Drivers

1. Concept

Drivers – refers to those who drive a car or vehicle for a living.

2. Kinds of drivers

There generally two (2) kinds of drivers:

1) Independent contractors; and

2) Employees.

a. Drivers as independent contractors

Drivers who are independent contractors offer their services to another who is the client or customer without the expectation of becoming an employee of the client or customer.

The following are examples of independent contractors who are drivers:

1) Ride hailing application drivers – those who transport individuals after accepting the job form a mobile application);

2) Delivery drivers – those who transport food or goods after accepting the job form from a mobile application); and

3) Private service drivers – those who enter into a private contract with another involving transport of individuals or goods.

In the above cases, the drivers offer their knowledge or skills in driving to clients or customers who are willing to engage and pay, without the expectation of either or both parties that an employer-employee relationship will be created. There being no employment relationship, drivers are only entitled to their professional fees. They are not entitled to any other employee benefits.

For more information, see: Independent Contractors – Individuals.

b. Drivers as employees

Drivers who are employees of another individual, a business, or an organization, are engaged by the latter with the understanding that there is an employer-employee relationship.

1) Personal or family drivers

Personal or family drivers are employees of individuals who have hired them to provide personal services.

Contrary to popular belief, an individual may become an employer of another. There is no requirement that an employer must be a registered business. Thus, individuals are considered as employers of those they employ such as personal or family drivers, kasambhay or domestic workers, personal or family cook, and so on.

2) Company drivers

Company drivers are those who have been hired by a business or organization for the purpose of transporting staff or managers from one location to another as the need may arise. They are often part of the payroll and treated like any other employee.

The main difference between company drivers from field drivers (see below) is that company drivers are often treated as ordinary rank-and-file employees, and not field personnel, because they are in most cases actively controlled and supervised by the employer, resulting in their actual work hours being reasonably determined. (Paragraph 3, Article 82, Labor Code)

Since they are not field personnel, company drivers are covered employees for purposes of overtime pay. Hence, they are entitled to overtime pay.

For more information, see: Overtime Pay.

3) Field drivers (bus, trucks, etc.)

Field drivers are those who have been hired by a business or organization for the purpose of transporting individuals or goods in line with the employer’s business. As with company drivers, they are part of the payroll and treated like any other employee.

The main difference between field divers and company drivers is that field drivers are often classified as a field personnel due to them not being actively controlled and supervised by the employer and their actual work hours cannot be determined with reasonable certainty. (Paragraph 3, Article 82, Labor Code)

Considering that they are field personnel, field drivers are exempt employees for purposes of overtime pay. Thus, they are not entitled to overtime pay.

For more information, see: Field Personnel.

References

• Article 82, Labor Code

Field Personnel – Labor Law PH

Overtime Pay – Labor Law PH

/Updated: August 18, 2023

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