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REPUBLIC OF THE PHILIPPINES

Department of Labor and Employment


National Capital Region
DOLE-NCR Building, 967 Maligaya Street, Malate,
Manila

IN RE: CANCELLATION OF REGISTRATION


UNDER DEPARTMENT ORDER NO. 18-A
CASE NO.: NCR-18-A1818-11-16
AMP AND SONS GENERAL SERVICES, INC.,
Respondent,
PRICEWIDE, INC.,
Principal.
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POSITION

PAPER

This Position Paper is being respectfully submitted by


AMP AND SONS GENERAL SERVICES, INC. in compliance with
the Notice of Conference issued by the Department of Labor
and Employment dated November 22, 2016 requiring the
filing of a Position Paper/ Comment to the Notice of Results
dated September 22, 2016 regarding D.O. No. 18-A, Series of
2011.
This Position paper seeks to controvert the findings
stated in said Notice.
THE PARTIES
AMP

AND

SONS

GENERAL

SERVICES,

INC.

(hereinafter referred to as AMP AND SONS for brevity), is a


corporation duly organized and existing under and by virtue
of the laws of the Republic of the Philippines, with principal
address at Block 4 Lot 4, 1st Lane, Castle Spring Heights,
Camarin, Caloocan city, Philippines. AMP AND SONS is

represented in this case by its authorized representative


ALMA VELA DEL ROSARIO.
PRICEWIDE, INC. is a corporation duly organized and
existing under and by virtue of the laws of the Republic of
the Philippines with principal address at 1129 Natividad
Almeda Lopez St., Ermita, Manila.

BACKGROUND OF THE CASE


A contractual relationship exists between AMP & SONS
and PRICEWIDE, INC. As shown by the Service Agreement
hereto attached as ANNEX A. PRICEWIDE, INC. agreed to
farm out and put out jobs, services or work with AMP & SONS
the performance or completion of a specific job within a
predetermined period.
Under the Service Agreement, PRICEWIDE, INC. requires
private engineering services for its establishment known as
the Manila Real Residences located at 1129 Natividad
Almeda Lopez St., Ermita, Manila.
As discussed below, AMP & SONS is a legitimate job
contractor carrying a distinct and independent business. It
undertakes to perform the job, work or service on its own
responsibility, according to its own manner and method, and
free from control and direction of the principal in all matters
connected with the performance of the work except as to the
results thereof. It has substantial capital and/or investment;
and the Service Agreement between AMP & SONS and
PRICEWIDE, INC. ensures compliance with all the rights and
benefits under Labor Laws.

DISCUSSION
The
whether

test
one

of

independent

claiming

to

be

contractorship
an

is

independent

contractor has contracted to do the work according to


his own methods and without being subject to the
control of the employer, except only as to the results
of the work.1
In San Miguel Corporation v. Semillano2, the Court laid
down the criteria in determining the existence of an
independent and permissible contractor relationship, to wit:
x x x [W]hether or not the contractor is carrying on
an independent business; the nature and extent of the
work; the skill required; the term and duration of the
relationship; the right to assign the performance of a
specified piece of work; the control and supervision of
the work to another; the employers power with respect
to the hiring, firing and payment of the contractors
workers; the control of the premises; the duty to supply
the premises, tools, appliances, materials, and labor;
and the mode, manner and terms of payment. 3
Simply put, the totality of the facts and the
surrounding circumstances of the case are to be
1 San Miguel Corporation v. Aballa, G.R. No. 149011, June 28, 2005,

461 SCRA 392, 421.


2 G.R. No. 164257, July 5, 2010, 623 SCRA 114.
3 San Miguel Corporation v. Semillano, supra, at 124; Sasan, Sr. v.

National Labor Relations Commission 4th Division, supra note 41, at


691.

considered. Each case must be determined by its own


facts and all the features of the relationship are to be
considered.4
If the surrounding circumstances and totality of the facts
would be considered, there can be no other conclusion than
that AMP & SONS is a legitimate job contractor.
Applying the foregoing tests, it is respectfully submitted
that AMP & SONS is a legitimate job contractor:
AMP & SONS has substantial capital
or investment.
First,

AMP

investment.

