Professional Documents
Culture Documents
GENOVIA
November 23, 2011 | Peralta, J. | Four-Fold Test
Digester: Chua, Gian Angelo
SUMMARY: Wilmer was hired by Cesar as studio manager of Celkor. Later, Wilmer
was additionally tasked with composing and promoting songs for Cesars daughter and
Wilmer was promised to be compensated accordingly. When Wilmer finished the songs,
he asked for his compensation but he was only given 20% share of net profits. Also, his
salary as studio manager was to be deducted from that 20% share. He objected and he
was terminated. He filed a complaint for illegal dismissal. The SC found that an
employer-employee relationship existed and that he was illegally dismissed for lack of
due process.
DOCTRINE: The elements to determine the existence of an employment relationship
are: (a) the selection and engagement of the employee; (b) the payment of wages; (c) the
power of dismissal; and (d) the employers power to control the employees conduct.
FACTS:
Wilmer Genovia filed a complaint against Cesar Lirio and/or Celkor Ad Sonicmix
Recording Studio for illegal dismissal, non-payment of commission and award of
moral and exemplary damages.
Wilmers Position Paper:
He was hired as studio manager by Cesar, the owner of Celkor. His task was to
manage and operate Celkor and to promote Celkors services to prospective clients.
He received a monthly salary of P7,000 and an additional P100/hour as recording
technician whenever a client uses the studio for recording.
He was required to work from Monday-Friday from 9AM-6PM. On Saturdays, he
was required to work half-day but usually he still worked 8 hours or more.
A few days after he started working, Cesar told him about his project to produce an
album for his 15 year old daughter, Celine Mei Lirio, a former talent of ABS-CBN
Star Record. Cesar asked Wilmer to compose and arrange songs for Celine and
promised that he would be compensated accordingly.
Later, Wilmer reminded Cesar about his compensation and Cesar verbally assured
him that he would be duly compensated.
When Wilmer finally finished the compositions and the recording of the songs, he
was then tasked to establish contacts and negotiated with radio stations, malls, etc.
for the promotion of such album.
When the album was finally aired, Wilmer again reminded Cesar about his
compensation. Cesar told Wilmer that since he was practically a nobody, he didnt
deserve a high compensation and entitled on to 20% of the net profit and not of
the gross sales, and that the salaries he received as studio manager of Celkor would
be deducted from said 20%. Of course, Wilmer objected.
Cesar verbally terminated Wilmers services and instructed him not to report for
work anymore. Wilmer insists he was illegally terminated and that he was a regular
The elements to determine the existence of an employment relationship are: (a) the
selection and engagement of the employee; (b) the payment of wages; (c) the power
of dismissal; and (d) the employers power to control the employees conduct.
The most important element is the employers control of the employees conduct,
not only as to the result of the work to be done, but also as to the means and
methods to accomplish it.
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, the documentary evidence presented by Wilmer (Payroll & Petty Cash
Vouchers) showed that he was hired as an employee and was paid monthly wages
of P7,000.
Cesar wielded the power to dismiss as Wilmer stated that he was verbally dismissed
by Cesar, and respondent, thereafter, filed an action for illegal dismissal against
Cesar.
The power of control refers merely to the existence of the power. It is not essential
for the employer to actually supervise the performance of duties of the employee,
as it is sufficient that the former has a right to wield the power. In Cesars position
paper, he stated that it was agreed that he would help and teach respondent how to
use the studio equipment. In such case, Cesar certainly had the power to check on
the progress and work of Wilmer.
On the other hand, petitioner failed to prove that his relationship with respondent
was one of partnership. Hence, the Court agrees with the Court of Appeals that the
evidence presented by the parties showed that an employer-employee relationship
existed between petitioner and respondent.