Title
Supreme Court
Ditiangkin vs. Lazada E-Services Philippines, Inc.
Case
G.R. No. 246892
Decision Date
Sep 21, 2022
Riders hired by Lazada as independent contractors filed a labor complaint for illegal dismissal, claiming regular employee status. The Supreme Court ruled in their favor, finding them regular employees under the four-fold test, entitling them to reinstatement, backwages, and benefits.

Case Digest (G.R. No. 132601)
Expanded Legal Reasoning Model

Facts:

  • Engagement and Contractual Terms
    • In February 2016, Chrisden Cabrera Ditiangkin, Hendrix Masamayor Molines, Harvey Mosquito Juanio, Joselito Castro Verde, and Brian Anthony Cubacub Nabong (collectively, petitioners/riders) were engaged by Lazada E-Services Philippines, Inc. (Lazada) to pick up items from sellers and deliver them to Lazada’s warehouse.
    • Each rider signed an Independent Contractor Agreement stating:
      • A one-year term of engagement.
      • A service fee of ₱1,200.00 per day.
      • Responsibility to use their own motorcycles.
  • Removal from Routes and Labor Proceedings
    • In January 2017, a dispatcher informed the riders they would be removed from their usual routes. They reported for work for three days but received no assignments; routes were reassigned to others.
    • The riders filed a complaint before the National Labor Relations Commission (NLRC) for illegal dismissal and non-payment of salary, overtime, holiday pay, service incentive leave pay, 13th-month pay, separation pay, illegal deductions, moral and exemplary damages, and attorney’s fees—claiming they were regular employees under Lazada’s control.
    • Lazada maintained the riders were independent contractors; delivery was ancillary to its main business (an online marketplace).
    • The Labor Arbiter dismissed the complaint for lack of employer-employee relationship, relying on the Independent Contractor Agreement and finding no control over means and methods of work.
    • The NLRC affirmed; its denial of reconsideration was followed by a Court of Appeals (CA) outright dismissal of the riders’ Rule 65 certiorari petition for using the wrong procedural remedy (should have been Rule 43). The CA denied reconsideration.
    • Petitioners elevated the case to the Supreme Court via a Petition for Review under Rule 45.

Issues:

  • Whether the Court of Appeals erred in dismissing the certiorari petition outright instead of entertaining it under Rule 65.
  • Whether petitioners are regular employees of Lazada, to wit:
    • Whether they are independent contractors.
    • Whether they satisfy the four-fold test.
    • Whether there is economic dependence in their engagement.
  • Whether petitioners are entitled to monetary awards (backwages, benefits, separation pay, damages, attorney’s fees).

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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