Practice question
Which statement correctly reflects the two branches of the labor-only contracting test in DO 174 Section 5?
- Every related activity alone establishes labor-only contracting.
- Lack of substantial capital or specified investment, together with directly related activities, is one branch; the contractor's failure to exercise work control is an alternative branch.
- Both branches always require a criminal conviction.
- A registration certificate removes both branches.
- Only the principal's choice of contract title matters.
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.
- Macalino v Coca-Cola Beverages Philippines, G.R. 275357 and 275955, August 6 2025, main opinion: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/70006
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