HOW IS EMPLOYER-EMPLOYEE RELATIONSHIP DETERMINED?

The four-fold test is the established standard for determining the existence of an employer-employee relationship.
Under the two-tiered approach, the control test as well as the underlying economic realities within the activity or relationship must be established.
The benchmark “reality” for the existence of an employer-employee relationship is economic dependence of the worker on his employer.

WHAT IS WAGE DISTORTION?

Wage “distortion” occurs when the usual differentials in wage rates between groups of employees in an establishment are drastically reduced or eliminated due to mandated wage increases.
Wage distortion can only exist where the wage adjustment is brought about by a wage order, not by management prerogative.
In determining an employee’s regular wage, the pertinent stipulations in the Collective Bargaining Agreement are controlling, provided that the result is not less than the statutory requirement.

Bylaws refer to continuing rules of action adopted by the corporation for its own government and that of the individuals composing it.
Bylaws of a corporation must be consistent with the Corporation Code, other pertinent laws and regulations, as well as its Articles of Incorporation.
Bylaws must not disturb vested rights, impair contract or property rights of stockholders or members.

A legal entity is distinct from the persons composing it.
The corporate veil cannot be used as a shield to perpetuate fraud, defeat public convenience, justify wrong or defend crime.
Ownership of a substantial portion of the outstanding capital in a corporation is not a justification to apply the doctrine of piercing the corporate veil.