[Answer/discuss the question below, or see 2017 bar exam Labor Law Instructions; 2016 Labor Law and Social Legislation Questions: 1, 2, 3, 4, 5, 6, 8, 9, 10, 11, 12, and 13; See also 2017 Bar Exam: Information, Discussions, Tips, Questions and Results]
Dr. Crisostomo entered into a retainer agreement with AB Hotel and Resort whereby he would provide medical services to the guests and employees of AB Hoteland Resort, which, in turn, would provide the clinic premises and medical supplies. He received a monthly retainer fee of P&0,000.00, plus a 70% share in the service charges from AB Hoteland Resort’s guests availing themselves of the clinic’s services. The clinic employed nurses and allied staff, whose salaries, SSS contributions and other benefits he undertook to pay. AB Hotel and Resort issued directives giving instructions to him on the replenishment of emergency kits and forbidding the clinic staff from receiving cash payments from the guests.
In time, the nurses and the clinic staff claimed entitlement to rights as regular employees of AB Hoteland Resort, but the latter refused on the ground that Dr. Crisostomo, who was their employer, was an independent contractor. Rule, with reasons. (4)