Pedro Dusol and Maricel Dusol, Petitioner

VS.
Emmarck A. Lazo, Respondent

G.R. No. 200555 January 30,2022

FACTS
On January 6, 1993, Pedro Dusol began his tenure as
the caretaker of Ralco Beach, a beach resort
operated by Emmarck A. Lazo's parents. Later, on
January 28, 2007, Maricel Dusol, Pedro's spouse, was
recruited by Emmarck to manage the resort's store.
However, Emmarck disputed Pedro and Maricel's
classification as employees, contending that they
functioned as industrial partners. Emmarck
maintained that Pedro and Maricel entered into a
partnership arrangement, entailing profit-sharing
and autonomy in their roles. Despite Emmarck's
stance, Pedro and Maricel persisted in their claim of
being employees, underscoring their daily work
schedules, reception of allowances, and
commissions.

ISSUE
Whether Pedro and Maricel are
employees or partners of
Emmarck.

RULINGS
According to Article 1769 of the Civil Code, "the receipt by a
person of a share of the profits of a business is a prima
facie evidence that he is a partner in the business, but no
such inference shall be drawn if such profits were received
in payment as wages of an employee,".
Based on the record, there is no evidence of the existence
of a partnership between Pedro Maricel and Emmarck
concerning the beach resort. In addition, it is undeniable
that Pedro and Maricel rendered their services in Ralco
Beach and received compensation for the rentals and
revenues of the resort. It is beyond dispute that the receipt
by a person of a share in the profits of a business does not
establish a partnership if the amounts are received as a
salary or wages of an employee. Emmarck only used his
own words to support his claim that Pedro and Maricel only
received commission from their partnership's profits and
allowances rather than salary. In particular, given the lack
of any additional proof to support the partnership's
existence, the sharing of gross returns does not establish a
partnership.