G.R. No. 84484 - Insular Life Assurance Co., Ltd. vs. National Labor Relations Commission

Basiao was authorized to solicit insurance applications in accordance with the Company’s rules and regulations.
Compensation was solely by commissions as provided in the Schedule of Commissions.
The Company’s Rate Book, Agent’s Manual, and circulars were incorporated into the contract.
Relationship clause: Agent was free to determine time, place, and means of solicitation; not an employee.
Prohibited practices clause: Rebates, misrepresentations, over-selling, and other unethical acts were forbidden.
Termination clause: Company could terminate at will; agent lost renewal commissions upon termination except for disability or death; unpaid first-year premium commissions payable less collection costs unless termination for contract violation.
Assignment clause: No assignment of the agency or commissions without written consent of the Company.

April 1972: Basiao entered into an Agency Manager’s Contract and organized “M. Basiao and Associates.”
May 1979: The Company terminated the Agency Manager’s Contract; Basiao sought reconsideration.
April 1, 1980: The Company allegedly terminated the original contract and stopped commission payments.
Basiao filed a civil action; later filed a complaint with the Ministry of Labor for unpaid commissions plus attorney’s fees.

The Company challenged jurisdiction, asserting Basiao was an independent contractor.
Labor Arbiter ruled Basiao was an employee and awarded unpaid first-year premium commissions plus 10% attorney’s fees.
NLRC affirmed the Labor Arbiter’s decision.
The Company filed a petition for certiorari and prohibition before the Supreme Court.

Whether Basiao’s contract created an employer-employee relationship or an independent contractor relationship.

Whether the Labor Arbiter and NLRC had jurisdiction under Section 217 of the Labor Code to adjudicate Basiao’s claim for unpaid commissions.