protection to labor,
promote full employment,
ensure equal work opportunities regardless of sex, race or creed,
and regulate the relations between workers and employers.
Employer-Employee Relationship
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4-fold Test
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*Note: In the absence of the power to control the employee with respect to the
means and methods by which his work was to be accomplished, there is no
employer-employee relationship between the parties. (Continental Marble
Corporation, May 9, 1988.)
Not every form of control has the effect of establishing employer-employee
relationship. A line should be drawn between:
(1) rules that merely serve as guidelines, which only promote the result,
and
(2) rules that fix the methodology and bind or restrict the party hired to
the use of such means or methods. These address both the result and the
means employed to achieve the desired result
The second kind creates employer-employee relationship; the first does not
(Insular Life Assurance Co., November 15, 1989.)
e.g - A labor union or even an unregistered association may be considered an
employer of the persons working for it. (Bautista, March 16, 1988; Orlando Farm
Growers, November 25, 1998.)
e.g. - Appointment letters or employment contracts, payrolls, organization
charts, SSS registration, personnel lists, as well as testimony of co-employees,
may serve as evidence of employee status. If there is no employer-employee
relationship, there can be no compulsory coverage under the Social ver is an
employee; his mode of accomplishing his task is under the control of the owner.
Security law.
Employee Contract cannot repudiate the employer-employee relation; it
cannot state that the employee is an independent contractor when its terms and
conditions show otherwise; due to employment status of an employee is defined
by law, and not stipulated by both parties to the employment contract.
e.g. - Drivers under the boundary system are employees of the operators /
owners; as the latter have full control over means and method of how the former
accomplish their tasks.
e.g. While caddies are not employees of the golf club.
Compensation Agreement is not a test to determine the existence of
employer-employee relationship.
e.g. even if the driver is being paid in a per trip basis (contract service), this
does not negate the fact that a dri
Contractor when the hirer does not control the work performance of the hiree,
then the hiree is not an employee, but a contractor.
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Note: The difference between the employee and the contractor is that,
the employee is covered by the labor code, while the contractor is not.
Field Employees
Workers paid by result, where the pay is dependent on the service that has
been accomplished / the finish product hhj;p
Government employees - must refer only to employees of government
agencies, instrumentalities or political subdivisions and of government
corporations that are not incorporated under the Corporation Code. But
even as regards the excluded government employees, it must be noted
that, as a whole, GSIS-covered employees are not excluded from the
employees compensation program.