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Labor Law EER PDF

The document outlines the definition and rights of employees under the Labor Code of the Philippines, emphasizing that employees are individuals working under an employer's control for compensation. It details the creation of an employment relationship, the criteria for employment contracts, and the importance of the control test in determining employment status. Additionally, it highlights constitutional protections for workers and the various types of employment recognized by law.

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15 views5 pages

Labor Law EER PDF

The document outlines the definition and rights of employees under the Labor Code of the Philippines, emphasizing that employees are individuals working under an employer's control for compensation. It details the creation of an employment relationship, the criteria for employment contracts, and the importance of the control test in determining employment status. Additionally, it highlights constitutional protections for workers and the various types of employment recognized by law.

Uploaded by

Leonna Ronquillo
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 PDF, TXT or read online on Scribd
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Labor Law

Employer-Employee Relationship

What are employees?


​
— Employees are individuals who perform work under an employer’s control in exchange for
compensation. Under Article 82 of the Labor Code, employees are those who are
“rendering services for an employer, except managerial employees, field personnel,
members of the family of the employer, domestic helpers, and workers paid by results.” They
are entitled to labor protections such as wages, benefits, and job security under the Labor
Code of the Philippines.
​
1. Article 82 of the Labor Code of the Philippines​
"Article 82. Coverage. – The provisions of this Title shall apply to employees in all
establishments and undertakings whether for profit or not, but not to government employees,
managerial employees, field personnel, members of the family of the employer who are
dependent on him for support, domestic helpers, persons in the personal service of another,
and workers who are paid by results as determined by the Secretary of Labor in appropriate
regulations."

Who can be employees?


​
— Anyone who enters into an employment relationship (EER) and meets the definition
under Article 82 of the Labor Code can be an employee. The Constitution also mandates
under Article XIII, Section 3 that workers, regardless of their role, must be protected and
provided just wages and humane working conditions.

​
1. Article 82 of the Labor Code of the Philippines​
"Article 82. Coverage. – The provisions of this Title shall apply to employees in all
establishments and undertakings whether for profit or not, but not to government employees,
managerial employees, field personnel, members of the family of the employer who are
dependent on him for support, domestic helpers, persons in the personal service of another,
and workers who are paid by results as determined by the Secretary of Labor in appropriate
regulations."​
​
2. Article XIII, Section 3 of the 1987 Constitution

1.​ "Section 3. The State shall afford full protection to labor, local and overseas,
organized and unorganized, and promote full employment and equality of
employment opportunities for all.
●​ It shall guarantee the rights of all workers to self-organization, collective bargaining
and negotiations, and peaceful concerted activities, including the right to strike in
accordance with law.​
They shall be entitled to security of tenure, humane conditions of work, and a living
wage.​
They shall also participate in policy and decision-making processes affecting their
rights and benefits as may be provided by law.​
The State shall promote the principle of shared responsibility between workers and
employers and the preferential use of voluntary modes in settling disputes, including
conciliation, and shall enforce their mutual compliance therewith to foster industrial
peace.​
The State shall regulate the relations between workers and employers, recognizing
the right of labor to its just share in the fruits of production, and the right of
enterprises to reasonable returns on investments, and to expansion and growth."

How does one create an EER?


​
— An employment relationship is created when an employer and a worker enter into an
agreement—written, verbal, express, or implied—where the worker performs tasks under the
employer’s control for compensation. Under Article 280 of the Labor Code, an EER exists
when a person is engaged to perform work that is necessary and desirable to the employer’s
business, unless classified as casual or contractual.

​
3. Article 280 of the Labor Code of the Philippines​
"Article 280. Regular and Casual Employment. – The provisions of written agreement to the
contrary notwithstanding and regardless of the oral agreement of the parties, an employment
shall be deemed to be regular where the employee has been engaged to perform activities
which are usually necessary or desirable in the usual business or trade of the employer,
except where the employment has been fixed for a specific project or undertaking the
completion or termination of which has been determined at the time of the engagement of
the employee or where the work or service to be performed is seasonal and the employment
is for the duration of the season.​
An employment shall be deemed casual if it is not covered by the preceding paragraph:
Provided, That any employee who has rendered at least one year of service, whether such
service is continuous or broken, shall be considered a regular employee with respect to the
activity in which he is employed and his employment shall continue while such activity
exists."
What determines an employment contract?
​
— An employment contract is determined by the presence of consent, object (work to be
done), and cause (compensation) as required under Article 1318 of the Civil Code.
Additionally, Article 295 of the Labor Codedefines the different types of employment, which
influence the nature of the contract, such as regular, probationary, project-based, or
seasonal employment.

