Supreme Court Orders Lazada to Reinstate Illegally Dismiss Riders

Supreme Court Orders Lazada to Reinstate Dismissed 5 Delivery Riders

The Supreme Court has issued an order to online shopping company Lazada to reinstate illegally dismissed delivery riders.

The Supreme Court Second Division reversed the verdict of the National Labor Relations Commission (NLRC) and the Court of Appeals, which determined that the five petitioners and Lazada E-Services Philippines, Inc. have no employer-employee connection.

Supreme Court Lazada Riders

According to Senior Associate Justice Marvic M.V.F. Leonen’s remarks, when contesting an employee’s classification, the burden is on the employer to prove that the individual working for them is an independent contractor and not a regular employee.

Lazada failed to prove that petitioners Chrisden Cabrera Ditiangkin, Hendrix Masamayor Molines, Harvey Mosquito Juanio, Joselito Castro Verde, and Brian Anthony Cubacub Nabong were all independent contractors, according to the Supreme Court. The petitioners’ case passed the four-part test, demonstrating that Lazada and the petitioners have an employer-employee relationship.

Based on the report, the four-part test involves the employer’s selection and engagement of the employee, payment of compensation, dismissal power, and control over the employee’s behavior. As a result, the court ordered Lazada to reinstate the petitioners to their lawful roles as Lazada riders and to pay them full backwages.

The Supreme Court further ordered the Labor Arbiter to calculate the total monetary benefits to be awarded to the petitioners. According to the case record, in 2016, Lazada recruited the aforementioned riders as independent contractors to pick up things from vendors and deliver them to the Lazada warehouse for a daily salary of P1,200.  However, the petitioners were informed in 2017 that they had been removed.

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