Labor groups see SC ruling a legal aegis for delivery riders

RIDERS of e-commerce firms will now enjoy better legal protection after the Supreme Court (SC) issued a landmark decision during the weekend involving the reinstatement of five Lazada Eservices Philippines Inc. employees, according to a labor group.

The Federation of Free Workers (FFW) lauded the high court ruling, which upheld the security of tenure of the said riders.

“The FFW, the Nagkaisa (labor coalition) and other trade unions are pleased with this decision and believe that it sets an important precedent in protecting the rights of workers,” FFW President and Nagkaisa Labor Coalition President Jose G. Matula said in a statement issued last Sunday.

In its decision on the Ditiangkin vs Lazada E-services Phils case, the SC Second Division ruled in favor of the five delivery riders, whose employment were terminated in 2017.

The High Court noted Lazada failed to prove that the affected delivery drivers are independent contractors.

Furthermore, it pointed out the riders have an employer-employee relationship with Lazada under the “four-fold test” and the“economic dependence test .”

Under the four-fold test, such a relationship exists if a concerned employer has the authority over its worker in terms of their selection, payment of wages, dismissal, and conduct.

As for the economic-dependence test, the Second Division said the riders performed tasks, which are an integral part of Lazada’s business.

The SC Second Division ordered the reinstatement of the affected workers with full backwages from the time of dismissal up to the actual reinstatement.

Matula said the ruling can be used by other delivery riders of ecommerce firms since the High Court ruling “has the force and effect of law” as stated under Article 8 of the Civil Code of the Philippines.

“Delivery riders similarly situation may use this precedent in their complaint for regularization,” the labor leader said.

The ruling also compliments the Labor Advisory (LA) 14-21, which was issued by the Department of Labor and Employment on July 23, 2021. LA 14-21 provides guidelines in determining the employment relationship between delivery riders in food delivery and courier activities with their employers.