Practice question
A principal requires a wage-payment bond and argues its existence automatically eliminates the principal’s statutory solidarity even if a covered wage debt is unpaid. Which is best?
- The security device does not by itself erase the statutory liability.
- Every bond releases all statutory debtors.
- A bond makes wage nonpayment lawful.
- Workers must waive claims to access the bond.
- Only the contractor’s office address matters.
Legal references
- DOLE Department Order 174 s.2017, issued text, Sections 5-14: 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
- Labor Code Articles 106-109: https://lawphil.net/statutes/presdecs/pd1974/pd_442_1974.html
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