said company and that Petron controlled the manner by which they carried out

Said company and that petron controlled the manner by

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said company; and that Petron controlled the manner by which they carried out their tasks On the other hand, RDG was shown to be responsible for paying petitioners’ wages. In fact, SSS records show that RDG is their employer and actually the one remitting their contributions thereto. Also, two former employees of RDG who were likewise assigned in the Mandaue Bulk Plant confirmed by way of a joint affidavit that it was Romeo and his brother AlejandreGindang who supervised their work, not Petron’s foreman or supervisor. This was even corroborated by the Terminal Superintendent of the Mandaue Bulk Plant. CA also found RDG to be an independent labor contractor with sufficient capitalization and investment as shown by its financial statement for year-end 2000. In addition, the works for which RDG was contracted to provide were menial which were neither directly related nor sensitive and critical to Petron’s principal business Petitioners filed a Motion for Reconsideration but it was denied. Thus this This Petition for Review on Certiorari Issue: The primary issue to be resolved in this case is whether RDG is a legitimate job contractor. Upon such finding hinges the determination of whether an employer-
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employee relationship exists between the parties as to make Petron liable for petitioners’ dismissal. Ruling: Petitioners in this case are regular employees of respondent because 1. Respondent failed to prove that RDG is a legitimate contractor 2. The power of control was exercised by respondent; and 3. The jobs performed by petitioner were directly related or essential to respondents business. "Labor-only contracting" prohibited under this Rule is an arrangement where the contractor or subcontractor merely recruits, supplies or places workers to perform a job, work or service for a principal and the following elements are present: The contractor or subcontractor does not have substantial capital or investment to actually perform the job, work or service under its own account and responsibility; and The employees recruited, supplied or placed by such contractor or subcontractors are performing activities which are directly related to the main business of the principal. Permissible job contracting or subcontracting refers to an arrangement whereby a principal agrees to farm out with a contractor or subcontractor the performance of a specific job, work, or service within a definite or predetermined period, regardless of whether such job, work or, service is to be performed or completed within or outside the premises of the principal. Under this arrangement, the following conditions must be met: (a) the contractor carries on a distinct and independent business and undertakes the contract work on his account under his own responsibility according to his own manner and method, free from the control and direction of his employer or principal in all matters connected with the performance of his work except as to the results thereof; (b) the
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