Employee-Employer Relationship of

A. Importance regious
1. On jurisdiction and
- GR: No ER-EE relationship= no labor charitabl
case dispute will not be governed by e
labor laws and procedures  not organizati
ons in the
cognizable by Labor agencies
coverage
- XPN: OFWs whose employers are the
of
principals abroad
minimum
2. Nature of Labor Case wage and
- Rqs. to be a labor case: other
a. WON there exist ER-EE relationship employm
in the present of past ent
b. WON there exist a labor dispute. standards
- Labor Dispute – a controversy that the  Basis for
resolution of the dispute would require the
application of the Labor Code and other statutory
labor statutes. liability of
governm
ent
B. Legal Tests
agencies
1. Definitions
for
- Employment money
Involves one person (employee) doing claims of
work for another (the employer) who employe
pays salaries as consideration for the es of
services rendered. private
service
DefinitionBasis of the contracto
Employer Employee
rs whom
Book III – Any person acting Any the latter
Conditions in the interest of individual engage
Employmen an employer, employed to
t directly of by an perform
indirectly, and employer. janitorial,
shall include (Art. 97 security,
government and [c], LC) and other
all its branches, outsourc
subdivisions and ed
instrumentalities, services.
all government- Book IV – Any person, Any
owned or Employee natural or person
controlled Compensati juridical compulsori
corporations, as on and employing the ly covered
well as non-profit Statute services of the by the
private Insurance employee (Art. GSIS… or
institutions or Fund 173 [f], LC) any person
organizations. compulsori
(Art. 97 [b], LC) ly covered
 Justifies by the SSS.
the (Art. 173
inclusion [g], Labor
 Code) - Qualification “includes any person
Includes acting in the interest of an employer,
any person directly or indirectly,” this makes
in the corporate officers and managerial
employ of employees assume the status of
an employer for limited purposes.
employer. - Managerial Employees – those
The term
employees vested with powers or
shall not
prerogatives to lay down and execute
be limited
to a management policies and/or to hire,
particular transfer, suspend, layoff, recall,
employer, discharge, assign or discipline
unless the employees. (Art. 218 [m], LC)
Code so - Employees under Art. 291 [f], Labor
explicitly Code): this definition allows a
Includes any
states. It terminated employee who contests his
person acting in
shall dismissal and whose case is still pending
the interest of an
include with the courts to vote in a certification
employer,
any election. It is also a basis of the principle
directly and
individual
indirectly. The that strikers do not lose their
whose
Book V – term shall not employment status and thus covered by
work has
Labor include any labor a return-to-work order issued by the
ceased as
Relations organization or Secretary of DOLE, among other
a result or
any of its officers implications.
in
or agents except 2. Four-fold Test
connection
when as - One of the main tests used by courts in
with any
employer. (Art.
current determining the employment
219 [e], Labor
labor relationship.
Code)
dispute or - Elements:
because of a. Hiring
any unfair b. Payment of salaries
labor c. The right to terminate; and
practice if
d. The power to control not only the
he has not
results but also the means
obtained
necessary to obtain the desired
any other
substantial results.
ly - Issue of Control – the power of control
equivalent is deemed the most decisive of the four
and elements; the control test merely calls
regular for the existence of the right of control
employme and not necessarily the exercise
nt. thereof.
- Labor organizations as employer under - As long as the level of control does not
Art. 219 [e], Labor Code: The interfere with the means and methods
implication is that a union may exist of accomplishing the assigned tasks, the
within a union, with the latter assuming rules imposed by the hiring party on the
the role of the employer or hired party do not amount to the labor
management. law concept of control that is indicative
of employer-employee relationship.
 3. Economic Dependency Test - Must be approved by POEA
- Another tests utilized sometimes in - Commencement of the er-ee
conjunctions with the four-fold test. relationship takes place only upon
- It asks the question whether the totality deployment from point of hire
of the circumstances would indicate a. When departure is prevented, for
that the alleged worker is dependent on whatever reason, no er-ee
the employer for his continued relationship is created
livelihood on a regular basis. If yes, an b. Cause action of an OFW whose
employment relationship would be held departure was prevented: He could
to exist. file for damages against the
4. Employees by Law – tests cannot be applied recruiter before Labor Arbiter; He
because the law mandates the position to could also file a recruitment
be filled by employment mode. violation complaint with the POEA.
- Pollution Control Officer 4. Suspensive Conditions – The employment
- Data Protection officer (Data Privacy offer may stipulate either the
Act) commencement, either by a specific date or
- Functions related to bank deposits the fulfillment of a suspensive condition. No
(General Banking Act, Sec. 55.4) er-ee relationship attached when the
- Women workers in nightclubs, cocktail applicant failed to complete the stipulated
lounge, massage clinic, bar or similar pre-employment background check
establishments (Art. 136, LC) including police clearance.
5. Non-employees by Law D. License Requirement
- Medical Interns and resident physicians 1. Professionals license in relation to functions
- Student working scholars which require it like teachers, lawyers,
- No er-ee relationship between sugar security guards, pilots and others
farm workers and the sugar central. 2. Non-resident Aliens – Alien Employment
6. Ecclesiastical officers – Religious institutions Permit for non-aliens.
could be haled before labor tribunals for E. Evidence
cases of action such illegal dismissal and 1. Burden of Proof
non-payment of retirement benefits but 2. Employment contracts which must be in
labor tribunals would have no jurisdiction writing
over ecclesiastical affairs. 3. Evidence to prove employment
7. Corporate Officers – A corporate officer has 4. Illustrative Cases
no recourse to labor tribunals. To be F. Nomenclature & Terms
considered a corporate officer, the 1. Relevance of nomenclature
designation must be either provided by the 2. As a contract of adhesion
Corporation Code or the by-laws of the 3. Intent as factor
corporation. G. Disputed Categories
XPN: when the cause of action is clearly 1. Employee or Independent Contractor
limited to employment status. 2. Illustrative Cases (independent contractor)
C. Commencement of employment relationship 3. Illustrative Cases (employees)
1. Authority to hire – For employment contact H. Determination by agencies/courts
with a corporation to exist, the hiring 1. Labor Arbiters/NLRC
person must be authorized to by the board 2. DOLE(Provincial and Regional Directors)
of directors. 3. Voluntary Arbitrator
2. No meeting of minds with respect to the 4. Med-Arbiter
salary = no er-ee employee relationship 5. Social Security Commission
created 6. Regular Courts
3. OFW Contracts I. Consequences
1. Security of Tenure
2. Minimum Labor Standards
3. Social Legislation