Practice question
Under Article 106, a legitimate contractor fails to pay the covered wages of its employees for work performed under the principal’s contract. Does lack of direct employment alone necessarily eliminate the principal’s statutory wage responsibility?
- Yes, every indirect employer is immune
- No; Article 106 provides the specified joint and several wage liability to the extent of work performed under the contract
- Yes, contracting makes wages optional
- Yes, if the service agreement is written
- Yes, unless the worker becomes a shareholder
Legal references
- Labor Code, Article 106, reproduced in Borromeo, G.R. 265610, April 3, 2024: https://lawphil.net/judjuris/juri2024/apr2024/gr_265610_2024.html
Answer this question in flashcards to review your response and continue practicing.