&

SONS

has

substantial

capital

or

The equipment and machineries used in the

performance of the contracted job are owned by AMP &


SONS. This is vital fact which only shows that AMP & SONS
does not depend on the PRICEWIDE, INC. with respect to the
tools and equipment used by the workers.
AMP & SONS carries a distinct and
independent business.
AMP & SONS has a separate personality distinct from
PRICEWIDE, INC. It is registered as a separate entity
independent from any control by another organization.
Attached hereto as ANNEX B is a copy of its Certificate of
Incorporation

issued

by

the

Securities

and

Exchange

Commission under Company Reg. No. CS201006894.


AMP & SONS carries on an independent business and
undertakes the performance of its service contract according
to its own manner and method, free from the control and
supervision of PRICEWIDE, INC.

4 Sasan, Sr. v. National Labor Relations Commission 4th Division, supra

note 41, at 691.

The following circumstances bolster AMP & SONS


claim that it is a legitimate job contractor:
First, the nature and extent of the work of the workers
is clearly specified under the Service Agreement. The scope
of work of the employees is stated in the Scope of Work
portion, attached to the Service Agreement as ANNEX A.
Under the Contract, the following are the general functions
of the workers: (a) perform equipment inventory, monitor,
evaluate, and recommend necessary corrective measures
and/or suggestions for equipment over all performance, (b)

utilize tools and special instruments, (c) utilize equipments


history card/ record every repair and/ or replacement work
undertaken,

(d)

assist

building

administrator

for

the

inspection of constructing and operating tenants, and (e)


attend to tenants concerns only upon instruction from the
Building Administrator. The workers tasks also include
preventive maintenance program for transfer and fire and
jockey

pumps,

preventive

maintenance

program

for

plumbing system, preventive maintenance program for


building lightings, stand by generating sets, telephone and
sound system, carpentry, masonry, and painting works. The
excluded works are also indicated therein.
Secondly, the skill required from the workers is also
expressly provided. Attached as ANNEX C of the Service
Agreement is a document entitled Personnel Qualifications.
AMP & SONS requires its workers (multi-technicians) to meet
the following qualifications: (a) Filipino citizen, (b) preferably
graduate of vocational/ technical course in a related field
(TESDA accredited), (c) with at least one (1) year experience
in maintenance and repair operations, (d) knowledgeable in
trouble shooting of window type aircon, electrical, plumbing

and

carpentry

works,

(e)

can

work

with

minimum

supervision, (f) age shall be from 21 to 40 years old, (g)


physically fit, (h) cleared by law enforcement agency and
without previous record and criminal offense including moral
turpitude, (i) passed the psychological examinations, and (j)
with good moral character.
Thirdly, the term and duration of the relationship is
also expressly provided under the agreement. The subject
Service

Agreement

has

duration

of

one

(1)

year

commencing on January 1, 2016 and expiring automatically


at the close of business hours on December 31, 2016.
Fourth, the right to assign the performance of a
specified piece of work belongs to AMP & SONS.
Fifth, the control and supervision of the workers is
performed by AMP & SONS. To support this claim, the
following documents are hereby attached herewith: AMP &
SONS Daily Time Monitoring Sheet as ANNEX C, Request
for Change of Schedule as ANNEX D, Summary of Hours
Worked as ANNEX E. These are evident proof that the
workers are under the supervision of AMP & SONS and that
control is exclusively exercised by it.
The power of hiring, firing and payment of the
workers are being exercised by AMP & SONS. Attached
herewith as ANNEXES

F-F2 are copies of notices

addressed to the workers, notifying them of suspension,


termination and other disciplinary measures imposed upon
them by AMP & SONS. Also attached herewith as ANNEX
G is a copy of an endorsement letter, to show that the
power of hiring belongs to AMP & SONS, and not to
PRICEWIDE, INC.
Sixth, the payment and mode, manner and terms of
payment are made and decided by AMP & SONS. To

substantiate this claim, the following papers are hereby


attached

herewith:

