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 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.