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Question 6
6. In August 2019, Vans Taste Restaurant (VTR) entered into a yearly and
renewable service contract with Colin Consultancy Services (CCS) for the
supply of professional advisors that will design action plans for the
restaurant business. CCS has a capital of PHP 20,000,000.00 based on its
audited financial statements. CCS hired Grayson, Oswald, and Peyton
(Grayson, et. al.) and deployed them to VTR as professional advisors.
CCS prescribed Grayson, et. al.’s daily work schedules and specific steps
in designing the action plans. Whereas VTR required Grayson, et. al. to
submit five action plans each month. In August 2024, the service contract
expired without VTR and CCS renewing the agreement. VTR then no
longer permitted Grayson, et. al. to enter the restaurant. Aggrieved,
Grayson, et al. filed against VTR a complaint for regularization and illegal
dismissal because they have been working as its professional advisors for
five years. Grayson, et al. also claimed that CCS is a labor-only contractor
since it has no investment in the form of tools, equipment, and
machineries. Will the complaint for regularization and illegal
dismissal prosper? Explain.
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