SSS

Special

Bank

Receipts

and

Employers Contributions Payment Form as ANNEXES H


and I showing that the payor/ employer is AMP & SONS.
Also attached as ANNEXES J, K, L and M are
copies of PAG-IBIG Fund Receipt, Membership Contributions
Remittance

Form,

PHILHEALTH

Agents

Receipt,

and

Employers Remittance Report, showing that the employer/


payor is none other than AMP & SONS. This is a strong
indication of control. Also attached as ANNEX N is a copy
of AMP & SONs Computation of Payroll for different periods.
Lastly, the duty to supply the premises, tools,
appliances, materials, and labor is being undertaken and
performed by AMP & SONS. Under the Agreement, AMP &
SONS shall provide the personnel with the minimum required
equipment and supplies enumerated in Annex E thereof. In
addition, AMP & SONS shall provide the personnel with such
other equipment and supplies as may be reasonably
necessary to perform the services.
CONCLUSION
Considering the totality of the facts and the
surrounding circumstances of the case, the only
logical conclusion is that AMP & SONS passed the
control test and therefore, it is an independent and
legitimate contractor.
Taken as a whole, there can be no doubt that
AMP & SONS is engaged in legitimate contracting and
it performs the job, work or service on its own
responsibility,

according

to its

own

manner and

method, and free from control and direction of the


principal

in

all

matters

connected

with

the

performance of the work except as to the results

thereof. It has substantial capital and/or investment and the


Service Agreement ensures compliance with all the rights
and benefits under Labor Laws.
In Meralco v. Quisumbing, 5 the Supreme Court joined
the universal recognition of outsourcing as a legitimate
activity when it was held that a company can determine in
its best judgment whether it should contract out a part of its
work for as long as the employer is motivated by good faith;
the contracting is not for purposes of circumventing the law;
and does not involve or be the result of malicious or arbitrary
action.
The facts of this case show that the contracting is
done in good faith and not for purposes of circumventing the
law. In fact, the employment status of the workers involved
is regular.
Therefore, there is no reason for this Honorable
Office to cancel its registration.

PRAYER
WHEREFORE,

premises

considered,

it

is

most

respectfully prayed of this Honorable Office, that a Decision


be rendered DISMISSING the present case and DECLARING
that AMP & SONS is engaged in legitimate job contracting.
Other reliefs just and equitable under the premises are
also prayed for.
RESPECTFULLY SUBMITTED.
5 MANILA ELECTRIC COMPANY, petitioner, vs. THE HONORABLE

SECRETARY OF LABOR LEONARDO QUISUMBING AND MERALCO


EMPLOYEES AND WORKERS ASSOCIATION (MEWA), respondents. G.R.
No. 127598. January 27, 1999

Caloocan city, December 11, 2016.

ALMA VELA DEL ROSARIO


HR
Manager/
Authorized
representative- AMP &
SONS

Copy furnished:
PRICEWIDE, INC.
Penthouse Tower A Gotesco Regency
Twin Towers, 1129 J. Natividad Lopez St.,
Ermita, Manila.

VERIFICATION
I, ALMA VELA DEL ROSARIO , of legal age, Filipino
citizen, married, with post office address at Block 4 Lot 4 1 st
Lane, Castle Spring Heights, Camarin, Caloocan city, on
oath, depose and state that:
1

I am the HR-Manager/ Authorized representative of


AMP AND SONS GENERAL SERVICES, INC.;

2 I caused the preparation of the foregoing Position Paper/


Comment;
3 I have read the allegations therein and certify that the same
are true and correct of my own personal knowledge and
based on authentic documents;
IN WITNESS WHEREOF, I have hereunto set my hand
this 12th day of December, 2016, at Caloocan City, Metro
Manila, Philippines.

ALMA

VELA

DEL

ROSARIO
Affiant
SUBSCRIBED AND SWORN TO before me this 12th
day of December, 2016 at Caloocan City, affiant having
exhibited to me his competent evidence of identity by way of
SSS I.D. No. 33-2155926-6.

Doc. No._______
Page No.______
Book No. ______
Series of 2016.