Myla Ruth N.

Sara

Investment Planning v. SSS

FACTS:

Petitioner is a domestic corporation engaged in business management and sale of securities. It has 2
classes of agents selling investment plans: 1) salaried employees who have fixed hours of work under the control of
the company; 2) registered representatives are on commission basis.

Petitioner applied to SSS for exemption of coverage of these registered representatives. However, it was
denied on the ground that these registered employees are employees of the petitioner.

ISSUE: W/N petitioner’s registered representatives are employees

HELD:

No. These representatives are in reality commission agents. They are not required to report for work
anytime. They shoulder their own selling expenses as well as transportation and they are paid with commission
based on a certain percentage of their sales.

Where there is no element of control and where a person who works for another is not subject to definite
hours of work and in turn compensated according to the result of his efforts and not the amount thereof, there is no
employer-employee relationship.