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Labor Relations Case Digest Compilation

This document discusses the key elements considered in determining an employer-employee relationship, specifically in the context of a case involving Singer Sewing Machine Company and unionized collectors. It finds that the collectors signed agreements designating them as independent contractors, and the company did not exercise sufficient control over their work to be considered their employer. While the union argued certain provisions showed control, the agreement overall permitted the collectors to perform collection services without subjection to the company's control beyond the result of their work. Therefore, the nature of the relationship did not meet the definition of an employer-employee relationship.

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Praisah Marjorey Picot
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73 views1 page

Labor Relations Case Digest Compilation

This document discusses the key elements considered in determining an employer-employee relationship, specifically in the context of a case involving Singer Sewing Machine Company and unionized collectors. It finds that the collectors signed agreements designating them as independent contractors, and the company did not exercise sufficient control over their work to be considered their employer. While the union argued certain provisions showed control, the agreement overall permitted the collectors to perform collection services without subjection to the company's control beyond the result of their work. Therefore, the nature of the relationship did not meet the definition of an employer-employee relationship.

Uploaded by

Praisah Marjorey Picot
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Labor Relations

Case Digest Compilation


Singer Sewing Machine Company vs Hon. Franklin Drilon
GR No. 91307, June 24, 1991
*Note: For the facts of the case please refer to Singer Sewing v. Drilon under non-employees.

FIRST STEP IN EXERCISING THE RIGHT TO SELF-


ORGANIZATION- Establishing Employer-Employee
Relationship.
The present case mainly calls for the application of the control test,
which if not satisfied, would lead us to conclude that no employer-
employee relationship exists.

Hence, if the union members are not employees, no right to organize


for purposes of bargaining, nor to be certified as such bargaining
agent can ever be recognized.

The following elements are generally considered in the


determination of the employer-employee relationship;
(1) the selection and engagement of the employee;
(2) the payment of wages;
(3) the power of dismissal; and
(4) the power to control the employee's conduct — although the
latter is the most important element" 

The Collection Agency Agreement defines the relationship between


the Company and each of the union members who signed a
contract. The petitioner relies on the following stipulations in the
agreements:
(a) a collector is designated as a "collecting agent" who is to
be considered at all times as an independent contractor
and not employee of the Company;
(b) collection of all payments on installment accounts are to
be made monthly or oftener;
(c) an agent is paid his compensation for service in the form
of a commission of 6% of all collections made and turned
over plus a bonus on said collections;
(d) an agent is required to post a cash bond of three thousand
pesos (P3,000.00) to assure the faithful performance and
observance of the terms and conditions under the
agreement;
(e) he is subject to all the terms and conditions in the
agreement;
(f) the agreement is effective for one year from the date of its
execution and renewable on a yearly basis; and
(g) his services shall be terminated in case of failure to satisfy
the minimum monthly collection performance required,
failure to post a cash bond, or cancellation of the
agreement at the instance of either party unless the agent
has a pending obligation or indebtedness in favor of the
Company.
 
Meanwhile, the respondents rely on other features to strengthen
their position that the collectors are employees. They quote
paragraph 2 which states that an agent shall utilize only receipt
forms authorized and issued by the Company. They also note
paragraph 3 which states that an agent has to submit and deliver at
least once a week or as often as required a report of all collections
made using report forms furnished by the Company. Paragraph 4 on
the monthly collection quota required by the Company is deemed by
respondents as a control measure over the means by which an
agent is to perform his services.

The nature of the relationship between a company and its collecting


agents depends on the circumstances of each particular relationship.
Not all collecting agents are employees and neither are all collecting
agents independent contractors. The collectors could fall under
either category depending on the facts of each case.

The Agreement confirms the status of the collecting agent in this


case as an independent contractor not only because he is explicitly
described as such but also because the provisions permit him to
perform collection services for the company without being subject to
the control of the latter except only as to the result of his work.

1
Based on the syllabus of Atty. Maria Christina S. Sagmit
Ateneo De Davao University S.Y. 2020-2021
Digested by: Ampatuan, Ampog,Banosan,Esmael,Frias,Mahusay,Malicay,Paclibar,Peῆamante,Picot,Sinsuat,Sosoban,

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