Practice question
A principal pays its contractor's invoice in full, but the contractor does not pay wages earned for the principal's work. May the principal rely solely on invoice payment to defeat the workers' covered statutory wage claim?
- Yes, invoice payment always extinguishes the workers' claim.
- Only the contractor's accounting staff may complain.
- Yes, because a worker is not a party to the service agreement.
- No; payment to the contractor is not necessarily payment of the wages owed to the workers.
- The workers automatically become shareholders instead.
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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