Test of employee employer relationship

Gerry O. Gatawa, MBA

Employee-Employer Relationship- It is created once a person, natural

or juridical employs or suffers an individual to work in his establishment or along the usual business or economic activity to which he is engaged.

The four-fold test in determining the existence of employee-employer relationship:1) The Power to Hire or Selection and

Engagement. 2) Payment of Wages and Salary. 3) Power to Dismiss. 4) Power of Control.

1) The Power to Hire or Selection and Engagement.

2) Payment of Wages and Salary. WAGE The term “WAGE” is usually used to

payments made to laborer and minimum wage earner who are normally paid on daily basis.

The payee has less permanent employment status like casual, contractual and project employment.

SALARY The term “SALARY” is normally used

to refer to payments made to executives, managers, and other staff who are paid on monthly basis.

The payee has more permanent and fixed status.

3) Power to Dismiss.

4) Power of Control

Employee-Employer Relationship Exists Musicians providing the

background music of a moving picture and the film company.

University Professor and The University.

Jeepney driver and the operator.

Employee-Employer Relationship Not ExistsBusiness Consultants

Volunteer Workers

Independent Contractors

Talents

Fair Wage and Fair Work A fair day’s wage for a fair day’s labor governs the relations between labor and capital and remains a basic factor in determining employee’s wages.

Fair Wage and Fair Work If there is no work performed by the employee, there can be no wage or pay unless the laborer was able, wiling, and ready to work but was prevented by management or was illegally locked out, suspended or dismissed.

Minimum Employable AgeNo child below fifteen (15) years of

age shall be employed, except when he works directly under the sole responsibility of his parents or guardian and his employment does not in anyway interfere with his schooling.

How about between 15 and 18 years of age?

Any person between 15 and 18 of age may be employed for such number of hours and such periods of the day as determined by the Secretary of Labor in appropriate regulations.