Republic vs. Asiapro Digest

Republic of the Philippines/SSC/SSS vs. Asiapro Cooperative

[G.R. No. 172101 November 23, 2007] Facts:

Asiapro, as a cooperative, is composed of owners-members. nder its b!"aws, owners-members are of two cate#ories, $1%re#&"ar member, w'o is entit"ed to a"" t'e ri#'ts and privi"e#es of members'ip ( and $2% associate member, w'o 'as no ri#'t to vote and be voted &pon and s'a"" be entit"ed on"! to s&c' ri#'ts and privi"e#es privi"e#es provided provided in its b!-"aws b!-"aws.. )ts primar! primar! ob*ectives are to provide savin#s and credit faci"ities and to deve"op ot'er "ive"i "ive"i'oo 'ood d servic services es for its owner owners-m s-memb embers ers.. )n t'e disc'a disc'ar#e r#e of t'e aforesaid primar! ob*ectives, respondent cooperative entered into severa" +ervice ontracts wit' +tan"co - a division of / 'i"ippines, )nc. and a compa compan! n! based based in &4idn &4idnon. on. 5'e 5'e owne ownersrs-me membe mbers rs do not recei receive ve compensation or wa#es from t'e respondent cooperative. )nstead, t'e! receive a s'are in t'e service s&rp"&s w'ic' Asiapro earns from di6erent areas of trade it en#a#es in, s&c' as t'e income derived from t'e said +ervice +ervice ontracts ontracts wit' +tan"co. +tan"co. )n order order to en*o! t'e benets &nder t'e +ocia" +ec&rit! aw of 17, t'e owners-members of Asiapro assi#ned to +tan"co re8&ested t'e services of t'e "atter to re#ister t'em wit' +++ as se"f-emp"o!ed and to remit t'eir contrib&tions as s&c'. /n +eptember 29, 2002, 2002, petiti petitione onerr +++ sent sent a "etter "etter to respon responden dentt coope cooperat rative ive informin# t'e "atter t'at based on t'e +ervice ontracts it e:ec&ted wit' +tan"co, Asiapro is act&a""! manpower contractor s&pp"!in# emp"o!ees to +tan"co and so, it is an emp"o!er of its owners-members wor4in# wit' +tan"co +tan"co.. 5'&s, 5'&s, Asiapro Asiapro s'o&"d re#ister re#ister itse"f wit' petitioner petitioner +++ as an emp"o emp"o!er !er and ma4e ma4e t'e corr corresp espond ondin# in# repor reportt and remit remittan tance ce of  premi&m contrib&tions. espite "etters received, respondent cooperative contin&o&s"! i#nored t'e demand of petitioner +++. Accordin#"!, +++ "ed a petition on ;&ne 12, 2003 before ++ a#ainst Asiapro and +tan"co pra!in# t'at t'a t eit' ei t'er er of t'em t' em be directed directed to re#iste re#isterr as an emp"o emp"o!er !er and and to repo report rt Asiapro Asiapro'et'er or not t'ere e:ists an emp"o!er-emp"o!ee emp"o!er-emp"o!ee re"ations'ip between Asiapro ooperative and its owners-members. 2. >'et'er >'et'er or not petitioner petitioner 'as *&risdicti *&risdiction on over t'e petition-c petition-comp" omp"aint aint "ed before it b! +++ a#ainst t'e respondent cooperative. cooperative. SC Ruling:

1. )n determinin# t'e e:istence of an emp"o!er-emp"o!ee emp"o!er-emp"o!ee re"ations'ip, t'e fo""owin# e"ements are considered? $1% t'e se"ection and en#a#ement of  t'e wor4ers( $2% t'e pa!ment of wa#es b! w'atever means( $3% t'e power

of dismissa"( and $@% t'e power to contro" t'e wor4erit' t'at, a cooperative can be "i4ened to a corporation wit' a persona"it! separate and distinct from its owners-members. onse8&ent"!, onse8&ent"!, an owner-member owner-member of  a coope cooperat rative ive can be an emp"o! emp"o!ee ee of t'e "atter "atter and t'e emp"o emp"o!er !er-emp"o!ee re"ations'ip can e:ist between t'em. 2. etitioner etitioner ++