GSIS v NLRC

G.R. No. 180045

November 17, 2010

FACTS:
Respondents were hired by DNL Security Agency which entered into a service contract with
GSIS and assigned the respondents to its Tacloban office. When the contract was terminated,
the agency instructed respondents to continue reporting. However, they did not receive their
wages and were terminated from employment. The petitioner contended that it should not be
jointly liable with the agency since the contract was terminated when the respondents
continued working.

ISSUE:
Whether or not the petitioner should be jointly and severally liable with the agency for
payment of wages

RULING:
Yes. Arts. 106 and 109 of the Labor Code provides that in the event that the contractor fails to
pay the wages, the employer shall be liable to pay for it. Petitioner cannot be allowed to deny
its obligation to respondents after it had benefited from their services.