1. a) Yes. The four-fold test of determining the existence of employer-employee relationship is applicable to PH and the security guards, to wit: * The manner of selection and employment of the security guards – It was PH who chose the guards to be deployed at its hotel premises from the list of 30 names submitted by MSA. * The mode of payment of wages – It was PH who paid the wages of the guards as evidenced by the payslips bearing its logo. It was PH that deducted SSS premiums, PhilHealth, and PAGIBIG contributions as well as corresponding withholding taxes on their wages. This is also known as economic test (Sevilla vs. CA, GR NO. 41182-3, April 16, 1988). * The presence or absence of the power of dismissal – The guards’ termination when PH did not renew its contract with MSA is proof of the guards’ dismissal from employment. * The presence or absence of a power to control the employee’s conduct- The deployment, assignment, as well as the promotion of the guards were all undertaken by the security department of PH (Hijos De F. Escano, Inc vs. NLRC, GR NO. 59229, August 22 1991). * The MSA’s contract with PH is a labor-only contracting which is prohibited by law (Art. 106). The guards are the employees of PH, the principal and MSA is only an agent of PH in the recruitment of the security guards.
b) Yes as this is considered merely as a suspension of employer-employee relationship (Art. 286, Labor Code). Strictly speaking, the security guards are merely considered as on leave of absence without pay until they are re-employed (Manila Hotel Co. vs. CIR, 9 scra 184; ICAWO vs. CIR, 16 scra 562). Moreover, regular employees of the workpools, as in their care, the security guards, while waiting for their assignment, are not considered terminated from their services.
c) Not more than 30 days as a longer period that they are on a floating status would have a severe economic effect...