Littler Global Guide - Philippines - Q1 2023

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Supreme Court: Employment Status of Delivery Riders of E-commerce Platform

Precedential Decision by Judiciary or Regulatory Agency

Authors: Emerico O. de Guzman, Of Counsel, and Franchesca Abigail C. Gesmundo, Senior Associate – Angara Abello Concepcion Regala and Cruz Law Office

In January 2023, the Philippine Supreme Court released a Decision dated September 21, 2022, regarding an illegal dismissal and misclassification suit filed by delivery riders of an e-commerce platform. The delivery riders were engaged by the platform as independent contractors, but they claim that they are regular employees due to the extent of control exercised by the platform over how they perform their work.

The Supreme Court ruled in favor of the delivery riders after a review of their agreements and an application of the four-fold test which showed that it was the e-commerce platform who directly hired them, paid their wages, had the power to discipline them, and had control over the performance of their work. Thus, the court declared them as employees of the ecommerce platform.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.