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The Supreme Court decides: An employer-employee relationship exists where the person for whom the services are performed reserves the right to control not only the end achieved, but also the manner and means to be used in reaching that end.

The petitioner did not establish with substantial evidence her employment with M.I.Y. The Supreme Court ruled that the existence of an employer-employee relationship is determined by employing a two-tiered test: the four-fold test and the economic dependence test. The petitioner failed to establish the four-factors in the four-fold test. Subsequently, the Court Court only applies the economic dependence test when the control test is insufficient.

Is acceptance of a promotion mandatory?

An employee is not bound to accept a promotion, which is in the nature of a gift or reward. Refusal to be promoted is a valid exercise of a right. Such exercise cannot be considered an insubordination or willful disobedience of a lawful order of the employer, hence, it cannot be the basis of an employee’s dismissal from service. (Echo 2000 Commercial Corporation v. Obrero Pilipino Echo 2000 Chapter-CLO, Id.)

Elements of Tenancy Relationship

What is an agricultural tenancy?

Republic Act No. 1199 or the Agricultural Tenancy Act of the Philippines defines agricultural tenancy as the physical possession by a person of land devoted to agriculture belonging to, or legally possessed by, another for the purpose of production through the labor of the former and of the members of his immediate farm household, in consideration of which the former agrees to share the harvest with the latter, or to pay a price certain or ascertainable, either in produce or in money, or in both. (Section 3, R.A. No. 1199)

Are all employees entitled to separation pay when leaving the company?

Separation pay shall be paid by the employer to an employee terminated due to installation of labor-saving devices, redundancy, retrenchment, closure or cessation of operations not due to serious business losses or financial reverses, and disease.

An employee whose employment is terminated by reason of just causes is not entitled to separation pay except as expressly provided for in the company policy or Collective Bargaining Agreement (CBA).

(Section 5.5, Rule I-A, OLE Department Order No. 147, series of 2015)

Who has the burden of proving that overtime work has been performed?

The burden of proving entitlement to overtime work rests on the employee, as this monetary claim is not incurred in the normal course of business.

It is thus incumbent upon the employee to first prove that he actually rendered service in excess of the regular eight working hours a day, and that he in fact worked on holidays and rest days.

(Reggie Zonio v. 1st Quantum Leap Security Agency, Inc. and Romulo Par, G.R. No. 224944, May 05, 2021)

The Supreme Court decides: The only qualified beneficiaries to claim death benefits are the legitimate spouse of the decedent, and the decedent’s children, whether legitimate and illegitimate.

The only qualified beneficiaries to claim death benefits are the legitimate spouse of the decedent, and the decedent’s children, whether legitimate and illegitimate. (Elenita Macalinao, et al. v. Cerina Macalinao, G.R. No. 250613, April 3, 2024)

The Principle of “Fair Day’s Wage for a Fair Day’s Labor”

The age-old rule governing the relation between labor and capital, or management and employee of a “fair day’s wage for a fair day’s labor” remains as the basic factor in determining employees’ wages.

If there is no work performed by the employee, there can be no wage or pay, unless of course, the laborer was able, willing, and ready to work but was illegally locked out, suspended or dismissed, or otherwise illegally prevented from working.

(Aklan Electric Cooperative, Inc. v. NLRC, G.R. No. 121439, January 25, 2000)

Three-Fold Liability Rule

Under the Three-Fold Liability Rule, the wrongful acts or omissions of a public officer may give rise to civil, criminal, and administrative liability. (Silvino Matobato v. People of the Philippines, G.R. No. 229265, February 15, 2022)

An action of each can proceed independently of the others. (Jose Romeo Escandor v. People of the Philippines, G.R. No. 211962)