COCA-COLA BOTTLERS PHILS., INC., vs. DR.

DEAN CLIMACO 
G.R. No. 146881. February 15, 2007

Facts: Dr. Climaco is a medical doctor who was hired by the petitioner by virtue of retainer
agreement. The agreement states that there is no employer-employee relationship between the
parties. The retainer agreement was renewed annually. The last one expired on Dec. 31, 1993.
Despite of the non-renewal of the agreement, respondent continued to perform his functions as
company doctor until he received a letter in March 1995 concluding their retainer agreement. 

Respondent filed a complaint before the NLRC seeking recognition as a regular employee of the
petitioner company and prayed for the payment of all benefits of a regular employee. In the decision
of the Labor Arbiter, the company lacked control over the respondent’s performance of his duties.
Respondent appealed where it rendered that no employer-employee relationship existed between
the parties. 

The CA ruled that an employer-employee relationship existed. 

Issue: Whether or not there exists an employer-employee relationship between the parties. 

Ruling : The Court, in determining the existence of an employer-employee relationship, has

invariably adhered to the four-fold test: (1) the selection and engagement of the employee; (2) the
payment of wages; (3) the power of dismissal; and (4) the power to control the employee’s conduct,
or the so-called “control test,” considered to be the most important element. 

The Court agrees with the finding of the Labor Arbiter and the NLRC that the circumstances of this
case show that no employer-employee relationship exists between the parties. The Comprehensive
Medical Plan, provided guidelines merely to ensure that the end result was achieved, but did not
control the means and methods by which respondent performed his assigned tasks. In addition, the
Court finds that the schedule of work and the requirement to be on call for emergency cases do not
amount to such control, but are necessary incidents to the Retainership Agreement. 

Considering that there is no employer-employee relationship between the parties, the termination of
the Retainership Agreement, which is in accordance with the provisions of the Agreement, does not
constitute illegal dismissal of respondent.