Republic of the Philippines/SSC/SSS vs.

Asiapro Cooperative of dismissa"( and $@% t'e power to contro" t'e wor4er<s cond&ct, wit' t'e "atter
ass&min#
ass&min# primac!
primac! in t'e overa""
overa"" consideratio
consideration.
n. 5'e most importa
important
nt e"ement is t'e
emp"o!er<s contro". A"" t'e aforesaid e"ements are present in t'is case. 5'e
[G.R. No. 172101 November 23, 2007] e:istenc
e:istencee of an emp"o!er
emp"o!er-emp
-emp"o!e
"o!ee
e re"ations
re"ations'ip
'ip cannot
cannot be ne#ated
ne#ated b!
Facts: e:press
e:press"!
"! rep&diati
rep&diatin#
n# it in a contract
contract,, w'en t'e terms
terms and s&rro&ndin#
s&rro&ndin#
circ&mst
circ&mstance
ances s s'ow ot'erwise
ot'erwise.. 5'e emp"o!m
emp"o!mentent stat&s
stat&s of a person
person is
Asiapro, as a cooperative, is composed of owners-members. nder its b!-
dened and prescribed b! "aw and not b! w'at t'e parties sa! it s'o&"d be.
"aws, owners-members are of two cate#ories, $1%re#&"ar member, w'o is
A cooperative ac8&ires *&ridica" persona"it! &pon its re#istration wit' t'e
entit"ed to a"" t'e ri#'ts and privi"e#es of members'ip ( and $2% associate
ooperative eve"opment A&t'orit!. )t 'as its oard of irectors, w'ic'
member, w'o 'as no ri#'t to vote and be voted &pon and s'a"" be entit"ed
directs and s&pervises its b&siness( meanin# its oard of irectors is t'e
on"! to s&c' ri#'ts and privi"e#es
privi"e#es provided
provided in its b!-"aws
b!-"aws.. )ts primar!
primar!
one in c'ar#e in t'e cond&ct and mana#ement of its a6airs. >it' t'at, a
ob*ectives are to provide savin#s and credit faci"ities and to deve"op ot'er
cooperative can be "i4ened to a corporation wit' a persona"it! separate
"ive"i
"ive"i'oo
'ood d servic
services
es for its owner
owners-m
s-memb
embersers.. )n t'e disc'a
disc'ar#e
r#e of t'e
and distinct from its owners-members. onse8&ent"!,
onse8&ent"!, an owner-member
owner-member of 
aforesaid primar! ob*ectives, respondent cooperative entered into severa"
a coope
cooperat
rative
ive can be an emp"o!
emp"o!ee ee of t'e "atter
"atter and t'e emp"o
emp"o!er
!er--
+ervice ontracts wit' +tan"co - a division of / 'i"ippines, )nc. and a
emp"o!ee re"ations'ip can e:ist between t'em.
compa
compan! n! based
based in &4idn
&4idnon.
on. 5'e
5'e owne
owners-rs-me
membe
mbersrs do not receireceive
ve
compensation or wa#es from t'e respondent cooperative. )nstead, t'e!
receive a s'are in t'e service s&rp"&s w'ic' Asiapro earns from di6erent 2. etitioner
etitioner ++<s *&risdiction is c"ear"! stated in +ection  of R.A. No.
No. B2B2 as we"" as in
areas of trade it en#a#es in, s&c' as t'e income derived from t'e said +ection 1, R&"e ))) of t'e 17 +++ Revised R&"es of roced&re. +ec.  of R.A.
+ervice
+ervice ontracts
ontracts wit' +tan"co.
+tan"co. )n order
order to en*o! t'e benets &nder B2B2 provides?
t'e +ocia" +ec&rit! aw of 17, t'e owners-members of Asiapro assi#ned
to +tan"co re8&ested t'e services of t'e "atter to re#ister t'em wit' +++ C+ec.  +ett"ement of isp&tes
as se"f-emp"o!ed and to remit t'eir contrib&tions as s&c'. /n +eptember  D$a% An! disp&te arisin# &nder t'is Act wit' respect to covera#e, benets,
29, 2002,
2002, petiti
petitione
onerr +++ sent
sent a "etter
"etter to respon
responden
dentt coope
cooperat
rative
ive contrib&tions and pena"ties t'ereon or an! ot'er matter re"ated t'ereto,
informin# t'e "atter t'at based on t'e +ervice ontracts it e:ec&ted wit' s'a"" be co#niEab"e b! t'e ommission
+tan"co, Asiapro is act&a""! manpower contractor s&pp"!in# emp"o!ees to , :::F $mp'asis +&pp"ied%
+tan"co and so, it is an emp"o!er of its owners-members wor4in# wit'
+tan"co
+tan"co.. 5'&s,
5'&s, Asiapro
Asiapro s'o&"d re#ister
re#ister itse"f wit' petitioner
petitioner +++ as an  +imi"ar"!, +ection 1, R&"e ))) of t'e 17 +++ Revised R&"es of roced&re
emp"o
emp"o!er!er and ma4e ma4e t'e corrcorresp
espond
ondin#in# repor
reportt and remitremittan
tance
ce of  states?
