Dr. Crisostomo entered into a retainer agreement with AB Hotel and Resort whereby he would provide medical services to the guests and employees of AB Hoteland Resort, which, in turn, would provide the clinic premises and medical supplies. He received a monthly retainer fee of ₱60,000.00, plus a 70% share in the service charges from AB Hotel and Resort’s guests availing themselves of the clinic’s services. The clinic employed nurses and allied staff, whose salaries, SSS contributions and other benefits he undertook to pay. AB Hotel and Resort issued directives giving instructions to him on the replenishment of emergency kits and forbidding the clinic staff from receiving cash payments from the guests.
In time, the nurses and the clinic staff claimed entitlement to rights as regular employees of AB Hoteland Resort, but the latter refused on the ground that Dr. Crisostomo, who was their employer, was an independent contractor. Rule, with reasons. (4%)
Suggested Answer:
The nurses and the clinic staff are employees of Dr. Crisostomo. Answer
Under labor law jurisprudence, the four-fold test is used to ascertain the existence of an employer-employee relationship, using these factors: (1) the selection and engagement of the employee; (2) the payment of wages; (3) the power of dismissal; and (4) the power to control the employee’s conduct, or the so-called “control test.” Of these four, the last one is the most important. Rule
In the case at bar, the nurses and the clinic staff were selected and engaged by Dr. Crisostomo. Their salaries and SSS contributions were being paid by Dr. Crisostomo. As the one who hired them, Dr. Crisostomo has the power to dismiss them. More importantly, Dr. Crisostomo exercised control over them in the performance of their work. Apply
Thus, it was incorrect for the clinic and staff to claim that they were regular employees of AB Hotel and Resort. Conclusion
