ASG Law

Tag: Scope of Practice

  • Can Corporations Hire Optometrists? Understanding Corporate Practice of Professions in the Philippines

    Corporations Can Employ Licensed Professionals: The Optometry Exception

    G.R. No. 117097, March 21, 1997

    Imagine walking into an optical shop, expecting a quick eye exam before purchasing new glasses. But is the corporation operating the shop illegally practicing optometry? This question delves into the heart of whether corporations can employ professionals without overstepping legal boundaries. The Supreme Court tackled this issue in a case involving an optical shop, clarifying the limits of corporate practice and professional regulations.

    Introduction

    This case, Samahan ng Optometrists sa Pilipinas vs. Acebedo International Corporation, revolves around the question of whether a corporation engaged in selling optical goods can employ optometrists without violating the law that reserves the practice of optometry to licensed individuals. The petitioners, an association of optometrists, argued that Acebedo International Corporation, by employing optometrists, was indirectly practicing optometry, which is prohibited. The Supreme Court, however, sided with the corporation, providing clarity on the scope of professional practice and corporate operations.

    Legal Context: Regulating Professions in the Philippines

    In the Philippines, certain professions are regulated to ensure competence and ethical conduct. Laws like Republic Act No. 1998 (the old Optometry Law) and Republic Act No. 8050 (the Revised Optometry Law) govern the practice of optometry. The core principle is that only qualified and licensed individuals can directly engage in these professions. The key question is whether employing a professional equates to the corporation itself practicing that profession.

    What is the Practice of Optometry? According to Sec. 4 of RA 8050, the practice of optometry includes:

    • Examining the human eye using various procedures and instruments.
    • Prescribing and dispensing ophthalmic lenses, contact lenses, and related accessories.
    • Conducting ocular exercises and vision training.
    • Counseling patients on vision and eye care.
    • Establishing optometric clinics.
    • Collecting professional fees for these services.

    Section 5 of RA 8050 prohibits unauthorized practice, stating, “No person shall practice optometry… without having been first admitted to the practice of this profession…”

    However, the law does not explicitly prohibit corporations from employing licensed optometrists.

    Example: A hospital employs doctors and nurses. The hospital isn’t practicing medicine; it’s providing a facility where licensed professionals can practice their profession.

    Case Breakdown: Samahan ng Optometrists vs. Acebedo

    Here’s a breakdown of the case:

    • The Dispute: Acebedo International Corporation applied for a permit to operate an optical shop in Candon, Ilocos Sur. The Samahan ng Optometrists sa Pilipinas (SOP) opposed, arguing that Acebedo, as a corporation, was not qualified to practice optometry.
    • The Local Committee: The Mayor of Candon created a committee that denied Acebedo’s application, ordering them to close.
    • The Trial Court: The Regional Trial Court (RTC) upheld the committee’s decision, stating that Acebedo’s operations involved the practice of optometry.
    • The Court of Appeals: Acebedo appealed, and the Court of Appeals (CA) reversed the RTC’s decision. The CA held that Acebedo was not practicing optometry but merely employing optometrists.
    • The Supreme Court: The SOP appealed to the Supreme Court, which affirmed the CA’s decision.

    The Supreme Court emphasized that Acebedo’s business was selling optical lenses and eyeglasses, not practicing optometry. The employment of optometrists was incidental to this business. The Court quoted the Court of Appeals:

    “Clearly, the corporation is not an optical clinic. Nor is it — but rather the optometrists employed by it who are — engaged in the practice of optometry. Petitioner-appellant simply dispenses optical and ophthalmic instruments and supplies.”

    The Court further stated:

    “For petitioners’ argument to hold water, there need be clear showing that RA. No. 1998 prohibits a corporation from hiring optometrists, for only then would it be undeniably evident that the intention of the legislature is to preclude the formation of the so-called optometry corporations because such is tantamount to the practice of the profession of optometry which is legally exercisable only by natural persons and professional partnerships. We have carefully reviewed RA. No. 1998 however, and we find nothing therein that supports petitioner’s insistent claims.”

    Practical Implications: What This Means for Businesses

    This ruling confirms that corporations can employ licensed professionals to support their business operations, even if those operations are related to the professional’s field. The key is that the corporation itself is not directly engaging in the practice of the profession.

    Key Lessons:

    • No Direct Practice: Corporations cannot directly engage in activities that constitute the practice of a regulated profession without the appropriate license for the entity itself.
    • Employment is Permissible: Corporations can employ licensed professionals to further their business goals, provided that the corporation does not itself engage in the practice of the profession.
    • Focus on Primary Business: The corporation’s primary business should be clearly defined and distinct from the practice of the profession.

    Example: A software company can hire lawyers to handle legal matters. The company isn’t practicing law; it’s employing lawyers for its internal legal needs.

    Frequently Asked Questions (FAQs)

    Q: Can a corporation own a medical clinic and employ doctors?

    A: Yes, a corporation can own a medical clinic and employ doctors, provided the corporation is not itself practicing medicine. The doctors are practicing medicine within the clinic setting.

    Q: Does this ruling apply to other professions besides optometry?

    A: Yes, the principle applies to other regulated professions as well. Corporations can employ architects, engineers, lawyers, and other professionals as needed, so long as the corporation isn’t directly practicing the profession.

    Q: What if the corporation is primarily engaged in providing professional services?

    A: If the corporation’s primary purpose is to provide professional services, it may need to be structured as a professional partnership or association, depending on the specific regulations governing the profession.

    Q: What are the risks of a corporation being accused of illegally practicing a profession?

    A: The risks include legal penalties, closure of the business, and damage to the corporation’s reputation. It’s crucial to ensure compliance with professional regulations.

    Q: How can a corporation ensure it’s not illegally practicing a profession?

    A: Clearly define the corporation’s primary business, ensure that employed professionals are properly licensed, and avoid directly offering professional services under the corporation’s name.

    Q: What is the difference between a professional partnership and a corporation employing professionals?

    A: A professional partnership is formed by professionals to practice their profession jointly. A corporation employing professionals is a business entity that hires professionals to support its operations.

    ASG Law specializes in Corporate Law and Regulatory Compliance. Contact us or email hello@asglawpartners.com to schedule a consultation.