Employment Contracts: The Employer/Employee Relationship

ON JANUARY 13, 2020  BY MCHARLESSANDERSON IN EMPLOYMENT

LAW

Contrary to popular belief, the employment contract is not the sole indicator of an
employer employee relationship. So how do you establish an employer employee
relationship?

 Employer Employee Relationship

 4 Elements of Employer Employee Relationship
 Control Test Labor Law
 Employment Contract Philippines
 Labor Disputes in the Philippines

Employer Employee Relationship

The agreement binding both the employer and the employee is known as an
employment contract. However, the absence of an employment contract does not
indicate an absence of an employer employee relationship. When the existence of
the employer employee relationship is in question, the court has generally applied
the four fold test.

If the employer employee relationship can be established, the employer may not
terminate the service of the employee without a just or authorized cause.

4 Elements Of Employer Employee Relationship

Therefore, to determine the existence of an employer-employee relationship, the four

fold test is usually applied:
1. the selection and engagement of the employee;
2. the payment of wages;
3. the power of dismissal; and,
4. the employer’s power to control the employee on the means and methods by
which the work is accomplished.

And in the case of Victor Meteoro et. al. vs Creative Creatures, Inc., the court stated
that to establish the 4 elements of employer employee relationship, any competent and
relevant evidence may be considered including but not limited to:

 Identification Cards;
 Cash Vouchers;
 Social Security Registration;
 Appointment Letters;
 Employment Contracts;
 Payrolls;
 Organization Charts; and
 Personnel List.

Control Test Labor Law

Of the 4 elements of employer employee relationship, the control test (#4) is generally
regarded as the most crucial and determinative indicator of the presence or absence of
an employer-employee relationship. Under this test, an employer-employee relationship
is said to exist where the person for whom the services are performed reserves the right
to control not only the end result but also the manner and means utilized to achieve the
same.

However, as seen in the case of Royale Homes Marketing Corporation vs. Fidel P.
Alcantara, not every form of control is indicative of an employer-employee
relationship. The subjection of the service provider to the client’s rules, regulations,
and code of ethics does not make the service provider an employee when the level of
control does not dictate the methodology in performing the tasks. The client has the
right to establish guidelines towards the achievement of a mutually desired result.

Employment Contract Philippines

An employment contract is not just a legally binding agreement between the employer
and employee. It is also one that is imbued with public interest and therefore is subject
to the police power of the state.

It is the employer’s duty to ensure that terms and conditions of employment are in
compliance with the Labor Code of the Philippines. Employment terms and conditions
that are in violation of the Labor Code shall be unlawful and deemed null and void even
when both the employer and employee mutually consented to it. Moreover, any doubts,
uncertainties, ambiguities and insufficiencies shall be resolved in favor of labor.

Retrieved on 25 February 2020. https://emplawphil.wordpress.com/2020/01/13/employment-

contracts-the-employeremployee-relationship/

Benefits of EE
Title I of Book 3 of the Labour Code provides for minimum conditions of employment in
respect of:
 Hours of work.
 Meal periods.
 Night shift provisions.
 Overtime work.
 Weekly rest periods.
 Holidays.
 Service incentive leaves.
 Service charges.

Public holidays
The following are the regular holidays in the Philippines:
 New Year's Day: 1 January.
 Maundy Thursday: movable date.
 Good Friday: movable date.
  Eidul Fitr: movable date.
 Eidul Adha: movable date.
 Araw ng Kagitingan: 9 April.
 Labour Day: 1 May.
 Independence Day: 12 June.
 National Heroes Day: last Monday of August.
 Bonifacio Day: 30 November.
 Christmas Day: 25 December.
 Rizal Day: 30 December.
The following are the special holidays in the Philippines:
 Ninoy Aquino Day: 21 August.
 All Saints Day: 1 November.
 Last Day of the Year: 31 December
Metro Manila (CNN Philippines, December 21) – Ride-hailing firm
Angkas announced Saturday that 17,000 of their drivers might lose
their jobs due to the new condition set by the Department of
Transportation for them to legally operate.

Currently, Angkas, which has a total of 27,000 bikers, can operate as it

is part of the transportation department's motorcycle taxi service pilot
run in Metro Manila and Cebu City. The test run is originally set to end
on December 26 this year, but the Department of Transportation’s
(DOTr) technical working group (TWG) has officially endorsed an
extension the study by six months to provide the commuting public
more options. Angkas will be joined by JoyRide and MoveIt.

READ: Two new motorcycle taxi services to rival Angkas

However, the TWG imposed a limit in the number of riders who could
join the test run – at 10,000 per group in Metro Manila and 3,000 per
group in Metro Cebu.

“Your everyday heroes in traffic will enter this Christmas season not
knowing whether they will have money to feed their families next
year,” Angkas spokesperson George Royeca said in a statement.

These bikers are some of the best that the motorcycle taxi service
provider has and letting them go means compromising the quality of
service they provide to their customers, Royeca argued.

Royeca decried the decision of the land regulator, saying that this
policy will not only affect their thousands of employees, it will also be
a “direct blow” to their families.

“Bakit kailangang bawasan at tanggalan ng trabaho ang mga riders

natin? Bakit kailangang parusahan ang mga bikers na nakapag-
training at napatunayan na ang galing sa daan?"

[Translation: Why is there a need to set a limit on the number of our

riders? Why is there a need to punish the bikers who have undergone
training and proven their excellence on the road?]
Royeca said that while they are known for their tongue-in-cheek humor
on social media, they take the safety of their passengers and drivers
safely, which will be harder with the new rules of the DOTr.

He then made an appeal to public, who, through their clamor, once

helped them convince the government to allow them to legally operate
for six months, to prevent a lay off from happening.

“Now, at a time of our need, we humbly ask that you share this
message,” Royeca said.

Measures seeking to classify motorcycles-for-hire or two-wheeled

vehicles as legitimate means of public transportation have been filed
in Congress to address the lack of public transport.

CNN Philippines Digital Producer Catherine A. Modesto  contributed to

this report

https://cnnphilippines.com/news/2019/12/21/angkas-drivers-might-lose-job.html retrieved on 25
February 2020