In a complaint for illegal dismissal filed before the Labor Arbiter, who has the burden to prove the existence of an employer-employee relationship?
The Supreme Court, in Gaspar vs. M.I.Y. Real Estate Corp., G.R. No. 239385, 17 April 2024, held that the complainant has the obligation to prove that an employer-employee relationship exists between her and her supposed employer. This is especially so if the supposed employer denies any employment relationship.
Based on the ruling, it is important to apply the four-fold test to determine if the respondent entity that is being charged by the complainant as the employer is actually the employer: 1. was the respondent entity the one that hired the complainant? (2) was the respondent entity the one paying the complainant’s wages? (3) was the respondent entity the one that had the power to dismiss the complainant? and (4) was the respondent entity the one that had the power to control the complainant’s conduct? Of the four, control is the single most important indicator of who is the actual employer.
