Legitimate job contractor provides services, while the labor only contractor provides only manpower.

The “right to control” shall refer to the right reserved to the person for whom the services of the contractual workers are performed, to determine not only the end to be achieved, but also the manner and means to be used in reaching that end.

Despite Colaste’s Employment Contracts with STEP Inc. from 2006 – 2008, as thrice renewed, indicated that STEP, Inc. would have strict supervision and control of Colaste, the Supreme Court held that the work performance of Colaste as assistant cook and end result thereof were under the strict supervision and control of Lingnam Restaurant. As an assistant cook of the restaurant, Colaste’s work is directly related to the restaurant business. Further, he works in the restaurant and presumably under the supervision of the Chief Cook. This falls under the definition of labor-only contracting under Section 5 of Rule VIII-A , Book III of the Amended Rules to Implement The Labor Code, since the contractor merely supplied Colaste as assistant cook to the principal, Lingnam Restaurant; the job of Colaste as assistant cook is directly related to the main business of Lingnam Restaurant, and the contractor does not exercise the right to control the performance of the work of Colaste, the contractual employee.

Lingnam Restaurant vs. Skills & Talent Employment Pool, Inc. and Jessie Colaste

G.R. 214667, 03 December 2018