CASE DIGEST
Dusol v. Lazo
G.R. No. 200555,
[January 20, 2021]
SECOND, LOPEZ, M.
Illegal Dismissal;
Employer-employee Relationship; Proof of employment
The elements of an employer-employee relationship, such as selection and engagement, payment of wages, power of dismissal, and control over work conduct, are important to establish the employment status and the nature of the relationship between parties involved in labor disputes.
Pedro and Maricel Dusol (the petitioners) filed a complaint against Emmarck A. Lazo (the respondent), owner of Ralco Beach, alleging illegal dismissal, underpayment of benefits, and deprivation of procedural due process. Pedro had worked as the beach resort's caretaker since January 6, 1993, while Maricel was employed as a store manager starting January 28, 2007. They were compensated through allowances and commissions from the resort's rentals and sales. However, on July 31, 2008, Emmarck notified them of the resort's closure as he will be leasing out Ralco Beach, leading to their termination. The petitioners claimed that they were illegally dismissed. Whereas Emmark countered that they are partners and not employees, hence no illegal dismissal may took place.
Whether Pedro and Maricel were employees or partners of Emmarck.
NO. The court found merit in Pedro and Maricel's
petition, as it was established that they were employees, not partners, of
Emmarck. While Emmarck claimed a partnership existed, no documentary evidence
supported this, and the mere receipt of profits does not establish a
partnership when those profits are akin to wages. The court concluded that
Emmarck had control over Pedro and Maricel's work, evidenced by his admission
that he entrusted the resort's operation to them. Despite the absence of
written guidelines, Emmarck exercised control, as demonstrated by his
imposition of a mark-up on store items. Consequently, the lack of procedural
due process in their dismissal rendered it illegal. As the resort's closure was
not due to serious business losses, Pedro and Maricel were entitled to
separation pay, nominal damages, wage differentials, 13th-month pay, and
attorney's fees.
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