1. Who is an employee?

(Book 3 and 4)
Who is an employee under Book 5?
"Employee" includes any individual employed by an employer. (book three)
"Employee" means any person compulsorily covered by the GSIS under
Commonwealth Act Numbered One hundred eighty-six, as amended,
including the members of the Armed Forces of the Philippines, and any
person employed as casual, emergency, temporary, substitute or contractual,
or any person compulsorily covered by the SSS under Republic Act Numbered
Eleven hundred sixty-one, as amended. (Book four)
"Employee" includes any person in the employ of an employer. The term shall
not be limited to the employees of a particular employer, unless the Code so
explicitly states. It shall include any individual whose work has ceased as a
result of or in connection with any current labor dispute or because of any
unfair labor practice if he has not obtained any other substantially equivalent
and regular employment. (Book five)
2. Who is an employer?
Who is an employer under Book 5?
"Employer" includes any person acting directly or indirectly in the interest of
an employer in relation to an employee and shall include the government and
all its branches, subdivisions and instrumentalities, all government-owned or
controlled corporations and institutions, as well as non-profit private
institutions, or organizations. (Book three)
"Employer" means any person, natural or juridical, employing the services of
the employee. (Book four)
"Employer" includes any person acting in the interest of an employer, directly
or indirectly. The term shall not include any labor organization or any of its
officers or agents except when acting as employer. (Book five)
3. Who are the parties to a labor case?
The parties to a labor case are the employee and the employer.
4. Discuss briefly the relationship that arises between the employer and the
employee?
If there is a reasonable causal connection between the claim asserted and
the employer-employee relations, then the employer becomes liable to the
employee and is within the jurisdiction of our labor courts.
5. What are
relationship?

the

factors/elements

to

determine

employer-employee

a) the selection and engagement of the employee; (b) the payment of wages;
(c) the power of dismissal; and (d) the employers power to control the
employee with respect to the means and method by which the work is to be
accomplished.
6. What property right, if any is conferred upon an employee once there is an
employer-employee relationship. 2006 Bar
Ones employment is a property right within the mantle of constitutional
protection. The employee enjoys security of tenure and he cannot be
dismissed except for cause and only after due process.
7. Why is it important to determine whether the relationship of the parties is
that of employer and employee or that of principal and independent
contractor?
It is important to determine such to know the extent of their liability. An
indirect employer can only be held solidarily liable with the independent
contractor or subcontractor in the event that the latter fails to pay the wages
of its employees.
8. Does the payment of wages on a piece-rate basis preclude the existence of
an employer-employee relationship?
No. It is a mere method of computing compensation, not a basis for
determining the existence or absence of an employer-employee relationship.
9. Does the payment of wages on a per trip basis preclude the existence of
an employer-employee relationship?
No. This is merely a method of computing compensation and not a basis for
determining the existence or absence of employer-employee relationship.
10. What is the power of control? Why is it the most important element?
Power to control the employee with respect to the means and methods by
which the work is to be accomplished. Because where the element of control
is absent; where a person who works for another does so more or less at his
own pleasure and is not subject to the employer's control, the relationship of
employer-employee does not exist.
11. Is it necessary that the employer actually exercise the power of control?
No. The power of control refers to the existence of the power and not
necessarily to the actual exercise thereof. it is enough that the former has the
right to wield the power.
12. What should be the scope of the power of control to have an employeremployee relationship?
Under the control test, an employer-employee relationship exists if the
"employer" has reserved the right to control the "employee" not only as to
the result of the work done but also as to the means and methods by which

the same is to be accomplished.

13. What is the effect if one of the elements is absent?
It does not automatically mean that no employer-employee relationship
exists. If it cannot be determined by applying the four-fold test, the two-tiered
test may apply, then economic reality test, followed by the control test.
14. What is the two-tiered test in determining the existence of an employeremployee relationship?
The putative Ers power to control the Ee with respect to the means and
methods by which the work is to be accomplished; and the underlying
economic realities of the activity or relationship.
15. What is the so called economic reality/dependency test?
It is the test to determine whether the worker is dependent on the alleged
employer for his continued employment in that line of business.
16. What particular form of evidence is required to prove the existence of the
employer-employee relationship?
No particular form of evidence is required to prove the existence of such
employer-employee relationship. Any competent and relevant evidence to
prove the relationship may be admitted. Hence, must still rest on some
substantial evidence.
17. Is documentary evidence required to prove the existence of employeremployee relationship?
No. if only documentary evidence would be required to show that
relationship, no scheming employer would ever be brought before the bar of
justice, as no employer would wish to come out with any trace of the illegality
he has authored considering that it should take much weightier proof to
invalidate a written instrument.
18. May employer-employee agreement be subject of agreement of the
parties?
No because it is conferred by law therefore cannot be subject to the
stipulation of the parties.
19. What is the significance of the issuance of an Identification card in
determining the existence of an employer-employee relationship?
The element of selection and engagement of the employee in the four-fold
test is present. An identification card is provided to mainly identify the holder
thereof as a bona fide employee of the firm who issues it.
20. Is the registration of the worker with the SSS a conclusive proof of the
existence of an employer-employee relationship?
No. Although it is a proof of employment, the same is not a conclusive proof

of employer-employee relationship. Hence, the four-fold test or other tests

must still be look into to determine the relationship.
21. Is there an employer employee relationship between operator of a
passenger jeepney (boundary system) and his driver or the operator of a
bus/taxi and his driver?
Yes. its existence can be solely based on the presence of control over the
means and method of the employees work. In a boundary system, the
directives given to the drivers were such a means of control.
The management of the business is still in the hands of the owner/operator,
must see to it that the driver follows the route prescribed by the franchising
and regulatory authority, and the rules promulgated with regard to the
business operations.
22. Is there an employer-employee relationship between the security guards
and the company wherein they are assigned?
None. The security guards are under the employ of the agency unless the
company (principal) retained the services of the security guards despite the
termination of the agreement between the latter and the agency. In such
case, there is employer-employee relationship with the company.