Registration or Remittance with SSS as employer is an admission of employment relationship
Tirso Enopia and others were hired as crew members of the fishing mother boat FIB MG-28 owned by respondent Joaquin “Jake” Lu who is the sole proprietor of Mommy Gina Tuna Resources [MGTR] based in General Santos City.
The parties had an income-sharing arrangement wherein 55% goes to Lu, 45% to the crew members, with an additional 4% as “backing incentive.” They also equally share the expenses for the maintenance and repair of the mother boat, and for the purchase of nets, ropes and payaos.
Sometime in August 1997, Lu proposed the signing of a Joint Venture Fishing Agreement between them, but Tirso and company refused to sign the same as they opposed the one-year term provided in the agreement.
According to the crew members, during their dialogue, Lu terminated their services right there and then because of their refusal to sign the agreement.
On the other hand, Lu alleged that the master fisherman (piado) Ruben Salili informed him that Tirso and other crew members still refused to sign the agreement and have decided to return the vessel FIB MG-28.
Tirso, et al., filed their complaint for illegal dismissal, monetary claims and damages. Despite serious efforts made by Labor Arbiter (LA), the case was not amicably settled.
Is there employer-employee relationship in this case?
Read more on employer-employee relationship
The Supreme Court held that in determining the existence of an employer-employee relationship, the following elements are considered: (1) the selection and engagement of the workers; (2) the power to control the worker’s conduct; (3) the payment of wages by whatever means; and (4) the power of dismissal.
The Court found all these elements present in this case.
It is settled that no particular form of evidence is required to prove the existence of an employer-employee relationship. Any competent and relevant evidence to prove the relationship may be admitted.
In this case, Lu contends that it was the piado who hired the crew members, however, it was shown by the latter’s evidence that the employer stated in their Social Security System (SSS) online inquiry system printouts was MGTR, which is owned by Lu.
The printouts revealed that the date of the SSS remitted contributions coincided with the date of crew members’ employment with Lu.
The latter failed to rebut such evidence. Thus, the fact that Lu had registered Tirso and other crew members with SSS is proof that they were indeed his employees. The coverage of the Social Security Law is predicated on the existence of an employer-employee relationship.
(Joaquin Lu Vs. Tirso Enopia, et al., G.R. No. 197899, March 6, 2017)
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