Labor Law, 2019 Bar — Question A.7-a

ESSAY

W Gas Corp. is engaged in the manufacture and distribution to the general public of various petroleum products. On January 1, 2010, W Gas Corp. entered into a Service Agreement with Q Manpower Co., whereby the latter undertook to provide utility workers for the maintenance of the former's manufacturing plant. Although the workers were hired by Q Manpower Co., they used the equipment owned by W Gas Corp. in performing their tasks, and were likewise subject to constant checking based on W Gas Corp.'s procedures. On February 1, 2010, Mr. R, one of the utility workers, was dismissed from employment in line with the termination of the Service Agreement between W Gas Corp. and Q Manpower Co. Thus, Mr. R filed a complaint for illegal dismissal against W Gas Corp., claiming that Q Manpower Co. is only a labor-only contractor. In the course of the proceedings, W Gas Corp. presented no evidence to prove Q Manpower Co.'s capitalization. (a) Is Q Manpower Co. a labor-only contractor? Explain. (2.5%)

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