Case Summary (B.M. 850)
Background of the Dispute
On December 28, 2017, Degamo filed a Complaint against Citihomes for non-payment of commissions, claiming she was hired as a sales agent on March 1, 2015, and later promoted to sales manager. However, after submitting her resignation on April 30, 2017, which was not accepted by her superior, she alleged that Citihomes failed to pay her commissions for properties sold.
Contentions of Citihomes
In response, Citihomes contended that Degamo was not its employee but a mere sales agent working under Ms. Evelyn Abapo, who possessed control over hiring. Citihomes argued it did not pay her a regular salary, with payments being made through commissions to Ms. Abapo instead. Thus, they claimed no employer-employee relationship existed.
Labor Arbiter's Decision
In a decision dated October 4, 2018, the Labor Arbiter found that Citihomes was the actual employer, categorizing Ms. Abapo as a labor-only contractor. The Labor Arbiter ordered Citihomes to pay Degamo her commission fees but denied her request for damages.
NLRC Ruling
The National Labor Relations Commission (NLRC), in its December 21, 2018 ruling, overturned the Labor Arbiter's finding. The NLRC ruled that no employer-employee relationship existed, emphasizing the absence of a contract and the independent nature of sales operations conducted by Ms. Abapo. It highlighted that Degamo did not submit substantial evidence supporting her claim.
Court of Appeals (CA) Decision
The CA confirmed the NLRC's ruling on October 1, 2019, further asserting that Degamo's independent contractor status was reinforced by her admissions and the lack of direct control by Citihomes over her sales activities. The CA concluded that the elements for establishing an employer-employee relationship did not exist.
Petitioner's Arguments
Degamo challenged the decisions by asserting that she had been hired by Citihomes through Ms. Abapo and that commissions were paid by Citihomes. She argued that the criteria for an employer-employee relationship were met, noting that Citihomes maintained authority over sales quotas and monitored work performance.
Legal Principles on Employer-Employee Relationship
The Supreme Court highlighted the importance of the "four-fold test" for identifying an employer-employee relationship: selection and engagement of the employee, payment of wages, power of dismissal, and the employer's control over the employee's conduct. The power to
...continue readingCase Syllabus (B.M. 850)
Background of the Case
- The case involves a Petition for Review on Certiorari filed by Edita Santos Degamo against My Citihomes and its owners, John and Rosie Wang.
- The petition challenges the Decision of the Court of Appeals dated October 1, 2019, which affirmed the Decision and Resolution of the National Labor Relations Commission (NLRC).
- The NLRC had vacated the Labor Arbiter's ruling, which found that an employer-employee relationship existed between Degamo and Citihomes, and dismissed Degamo's complaint for lack of jurisdiction.
Parties Involved
- Petitioner: Edita Santos Degamo, who filed a complaint for non-payment of commission fees.
- Respondents: My Citihomes (Citihomes Builder & Development Corporation) and its owners, John and Rosie Wang.
Antecedents
- Degamo was hired by Citihomes on March 1, 2015, as an agent and later promoted to sales manager.
- She alleged that her responsibilities included soliciting clients, advising them on real estate transactions, supervising property consultants, and reporting to Citihomes.
- Following a decline in sales, Degamo submitted a resignation letter effective April 30, 2017, which was not accepted, and Citihomes subsequently refused to pay her commission fees for properties sold.
Positions of the Parties
- Petitioner’s Claims:
- Asserted that she was an employee entitled to commission fees and damages.
- Claimed she was monitored frequently and required to meet a sales quota.
- Respondent’s Defense:
- Contended that Degamo was not an employee but a sales agent of Ms. Evelyn Abapo, a licensed broker.
- Argued there was no control over Degamo's wo