Philippine Bar review · Question

Practice question: Permissible Contracting or Subcontracting; Non-Coverage

Multiple Choice Medium

Practice question

A genuinely independent IT provider undertakes an entire business process, rather than merely supplying personnel in a trilateral staffing arrangement. Does DC 01 s. 2017 necessarily treat it as covered by DO 174?
  1. No; the Circular identifies qualifying IT-enabled business-process services as outside that Order's coverage.
  2. Yes; every commercial service agreement is automatically covered.
  3. No; this means no labor law can apply to its employees.
  4. Yes; the IT label proves labor-only contracting.
  5. Only the number of computers determines coverage.

Legal references

  • DOLE Department Circular 01 s. 2017, primary circular reproduced: https://palscon.org/public/assets/img/labor-laws-advisory/Department%20Circular%20No_%2001-17%20Clarifying%20the%20applicability%20of%20Department%20Order%20No_%20174%2C%20Series%20of%202017.pdf — PartsII–III.

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