In the recent case of Ditiangkin v. Lazada E-Services Philippines, Inc. (G.R. 246892, 21 September 2022), the Supreme Court declared that there exists an employer-employee relationship between Lazada, one of the leading e-commerce platforms in the Philippines, and its five riders who filed an illegal dismissal case against the e-commerce giant.
In ruling in favor of the riders, the Supreme Court highlighted the constitutional policy of full protection of labor and the right of the workers to security of tenure, which are deemed incorporated into the contract entered into by the parties.
Using the four-fold test (a) power of selection and engagement; (b) payment of wages; (c) power to dismiss; and (d) power of control, the Supreme Court sided with the riders and declared them as employees of Lazada.
Additionally, the Supreme Court used the economic dependence test to acknowledge the presence of employer-employee relationship. Citing Francisco v NLRC (G.R. 170087, 31 August 2006), the proper standard of economic dependence is whether the worker is dependent on the alleged employer for his continued employment in that line of business.
Finding that there exists an employer-employee relationship, the riders are deemed to be regular employees of Lazada. They are thus entitled to reinstatement to their positions with full back wages, including their salary for holiday pay and the cash bonds they advanced to Lazada.
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