Employee-Employer Relationship - It is created once a person, natural The four -fold test in determining the existence of employeeemployer. Instructions. A worker who is required to comply with other persons' instructions about when, where, and how (s)he is to work is ordinarily an employee. Training. When is an employer-employee relationship deemed to exist? The Supreme relationship the Supreme Court made use of the four-fold test.
Court of Appeals, the Court observed the need to consider the existing economic conditions prevailing between the parties, in addition to the standard of right-of-control, to give a clearer picture in determining the existence of an employer-employee relationship based on an analysis of the totality of economic circumstances of the worker.
Tests of Employment Relations | Philippine Labor Laws
Economic realities of the employment relations help provide a comprehensive analysis of the true classification of the individual, whether as employee, independent contractor, corporate officer or some other capacity.
Under economic reality test, the benchmark in analyzing whether employment relation exists between the parties is the economic dependence of the worker on his employer.
Otherwise, there is none. Two-tiered test or Multi-factor test The economic reality test is not meant to replace the right of control test.LAW 531/631: Class 2 - Introduction to Employment Law
Rather, these two test are often use in conjunction with each other to determine the existence of employment relation between the parties. On the second factor payment of wageswhile the FBAC tried to impress that workers are paid by A2Y Contracting Services, this at best is but an administrative arrangement. On the third factor, the power of dismissalit is very clear that FBAC is the authority that imposes disciplinary measures against erring workers.
This alone proves that it wields disciplinary authority over them.
Finally, on the fourth factor which is the control test, the fact that the respondent FBAC gives instructions to the workers on how to go about their work is sufficient indication that it exercises control over their movements. The workers are instructed as to what time they are supposed to report and what time they are supposed to return.
They were required to fill up monitoring sheets as they go about their jobs and even the materials which they used in the packing plant were supplied by FBAC. A requirement that the worker submit regular or written reports to the person s for whom the services are performed indicates a degree of control.
Payment by Hour, Week, Month. Payment by the hour, week or month generally points to an employer-employee relationship, provided that this method of payment is not just a convenient way of paying a lump sum agreed upon as the cost of a job.
- Employer-Employee Relationship
Payment made by the job or on a straight commission generally indicates that the worker is an independent contractor. Furnishing of Tools and Materials. The fact that the person s for whom the services are performed furnishes significant tools, materials, and other equipment tends to show the existence of an employer-employee relationship.
Employer-Employee Relationship – Philippine Theo Law Gee
If the worker invests in facilities that are used by the worker in performing services and are not typically maintained by employees such as the maintenance of an office rented at fair value from an unrelated partythat factor tends to indicate that the worker is an independent contractor.
On the other hand, lack of investment in facilities indicates dependence on the person s for whom the services are performed for such facilities and, accordingly, the existence of an employer-employee relationship. Realization of Profit Or Loss.