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Republic of the Philippines

DEPARTMENT OF LABOR AND EMPLOYMENT
Regional Office No. III
SWLC Bldg., DMGC, Brgy Maimpis, City of San Fernando, Pampanga

IN RE: JOINT ASSESSMENT

conducted at 4th Dimension
Multi Purpose Cooperative

4TH DIMENSION MULTI-PURPOSE COOP.

#27-B Benitez Street, Brgy Horseshoe Village Cubao, Quezon City

x--------------------------x

COMMENT

COMES NOW 4th Dimension Multi-Purpose Cooperative, by the

undersigned, unto this Honorable Office, most respectfully files its
comment and avers that:

STATEMENT

This has reference to the findings on the work arrangement by the

joint assessment conducted on March 28,2017 on Bonchon, SM Baliuag,
Baliuag Bulacan.

STATEMENT OF FACTS

The assessment was conducted by LLCO Reimell John T.

Estacio, who came up with the following essential observations:

The Principal has control over the performance of

AGENCY deployed worker;
The Principal employees giving out directives
(verbal/written);
The Principal employees giving out directives;
The principal requires AGENCY workers to perform their
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task at the Principal work premises;

The Principal Monitors the Quality and Quantity of
AGENCY worker’s output;

4th Dimension was organized in accordance with the Cooperative

Code of the Philippines, and is registered with the Cooperative
Development Authority (CDA).
A copy of 4th Dimension’s Certificate of Registration duly issued by
the CDA is attached as Annex 1.

The cooperative is engaged in an independent job contracting, and

providing entities and companies various work services that it and its
members can offer and render. Pursuant thereto, the Department of Labor
and Employment (DOLE) issued a Certificate of Registration in favor of 4 th
Dimension stating that the latter has “complied with the requirements as
provided for under the Labor Code, as amended, and its Implementing
Rules.” The implementing rules referred to therein is Department Order
No. 18-A, Series of 2011 entitled Rules Implementing Articles 106 to 109 of
the Labor Code, as amended.

The copy of the said Certificate of Registration is hereto attached and

marked as Annex “2”.

4th Dimension Multi-Purpose Cooperative was likewise issued a

Certificate of Compliance on General Labor Standards by the Department
of Labor and Employment on December 28, 2016, copy of which is hereto
attached and marked as Annex “3”.

The respondent cooperative was also issued a Business Permit by the

Office of the Mayor, the copy of which is hereto attached and marked as
Annex “4”.

Respondent 4th Dimension likewise has substantial capital or

investment to actually perform the job, work or services under its own
account and responsibility. Proofs of this is the Bank Certificate issued by
RCBC, and the same is hereto attached and marked as Annex “5”.

Considering the fact that respondent 4th Dimension is a legitimate

manpower service provider that operates as an independent contractor
servicing various other reputable companies, Scottland, Inc. agreed to
engage the services of 4th Dimension. Thus, the latter deployed several of
its members-owners to perform various services required by Scottland, Inc.
under their Service Contract that they have entered into.

The copy of the Service Contract entered into by and between 4 th

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Dimension Multi-Purpose Cooperative and Scottland, Inc. is hereto

attached and marked as Annex “6”.

Pursuant to the said Service Contract, 4th Dimension assigned its

employees/members to Scottland, Inc.

Accordingly, the employees/members of 4th Dimension who were

assigned to Scottland, Inc. signed and entered into a Membership
Agreement with 4th Dimension simultaneous with the signing of the
employment contracts, copies of which are hereto attached and marked as
Annex “7”, series.

Those employees/members who executed the above-mentioned

Employment contract are regular employees of 4th Dimension. This can be
substantiated by their remittance with the Social Security System,
Philhealth and Pag Ibig.

Since the start of the assignment of the employees/members of 4th

Dimension to Scottland, Inc., an Account Supervisor was assigned to the
said company by 4th Dimension to supervise and monitor its employees in
the performance of their assigned tasks.

To substantiate the same, 4th Dimension presents the Affidavit of Mr.

Rigor Hernandez, the Account Supervisor assigned in Scottland, Inc., copy
of which is hereto attached and marked as Annex “8”.

The Account Supervisor personally supervise and monitor its

employees in the performance of their assigned task at the premises of
Scottland Inc., and through its assigned Team Leader who is also an
employee/member of 4th Dimension.

To substantiate the same, 4th Dimension presents copies of Incident

Reports, Sick Leave forms and the appointment of the Team Leader, copy
of which is hereto attached and marked as Annex “9”, series.

DISCUSSIONS

4th Dimension is a legitimate independent contractor.

