principal

  • 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

    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…

  • 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…