FAQ: Contracting via Individuals as Independent Contractors

FAQ: Contracting via Individuals as Independent Contractors

Answers to frequently asked questions on individuals as independent contractors in the Philippines. 1. Are individuals who are independent contractors considered as employees? No, individuals who are independent contractors are not employees. They are engaged in the business of providing services through their special skills, expertise, or talent. 2. What is the consequence if there…

Cases: Contracting via Individuals as Independent Contractors

Cases: Contracting via Individuals as Independent Contractors

These are the related Labor Law Cases or Jurisprudence. 1. Concept a. Unique skills and talents Sonza v. ABS-CBN Broadcasting CorporationG.R. No. 138051, 10 June 2004Independent contractors often present themselves to possess unique skills, expertise or talent to distinguish them from ordinary employees. The specific selection and hiring of [Complainant], because of his unique skills,…

Contracting via Individuals as Independent Contractors

Contracting via Individuals as Independent Contractors

Independent contractors are individuals who offer their services for a fee to a client/principal in the form of a business and thus they are not considered as employees but as professionals, talents, or freelancers. 1. Concept “Independent Contractor”– refers to an individual or a registered business offers services for a fee to a client/principal. (NB:…

Labor-only Contracting

Labor-only Contracting

Summary ▪ Labor-only contracting is prohibited. ▪ It refers to an arrangement that violates the laws and regulations on contracting and job contracting. ▪ All contractors are presumed to be labor-only contractors by default. ▪ Finding of labor-only contracting results in the principal being declared as the employer. ▪ There are illicit forms of employment…

Control in Contracting

Control in Contracting

Summary ▪ Controlling an employee is one of the rights and powers of the employer. ▪ As the employer., the contractor or subcontractor controls the deployed personnel, and not the principal. ▪ Labor-only contracting results if the principal exercises control over the deployed personnel. ▪ Right, and not actual, control is sufficient. 1. Concept Controlling…

Contractor’s employees

Contractor’s employees

Summary ⦁ The employees of a contractor or a subcontractor may be deployed personnel or administrative personnel. ⦁ The contractor’s or subcontractor’s employees enjoy the same rights and benefits as any other employee under labor laws. ⦁ The Contractor’s employees are required to be provided a written employment contract. ⦁ In case of expiration of…

Principal in Contracting

Principal in Contracting

Summary ▪ Principal is the one who farms out or outsources a job or work in a contracting and subcontracting arrangement. ▪ The principal’s main interests is on the desired results. ▪ The principal has no interest in supervising or controlling the contractor’s employees. ▪ The principal is solidarily liable with the contractor for labor…