Many of us have read about the recent Supreme Court ruling ordering Lazada to reinstate five of their “illegally dismissed” riders whom they hired in 2016 and dismissed in 2017. The complaint was previously dismissed by the Labor Arbiter, the NLRC, and the Court of Appeals. Six years after the said dismissal, the highest court of the land would rule otherwise—in favor of the workers.
The issue of whether there is an employee-employer relationship in cases like this has been a topic of argument for decades, specifically where it concerns “independent contractors.” Many labor groups have sought the outright ban on contractualized labor. That is why to some people, the ruling of Senior Associate Justice Marvic Leonen is remarkable.
The Court said that “Lazada failed to discharge its burden of proving that the five were independent contractors, rather than regular employees.” The Supreme Court found that the following factors were all present: the employer’s selection and engagement of the employee; payment of wages; power to dismiss; and the power to control the employee’s conduct. The Court also said that the riders were economically dependent on Lazada for their continued employment due to being directly hired. These reasons were enough bases to say that there existed an employee-employer relationship between the employer and the riders, according to the Supreme Court.
In today’s economy where freelancers make up a huge percentage of our labor force, this matter needs to be looked at more closely and referenced upon in cases of dispute. The law is to be followed even if there is a contract, as mentioned in the Supreme Court decision on this particular case: “Protection of the law afforded to labor precedes over the nomenclature and stipulations of the Contract…. Thus, it is patently erroneous for the labor tribunals to reject an employer-employee relationship simply because the Contract stipulates that this relationship does not exist.”
Riders and drivers have become a huge part of our daily lives. This became even more pronounced during the pandemic. They deliver our documents and goods, pick up our food, drive us around, and so on. And yet we often find them on viral videos being beaten or berated, on controversial shows complaining about certain injustices done to them. Many of them face challenges related to their companies’ policies, their customers’ unfair behavior, or risks on the road. Their number continues to grow, and I think it’s about time that we review the policies and laws we have in place not just for these contractual riders and drivers, but for the entire freelancing community, including informal workers, gig workers, independent contractors, and synonyms of the same classification. It’s about time we recognize and address the needs of millions of our fellow Filipinos who are bringing a significant contribution to this country’s economy.
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On Saturday, February 25, the country celebrates the 37th anniversary of the People Power Revolution. We remember this important event that took place from February 22 to 25, 1986 that inspired many countries to adopt peaceful revolutions in their own societies. Most importantly, we don’t forget the people who were part of this peaceful uprising, led by former senator Benigno Aquino Jr. and his wife, our former president Corazon Cojuangco Aquino. On this day, let us be thankful for the freedom and democracy that the event made possible for the Philippines. As devoted citizens of our beloved country, we must continue to protect the gains of Edsa.