Practice question
A contractor's regular employees have continuously worked for it. When one client service agreement expires, the contractor tells them their employment automatically ends solely because the client contract ended, without considering their status or the governing termination rules. Which statement follows DO 174 Section 13?
- Every commercial contract expiry automatically ends every worker's regular employment.
- Only the principal's letter controls employment status.
- The expiry proves that every worker resigned.
- No contractor employee can ever be validly terminated.
- Mere expiry of the service agreement is not itself termination of employees who are regular employees of the contractor.
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 6,10–13.
Answer this question in flashcards to review your response and continue practicing.