Practice question
A legitimate contractor fails to pay wages earned by employees for work performed for the principal. What liability does the labor-law framework impose on the principal with the contractor?
- No liability in every case
- Only a duty to recommend another job
- Solidary liability for the covered unpaid wages
- Automatic imprisonment of the principal's shareholders
- Liability only if the workers own company shares
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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