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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
Substantial capital refers to paid up capital stocks/shares at least Five Million Pesos (PhP 5,000,000.00) in case of corporations, partnerships and cooperatives. In case of angle proprietorship, a net worth of at least Five Million Pesos (PhP 5,000,000.00)
Source: Section 3 (l) of DOLE Department Order No. 174, series of 2017
The law says –
Under the old rule in Department Order No. 18-A, series of 2011, there is substantial capital or investment when there is Paid-up capital stocks/shares of at least Three Million Pesos (P3,000,000.00) in the case of corporations, partnerships and cooperatives in the case of single proprietorship, a net worth of at least Three Million Pesos (P3,000,000.00). (Serman Cooperative v. Montarde, G.R. Nos. 246760-61 & 246764-65, December 9, 2020, citing DOLE Department Order No. 18-A-11, November 14, 2011, sec. 3 (l)).
Under the present rule as enunciated in Section 3 (l) of DOLE Department Order No. 174, series of 2017, substantial capital refers to paid up capital stocks/shares at least Five Million Pesos (PhP 5,000,000.00) in case of corporations, partnerships and cooperatives. In case of angle proprietorship, a net worth of at least Five Million Pesos (PhP 5,000,000.00).
Jurisprudence provides –
In legitimate contracting, there exists a trilateral relationship under which there is a contract for a specific job, work or service between the principal and the contractor or subcontractor, and a contract of employment between the contractor or subcontractor and its workers. Hence, there are three parties involved in these arrangements, the principal which decides to farm out a job or service to a contractor or subcontractor, the contractor or subcontractor which has the capacity to independently undertake the performance of the job, work or service, and the contractual workers engaged by the contractor or subcontractor to accomplish the job, work or service.
|||(Manila Memorial Park Cemetery, Inc. v. Lluz, G.R. No. 208451, [February 3, 2016], 780 PHIL 425-438)
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