Monday, January 19, 2009

Philippine bar exam questions 2008(Q5-LABOR)

The Pizza Corporation (PizCorp) and Ready Supply Cooperative (RSC) entered into a "service agreement" wherein RSC, in consideration of service fees to be paid by PizCorp, will exclusively supply PizCorp with a group of RSC motorcyle-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 monetary 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 actions on, including the power to dismiss, the erring RSC member/s.

a) Is the contractual stipulation that there is no employer-employee relationship binding on labor officials? Why? Explain fully. (3%)

b) Based on the test/s for employer-employee relationship, determine the issue of who is the employer of the RSC members. (4%)

c) Assume that RSC has a paid-up capitalization of P1,000,000.00. Is RSC engaged in "labor only" contracting, permissible job contracting or simply, recruitment? (3%)

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