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NovaSys Lab Solutions hires Marco Diaz to perform instrument calibration and preventive maintenance at its facility. Marco operates MD Calibration Services, a sole proprietorship that provides calibration services to multiple clients and uses his own test equipment. He signs a nine-month On-Site Calibration Agreement with NovaSys and invoices monthly for a fixed retainer plus expenses. He may accept other assignments outside NovaSys and publicly advertises MD Calibration Services. He works full-time at NovaSys’s facility, is supervised by the Facility Manager, and his work is integrated into NovaSys’s core lab operations. He must follow NovaSys’s safety protocols, use its instrument logging system, attend daily stand-ups, and cannot subcontract tasks without NovaSys’s prior written consent. NovaSys pays him by check monthly, with no tax withholdings. After four months, NovaSys contends that Marco is misclassified as an independent contractor, arguing that the control and integration indicators show an employer-employee relationship. (a)Identify the controlling doctrine(s) that should govern the classification of Marco as employee or independent contractor and explain why. (b)Apply that doctrine to the facts and determine whether Marco is an employee or independent contractor, with brief justification. (c)If Marco is misclassified, discuss the possible consequences and remedies under Philippine law.

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