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    Lazaro Vs Social Security Commission

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    Marinelle Aycee Moleta Perral
    Rosalina Laudato filed a petition with the Social Security Commission (SSC) seeking social security coverage and unpaid contributions from her employer, Royal Star, where she worked as a sales supervisor for 6 years. Royal Star denied that Laudato was an employee. The SSC ruled in favor of Laudato, applying the "control test" and finding that Royal Star exercised control over Laudato's work. The Court of Appeals affirmed. The Supreme Court also found an employer-employee relationship existed based on evidence that Royal Star controlled Laudato and other sales agents in how they implemented company policies and achieved results. This included a memorandum directing a new commission policy that salespeople had to follow.

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    Lazaro Vs Social Security Commission

    Uploaded by

    Marinelle Aycee Moleta Perral
    70 views1 page
    Rosalina Laudato filed a petition with the Social Security Commission (SSC) seeking social security coverage and unpaid contributions from her employer, Royal Star, where she worked as a sales supervisor for 6 years. Royal Star denied that Laudato was an employee. The SSC ruled in favor of Laudato, applying the "control test" and finding that Royal Star exercised control over Laudato's work. The Court of Appeals affirmed. The Supreme Court also found an employer-employee relationship existed based on evidence that Royal Star controlled Laudato and other sales agents in how they implemented company policies and achieved results. This included a memorandum directing a new commission policy that salespeople had to follow.

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    Lazaro vs Social Security Commission

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    Rosalina Laudato filed a petition with the Social Security Commission (SSC) seeking social security coverage and unpaid contributions from her employer, Royal Star, where she worked as a sales supervisor for 6 years. Royal Star denied that Laudato was an employee. The SSC ruled in favor of Laudato, applying the "control test" and finding that Royal Star exercised control over Laudato's work. The Court of Appeals affirmed. The Supreme Court also found an employer-employee relationship existed based on evidence that Royal Star controlled Laudato and other sales agents in how they implemented company policies and achieved results. This included a memorandum directing a new commission policy that salespeople had to follow.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    70 views1 page

    Lazaro Vs Social Security Commission

    Uploaded by

    Marinelle Aycee Moleta Perral
    Rosalina Laudato filed a petition with the Social Security Commission (SSC) seeking social security coverage and unpaid contributions from her employer, Royal Star, where she worked as a sales supervisor for 6 years. Royal Star denied that Laudato was an employee. The SSC ruled in favor of Laudato, applying the "control test" and finding that Royal Star exercised control over Laudato's work. The Court of Appeals affirmed. The Supreme Court also found an employer-employee relationship existed based on evidence that Royal Star controlled Laudato and other sales agents in how they implemented company policies and achieved results. This included a memorandum directing a new commission policy that salespeople had to follow.

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    © All Rights Reserved
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    Lazaro vs.

    Social Security Commission


    435 SCRA 472 July 30, 2004
    Facts:
    Rosalina Laudato filed a petition before the Social Security Commission for social security
    coverage and remittance of unpaid monthly social security contributions against her 3
    employers. One of them is Lazaro. Laudato alleged that despite being a sales supervisor for 6
    years for Royal Star, Laudato had failed to report her to SSC for compulsory coverage or remint
    Laudato's social security contributions.
    Lazaro, on the other hand, deny that Laudato was an employee of Royal Star as she was paid
    on commission basis and was not subjected to definite hours and conditions of work.
    SSC ruled in favor of Laudato. Applying the "control test" it held that Laudato was an employee
    of Royal Star and ordered the company to pay the unremitted social security contributions of
    Laudato as well as P15,680.07 worth of damages for not reporting her for social security
    coverage.
    Lazaro filed a Petition for review with the CA. However, CA affirmed the SSC's finding. Before
    the SC, Lazaro again insisted that Laudato was not qualified for social security coverage, as she
    was not an employee.
    Issue:
    WON there is an employer-employee relationship between Laudato and Royal Star.
    Ruling:
    Yes, as substantial evidence found by the SSC and CA have established the element of control
    determinative of an employer-employee relationship.
    Determination of employer-employee relationship warrants the application of the "control test,"
    that is, whether the employer controls or has reserved the right to control the employee, not only
    as to the result of the work done, but also as to the means and methods by which the same is
    accomplished.
    The fact that Laudato was paid by way of commission does not preclude the establishment of
    an employer-employee relationship. Neither does it follow that a person who does not observe
    normal hours of work cannot be deemed an employee.
    The SSC found that Laudato was indeed a sales agent who oversaw and supervised the sales
    agents of the company (as evidenced by cash vouchers, calling cards, and Certificates of
    Appreciation issued by the company to Laudato), and thus was subject to the control of
    management as to how she implements its policies and its end results. This is supported by
    substantial evidence.
    A piece of documentary evidence is a Memorandum by the general manages directing that no
    commissions were to given on all main office sales from walk-in customers and enjoining
    salesmen and sales supervisor to observe this new policy. This evinces that, contrary to
    Lazaro's claim, Royal Star exercised control over its sales supervisors or agents such as
    Laudato as to the means and methods through which these personnel performed their work.

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