she working or doing house hold chores? Nagluluto sya habang nakikinig sa radio, is she working or is she doing something for herself. we cannot control her, she is at home, thats why there is no possibility for us to exercise control that is the argument of the employer. But the

Supreme Court ruled that you have exercise the power of control, even if you are physically separated. First, she didnt have a radio, because she can only tune to stations where they bought airtime. Second, you give her a schedule, where she can listen to the station at this time. Fill out the form and write down what she heard. Supreme Court says that those are the instances where there is control. You are in fact exercising control by a pre arranged system. So, the commonality to that is, the control test compliment even if there is location separation between the EE ER. Dy Keh Beng vs Secretary of Labor, there are two people here who have decided to form joint union vis--vis there employer Mr ________. The employer says. do not form a union here because you are not my employees. What are his reasons? He says I dont know you. I just know from here, present me this _______, and I pay for every piece you bring in. and because I pay you on a piece rate system, you are not my employees. I dont require you to be here on time, and hours to stay here, you can make your ______ in your home, as long as a pay you every piece. The issues here are: 1 Does the piece rate system negate EE ER relationship? 2 This is a procedural issue raised on appeal, is the fact that the complainant who works since they did not present evidence on the actual exercise of control, does it negates the control test. They did not present any evidence at all, that they were under his control. Does that negate the existence of the EE ER relationship? The Supreme Court ruled that the piece rate system is not determinative of the existence of the EE ER relationship. The piece rate system is followed to a compensation system. As to the characterization of the relationship, that is not a EE ER relationship. There could not be EE ER relationship. Second, according to the Court, the power of control is met even if you do not present evidence of actual exercise of control. What is the minimum that is required? The minimum of what is required is to present evidence that there is a designation of the power to control. The putative employer shows, or is shown to have the power to control the means and methods, even if there no evidence that of actual exercise. Is that met in the case? The Supreme Court says YES! Why? Because it is inconceivable that the ________will receive just any time of ______ that is given to him. He exercise or reserves the power to control. His control is by way of exceptional intervention, If the product that is given to him is not according to his personal specification. That is again another passage of the power to control. RGL Martinez, you are talking here about fishing boats. Fishing boats that go out to the sea for several days. There they come in, since at the time there was no port in Navotas, they would wait and go out the sea, and then there will be people will go up to them with them upto their neck, then they tally the catch and they wave back to shore. The refrigerated vans are waiting. RGL Martinez has 60 fishing boats but not all of them is _______. There is not enough work to occupy these people for the whole _______. What happens? Sometimes they are _______ and then they are out of work. So, they transfer to another boat belonging to another company. For all reason, RGL Martinez says I can dismiss these people anytime because our engagement with them is per loading and unloading basis, because they can go to another boat and unload and load, that was the reason. Does that mean you have many employers or independent contractor because you are not just under control of one? In other words, the power of control, for it to be met, must be continuous and unbroken. That is the ISSUE and argument of RGL Martinez. Continuity is at issue because is it necessary to the power to control that it be continuous and unbroken? The Supreme Court says, clearly hear the putative

employees do all the unloading of the boats of Martinez. They will not go to another boat if there is still a boat coming from Martinez. For as long as there is still a boat from Martinez which is still not unloaded, they cannot go to another boat, if so only when, they have time and no more RGL Martinez fishing boat to be loaded or unloaded, that they go to somebody elses fishing boat. The Supreme Court says, are you going to penalize these workers because they are working for another to fill up their time. The SC says NO! They are not the employees of RGL Martinez. They do a job that is necessary for the fishing activity of RGL Martinez. Mamaho man ang isda kung dili nimo iunload! Part man na sya sa negosyo. What is ruled is that, the control test does not have to be continuous and unbroken. It can be broken and yet it can still be __________. So these are the features of the control test that you have to pay attention to. Even the case, these are not _______ to the control test. 1. It is the separation of the employee and employer that is the time necessary. 2. It is broken because the employee serves another undertaking other than his commitment. EE ER relation is _________. 3. Payment on a piece rate basis. 4. Your evidence submitted to prove actual ________. That is not necessary and detrimental to the power of control. What then is the power of control? Is it the only test? It is the ULTIMATE TEST but is its NOT THE ONLY TEST. Ultimately, you to reckon to the power of control but it is not the only test because there are certain situation when there is control, so much of it, yet there is no E ER relation. AGRICULTURAL TENANCY What is the distinction of Tenant Landlord and Employee farm owner? This case is Delos Reyes vs Espinoli, again this is a landmark case. Dont go through labor without reading this case because at some point as your life as a lawyer, you will come across tenancy, because we are not in Manila. In Davao City, there are agrarian reform cases. Here in this case, you have an absent tenant where he engages an incargado. The Incargado was supposed to stay to look up to the interest of the land owner. The incargado had the same idea with the land owner; he gets people to stay in the farm to do his job. The land owner finds out that his incargado is not there, so he looks all over the farm and finds out that there are these three (3) occupants already, to his coconut farm. He dismissed the occupants because he did not ask them but they said that the incargado brought them there. That is one of the issues. Is it valid? Can the incargado make tenants even if the land owner does not know about it? The Supreme Courts says yes! By making him an incargado he has the right to fire and hire that constitute as tenants. And because they stay there, they are now tenants. What the argument of the land owner? The land owner says, they are not tenants but employees, because they were asked to stay in the farm to be watchers (guards). Only they are paid in terms of sharing not in actual cash. Because these people who were to stay by the incargado were claiming they were not given their share as tenants. They were made to harvest coconuts but they were not given their share. Have they had the right as tenants? The land owner now claims EE ER relationship but the tenants are claiming that they are TENANTS.

