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    First Batch - Insular Life V NLRC

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    AngelRea
    Insular Life and Basiao entered into two contracts: 1) an agency contract authorizing Basiao to solicit insurance in exchange for commissions, and 2) an Agency Manager's Contract organizing Basiao's agency. After 5 years, Insular Life terminated the second contract. Basiao sued for unpaid commissions. Insular Life disputed the labor board's jurisdiction, arguing Basiao was an independent contractor not an employee. The Supreme Court ruled Basiao was not an employee under the contract but an independent commission agent, so his claim should have been filed in civil court, not the labor board which lacked jurisdiction over independent contractors.

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    First Batch - Insular Life V NLRC

    Uploaded by

    AngelRea
    35 views1 page
    Insular Life and Basiao entered into two contracts: 1) an agency contract authorizing Basiao to solicit insurance in exchange for commissions, and 2) an Agency Manager's Contract organizing Basiao's agency. After 5 years, Insular Life terminated the second contract. Basiao sued for unpaid commissions. Insular Life disputed the labor board's jurisdiction, arguing Basiao was an independent contractor not an employee. The Supreme Court ruled Basiao was not an employee under the contract but an independent commission agent, so his claim should have been filed in civil court, not the labor board which lacked jurisdiction over independent contractors.

    Original Description:

    Labor Law II

    Original Title

    First Batch - Insular Life v NLRC

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    Insular Life and Basiao entered into two contracts: 1) an agency contract authorizing Basiao to solicit insurance in exchange for commissions, and 2) an Agency Manager's Contract organizing Basiao's agency. After 5 years, Insular Life terminated the second contract. Basiao sued for unpaid commissions. Insular Life disputed the labor board's jurisdiction, arguing Basiao was an independent contractor not an employee. The Supreme Court ruled Basiao was not an employee under the contract but an independent commission agent, so his claim should have been filed in civil court, not the labor board which lacked jurisdiction over independent contractors.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    35 views1 page

    First Batch - Insular Life V NLRC

    Uploaded by

    AngelRea
    Insular Life and Basiao entered into two contracts: 1) an agency contract authorizing Basiao to solicit insurance in exchange for commissions, and 2) an Agency Manager's Contract organizing Basiao's agency. After 5 years, Insular Life terminated the second contract. Basiao sued for unpaid commissions. Insular Life disputed the labor board's jurisdiction, arguing Basiao was an independent contractor not an employee. The Supreme Court ruled Basiao was not an employee under the contract but an independent commission agent, so his claim should have been filed in civil court, not the labor board which lacked jurisdiction over independent contractors.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    G.R. No.

    84484 November 15, 1989


    INSULAR LIFE ASSURANCE CO., LTD., petitioner,
    vs.
    NATIONAL LABOR RELATIONS COMMISSION and MELECIO BASIAO, respondents.
    Facts: Insular Life and Basiao entered into a contract by which Basiao was authorized to solicit for
    insurance in accordance with the rules of the company. He would also receive compensation in the
    form of commissions. The contract also contained the relations of the parties, duties of the agent and
    the acts prohibited to him.
    After four years, the parties entered into an Agency Managers Contract. To implement this, Basiao
    organized an agency or office to which he gave the name M. Basiao and Associates, while
    concurrently fulfilling his commitments under the first contract with the Company.
    After five years the Company terminated the Agency Manager's Contract. After vainly seeking a
    reconsideration, Basiao sued the Company in a civil action and this, he was later to claim, prompted
    the latter to terminate also his engagement under the first contract and to stop payment of his
    commissions. Basiao thereafter filed with the then Ministry of Labor a complaint which sought to
    recover commissions allegedly unpaid thereunder, plus attorney's fees. The respondents disputed
    the Ministry's jurisdiction over Basiao's claim, asserting that he was not the Company's employee,
    but an independent contractor and that the Company had no obligation to him for unpaid
    commissions under the terms and conditions of his contract.
    Issue: WON Basiao had become the companys employee by virtue of the contract
    Held: No, SC said that Basiao did not become the companys employee by virtue of the contract. SC
    ruled that under the contract invoked by him, Basiao was not an employee of the petitioner, but a
    commission agent, an independent contractor whose claim for unpaid commissions should have
    been litigated in an ordinary civil action. The Labor Arbiter erred in taking cognizance of, and
    adjudicating, said claim, being without jurisdiction to do so, as did the respondent NLRC in affirming
    the Arbiter's decision. This conclusion renders it unnecessary and premature to consider Basiao's
    claim for commissions on its merits. SC gave merit to the contention of the company that they
    exercise no control to Basiao who is the master of his own time and selling methods, left to his
    judgment the time, place and means of soliciting insurance, set no accomplishment quotas and
    compensated him on the basis of results obtained; not bound to observe any schedule of working
    hours or report to any regular station; could seek and work on his prospects anywhere and at
    anytime he chose to, and was free to adopt the selling methods he deemed most effective.

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