The five riders who took Lazada to court are entitled to backwages from the time they were dismissed in 2017.
MANILA, Philippines – The Supreme Court has ruled in favor of five riders who alleged that their employer Lazada illegally dismissed them in 2017.
They will receive full backwages computed from the time of dismissal up to the time of actual reinstatement. The case was brought to the Labor Arbiter for the computation of the total monetary benefits that the petitioners were entitled to.In February 2016, the petitioners were hired by Lazada with the primary task of transporting items from sellers and to Lazada’s warehouse. They earned P1,200 each per day for one year, as stipulated in their contracts.
Lazada, meanwhile, maintained that the riders were not their regular employees, but independent contractors. The company argued that when a buyer purchases an item through Lazada, the company merely coordinates the delivery of the product through an independent transportation service. This made delivery merely an ancillary activity, and not its main line of business.
“When the status of the employment is in dispute, the employer bears the burden to prove that the person whose service it pays for is an independent contractor rather than a regular employee with or without fixed terms,” read the decision penned by Senior Associate Justice Marvic Leonen.
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