ANGELITO L.

LAZARO, Proprietor of Roya Star Marketing, petitioner, vs SOCIAL SECURITY COMMISSION,

ROSALINA LAUDATO, SOCIAL SECURITY SYSTEM and THE HONORABLE COURT OF APPEALS, respondents.

Tinga, J:

FACTS:

Private respondent(PR) Rosalina M. Laudato filed a petition before the SSC for social security
coverage and remittance of unpaid monthly social security contributions against her three employers,
one of which is petitioner (P) Angelito L. Lazaro. PR alleged that despite her employment as sales agent
for Royal Star from April 1979 to March 1986, P failed to report her to the SSC for the compulsory
coverage of PR’s social security contributions.

P denied the claim of the PR, alleging that PR was just a mere sales agent whom he paid purely
based on commission. P added that PR was not subjected to definite hours and conditions of work. P
also argued that Royal Star had no control over PR’s activities, and under the so-called “control test”, PR
could not be deemed an employee of Royal Star.

SSC held that PR was an employee of Royal Star and ordered Royal Star to pay the unremitted social
security contributions of Laudato.

The Court of Appeals affirmed the decision of SSC.

ISSUE:

Whether or not there exists an employer-employee relationship between Lazaro and Laudato.

RULING:

YES.

The determination of employer-employee relationship warrants the application of the control test, that
is whether the employer controls the employee, not only as to the results of the work done, but also as
to the means and method by which the same is accomplished. It depends heavily on the particular
factual circumstances attending the professional interaction of the parties.

PR was a sales supervisor and not a mere agent. As such, the PR oversaw and supervised the sales
agents of the company, and thus, was subject to the control of management as to how she implements
its policies and end results. It is also supported by substantial evidence presented by the PR such as the
cash vouchers issued by Royal Star to the PR, calling cards of Royal Star denominating PR as a “Sales
Supervisor”, and certificates of appreciation issued by the company to PR. Subsequently, a
memorandum directing that no commissions were to be given on all main offices sales from walk-in
customers and enjoining sales man and sales supervisor evinces that Royal Star exercised control over
its sales supervisors or agents such as the PR as to the means and methods through which these
personnel performed their work.

Neither does the fact that PR was paid by way of commission nor does it follow that the person who
does not observe normal hours of work cannot be deemed an employee

CA AFFIRMED.