Practice question
A registered agency assigns workers to a production line. It has sizeable paid-up capital and supplies payslips, but the principal determines daily methods, supervises performance and directs the tasks; the agency exercises no operative control over the work. It argues that its certificate and capital conclusively settle legitimacy. Which is correct?
- The certificate ends all inquiry.
- Capital makes control legally irrelevant.
- Payslips alone establish independence.
- The actual control facts can establish labor-only contracting despite those formal indicators.
- The principal can avoid the test by changing the agency's name.
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.
- Caballero v Vikings Commissary, G.R. 238859, October 19 2022, main opinion: https://lawphil.net/judjuris/juri2022/oct2022/gr_238859_2022.html
- 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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