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Question 6

2024 Bar · Labor Law · 1 sub-question

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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