Dear PAO,
I am currently working as a rider for a digital platform. I just want to know about the rights of delivery riders.
Billy
Dear Billy,
Please be informed of Labor Advisory 14, Series of 2021, which states that:
“All delivery riders who are deemed employees are entitled to the following minimum benefits, as provided for in the Labor Code of the Philippines, as renumbered, and other labor laws, as may be applicable:
“– Minimum wage;
“– Holiday pay;
“– Overtime pay;
“– Night shift differential;
“– Service Incentive Leave;
“– Thirteenth-month pay;
“– Separation pay;
“– Retirement pay;
“– Occupational safety and health standards;
“– Social benefits, e.g., SSS, PhilHealth, Pag-IBIG; and
“– Other benefits under existing laws.
“All riders who are deemed employees shall also enjoy the right to security of tenure, self-organization, and collective bargaining.
“The terms and conditions of engagement of delivery riders who are deemed independent contractors or freelancers shall be governed by their respective contract or agreement with the digital platform company, which stipulates for the following provisions, including but not limited to:
“– Payment of fair and equitable compensation which shall not be lower than the prevailing minimum wage rate;
“– Facilitation of registration and coverage under the SSS, PhilHealth and Pag-IBIG;
“– Compliance with applicable occupational safety and health standards such as but not limited to the use of standard protective helmet and personal protective equipment (PPEs), and attendance to regular trainings and seminars on road safety to be arranged by digital platform company in coordination with relevant government agencies; and
“– Arrangement with concerned local government unit and/or merchant or group of merchants in setting up designated waiting areas for delivery riders.
“As for the complaint or grievance of delivery riders and/or digital platform company, the same shall be settled and resolved through conciliation, mediation, inspection or arbitration, whichever is applicable, pursuant to existing rules and regulations.”
Based on the above-stated regulation, a rider who is considered an employee is entitled to all the benefits that are provided for under the Labor Code. However, when a rider is considered an independent contractor or a freelancer, such person shall be subject to the contract or agreement entered into with the digital platform company, subject to some stipulations as enumerated in the above-cited Labor Advisory.
On this score, in the case of Chrisden Ditiangkin, Hendrix Molines, Harvey Juanio, Joselito Verde, and Brian Nabong v. Lazada E-Services, et al. (GR 246892, Sept. 21, 2022, Ponente: Associate Justice Marvic M.V.F. Leonen), the Supreme Court declared the delivery riders of Lazada as employees, and not merely independent contractors, as their services are integral to Lazada’s business.
“Contrary to respondents’ assertions, petitioners satisfy both the fourfold and economic dependence tests.
“Here, the four factors are present. First, petitioners are directly employed by respondent Lazada, as evidenced by the Contracts they signed. Petitioner’s former employer, RGSERVE, Inc., is not a party to the Contract with respondent Lazada. Second, as indicated in the Contract, petitioners receive their salaries from respondent Lazada. Petitioners are paid by respondent Lazada the amount of P1,200.00 for each day of service. Third, respondent Lazada has the power to dismiss petitioners. In their contract, respondents can immediately terminate the agreement if there is a breach of material provisions of the Contract. Lastly, respondent Lazada has control over the means and methods of the performance of petitioners’ work. xxx
“In carrying out their business, they are not merely a platform where parties can transact; they also offer the delivery of the items from the sellers to the buyers. The delivery eases the transaction between the sellers and buyers and is an integral part of respondent Lazada’s business. Further, respondent Lazada admitted that it has different route managers to supervise the delivery of the products from the sellers to the buyers. Thus, it has taken steps to facilitate not only the transaction of the seller and buyer in the online platform but also the delivery of the items.
“Further, petitioners have invested in equipment to be engaged by respondents. Particularly, petitioners are required by respondents to use their own motor vehicles and other equipment and supplies in the delivery of the items. Moreover, petitioners had no control over their own profit or loss because they were paid a set daily wage. Petitioners also had no control over their own time and they cannot offer their service to other companies as respondents can demand their presence from time to time.
“More importantly, petitioners are dependent on respondents for their continued employment in this line of business. As the facts reveal, petitioners have been previously engaged by a third-party contractor to provide services for respondents. This time, petitioners were directly hired by respondents. This demonstrates that petitioners have been economically dependent on respondents for their livelihood.”
We hope that we were able to answer your queries. This advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated on.
Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to [email protected].
