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Insular Life Assurance Vs NLRC

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Insular Life Assurance v.

NLRC, 287 SCRA 476

Employment Relationship (Test – Control Test)

Facts:

Petitioner Insular Life entered into an agency contract with respondent Pantaleon de los Reyes authorizing the latter to solicit
applications for life insurance for which he would be paid compensation in the form of commissions. Sometime after, the parties
entered into another contract where Pantaleon was appointed as Acting Unit Manager responsible for recruitment, training,
organization, development and furtherance of the agency’s goals. He was prohibited from working for other life insurance
companies or with the government. Pantaleon worked concurrently as agent and Acting Unit Manager until he was notified of his
termination. He thus filed a complaint for illegal dismissal before the Labor Arbiter. The Labor Arbiter dismissed the complaint but
on appeal was reversed by the NLRC tribunal ruling that Pantaleon was an employee of petitioner. Petitioner contends that
nature of the work has already been resolved by the Court in the earlier case of Insular Life v. Basiao where Basiao is declared
an independent contractor and not an employee of petitioner.

Issue:

Whether or not there exists employer-employee relationship between petitioner and Pantaleon.

Ruling: YES.

As to the matter involving the power of dismissal and control by the employer, the latter of which is the most important of the test,
unlike Basiao, herein respondent De los Reyes was appointed Acting Unit Manager, not agency manager. Petitioner in fact has
admitted that it provided De los Reyes a place and a table at its office where he reported for and worked whenever he was not
out in the field.

In this case, Delos Reyes is under the managership contract wherein the petitioner controlled the scope of work and the means
to do the work by furnishing him of company facilities and materials as well as capital, giving him assignments and removing
agents under private respondent’s unit, hence, Delos Reyes acts as an employee of the Petitioner.

With that being said, with the petitioner having the control over the means and methods of performing the job, work or service
expected from Delos Reyes, we can say that there is an employer-employee relationship using the control test.

DISPOSITIVE

WHEREFORE, the petition of Insular Life Assurance Company, Ltd., is DENIED and the Decision of the National Labor
Relations Commission dated 3 March 1995 and its Order of 6 April 1996 sustaining it are AFFIRMED. Let this case be
REMANDED to the Labor Arbiter a quo who is directed to hear and dispose of this case with deliberate dispatch in light of the
views expressed herein.

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