Reducing the Number of Stockholder

The Revised Corporation Code which took effect on February 2, 2019 removed the absolute requirement of having a minimum of five (5) individuals in the formation of corporations. Further, the law now allows the establishment of a One-Person Corporation (OPC) composed of a single shareholder, who may be a natural person, a trust or an estate.

Continue reading . . .

JOB CONTRACTING VS. LABOR-ONLY CONTRACTING

The case of Petron Corporation vs. ARMZ CABARETE et. al, G.R. No. 182255, June 15, 2015 discussed the difference between Job Contracting vs. Labor-only Contracting.

Job contracting, legitimate job contracting or subcontracting refers to an arrangement whereby a principal agrees to put out or farm out with the contractor or subcontractor the performance or completion of a specific job, work, or service within a definite or predetermined period, regardless of whether such job, work, or service is to be performed or completed within or outside the premises of the principal.

Continue reading . . .

IS A CORPORATE OFFICER AN EMPLOYEE?

First, who is a corporate officer? In the case of Arsenio Z. Locsin vs. Nissan Car Lease Philippines Inc. and Luis Banson, G.R. No. 185567, October 20, 2010, corporate officers were mentioned as “those officers of a corporation who are given that character either by the Corporation Code (repealed by Revised Corporation Code) or by the corporation’s by-laws.”

We come now to the question, “Is a corporate officer an employee?” Prior to the above-mentioned case, the answer to this question was already settled in the case of Bienvenido Ongkiko vs. National Labor Relations Commission and Federico B. Guilas, G.R. No. 119877, March 31, 1997. In this case, the Supreme Court ruled stating the following:

Continue reading . . .

Are Seasonal Employees Considered Regular Employees?

Seasonal employment is an arrangement where an employee is engaged to work during a particular season in an activity that is usually necessary or desirable in the usual business or trade of the employer. This is an employment where the job, work or service to be performed is seasonal in nature and the employment is for the duration of the season. For Seasonal employees, their employment legally ends upon completion of the project or the season.

Regular Employment

There are two types of regular employment – first, as to the nature of work and second, as to length of service.

Continue reading . . .