THE PRINCIPAL THAT CLAIMS THE CONTRACTOR IS NOT A LABOR-ONLY CONTRACTOR HAS THE BURDEN OF PROOF

Quintanar, et al. vs. Coca-Cola Bottlers, Philippines, Inc.
G.R. No. 210565. June 28, 2016

Doctrine of stare decisis

The doctrine of stare decisis et non quieta movere is embodied in Article 8 of the Civil Code of the Philippines which provides: ART. 8. Judicial decisions applying or interpreting the laws or the Constitution shall form a part of the legal system of the Philippines.

Route-Helpers were engaged before the contract with contractor Interserve was executed.

Labor-only contracting

The possession of substantial capital is only one element. Labor-only contracting exists when any of the two elements is present.

Thus, even if the Court would indulge Coca-Cola and admit that Interserve had more than sufficient capital or investment in the form of tools, equipment, machineries, work premises, still, it cannot be denied that the petitioners were performing activities which were directly related to the principal business of such employer. Also, it has been ruled that no absolute figure is set for what is considered ‘substantial capital’ because the same is measured against the type of work which the contractor is obligated to perform for the principal.

The principal that invokes the status of contractor as legitimate contractor has the burden of proof

Well-settled is the rule that “[t]he contractor, not the employee, has the burden of proof that it has the substantial capital, investment, and tool to engage in job contracting.”