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10/12/2017 Republic v. Asiapro Cooperative (G.R. No.

172101) | The Student and The Law

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August 27, 2016 by Julie Caadan

REPUBLIC V. ASIAPRO COOPERATIVE (G.R.


NO. 172101)
Facts:

Respondent Asiapro Cooperative is composed of owners-members with primary


objectives of providing them savings and credit facilities and livelihood services. In
discharge of said objectives, Asiapro entered into several service contracts with
Stanfilco. Sometime later, the cooperative owners-members requested Stanfilco’s
help in registering them with SSS and remitting their contributions. Petitioner SSS
informed Asiapro that being actually a manpower contractor supplying employees
to Stanfilco, it must be the one to register itself with SSS as an employer and remit
the contributions. Respondent continuously ignoring the demand of SSS the latter
filed before the SSC. Asiapro alleges that there exists no employer-employee
relationship between it and its owners-members. SSC ruled in favor of SSS. On
appeal, CA reversed the decision.

Issue:

Whether or not there is employer-employee relationship between Asiapro and its


owners-members.

Ruling: YES.

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In determining the existence of an employer-employee relationship, the following


elements are considered: (1) the selection and engagement of the workers; (2) the
payment of wages by whatever means; (3) the power of dismissal; and (4) the
power to control the worker‘s conduct, with the latter assuming primacy in the
overall consideration. All the aforesaid elements are present in this case.

First. It is expressly provided in the Service Contracts that it is the respondent


cooperative which 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. It cannot be doubted then that those stipends or shares in the service
surplus are indeed wages, because these are given to the owners-members as
compensation in rendering services to respondent cooperative‘s client, Stanfilco.

Third. It is also stated in the above-mentioned Service Contracts that it is the


respondent cooperative which has the power to investigate, discipline and remove
the owners-members and its team leaders who were rendering services at
Stanfilco.

Fourth. In the case at bar, it is the respondent cooperative which has the sole
control over the manner and means of performing the services under the Service
Contracts with Stanfilco as well as the means and methods of work. Also, the
respondent cooperative is solely and entirely responsible for its owners-members,
team leaders and other representatives at Stanfilco. All these clearly prove that,
indeed, there is an employer-employee relationship between the respondent
cooperative and its owners-members.

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This entry was posted in Case Digests, Labor Law and tagged control test, employer-employee relationship, four-fold
test on employment, g.r. no. 172101, power of control, republic v. asiapro cooperative. Bookmark the permalink.

LIKHA-PMPB V. BURLINGAME CORPORATION SPS. LIPANA V. DEVELOPMENT BANK OF


(G.R. NO. 162833) RIZAL (G.R. NO. 73884)

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