Selection and hiring of employees are included in management prerogative.
Selection and hiring refer to the process undertaken by an employer to determine the suitableness of an applicant for employment.
“Under the doctrine of management prerogative, every employer has the inherent right to regulate, according to his own discretion and judgment, all aspects of employment, including hiring…” (Rural Bank of Cantilan, Inc. v. Julve, G.R. No. 169750, 27 February 2007)
To ascertain the existence of an employer-employee relationship jurisprudence has invariably adhered to the four-fold test, to wit:
1) The selection and engagement of the employee;
2) The payment of wages;
3) The power of dismissal; and,
4) The power to control the employee’s conduct, or the so-called “control test.” (Atok Big Wedge Company, Inc. v. Gison, G.R. No. 169510, 08 August 2011)
|ARTICLE 2180. Employers shall be liable for the damages caused by their employees and household helpers acting within the scope of their assigned tasks, even though the former are not engaged in any business or industry. (R.A. 386, Civil Code)|
The above-cited provision is the basis for vicarious liability. Meaning, an employer may be held liable or responsible for damages that may be caused by his/her employees who is in the performance of doing work.
“It should be emphasized that the legal obligation of employers to observe due diligence in the selection and supervision of their employees provided under in Article 2180 of the Civil Code is not an empty provision or a mere formalism since the non-observance thereof actually becomes the basis of the employers’ vicarious liability. Employers should thus seriously observe such a degree of diligence (and must present/prove it in court by sufficient and concrete evidence) in court showing such observance in order to be free that would exculpate them from liability. (Syki v. Begasa, G.R. No. 149149, 23 October 2003)
/Updated: February 15, 2023