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Question 1

2022 Bar · Labor Law · 1 sub-question

1. Kotse Corp. operates a mobile phone application “Kotse PH” that allows users to book private cars on demand to their destination, and matches them with nearby available “driver-partners.” The destination is only made known to the driver-partners when the users have boarded the vehicle. Kotse Corp. has an accreditation process for its driver-partners who are required to submit bio-data, professional driver’s license, and negative drug test result, as well as pass an exam on road safety. After accreditation, the driver-partners are free to choose their own work hours but Kotse Corp. requires them to complete at least a total 40 hours per week or else the driver’s share in the fare will be reduced. The fare is determined by the application software depending on distance, time, and the demand for rides. The fare is paid by the user or passenger through the application and Kotse Corp. remits the driver’s share of 75% of the fare every two weeks. Kotse Corp. keeps 25% as its commission. The driver-partners are evaluated by the users or passengers through a five-star rating system. Driver-partners who consistently have an average rating of two stars or below may be removed from Kotse Corp.’s roster of driver-partners. The driver-partners use their own vehicles, pay for fuel, and secure their own vehicle insurance. Is there an employer-employee relationship between Kotse Corp. and its driver-partners? Explain briefly. (5 points)

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