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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?
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?
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?
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?
What type of companies did Reach-All supply sales persons to?
Who trained the sales persons in the art of selling?
Who trained the sales persons in the art of selling?
Who taught the sales persons about the pharmacological qualities of the products?
Who taught the sales persons about the pharmacological qualities of the products?
Who paid the salaries of the sales persons?
Who paid the salaries of the sales persons?
What is the question being asked in the bar question?
What is the question being asked in the bar question?
Why did the Smarty Food Company engage the services of Jack Perez?
Why did the Smarty Food Company engage the services of Jack Perez?
What was Jack Perez's role in the arrangement with the Smarty Food Company?
What was Jack Perez's role in the arrangement with the Smarty Food Company?
Why did the Smarty Food Company terminate its service contract with Jack Perez?
Why did the Smarty Food Company terminate its service contract with Jack Perez?
Who did the workers assigned by Jack Perez join after two years?
Who did the workers assigned by Jack Perez join after two years?
What happened to the workers assigned by Jack Perez after the company terminated its service contract?
What happened to the workers assigned by Jack Perez after the company terminated its service contract?
How did the Smarty Food Company address its manpower needs after terminating its contract with Jack Perez?
How did the Smarty Food Company address its manpower needs after terminating its contract with Jack Perez?
What was the arrangement between Jack Perez and the Smarty Food Company?
What was the arrangement between Jack Perez and the Smarty Food Company?
What was the main reason for the labor union's request to the Smarty Food Company?
What was the main reason for the labor union's request to the Smarty Food Company?
What is the nature of a promotion in an employment relationship?
What is the nature of a promotion in an employment relationship?
What is the consequence of refusing a promotion according to the Labor Code?
What is the consequence of refusing a promotion according to the Labor Code?
What is the main reason why Carding has no cause of action against LKG Garments Inc.?
What is the main reason why Carding has no cause of action against LKG Garments Inc.?
According to the Labor Code, what is the basis of an overtime claim?
According to the Labor Code, what is the basis of an overtime claim?
What is the maximum number of hours of overtime work that Carding can now expect according to the changed work schedule?
What is the maximum number of hours of overtime work that Carding can now expect according to the changed work schedule?
What is the percentage of additional pay that LKG Garments Inc. pays to its employees for work rendered in excess of eight hours?
What is the percentage of additional pay that LKG Garments Inc. pays to its employees for work rendered in excess of eight hours?
What is the reason why Carding complains about the change in work schedule?
What is the reason why Carding complains about the change in work schedule?
What is the ruling of the Supreme Court in Manila Jockey Employees' Union v. Manila Jockey Club?
What is the ruling of the Supreme Court in Manila Jockey Employees' Union v. Manila Jockey Club?
What can be inferred about an employer who fails to report a worker as an employee to the SSS?
What can be inferred about an employer who fails to report a worker as an employee to the SSS?
What is required for a payroll to disprove the employment of a person?
What is required for a payroll to disprove the employment of a person?
In a controversy between a laborer and their master, how are doubts resolved?
In a controversy between a laborer and their master, how are doubts resolved?
What is not considered control in the 'control test'?
What is not considered control in the 'control test'?
What is necessary to prove the existence of an employer-employee relationship?
What is necessary to prove the existence of an employer-employee relationship?
Why was there no employer-employee relationship in the case of Reyes v. Glaucoma Research Foundation, Inc.?
Why was there no employer-employee relationship in the case of Reyes v. Glaucoma Research Foundation, Inc.?
What is the important factor to consider in the 'control test'?
What is the important factor to consider in the 'control test'?
What can be inferred about a worker who is compensated according to the result of their efforts?
What can be inferred about a worker who is compensated according to the result of their efforts?
What was the main purpose of the respondent's act of regularly updating petitioners?
What was the main purpose of the respondent's act of regularly updating petitioners?
What is the crucial element in determining an employer-employee relationship?
What is the crucial element in determining an employer-employee relationship?
What is the nature of the relationship between petitioners and respondent according to the Sales Agency Agreement?
What is the nature of the relationship between petitioners and respondent according to the Sales Agency Agreement?
What is the significance of the two-tiered test pronounced in the Francisco case?
What is the significance of the two-tiered test pronounced in the Francisco case?
What is the outcome of the respondent's actions in terms of the employer-employee relationship?
What is the outcome of the respondent's actions in terms of the employer-employee relationship?
What is the primary evidence of the nature of the parties' relationship?
What is the primary evidence of the nature of the parties' relationship?
What is the intention of the parties at the time of signing the agreement?
What is the intention of the parties at the time of signing the agreement?
What is the conclusion based on the evidence on record?
What is the conclusion based on the evidence on record?
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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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