Michelle Jale B.

Ompoc

Lesson 1: Application

1. Give an example/situation on the application of each of the three (3) tests to determine

the existence of employment relationship

A. Behavioral Control test

 If a business gives instructions on how, when, and where a worker should perform their work

(what tools/equipment to use, what specific work must be done, what order/sequence the work

must follow, etc.), the individual is likely an employee. If there were an evaluation system that

measures work performance, this would specify the worker is an employee. However, if the

evaluation simply judges the end result, they can either be an employee or an independent

contractor. If the business trains the worker on how to do their job, this indicates an individual is

an employee (the business wants the job done a particular way). An independent contractor is

free to execute their job duties using their own process.

B. Financial Control test

Employees are generally guaranteed a wage or salary amount for a period. Even when someone’s

wage/salary is supplemented by a commission, they would still be considered an employee. 

Employees generally need to refer to their company policy on operating a side business and may

need to discuss this with their employer. 

C. Type of Relationship test

The contract should state how both parties—the business and the worker—work together. This

determines the worker’s status. Benefits like health insurance paid time off (PTO), and sick days

are generally offered to employees and must be stated.

2. Is the right to security of tenure only available to regular employees or are other forms

of employment covered as well? Explain. 

Every employee shall be assured security of tenure. No employee can be dismissed from

work except for a just or authorized cause, and only after due process. Just cause refers to any

wrongdoing committed by an employee; authorized cause refers to economic circumstances that

are not the employee's fault.

3. How can a casual employee attain regular employment?

If the employee has rendered service for at least one (1) year in the same company,

whether the casual employment is continuous or not, they shall be considered a regular employee

with respect to the activity they are employed and will continue rendering service while such

activity exists.
4. Cite at least 2 situations wherein a worker be considered a piece rate worker.

Piece rate pay occurs when workers are paid by the unit performed.

Example

A. Call center agents getting additional pay per unit sold

B. Home based workers and other out-workers (who work in premises other than that of the

employer) are frequently paid piece rates.

5. In what instances can a probationary employee attain the status of a regular employee?

The said law further states that a probationary employee who is allowed to work beyond

the probationary period becomes a regular employee. For example in BPO, any employee who is

allowed to work after 6 months considering they have met the targets will become a regular

employee.