Case Digest: Paguio Transport Corp. vs. National Labor Relations Commission, G.R. No. 119500

 

Paguio Transport Corp. vs. National Labor Relations Commission, G.R. No. 119500, August 28, 1998

Subject: Transportation Law

FACTS

Complainant Melchor was hired by PTC as a taxi driver under the boundary system. He was advised to stop working and have a rest after a car accident involving the taxi unit he was driving. He was told by the PTC that his service was no longer needed. Then the complaint for illegal dismissal was raised. The petitioner concludes that he had no control over the number of hour’s private respondent had to work and the routes he had to take; therefore no employer-employee relationship exists.

ISSUE

Whether or not an employer-employee relationship exists.

RULING

Yes, there is an employee-employer relationship between them.

Under the law, boundary system is that of employer-employee and not of lessor-lessee. The “boundary system” the drivers do not receive fixed wages; all the excess in the amount of boundary was considered his income but it is not sufficient to withdraw the relationship between them from that of employer and employee.

In this case, private respondents were employees because they had been engaged to perform activities which were usually necessary or desirable in the usual trade or business of the employer. The petition was dismissed, the private respondent was entitled for the claim of damages and illegal dismissal.