Question

Question 1:

ABC Corporation is engaged in the construction industry. They subcontracted certain portions of their project to XYZ Services, a manpower agency. The workers supplied by XYZ Services claim that they are employees of ABC Corporation and not of XYZ Services.

Discuss the factors and considerations in determining whether there is legitimate contracting or labor-only contracting. Apply the relevant provisions of the Labor Code, DOLE Department Orders, and Executive Orders in your analysis.

Question 2:

DEF Corporation requires the services of additional workers for its expanding business. They entered into a service agreement with GHI Services, a registered manpower agency, to provide them with contractual workers. The workers supplied by GHI Services claim that they should be considered regular employees of DEF Corporation and entitled to the benefits and protections under the Labor Code.

Explain the legal tests and criteria used to establish an employer-employee relationship in the context of legitimate contracting. Evaluate the situation of the workers supplied by GHI Services and determine whether they should be considered regular employees of DEF Corporation. Support your answer with applicable provisions of the Labor Code, DOLE Department Orders, and Executive Orders.