Practice question
A principal farms out work to an in-house cooperative that merely supplies workers to it. The cooperative argues that incorporation as a cooperative automatically makes the arrangement permissible. Which answer follows section 6(c)?
- The argument is correct for every registered cooperative
- The arrangement is expressly prohibited; cooperative form does not by itself cure mere worker supply through an in-house cooperative
- The arrangement becomes lawful if no worker pays membership dues
- The prohibition applies only to foreign cooperatives
- Only the cooperative’s chosen business name matters
Legal references
- https://www.dole.gov.ph/php_assets/uploads/2017/07/DO-174-17-Rules-Implementing-Articles-106-to-109-of-the-Labor-Code-As-Amended1.pdf — DO 174-17, sections 3(b), 6–7, other illicit arrangements and effect of a finding.
- https://www.scribd.com/document/768934000/Department-Order-No-174-Series-of-2017 — mirrored text of the issued DO 174-17, sections 3(b), 6–7.
- https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/11/90581 — EO 51, s. 2018, sections 1–3.
Answer this question in flashcards to review your response and continue practicing.