Practice question
A contractor meets the capital threshold but its service agreement excludes statutory employee benefits. Does capital cure that defect under Section8?
- No; the agreement must ensure labor rights and benefits
- Yes; financial size displaces employee rights
- Yes; benefits are optional for capitalized contractors
- Yes; only the principal’s profits matter
- Yes; an exclusion is valid whenever written
Legal references
- DOLE Department Order174-2017: https://www.ble.dole.gov.ph/wp-content/uploads/2023/02/DO-174-17-Rules-Implementing-Articles-106-to-109-of-the-Labor-Code-As-Amended1.pdf Sections6 and8, permissible contracting and prohibited practices.
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