GR. NO.

119500 AUGUST 28, 1998 PAGUIO TRANSPORT CORPORATION

(petitioner) Vs. NLRC and WILFREDO MELCHOR (respondents)

FACTS:
Complainant Melchor was hired by PTC as a taxi driver under the boundary system. He
was advised to stop working and have a rest after a car accident involving the taxi unit he was
driving. He was told by the PTC that his service was no longer needed. Then the complaint for
illegal dismissal was raised. The petitioner concludes that he had no control over the number of
hours private respondent had to work and the routes he had to take; therefore no employer-
employee relationship exists.

ISSUE:
Whether or not employer-employee relationship exists.

FACTS:
Boundary system is that of employer-employee and not of lessor-lessee. Under the
boundary system the drivers do not receive fixed wages; all the excess in the amount of
boundary was considered his income but it is not sufficient to withdraw the relationship between
them from that of employer and employee. Private respondents were employees because they
had been engaged to perform activities which were usually necessary or desirable in the usual
trade or business of the employer.
The petition was dismissed, the private respondent was entitled for the claim of damages
and illegal dismissal.