There is employer-employee relationship in boundary system

The owner of a sole proprietorship, which assembled passenger jeepneys, engaged a driver in 1997 to drive one of his jeepneys. A boundary system contract was entered into, wherein the driver would remit to the owner P450.00 per day as boundary and keep the remaining earnings for himself. The agreement included detailed instructions on the execution of the driver’s driving such as the route, working attire, usage and maintenance of the vehicle, and customer service guidelines. An agreement to buy the jeepney was also entered into. The driver made a downpayment of P10,000.00 and promised to give a daily installment of P550.00 for a period of four years.

Although the driver failed to pay the daily installments, he was allowed to continue driving the jeepney until the owner decided to enforce contract penalties in January 2000. As a consequence of the breach, the owner got the jeepney and barred the driver from driving it.