premi&m contrib&tions. espite "etters received, respondent cooperative C+ection 1. ;&risdiction
;&risdiction D
contin&o&s"! i#nored t'e demand of petitioner +++. Accordin#"!, +++ "ed a
An! disp&te arisin# &nder t'e +ocia" +ec&rit! Act wit' respect to covera#e,
petition on ;&ne 12, 2003 before ++ a#ainst Asiapro and +tan"co pra!in#
entit"eme
entit"ement
nt of benets,
benets, co""ection
co""ection and sett"emen
sett"ementt of contrib&t
contrib&tions
ions and
t'at
t'a t eit'
ei t'er
er of t'em
t' em be directed
directed to re#iste
re#isterr as an emp"o
emp"o!er
!er and
and to repo
report
rt Asiapro
Asiapro<s
pena"ties t'ereon, or an! ot'er matter re"ated t'ereto, s'a"" be co#niEab"e
owne
owners-m
rs-members
embers as covered emp"o!ees &nder t'e comp&"sor! covera#e
b! t'e ommission after t'e +++ t'ro&#' its resident, =ana#er or /cer-
of +++ and to remit t'e necessar! contrib&tions. Respondent cooperative
in-c'ar#e of t'e epartmentHranc'HRepresentative /ce
"ed its answer wit' =otion to ismiss a""e#in# t'at no emp"o!er-emp"o!ee
emp"o!er-emp"o!ee
re"ations
re"ations'ip'ip e:ists
e:ists between
between it and its owners-m
owners-membeembers,
rs, t'&s, petitioner
petitioner concerned
concerned 'ad rst ta4enaction t'ereon
t'ereon in writin#.F
writin#.F $mp'asi
$mp'asiss s&pp
s& pp"i"ied
ed%%
++ 'as no *&risdiction over t'e respondent cooperative.
Issues: )t is c"ear t'en from t'e aforesaid provisions t'at an! iss&e re#ardin# t'e
1. >'et'er or not t'ere e:ists an emp"o!er-emp"o!ee
emp"o!er-emp"o!ee re"ations'ip between comp&"sor! covera#e of t'e +++ is we"" wit'in t'e e:c"&sive domain of t'e
Asiapro ooperative and its owners-members. petitioner ++. )t is important to note t'at t'e mandator! covera#e &nder
t'e +++ aw is premised
premised on t'e e:istence
e:istence of an emp"o!er
emp"o!er-em-emp"o!e
p"o!ee
e
2. >'et'er
>'et'er or not petitioner
petitioner 'as *&risdicti
*&risdiction
on over t'e petition-c
petition-comp"
omp"aint
aint
re"at
re"ation
ions'i
s'ip.
p. onse8
onse8&en
&ent"!
t"!,, t'e respo
responde
ndent
nt cooper
cooperati
ative
ve bein#
bein# t'e
"ed before it b! +++ a#ainst t'e respondent cooperative.
cooperative.
emp"o!er of its owners-members m&st re#ister as emp"o!er and report its
owners-members
owners-members as covered members of t'e +++ and remit t'e necessar!
SC Ruling: premi&m
premi&m contrib&tion
contrib&tions
s in accorda
accordance
nce wit' t'e +ocia"
+ocia" +ec&rit!
+ec&rit! aw of 
17.Accordin#"!, based on t'e a""e#ations in t'e petition-comp"aint "ed
1. )n determinin# t'e e:istence of an emp"o!er-emp"o!ee
emp"o!er-emp"o!ee re"ations'ip, t'e before t'e petitioner ++, t'e case c"ear"! fa""s wit'in its *&risdiction.
fo""owin# e"ements are considered? $1% t'e se"ection and en#a#ement of 
t'e wor4ers( $2% t'e pa!ment of wa#es b! w'atever means( $3% t'e power