Flashcards Studio

SwiftDeliver Logistics hires PulseStaff to supply 22 delivery drivers for a six-month last-mile project. PulseStaff provides the drivers and handles payroll and benefits; the written contract designates the drivers as PulseStaff employees. SwiftDeliver’s operations manager supervises daily tasks, assigns routes, uses SwiftDeliver’s delivery vans and scanning devices, and can reassign drivers. PulseStaff has no substantial capital or equipment beyond payroll administration. Midway through the project, SwiftDeliver requests substitution of two drivers with other PulseStaff workers; PulseStaff complies. After five months, the drivers file wage claims for 13th month pay and other benefits; SwiftDeliver contends the arrangement is legitimate contracting and that the drivers are PulseStaff’s employees. (a) Identify the primary prohibited practice implicated under Philippine labor law. (b) Briefly explain why the arrangement violates that prohibition, considering the workers’ status and the use of a staffing agency, including substitution. (c) If the prohibition applies, who bears liability for wages and benefits and whether there is joint liability between the parties.