Practice question
A principal says that legitimate contracting eliminates every possible wage obligation to contractor employees. The employees reply that any statutory wage liability automatically makes them the principal's direct employees for all dismissal and tenure questions. Which assessment is correct?
- The principal alone is correct.
- The workers alone are correct.
- Both claims are correct.
- Both claims are overbroad: wage solidarity can exist in legitimate contracting without automatically deciding every employer-status or dismissal issue.
- The service agreement conclusively decides all employee 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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