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Saturday, August 19, 2006
Independent Contractor or Employee?
By Dominador A. Almirante
Labor case digest
Petitioner Pedro Chavez, a truck driver, filed a complaint for illegal dismissal with money claims against respondent Supreme Packaging Inc. The latter denied the existence of an employer-employee relationship between them claiming that Chavez was an independent contractor as evidenced by a contract of service entered into by them.
The severance of contractual relation between them was due to Chavez’ violation of the terms and conditions of their contract.
Did this defense find merit?
Ruling: No.
On the other hand, the court is hard put to believe the respondent’s allegation that the petitioner was an independent contractor engaged in providing delivery or hauling services when he did not even own the truck used for such services.
Evidently, he did not possess substantial capitalization or investment in the form of tools, machinery and work premises.
Moreover, the petitioner performed the delivery services exclusively for the respondent company for a continuous and uninterrupted period of 10 years.
The contract of service to the contrary notwithstanding, the factual circumstances earlier discussed indubitably establish the existence of an employer-employee relationship between the respondent company and the petitioner. It bears stressing that the existence of an employer-employee relationship cannot be negated by expressly repudiating it in a contract and providing therein that the employee is an independent contractor when, as in this case, the facts clearly show otherwise. Indeed, the employment status of a person is defined and prescribed by law and not by what the parties say it should be. (Pedro Chavez vs. NLRC, et. al. G.R.No. 146530, Jan. 17, 2005).
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