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Question Type

Essay Multiple Choice

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All Jurisprudence based

0 tracked cards Labor Law and Social Legislation

A competent tribunal finds a contractor to be a labor-only intermediary, finds the principal to be the workers' employer, and establishes illegal dismissal and resulting monetary entitlements. The principal argues that its liability can never go beyond unpaid wages because that is the rule for legitimate contracting. Which is correct?

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The principal misapplies the legitimate-contracting distinction; labor-only contracting entails direct-employer responsibility for the established rightful claims. The principal is right regardless of the labor-only finding. A labor-only finding erases all employee claims. Only the intermediary can be responsible for any dismissal.

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