Practice question
A contractor has substantial capital but does not exercise control over the workers' performance; the principal controls their methods. Does capitalization alone defeat the Section 5 control branch?
- No; the independent control branch may establish labor-only contracting despite substantial capital.
- Yes; capital conclusively establishes legitimacy.
- Yes; control matters only for an unregistered corporation.
- Only the workers' uniform determines the result.
- A capital threshold always replaces the totality inquiry.
Legal references
- DOLE Department Order 174 s. 2017, primary issuance reproduced: https://palscon.org/public/assets/img/labor-laws-advisory/DO%20174-17%20Rules%20Implementing%20%20Articles%20106%20to%20109%20of%20the%20Labor%20Code,%20As%20Amended.pdf — Sections 3(h),5,7–8.
- Conjusta v PPI Holdings, G.R. 252720, August 22 2022, main opinion: https://lawphil.net/judjuris/juri2022/aug2022/gr_252720_2022.html
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