Practice question
A competent tribunal finds a contractor to be a labor-only intermediary, finds the principal to be the workers' employer, and establishes illegal dismissal and resulting monetary entitlements. The principal argues that its liability can never go beyond unpaid wages because that is the rule for legitimate contracting. Which is correct?
- The principal is right regardless of the labor-only finding.
- Only the intermediary can be responsible for any dismissal.
- A labor-only finding erases all employee claims.
- The workers must prove share ownership before enforcing the award.
- The principal misapplies the legitimate-contracting distinction; labor-only contracting entails direct-employer responsibility for the established rightful claims.
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 7,9,13; Labor Code Articles 106–109.
- Conjusta v PPI Holdings, G.R. 252720, August 22 2022, main opinion: https://lawphil.net/judjuris/juri2022/aug2022/gr_252720_2022.html
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