Working Conditions and Rest Periods

WORKING CONDITIONS AND REST PERIODS

CHAPTER 1
HOURS OF WORK
EMPLOYER-EMPLOYEE RELATIONSHIP

 DIFFERENT TESTS APPLIED BY LAW IN DETERMINING THE EXISTENCE OF EMPLOYER-EMPLOYEE

RELATIONSHIP?
The following are the tests in determining the employer-employee relationship:
1. The four-fold test;

2. The economic reality test; and
3. The two-tiered test
 The Four-fold test is one of the tests in determining the existence of an employer-employee
relationship wherein the following elements are considered:
1. Selection of engagement of the employee;
2. Payment of wages;
3. Power of dismissal; and
4. Power to control the employee’s conduct “control test”
 Control test – the person whom the services are performed reserves the right to control not
only the end achieved, but also the manner and means used to achieve that end (Section 3, Rule
I-A, Department Order No. 147-15 series of 2015)
The control test merely calls for the existence of the right to control, and not necessarily the exercise
thereof. The test does not require that the employer actually supervises the performance of duties by
the employee.
The important factor to consider in the control test is still the element of control over how the work
itself is done, not just the end result.
Where a person who works for another performs his job more or less at his own pleasure, in the manner
he sees fit, not subject to definite hours or conditions of work, and is compensated according to the
result of his efforts and not the amount thereof, no employer-employee relationship exists.
Note : Salaries, mere title or designation in a corporation by itself, determine the existence of an
employer-employee relationship.
 Economic Reality Test – a test in determining the existence of an employer-employee

relationships wherein the economic dependence of the employee in the line of business of the
employer is the benchmark.
1. The extent to which the services performed are an integral part of the employer’s business;
2. Workers investment in equipment and facilities;
3. Nature and degree of control exercised by the employer;
4. Workers opportunity for profit and loss;
5. Amount of initiative, skill, judgment or foresight required for the success of the claimed
independent enterprise;
6. Permanency and duration of the relationship between the worker and the employer; and
7. Degree of dependency of the worker to his employer for his continued employment in that line
in business.
 TWO-TIER TEST – a test in determining the existence of an employer-employee relationship

wherein the putative employer’s power to control the employee 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 are considered.
The two-tier test is used when there is no written agreement or terms of reference involved and
when there is a complexity in the relationship of the parties.
 Quantum of proof required – Substantial Evidence – the amount of relevant evidence which a
reasonable mind might accept as adequate to justify a conclusion.
Note: No employer-employee relationship when the level of control does not interfere with the means
and methods of accomplishing the assigned task. Neither does the repeated hiring to prove the
existence of employer-employee relationship in the absence of control.
 DRIVER-EMPLOYEE “per trip” basis.
The presence of the element control, which is the most important element to determine the existence
or absence of employment relationship, can be safely deduced from the fact that:
a. Respondent owned the trucks that were assigned to the driver;

b. Cargoes loaded in the said trucks were assigned to the driver;
c. Schedule and route to be followed exclusively determined by owner of the trucks.
While the driver was free to carry out his duties, it cannot be pretended the respondent exercised
control over the means and methods by which the driver was to accomplish his work.
Note: Payment on a “per trip” basis is only a METHOD of COMPUTING the employee’s compensation
and it does not affect the employer-employee relationship of the parties.
 BOUNDARY SYSTEM is considered as an employer-employee relationship.
The Court ruled in National Labor Union vs. Dinglasan, jeepney owner/operator-driver relationship
under the boundary system is that of employer-employee and not lessor-lessee.
Magboo vs. Bernardo and Lantaco, Sr. vs. Llamas, auto-calesa owner/ operator and driver, bus owner/
operator and conductor, and taxi owner/operator and driver.
The driver performs activities which are usually necessary or desirable in the usual business or trade of
the owner/ operator.
 Doctors are independent contractors, the hospital do not have control over any degree of
control over the means, methods of procedure and manner by which the doctors conducted and
performed their medical profession. The hospital did not control their diagnosis and treatment.
The hospital monitored, supervised, or directed the petitioning doctors in the treatment and
management of the patient. (Casumpang vs. Cortejo)
 Doctrine of Apparent Authority – hospitals are not liable for the negligence of its independent
contractors. However, it may be found liable if the physician or independent contractor acts as
an ostensible agent of the hospital.
 Butcher / Pakyaw or Task basis arrangement does not determine the parties’ relationship as it is
simply a method of pay computation. Four-fold test
 Pianist in Legend Hotel, regular employee. Under supervision and control.



Working Conditions and Rest Periods

Uploaded by

Copyright:

Available Formats

Working Conditions and Rest Periods

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Working Conditions and Rest Periods

Uploaded by

Copyright:

Available Formats

WORKING CONDITIONS AND REST PERIODS

 DIFFERENT TESTS APPLIED BY LAW IN DETERMINING THE EXISTENCE OF EMPLOYER-EMPLOYEE

1. The four-fold test;

 Economic Reality Test – a test in determining the existence of an employer-employee

 TWO-TIER TEST – a test in determining the existence of an employer-employee relationship

 DRIVER-EMPLOYEE “per trip” basis.

a. Respondent owned the trucks that were assigned to the driver;

 BOUNDARY SYSTEM is considered as an employer-employee relationship.

 Pianist in Legend Hotel, regular employee. Under supervision and control.

You might also like