Republic V. Cooperative (G.R. No.

172101)
Jurisprudence:
Employer-employee relationship can be determined through the existence of these 4
elements: (1) Selection and engagement of the workers; (2) Payment of wages of whatever
means; (3) Power of dismissal; and (4) Power to control the worker’s conduct, with the latter
assuming primacy in the overall consideration.
Facts:
Asiapro Cooperative is composed of owners-members, which provides savings and credit
facilities and livelihood service. The former entered into a contract with Stanfilc, and later on
asked for the latter’s help to register them and remit their contributions to SSS. SSS apprised
Asiapro that being a manpower contractor supplying employees, and thus, should register
itself with SSS as an employer and remit the contributions. Asiapro avers that employer-
employee relationship does not exist between it and its owners-members.
Issue:
Whether or not an employer-employee relations exists in this case.
Ruling:
Yes. All of the aforesaid elements to establish employer-employee relationship exist.
First. It is provided in the Service Contracts that the respondent cooperative has the exclusive
discretion in the selection and engagement of the owners-members as well as its team leaders
who will be assigned at Stanfilco.
Second. The stipends or shares in the service are indeed wages, for these are given to the
owners-members as compensation in rendering services to respondent cooperative’s client.
Third. It is stated in the Service Contracts that the respondent cooperative has the power to
investigate, discipline and remove the owners-members and its team leaders who render
services at Stanflico.
Fourth. The respondent has the sole control over the manner and means of peforming the
services under the Service Contracts with Stanfilco as well as meands and methods of work.
Also, respondent is solely responsible for its owners-members, team leaders and other
representatives at Stanfilco.
The foregoing elements explicitly established that there is an employer-employee relationship
between the respondent and its owner-members.