| Front | The Pizza Corporation (PizCorp) and Ready Supply Cooperative (RSC) entered into a “service agreement” where RSC, in consideration of service fees to be paid by PizCorp, will exclusively supply PizCorp with a group of RSC motorcycle- owning cooperative members who will henceforth perform PizCorp’s pizza delivery service. RSC assumes - under the agreement - full obligation for the payment of the salaries and other statutory benefits of its members deployed to PizCorp. The parties also stipulated that there shall be no employer-employee relationship between PizCorp and the RSC members. However, if PizCorp is materially prejudiced by any act of the delivery crew that violates PizCorp’s directives and orders, PizCorp can directly impose disciplinary sanctions on, including the power to dismiss, the erring RSC member/s. x x c) RSC is engaged in “labor-only” contracting. |
| Back | SUGGESTED ANSWER: It is not enough to show substantial capitalization or investment in the form of tools, equipment, machinery and work premises. In addition, the following factors have to be considered: (a) whether the contractor is carrying on an independent business; (b) the nature and extent of the work; (c) the skill required; (d) the term and duration of the relationship; (e) the right to assign the performance of specified pieces of work; (f) the control and supervision of the workers; (g) the power of employer with respect to the hiring, firing and payment of workers of the contractor; (h) the control and supervision of the workers; (g) the power of employer with respect to the hiring, firing and payment of workers of the contractor; (h) the control of the premises; (j) the mode, manner and terms of payment (Alexander Vinoya v. NLRC, Regent Food Corporation and/or Ricky See, 324 SCRA 469[2000]; Osiasl. Corporal, Sr., et al. v. NLRC, Lao Enteng Company, Inc. and/or Trinidad IMO Ong, 341 SCRA 658[2000]). |