FACTS: Petitioner were drivers of private respondent driving the latter’s taxicabs every other day on a 240 hour work schedule under the boundary system where petitioners earn an average of Php400 daily and private respondent regularly deducts an amount for the washing of the taxi units. Petitioners decided to form a labor union. Later, private respondent refused to let petitioners drive their taxicabs. Petitioners filed with the labor arbiter a complaint for ULP, illegal dismissal, and illegal deductions. The labor arbiter dismissed the complaint. The NLRC reversed the judgment stating that dismissal must be for just cause and after due process. Private respondent’s first motion for reconsideration was denied. It filed another MR, which was then granted.
ISSUE: W/N an employee-employer relationship exists, thereby making the dismissals illegal.
HELD: Yes. The relationship between jeepney-owners and jeepney drivers under the boundary system is that of employee-employer and not that of lessor-lessee. The fact that the drivers do not receive fixed wages is not sufficient to withdraw the relationship from that of employer and employee. The termination of employment must be effectuated in accordance with law. With regard to the amount deducted for washing, such was not illegal as such is indeed a practice in the taxi industry and is dictated by fair play.
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