7 - ELEMENTS OF EMPLOYER-EMPLOYEE RELATIONSHIP Flashcards

1
Q

Based on the Labor Code of the Philippines, the existence of an employer-employee relationship is determined by a four-fold test:

A
  1. Selection and engagement of the employee
  2. Payment of wages
  3. Power of dismissal
  4. Power to control the employee’s conduct
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2
Q
  • A natural person who is hired, directly or indirectly, by a natural or juridical person to perform activities related to the business of the “hirer” who supervises or controls his work performance
  • A person who works for another for a wage computed on time or non-time basis
A

Employee

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3
Q
  • May be determined according to time spent on the job or result of effort
  • May be based on result of effort or time spent on the job
    1. Method of payment is not a test of employer-employee relationship
A

Payment of Wages

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4
Q
  • Also known as involuntary termination
  • Form of discipline when employees fail to meet expected standards of achievement
  • Last step of the progressive discipline process
  • Should be the last resort when dealing with poor performance
A

Power of Dismissal

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5
Q

Progressive Discipline

A

1 - informal reprimand / verbal admonishment
2 - formal reprimand / written admonishment
3 - suspension from work
4 - involuntary termination / dismissal

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6
Q
  • Also known as control test
  • Considered as the most important element
  • If the hirer does not control the work performance of the hiree, he is not an employee
A

Power to Control the Employer’s Conduct

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7
Q
  • A businessman who operates independently from his client or principal to accomplish a job, work, or service
  • Free to perform his services according to his own style
A

Contractor

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8
Q

A person who enters into a contract with a contractor

A

Client / Principal

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9
Q
  • Rules that merely serve as guidelines which only promote the result
  • Rules that fix the methodology and bind or restrict the party hired to the use of such means or methods
    1. These address both the result and the means employed to achieve the desired result
A

Two Forms of Control

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