𝐄𝐜𝐨𝐧𝐨𝐦𝐢𝐜 𝐑𝐞𝐚𝐥𝐢𝐭𝐲 𝐓𝐞𝐬𝐭.

 

𝐄𝐜𝐨𝐧𝐨𝐦𝐢𝐜 𝐑𝐞𝐚𝐥𝐢𝐭𝐲 𝐓𝐞𝐬𝐭.

[G.R. No. 189255 June 17, 2015] 

"Aside from the control test, the Supreme Court has also used the economic reality test in determining whether an employer-employee relationship exists between the parties." 

"Under this test, the economic realities prevailing within the activity or between the parties are examined, taking into consideration the [totality of circumstances] surrounding the true nature of the relationship between the parties."

In Sevilla v. Court of Appeals, we observed the need to consider the existing economic conditions prevailing between the parties, in addition to the standard of right-of-control [...] to give a clearer picture in determining the existence of an employer-employee relationship based on an analysis of the totality of economic circumstances of the worker. 

Thus, the determination of the relationship between employer and employee depends upon the circumstances of the whole economic activity, such as: 

(1) the extent to which the services performed are an integral part of the employer’s business; 

(2) the extent of the worker’s investment in equipment and facilities; 

(3) the nature and degree of control exercised by the employer; 

(4) the worker’s opportunity for profit and loss; 

(5) the amount of initiative, skill, judgment or foresight required for the success of the claimed independent enterprise; 

(6) the permanency and duration of the relationship between the worker and the employer; and 

(7) the degree of dependency of the worker upon the employer for his continued employment in that line of business. 

The proper standard of economic dependence is whether the worker is dependent on the alleged employer for his continued employment in that line of business. 

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