Dusol vs. Lazo (G.R. No.

200555, January 20, 2021)

Facts:

Pedro started working as the caretaker of Ralco Beach in 1993. Pedro worked from 5 a.m. to 9
p.m. every day and received a weekly allowance. In 2001, Pedro married Maricel, who was later
employed by Emmarck to manage the store in the resort. Pedro and Maricel worked for Ralco Beach
until July 2008 when they were notified that their services were no longer needed. Pedro and Maricel
filed a complaint for illegal dismissal, underpayment of benefits, claim for damages, and attorney's fees
against Emmarck.

Issue:

Whether Pedro and Maricel are employees or partners of Emmarck.

Ruling:

The Court found no proof of a partnership between Pedro and Maricel and Emmarck. Emmarck
failed to provide any documentary evidence to support his claim of a partnership. Receipt of a share in
the profits does not establish a partnership if the amounts are received as wages of an employee. The
absence of any actual sharing of the profits further reinforced the finding that there was no intention to
form a partnership. The Court determined that Pedro and Maricel were employees based on the
presence of all the elements of an employer-employee relationship. Ralco Beach engaged their services,
paid their wages in the form of allowances and commissions, and had the power to control their conduct
in the performance of their duties. The degree of flexibility in carrying out their duties did not negate the
existence of control. Emmarck's admission that he left the entire business operation of the resort to
Pedro and Maricel demonstrated his control over them. The Court found that Pedro and Maricel were
validly dismissed without observing procedural due process. Emmarck failed to comply with the required
notices, entitling Pedro and Maricel to nominal damages. The Court upheld the NLRC's award of salary
differentials and 13th month pay as Emmarck failed to prove their payment. The Court reversed the
decision of the Court of Appeals and reinstated the decision of the National Labor Relations Commission.
Pedro and Maricel were recognized as employees of Ralco Beach. Emmarck was ordered to pay them
various benefits and attorney's fees.