2016 (Labor Law) Bar Exam Questions: Question 2

[Answer/discuss the question below, or see 2016 bar exam Labor Law Instructions; 2016 Labor Law Questions: 13, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, and 20; See also 2016 Bar Exam: Information, Discussions, Tips, Questions and Results]


Gregorio was hired as an insurance underwriter by the Guaranteed Insurance Corporation (Guaranteed). He does not receive any salary but solely relies on commissions earned for every insurance policy approved by the company. He hires and pays his own secretary but is provided free office space in the office of the company. He is, however, required to meet a monthly quota of twenty (20) insurance policies, otherwise, he may be terminated. He was made to agree to a Code of Conduct for underwriters and is supervised by a Unit Manager.

[a] Is Gregorio an employee of Guaranteed? Explain. (2.5%)

[b] Suppose Gregorio is appointed as Unit Manager and assigned to supervise several underwriters. He holds office in the company premises, receives an overriding commission on the commissions of his underwriters, as well as a monthly allowance from the company, and is supervised by a branch manager. He is governed by the Code of Conduct for Unit Managers. Is he an employee of Guaranteed? Explain. (2.5%)

One comment

  1. 1. Yes, he is an employee for there is an employer employee relationship between him and Guaranteed. For one, payment of salary is not a definite test that defines who is an “employee”. Secondly, the law always looked on the power of control of an employer, in this case, Guaranteed, exercised over the work of its employee. This being the case, he is an employee.

    2. Gregorio is still an employee of Guaranteed. He is not, under the law, considered a managerial employee to rule out the fact that he is an “employee”. IN this case, Guaranteed exercise control over him since the Branch Manager and the Code of Conduct governs over him.

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