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Saturday, May 15, 2010

Ang Ahente ba Employee?



             “Employee” is any person in the employ of an employer as defined by the Labor Code.   The Social Security Law (R.A. No. 1161) gives more substantive meaning.  The latter defines “Employee” as any person who performs services for an employer in which either or both mental and physical efforts are used and who receives compensation for such services, where there is an employer-employee relationship.

            The sales agents, however, may or may not be considered as employees.  A company may have two (2) classes of agents.

1)     Salaried employees agents; and
2)     Commission agents

            The agents who belong to the first category, though they are also given a productivity bonus or a commission, are considered employees since they keep definite hours and work under the control and supervision of the company.    It has been held that employer-employee relationship exists when there is power to control the employee with respect to the means and methods by which his work is to be accomplished.

            While Commission Agents are paid their commission based on a certain percentage of their sales.  They do not have to devote their time exclusively or work solely for the company. They work at their own volition. The juridical element of control is absent in this situation.  Thus, there exists no employment relationship between the commission agents and the company.

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