Practice question
A two-year service agreement covers identical recurring work throughout its term. The contractor repeatedly hires the same workers for five-month periods solely to prevent secure employment. No distinct phases requiring substantially different skills exist. Which conclusion best applies section 6?
- The repeated short terms necessarily validate themselves because each worker signed
- The arrangement raises the express prohibitions on repeated short-duration hiring and shorter employee terms, with no stated phase-and-skill exception
- The two-year service agreement automatically makes every worker a direct employee of the principal without any finding
- The arrangement is lawful whenever each break lasts one day
- The phase exception applies merely because payroll lists different contract dates
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.
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