​
4. Article 1318 of the Civil Code of the Philippines​
"Article 1318. There is no contract unless the following requisites concur:

1.​ Consent of the contracting parties;


2.​ Object certain which is the subject matter of the contract;
3.​ Cause of the obligation which is established."
●​ ​
5. Article 295 of the Labor Code of the Philippines​
"Article 295. Regular Employment; Probationary Employment. – The provisions of
written agreement to the contrary notwithstanding and regardless of the oral
agreement of the parties, an employment shall be deemed to be regular where the
employee has been engaged to perform activities that are usually necessary or
desirable in the usual business or trade of the employer.​
An employment shall be deemed casual if it is not covered by the preceding
paragraph: Provided, That any employee who has rendered at least one year of
service, whether continuous or broken, shall be considered a regular employee with
respect to the activity in which they are employed, and their employment shall
continue while such activity exists.​
Probationary employment shall not exceed six (6) months, unless covered by
apprenticeship agreements stipulating longer periods. The employer must inform a
probationary employee of the standards they must meet for regularization.
Otherwise, the employee shall be deemed a regular employee."
What does the 4-fold test do?
​
— The 4-fold test, established in jurisprudence like Francisco v. NLRC (G.R. No. 170087,
2007), is used to determine if an employment relationship exists by evaluating:

1.​ The employer’s power to hire


2.​ Payment of wages (Article 97(f) of the Labor Code)
3.​ The power to dismiss (Article 279 of the Labor Code, guaranteeing
security of tenure)
4.​ The power to control the means and methods of work (control test)

6. Article 97 of the Labor Code of the Philippines

"Article 97. Definitions. – As used in this Title:

(a) "Person" means an individual, partnership, association, corporation, business trust, legal
representatives, or any organized group of persons.

(b) "Employer" includes any person acting directly or indirectly in the interest of an employer
in relation to an employee and shall include the government and all its branches,
subdivisions, and instrumentalities, all government-owned or controlled corporations and
institutions, as well as nonprofit private institutions, or organizations.

(c) "Employee" includes any individual employed by an employer.

(d) "Wage" paid to any employee shall mean the remuneration or earnings, however
designated, capable of being expressed in terms of money, whether fixed or ascertained on
a time, task, piece, or commission basis, or other method of calculating the same, which is
payable by an employer to an employee under a written or unwritten contract of employment
for work done or to be done, or for services rendered or to be rendered."

7. Article 279 of the Labor Code of the Philippines

"Article 279. Security of Tenure. – In cases of regular employment, the employer shall not
terminate the services of an employee except for a just cause or when authorized by this
Title. An employee who is unjustly dismissed from work shall be entitled to reinstatement
without loss of seniority rights and other privileges, and to full backwages, inclusive
of allowances, and to their other benefits or their monetary equivalent computed from
the time their compensation was withheld up to the time of their actual
reinstatement."
Do you need to satisfy the whole test?
​
— No, the control test is the most crucial. According to Brotherhood Labor Unity
Movement v. Zamora (G.R. No. L-48645, 1989), the existence of control over how work is
performed is enough to establish an EER, even if the other factors are not fully met.

Why is control the most important?


​
— Control is the distinguishing element of an employment contract. Under Article 280 of the
Labor Code, if a worker is engaged in tasks directly related to the employer’s business and
the employer controls how the work is done, the worker is considered an employee. This
prevents the misclassification of workers and ensures they receive labor protections, as
emphasized in Insular Life Assurance Co. Ltd. v. NLRC (G.R. No. 84484, 1989).

8. Article 280 of the Labor Code of the Philippines (Duplicate of Above)

(Same as Article 280 already listed above. This provision is essential in determining regular,
casual, and project-based employment in the Philippines.)

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