LAZARO V

SSS
METHOD WAGE PAYMENT
FACTS:
Private respondent Rosalina M. Laudato (Laudato) filed a
petition before the SSC for social security coverage and
remittance of unpaid monthly social security contributions
against her three (3) employers. Among others, herein
respondent is Angelito Lazaro.
SSC ruled on favor of Laudato
CA affirmed decision of SSC
SC: this petition
 SSC, CA based
their decisions on
Control Test
ISSUE(S):
(1) WON Laudato is not an employee of Royal Star based on
the method which he is paid—Commission basis
(2) WON Laudota cannot be deemed as an employee of Royal
Star because he was not subject to definite hours and
conditions of work as averred by Lazaro
DECISION:

No. Citing Grepalife v.

Judico
and Cosmopolitan
Funeral Homes, Inc. v.
Maalat
WHEREFORE, the Petition is DENIED and the assailed
Decision of the Court of Appeals dated 20 November 1998 is
AFFIRMED. Costs against petitioner.
INSULAR
LIFE V
NLRC
AGREEMENT
FACTS:
Insular Life Assurance Co., Ltd and Melecio T. Basiao entered
into a contract by which Basiao was authorized to solicit
within the Philippines applications for insurance policies and
annuities in accordance with the existing rules and
regulations of the Company and that he would receive
"compensation, in the form of commissions ... as provided in
the Schedule of Commissions". The contract also contained,
among others, provisions governing the relations of the
parties, the duties of the Agent, the acts prohibited to him,
and the modes of termination of the agreement.
FACTS:
4 years later, they entered into another contract named an
Agency Manager’s Contract.
In May, 1979, the Company terminated the Agency Manager's
Contract and first contract
Basiao filed a complaint for unpaid commissions
FACTS:
Labor Arbiter ruled that there is an employer-employee
relationship based on the agreement. Hence, Ministry has
jurisdiction over the case
Upon appeal of the Company, NLRC affirmed Labor Arbiter’s
decision
ISSUE:

WON Basiao is not an employee of the

company but a Commission Agent
therefore NLRC has no jurisdiction over the
case
DECISION:

Basiao was not an

employee of the
commissioner based on
the Control Test
DECISION:
Yes, Basiao is a Commission Agent. This could be deduced
from the agreement that Basiao is:
• master of his own time and selling methods
• left to his judgment the time, place and means of soliciting
insurance
• set no accomplishment quotas and compensated him on
the basis of results obtained
DECISION:
• He was not bound to observe any schedule of working
hours or report to any regular station
• he could seek and work on his prospects anywhere and at
anytime he chose to, and was free to adopt the selling
methods he deemed most effective.
WHEREFORE, the appealed Resolution of the National Labor
Relations Commission is set aside, and that complaint of
private respondent Melecio T. Basiao in RAB Case No. VI-
0010-83 is dismissed. No pronouncement as to costs.