Question

Discuss the following scenarios and determine whether each situation involves legitimate contracting or labor-only contracting, based on the provisions of the Labor Code (Articles 106-109), DOLE Department Order No. 174-17, DOLE Department Circular No. 01-17, and Executive Order No. 51, Series of 2018:

1. Miranda Corporation enters into an agreement with a construction company to build a new office building. The construction company hires and supervises all the workers needed for the project. The workers receive their salaries and benefits from the construction company.
2. ABC Corporation is a garment manufacturer. Due to an increase in orders, they entered into a subcontracting agreement with XYZ Services to provide additional sewing operators. XYZ Services hires and manages the sewing operators, and they are paid wages by XYZ Services.
3. Rodrigo, an electrician, is regularly hired by several construction companies to work on their projects. He has his own tools and equipment and provides his services under his own business name. He is paid per project and does not receive any employee benefits from the construction companies.
4. XYZ Corporation hires security guards through a manpower agency. The manpower agency recruits, trains, and assigns the guards to XYZ Corporation. The guards are paid by the manpower agency and receive their benefits from the agency.
5. ABC Electronics hires IT professionals on a project basis. The IT professionals work exclusively for ABC Electronics and are provided with the necessary equipment and resources by the company. However, they receive a fixed monthly salary and are entitled to employee benefits.