The Supreme Court (SC) has ordered Lazada E-Services Philippines, Inc. (Lazada) to pay the full backwages and other benefits of its five rider-employees who were hired in 2016 and dismissed in 2017.
The Supreme Court has ordered Lazada E-Services Philippines, Inc. to pay the full backwages and other benefits of its five rider-employees who were hired in 2016 and dismissed in 2017.
In January 2017, the five riders were told by a Lazada dispatcher that they have been removed from their usual routes and will no longer be given any schedules. Later, they learned that their routes had been given to other riders. On Nov. 3, 2017, the labor arbiter dismissed the complaint. The NLRC affirmed the dismissal on April 30, 2018. The Court of Appeals denied on March 15, 2019 the riders’ petition challenging the NLRC’s ruling. The riders elevated the case to the SC.
“However, respondents failed to discharge their burden of proving that petitioners are independent contractors. Petitioners do not fall under any of the categories of independent contractors. “First, petitioners are directly employed by respondent Lazada as evidenced by the Contracts they signed. Petitioner’s former employer, RGSERVE, Inc., is not a party to the Contract with respondent Lazada.
“The services performed by petitioners are integral to respondents’ business. Respondents insist that the delivery of items is only incidental to their business as they are mainly an online platform where sellers and buyers transact.
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