Employment Contract, Employer Employee Relationship
Contrary to popular belief, the employment contract is not the sole indicator of an employer employee relationship. So how do you establish an employer employee relationship?
- Employer Employee Relationship
- 4 Elements of Employer Employee Relationship
- Control Test Labor Law
- Employment Contract Philippines
- Labor Disputes in the Philippines
Employer Employee Relationship
The agreement binding both the employer and the employee is known as an employment contract. However, the absence of an employment contract does not indicate an absence of an employer employee relationship. When the existence of the employer employee relationship is in question, the court has generally applied the four fold test.
If the employer employee relationship can be established, the employer may not terminate the service of the employee without a just or authorized cause.
4 Elements Of Employer Employee Relationship
Therefore, to determine the existence of an employer-employee relationship, the four fold test is usually applied:
- the selection and engagement of the employee;
- the payment of wages;
- the power of dismissal; and,
- the employer’s power to control the employee on the means and methods by which the work is accomplished.
And in the case of Victor Meteoro et. al. vs Creative Creatures, Inc., the court stated that to establish the 4 elements of employer employee relationship, any competent and relevant evidence may be considered including but not limited to:
- Identification Cards;
- Cash Vouchers;
- Social Security Registration;
- Appointment Letters;
- Employment Contracts;
- Payrolls;
- Organization Charts; and
- Personnel List.
Control Test Labor Law
Of the 4 elements of employer employee relationship, the control test (#4) is generally regarded as the most crucial and determinative indicator of the presence or absence of an employer-employee relationship. Under this test, an employer-employee relationship is said to exist where the person for whom the services are performed reserves the right to control not only the end result but also the manner and means utilized to achieve the same.
However, as seen in the case of Royale Homes Marketing Corporation vs. Fidel P. Alcantara, not every form of control is indicative of an employer-employee relationship. The subjection of the service provider to the client’s rules, regulations, and code of ethics does not make the service provider an employee when the level of control does not dictate the methodology in performing the tasks. The client has the right to establish guidelines towards the achievement of a mutually desired result.
Employment Contract Philippines
An employment contract is not just a legally binding agreement between the employer and employee. It is also one that is imbued with public interest and therefore is subject to the police power of the state.
It is the employer’s duty to ensure that terms and conditions of employment are in compliance with the Labor Code of the Philippines. Employment terms and conditions that are in violation of the Labor Code shall be unlawful and deemed null and void even when both the employer and employee mutually consented to it. Moreover, any doubts, uncertainties, ambiguities and insufficiencies shall be resolved in favor of labor.
