Who is a labor-only contractor?
A labor-only contractor is one who enters into an agreement with the principal employer to act as the agent in the recruitment, supply, or placement of workers for the latter.
Lingat vs. Coca-Cola Bottlers Philippines, G.R. No. 205688, July 04, 2018, [870 SCRA 541]
Is labor-only contracting allowed by law?
Labor-only contracting is a prohibited act and it is not condoned by law.
San Miguel Foods, Inc. vs. Rivera, G.R. No. 220103, January 31, 2018, [853 SCRA 579]
What is labor-only contracting?
It is a situation where the person supplying workers to an employer does not have substantial capital or investment in the form of tools, equipment, machineries, work premises, among others, and the workers recruited and placed by such person are performing activities which are directly related to the principal business of such employer.
Mago vs. Sun Power Manufacturing Limited, G.R. No. 210961, January 24, 2018, [853 SCRA 1]
Can an employer be forced to maintain the employee after the completion of the project?
An employer cannot be forced to maintain the employee in the payroll, even after the completion of the project.
Bajaro vs. Metro Stonerich Corp., G.R. No. 227982, April 23, 2018, [862 SCRA 451]
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