Employer-Employee Relationship

What is the Four-Fold Test? This is the test to ascertain the existence of an employer-employee relationship jurisprudence has invariably adhered to the four-fold test, to wit: (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, or the so-called "control test." Of these four, the last one is the most important. The so-called "control test" is commonly regarded as the most crucial and determinative indicator of the presence or absence of an employer-employee relationship . Under the control test, 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. [1] Are all forms of control indicative of employer-employee relationship? No. A person who performs work for another and is subjected to its rules, regulations, and code of ethics does not necessarily become an employee. As long as the level of control does not interfere with the means and methods of accomplishing the assigned tasks, the rules imposed by the hiring party on the hired party do not amount to the labor law concept of control that is indicative of employer-employee relationship. [2] Is it necessary that the control should be exercised for the employer-employee relationship to exist? No.


It should be remembered that the control test merely calls for the existence of the right to control, and not necessarily the exercise thereof. It is not essential that the employer actually supervises the performance of duties by the employee. It is enough that the former has a right to wield the power. [3] [1] Atok Big Wedge Company Inc. vs. Gison, G.R. No. 169510 (August 8, 2011) [2] Royal Homes Marketing vs. Alcantara, G.R. No. 195190 (July 28, 2014) [3] Gapayao vs. Fulo, G.R. No. 193493 (June 13, 2013)

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