Practice question
Does principal liability for a legitimate contractor's unpaid wages by itself establish that the principal is the workers' direct employer for every purpose?
- Yes, without examining any other fact.
- Yes, because every service contract is labor-only contracting.
- No; statutory wage protection differs from the comprehensive direct-employer consequence of labor-only contracting.
- No, because principals never owe wages.
- Yes, whenever the contractor issues payslips.
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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