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Question 11
11. In 2011, Amer and Raj worked as welders on board the barges of Magiting
Shipping Company (MSC), which later changed its corporate name to Perlas
Corporation (PC). In 2018, PC verbally dismissed Amer and Raj from
employment. Thus, they jointly filed a complaint for illegal dismissal against PC,
which countered that it already had a separate and distinct personality from MSC.
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It also alleged that both complainants were not its regular employees as they were
merely helpers brought in by its own regular employees on certain occasions
when urgent repairs were required for its barges. The Labor Arbiter (LA) held
that there was an employer-employee relationship between the parties based on
Article 295 [280] of the Labor Code since Amer and Raj: 1) were engaged to
perform activities which are usually necessary or desirable in the usual business
or trade of PC; and 2) have rendered at least one year of service. Was the LA
correct in using Article 295 [280] as the basis? Explain briefly.
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