HR Management: Promotions and Transfers

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Questions and Answers

What is the primary purpose of the two-tiered test in determining the relationship between the employer and employee?

To consider the totality of circumstances surrounding the relationship (correct)

To determine the permanency and duration of the relationship

To establish a written agreement between the parties

To determine the amount of investment in equipment and facilities

What is one of the factors considered in determining the relationship between the employer and employee?

The extent of the worker's investment in equipment and facilities (correct)

The type of industry or sector the employer belongs to

The language spoken by the employer and employee

The number of hours worked by the employee per day

What is the name of the court case cited in the text?

Employee v. Employer

Worker v. Company

Reach-All v. Pharmaceutical Firms

Francisco v. NLRC (correct)

What type of companies did Reach-All supply sales persons to?

Pharmaceutical companies Signup and view all the answers

Who trained the sales persons in the art of selling?

Reach-All Signup and view all the answers

Who taught the sales persons about the pharmacological qualities of the products?

The pharmaceutical companies Signup and view all the answers

Who paid the salaries of the sales persons?

Reach-All Signup and view all the answers

What is the question being asked in the bar question?

Can the sales persons demand to be absorbed as employees of the pharmaceutical firms? Signup and view all the answers

Why did the Smarty Food Company engage the services of Jack Perez?

To avoid labor relations problems Signup and view all the answers

What was Jack Perez's role in the arrangement with the Smarty Food Company?

He supplied workers to the company and paid their wages Signup and view all the answers

Why did the Smarty Food Company terminate its service contract with Jack Perez?

Due to the labor union's request for recognition and collective bargaining negotiations Signup and view all the answers

Who did the workers assigned by Jack Perez join after two years?

The United Restaurant Workers Union Signup and view all the answers

What happened to the workers assigned by Jack Perez after the company terminated its service contract?

They were prevented from entering the company premises Signup and view all the answers

How did the Smarty Food Company address its manpower needs after terminating its contract with Jack Perez?

It secured its manpower needs from another service agency Signup and view all the answers

What was the arrangement between Jack Perez and the Smarty Food Company?

Economic arrangement involving a monthly fee Signup and view all the answers

What was the main reason for the labor union's request to the Smarty Food Company?

To recognize the labor union and negotiate collective bargaining Signup and view all the answers

What is the nature of a promotion in an employment relationship?

A gift or reward Signup and view all the answers

What is the consequence of refusing a promotion according to the Labor Code?

No consequence Signup and view all the answers

What is the main reason why Carding has no cause of action against LKG Garments Inc.?

The company has the right to change work schedules Signup and view all the answers

According to the Labor Code, what is the basis of an overtime claim?

An employee's having been 'permitted to work' overtime Signup and view all the answers

What is the maximum number of hours of overtime work that Carding can now expect according to the changed work schedule?

Four hours Signup and view all the answers

What is the percentage of additional pay that LKG Garments Inc. pays to its employees for work rendered in excess of eight hours?

35% of their regular hourly wage Signup and view all the answers

What is the reason why Carding complains about the change in work schedule?

He can only earn up to a maximum of four hours of overtime pay Signup and view all the answers

What is the ruling of the Supreme Court in Manila Jockey Employees' Union v. Manila Jockey Club?

The basis of overtime claim is an employee's having been 'permitted to work' Signup and view all the answers

What can be inferred about an employer who fails to report a worker as an employee to the SSS?

The employer is rewarded for neglecting their obligations. Signup and view all the answers

What is required for a payroll to disprove the employment of a person?

A true and complete list of employees Signup and view all the answers

In a controversy between a laborer and their master, how are doubts resolved?

In favor of the laborer Signup and view all the answers

What is not considered control in the 'control test'?

The power to approve or reject organizational plans Signup and view all the answers

What is necessary to prove the existence of an employer-employee relationship?

The worker must be subject to definite working hours Signup and view all the answers

Why was there no employer-employee relationship in the case of Reyes v. Glaucoma Research Foundation, Inc.?

The worker performed their job at their own pleasure Signup and view all the answers

What is the important factor to consider in the 'control test'?

Control over the method of work Signup and view all the answers

What can be inferred about a worker who is compensated according to the result of their efforts?

An employer-employee relationship does not exist Signup and view all the answers

What was the main purpose of the respondent's act of regularly updating petitioners?

To monitor the result of petitioners' work Signup and view all the answers

What is the crucial element in determining an employer-employee relationship?

The power of control Signup and view all the answers

What is the nature of the relationship between petitioners and respondent according to the Sales Agency Agreement?

Independent contractorship Signup and view all the answers

What is the significance of the two-tiered test pronounced in the Francisco case?

It is a test to evaluate the power of control Signup and view all the answers

What is the outcome of the respondent's actions in terms of the employer-employee relationship?

An independent contractorship is established Signup and view all the answers

What is the primary evidence of the nature of the parties' relationship?

The Sales Agency Agreement Signup and view all the answers

What is the intention of the parties at the time of signing the agreement?

To create an independent contractorship Signup and view all the answers

What is the conclusion based on the evidence on record?

An independent contractorship exists Signup and view all the answers

Study Notes

Distinctions between Transfer and Promotion

An employee is not bound to accept a promotion, which is considered a gift or reward.
Refusal to accept a promotion is a valid exercise of a right and cannot be considered insubordination or willful disobedience of a lawful order.
An employee's refusal to accept a promotion cannot be the basis of dismissal from service.

Work Schedule and Overtime

A change in work schedule is a management prerogative of the employer.
An employee does not have a cause of action against the employer if a change in work schedule affects their overtime pay.
Article 97 of the Labor Code does not guarantee an employee a certain number of hours of overtime work.
The basis of overtime claim is an employee's having been "permitted to work".

Determining Employer-Employee Relationship

The two-tiered test is used to determine the employer-employee relationship, considering the totality of circumstances.
The test considers factors such as:
- The extent to which the services performed are an integral part of the employer's business.
- The extent of the worker's investment in equipment and facilities.
- The nature and degree of control exercised by the employer.
- The worker's opportunity for profit and loss.
- The amount of initiative, skill, judgment or foresight required for the success of the claimed independent enterprise.
- The permanency and duration of the relationship between the worker and the employer.
- The degree of dependency of the worker upon the employer for their continued employment in that line of business.

Case Laws and Rulings

In Francisco v. NLRC (2006), the Supreme Court ruled that the two-tiered test is used to determine the employer-employee relationship.
In Manila Jockey Employees' Union v. Manila Jockey Club (2007), the Supreme Court held that the basis of overtime claim is an employee's having been "permitted to work".
In Southeast International Rattan, Inc. v. Coming (2014), the Supreme Court ruled that the fact that a worker was not reported as an employee to the SSS is not conclusive proof of the absence of employer-employee relationship.
In Reyes v. Glaucoma Research Foundation, Inc. (2015), the Supreme Court ruled that doubts reasonably arising from the evidence are resolved in favor of the laborer.
In Skycable Corporation (2016), the Supreme Court ruled that where a person who works for another performs their job more or less at their own pleasure, not subject to definite hours or conditions of work, and is compensated according to the result of their efforts, no employer-employee relationship exists.
In Valeroso v. Skycable Corporation (2016), the Supreme Court ruled that the presence of the power of control is indicative of an employment relationship, while the absence thereof is indicative of independent contractorship.

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Description

Understand the differences between transfers and promotions, and the rights of employees when it comes to refusing a promotion. Learn about the legal implications of refusing a promotion and how it affects employee-employer relationships.