This is where the Court finds out the different features of EE ER relationship on one side, and tenants on the other side. What is tenancy? Is the the joint production agreement and subject matter is agricultural land. 1. Parties who are the parties in the tenancy? The landlord and the tenant. What is the subject matter? It is the AGRICULTURAL LAND. The produce is now divided with the land owner and the tenant. How about EE ER relationship? What is it? It is a contract by which the landowner owns and directs the production of the agricultural land. There is only one interest and that is landowners interest. The employee will produce labor. So that is the difference between the two. Possession the employee has no right to possess. He has no right to stay with the land. The tenant has the right to stay because the subject in the farm because the subject matter is ______, it is base on land. He has the right to stay and it is distinct because he cannot just leave from the land. He has the right to possess. He has a home lot and a house and things, like farm animals, which he does not share with the landlord. That is his own enterprise in his home lot. So much so if the state confiscate the land and devotes it for public use, and therefore must pay just compensation for the land, the State must pay disturbance fee. The tenant has the right to compensation as much as the land lord has the right to just compensation because his right of possession is distinct and separate.How about the employee? Does he have the right to stay there? No! he can show up but has no right to stay there. Farm owner will say, I have a bunkhouse here that is another aspect of remuneration Labor Expected - in EE ER relationship, it is only the individual that renders labor to be the farm owner. In tenancy, it is not only the tenant, it includes his entire family. The state is very crucial. Kung walay harvest, GUTOM sila tanan! The whole family helps in the planting, maintenance and etc. Compensation in EE ER relationship, the compensation must be in CASH. And it is unconditional; they are to be paid whether there is a harvest or none. In tenancy, the compensation of the tenants is a share of the harvest. So if its a share of the harvest, it is premised on the existence of the harvest. On the size of the compensation in tenancy is dependent of the size of the harvest. The bigger the harvest, the bigger the share. The smaller the harvest, the smaller the share. Finally in Control in EE ER relationship, there must be exercise of control, it is the employer who decides when to farm, what to farm and etc... In Tenancy, who decides when to plant? It is the Tenant who decides. Who decides what to plant? It is the tenant who decides what to plant. What, if at all, in tenancy, the landlord does? The landlord only exercises exceptional control when the tenant embarks on something out land. The landlord can put his foot down and veto the tenant. For example, di na ta ninyo magtanom ug humay ug tonner, ang ato na lang itanom kay orchid, thats where the landlord can intervene. No! This is what you will do! VETO POWER!

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Why did the Supreme Court say that this people are not employees as claimed by the landowner? The SC says that if they were employees and constituted as guards, they would have specific hours to guard. There is no such specification. In other words, the indices on control are absent. Therefore, the ruling of the Supreme Court is that, these people are not

employees but tenants. The landowner was ordered to make an accounting and give the share of the tenants. Question of Doa Jessa Ela Villarde: Sir, I would to ask a question about tenancy because in our farm the people who works there are somewhat in the characteristic of a tenant and employee. When it comes to compensation, their compensation is by sharing of harvest. If they do not harvest any goma or rubber sack, they do not have any compensation because they have 30% of the harvest. When it comes to land, they do not have any right of possession over the land, their father is only allowed to live there. When it comes to the labor sir, it is not the family that works on our land, each has specific jobs. When it comes to the power to control, my father decides everything. I am just confused because there are requisites of both tenancy and EE ER relationship. Answer of Atty. Gus Nazareno: It is TENANCY, because if it is sharing, they are tenants. If you dont want them to be tenants, pay them a salary. Once you have sharing, that is TENANCY. Remember you have department agrarian reform, you cannot fire them through DAR, and you can only fire them through DOLE. The moment that you do it, they will seek all the aspects of tenancy. This is not politically correct to say but DAR is the biggest mistake.