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MARIO N. FELICILDA v. MANCHESTEVE H. UY

FACTS:

The respondent, Manchesteve H. Uy, hired the petitioner, Mario N. Felicilda, as a truck driver for his trucking service under the business name "Gold Pillars Trucking" (GPT). Petitioner was assigned to one of GPT's branches in Manila and was paid on a percentage basis. On December 9, 2011, petitioner took a nap while waiting for his truck to be loaded. The next day, respondent's helper informed petitioner that his employment was terminated due to his act of sleeping on the job. Petitioner filed a complaint for illegal dismissal with money claims against respondent. Respondent denied the existence of an employer-employee relationship and alleged that petitioner's services were terminated due to his serious transgressions and misconduct. The Labor Arbiter ruled in favor of petitioner and ordered respondent to pay his backwages and separation pay. The NLRC affirmed the LA decision, finding that an employer-employee relationship existed based on the control and supervision exerted by respondent over petitioner's work. The CA, however, set aside the NLRC ruling and dismissed petitioner's complaint, finding that the essential elements of an employer-employee relationship were absent. Petitioner's motion for reconsideration was denied by the CA, leading to the filing of this petition.

ISSUES:

  1. Whether or not there exists an employer-employee relationship between petitioner and respondent

  2. Whether or not the dismissal of petitioner was illegal

RULING:

  1. The Court held that no employer-employee relationship existed between petitioner and respondent. Thus, the dismissal of petitioner was not illegal.

PRINCIPLES:

  • In determining the existence of an employer-employee relationship, the following elements must be present: (a) the selection and engagement of the employee; (b) the payment of wages; (c) the power of dismissal; and (d) the power of control.

  • The payment of wages on a percentage or commission basis does not negate the existence of an employer-employee relationship, as long as there is control and supervision over the work performed.

  • The control test is the most important element in determining the existence of an employer-employee relationship. It refers to the right to control the means and methods by which the work is to be accomplished, including the manner and details of the performance.