Scribd
Upload
125 views3 pages

Notes On ER-EE

1. The existence of an employer-employee relationship is a threshold issue in labor disputes. It determines the cause of action, jurisdiction, and burden of proof. 2. Courts apply either a four-fold test examining hiring, payment, right to terminate, and power of control, or an economic dependence test to determine if a worker depends on the employer for livelihood. 3. While documentary evidence like employment contracts can prove the relationship, testimonial evidence is also allowed if it demonstrates the elements of the four-fold test, especially power of control over work conduct.

Uploaded by

Jose Marco Dela Cruz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
125 views3 pages

Notes On ER-EE

1. The existence of an employer-employee relationship is a threshold issue in labor disputes. It determines the cause of action, jurisdiction, and burden of proof. 2. Courts apply either a four-fold test examining hiring, payment, right to terminate, and power of control, or an economic dependence test to determine if a worker depends on the employer for livelihood. 3. While documentary evidence like employment contracts can prove the relationship, testimonial evidence is also allowed if it demonstrates the elements of the four-fold test, especially power of control over work conduct.

Uploaded by

Jose Marco Dela Cruz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

SOME NOTES ON ER-EE

1. Importance - A threshold issue in labor dispute is the existence of employer-


emplyee relationship. Its presence or absence would determine a putative
employee's:

1.1 Cause of action - Whether it would be based on the Labor Code or


related labor legislation (e.g. SSS Law) or the Civil Code or other laws ( e.g.
Corporation Code). An employee's cause of action for termination of contract
would be illegal dismissal under the Labor Code, but an independent agent's
cause of action would be breach of contract under the Civil Code. The cause of
action would determine such matters as prescription, defenses, and reliefs.

1.2. Jurisdiction/venue of action - An employee's labor -related claim


would be filed with labor tribunals and related agencies (NLRC, DOLE-OS, DOLE-
Regional Office, SSS, ECC etc) while a non-employee's claim would have to be filed
with the regular courts or other administrative agences (e.g. SEC).

2. Burden of Proof - The burden of proving employer-emplyee relatiosnhip rests


with the employee, on the legal principle that the party who alleges must prove.
Since labor cases are administrative in nature, the quantum of proof would be
substantial evidence or such amount of relevant evindence that a reasonable
mind would accept as adequate to support a conclusion even if other minds
equally reasonable would opine otherise.

3. Legal Tests

3.1 Four-fold test- The most common legal test applied is the four-fold test
cosniting of the follwing elements: a) hiring; b) payment of salaries however
designated or computed; c) the right to terminate; and d) the most important,
the power to control not only the results of the job but also the means necesary
to obtain the desired results.

3.2. Economic dependence test - Rarely applied in the Philippines and


usually only in conjunction with the 4-fold test. The test asks the question
whether the totality of the circumstances would indicate that the alleged worker
is dependent on the employer for his continued livelihood on a regular basis.If the
answer is in the affirmative, an employment relationship would be held to exist.

4. Evidence required - An employement contract need not be in writing. No


particular form of evidence is required to prove the existence of an employer-
employee relationship. Any competent and relevant evidence to prove the
relationship may be admitted. Documentary evidence is not mandatory , For, if

1
only documentary evidence would be required to show that relationship, no
scheming employer would ever be brought before the bar of justice, as no
employer would wish to come out with any trace of the illegality he has authored
considering that it should take much weightier proof to invalidate a written
instrument.

But it is easier to prove employment relationship through the use of documentary


evidence like appointment letter, pay slips/payroll sheets , SSS registration,
income tax return for compensation earner, company ID with designation as
employee, personnel memos ( transfer, leave, promotion, etc), disciplinary
memos (suspension, demotion), daily attendance sheets, termination letter,
plaques of recognition, etc. Even object evidence (eg. company uniform or
pictures of company events ) may be relevant.

Testimonial evidence ( sworn statements) is admissible, but they must contain


sufficient and detailed allegations that would credibly demonstrate the exitence
of the element of the four-fold test especially the power of control over work
conduct. Thus, testimonial evidence must show such details as date of hiring, job
description/responsibilities, salary rate ,work schedule, place of work, names of
supervisors, etc. Better still, corroborating testimonies from co-employees or ex-
employees would strengthen a case for employemnt relationship.

5. Nomenclature of written contract/terms of the contract - The nomeclature of


the written contract is not decisive in determining the question of employment
relatnship, nor are the terms contained therein (e.g., diavowal of employer-
employeed relationship) binding on the courts. Titles lone are wek indicators. The
existence of an employer-employee relationship cannot be negated by expressly
repudiating it in a contract, when the terms and surrounding circumstances show
otherwise. The employment status of a person is defined and prescribed by law
and not by what the parties say it should be.This is the general rule, and usually
applies in favor of the putative employee on the theory that employment
contracta are mostly contracts of adhesion ( that is, imposed by the employer on
the employee uder a "take it or leave it " basis without much elbow room for
negotioaion).

There may be cases where estoppel may prevent a party from asserting
employment relationship, especially if such party has benefitted from the non-
employment arrangement ( e.g, an independent contractor who enjoys the lower
tax rate from his compensation may be precluded from asserting employment
status).

The most common dispute centers on employment and independent


contractorship ( usually, the sales agents or commission agents who are not
subject to regular work hours/schedule and whose compensation are not fixed
but mostly based on the sales or collections that they are able to procure for the

2
company ). The right of control not only as to the desired end but also the
means and methods by which the work is to be accomplished usually tilts the case
in favor of employment. An indepednet contractor is on ewho carries on an
independent business ( or profession) and undertakes to perform the job, work,
or service on his own account and under his own resposibility according to his
own manner and method free from the control and direction of the
principal/client except as to the results thereof. There may be some aspect of
control (e.g, the agent cannot sell a competitor product) but this alone would not
negate other factors indicating indenpendence (e.g, can wok on other jobs not
competing with principal's products; not bound to observe any schedule of
working hours , account for his time/activities , or report to any regular office ;
could seek and work on his prospects anywhere and anytime he chose to; free to
adopt the selling methods deemed most effective).

PFFallar Jr.
SSCR Colleg fo Law
1st Sem 2018
-------------------------------------------------------------------------------------------------------

You might also like