SC - An employee who is paid solely on commission can still be classified as a regular employee
Genon averred that he worked as a truck driver for Dynamiq, a hauling business, from September 10, 2009 until he resigned on June 3, 2014.
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ISSUE
The fundamental issue that the Court must resolve is whether Genon is a regular employee entitled to 13th month pay
SC RULING
Although Genon was paid on a commission basis, he is a regular employee. It should be remembered that a regular status of employment is not based on how the salary is paid to an employee.
An employee may be paid purely on commission and still be considered a regular employee. As a regular employee, Genon is entitled to receive 13th month pay.
"[A]n employee who has resigned, or whose services were terminated at any time before the payment of the 13th month pay, is entitled to this monetary benefit in proportion to the length of time [they] worked during the year, reckoned from the time [they] started working during the calendar year up to the time of [their] resignation or termination from the service."
FINAL WORD
"The supremacy of the law over the nomenclature of the contract and its pacts and conditions is to bring life to the policy enshrined in the Constitution to afford full protection to labor. Thus, labor contracts are placed on a higher plane than ordinary contracts since these are imbued with public interest and, therefore, subject to the police power of the State."
FOOTNOTES
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