Section 3, paragraphs (d) & (e) of Department Order No. 174, series
of 2017, provides that:

“(d) “Contractor” refers to any person

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or entity, including a cooperative, engaged in

a legitimate contracting or subcontracting
arrangement providing services for a specific
job or undertaking farmed out by principal
under a Service Agreement”

“(e) “Contractor’s employee” refers

to employee of the contractor hired to
perform or complete a job or work farmed out
by principal pursuant to a Service Agreement
with the latter”

xxx

“(j) “Service Agreement” refers to

the contract between the principal and
contractor containing the terms and
conditions governing the performance or
completion of a specific job, or work being
farmed out for a definite or predetermined
period.”

“(l) “Substantial capital” refers to

paid-up capital stocks/shares of at least Five
Million Pesos (P5,000,000.00) in the case of
corporations, partnership and cooperatives; in
the case of single proprietorship, a networth
of at least Five Million Pesos (P5,000,000.00)”

Scottland, Inc. and 4th Dimension likewise agreed on the services to

be rendered by the members to be supplied by 4 th Dimension, designation
of services, number of members to be supplied for each service and the
workplace.

Section (l) of Department Order No. 18-A, series of 2011, further

provides that:

(l) “Substantial capital” refers to

paid-up stocks/share of at least Three Million
Pesos (P3,000,000.00) in the case of
corporation, partnerships and cooperatives; in
the case of single proprietorship, a net worth
of at least Three Million Pesos
(P3,000,000.00):
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The Statement of Financial Condition of 4th Dimension will show that

it has a very substantial capital that can carry out the job, work or services
sought to be undertaken under the Service Contract.

The employees deployed to the various establishments are the

regular employees of 4TH DIMENSION.

The workers supplied/deployed to its clients are the employees of 4 TH

DIMENSION. It assumes full responsibility for its compliance with all labor
laws and regulations and implements the following:

1) The hiring and employment of the workers supplied to its clients.

This is never done by the clients

2) Determines the particular employees to be deployed to the clients

after entering into a Service Agreement.

3) Pays the salaries, wages and all benefits of the workers in

accordance with laws, rules and regulations. This includes the
manner, mode and terms of payment.

4) Has the power to terminate, re-assign or transfer, recall the

workers deployed.

While the employees of 4th Dimension performed their tasks at a

designated working area assigned by the principal, they were under the
control and supervision of Mr. Rigor Hernandez, the Account Supervisor of
4th Dimension assigned to Scottland Inc.,. direct the employees in all
matters connected with the performance of the work except as to the
results thereof.

On matters pertaining to routine or day to day tasks under the

service contract, 4th DIMENSION Account Supervisor may receive written
instruction and communication from the clients. The Account Supervisor of
4TH DIMENSION is simply in close coordination with the assigned
employees to carry out the objectives in the service agreement. 4TH
DIMENSION has complete control and supervision over the employees
supplied to the clients.
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PRAYER

WHEREFORE, premises considered, it is most respectfully

prayed of this Honorable Office that the findings on work arrangement be
not admitted based on the above considerations.

for Quezon City, July 11, 2017.

MARICEL PADIERNOS
General Manager
4 Dimension Multi-Purpose
th

Cooperative
#27-B Benitez Street, Brgy
Horseshoe
Village Cubao,
Quezon City

VERIFICATION WITH CERTIFICATION

OF NON-FORUM SHOPPING

I, MARICEL PADIERNOS, of legal age, Filipino citizen, after having

been duly sworn to in accordance with law hereby depose and state that:

1. I am the General Manager of 4 th Dimension Multi-Purpose

Cooperative.
2. I have caused the preparation of the foregoing Position Paper.
3. I have read and understood the contents thereof;
4. The same are true and correct to the best of my knowledge and
belief;
5. I have not commenced any other court action or proceedings
involving the same issues in the Supreme Court, the Court of Appeals, or
any other tribunal or agency;
to the best of my knowledge, no such action or proceeding is pending in
the Supreme Court, Court of Appeals or any other tribunal or agency. If I
should learn thereafter that a similar action or proceedings has been filed
or is pending, I undertake to report the same fact within five (5) days
therefrom to the court or agency wherein the original pleading and sworn
certification contemplated herein have been filed.
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IN WITNESS WHEREOF, I have hereunto affixed my signature this

14 day of March 2017, at Quezon City.
th

MARICEL PADIERNOS
Affiant

SUBSCRIBED AND SWORN to before me this 14th day of March

2017 at Quezon City. Affiant exhibited to me her SSS ID No. 33-4773458-
6.

NOTARY PUBLIC

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Page No. ______
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SECRETARY’S CERTIFICATE

I, PERLA P. HUERTO, Corporate Secretary of 4th Dimension Multi-Purpose

Cooperative, certify that the following is a correct and true copy of a Resolution duly
approved at a meeting of the Board of Directors of the said Corporation held at its
office at #27-B Benitez St Brgy Horseshoe Village Cubao, Quezon City, on the th day of
July 2017, and the said Resolution is in full effect and has not been revoked or
cancelled, and reads as follows:

“RESOLVED THAT MARICEL PADIERMOS, is hereby

authorized to verify, certify, authenticate, file, execute and/or sign
all documents and pleadings in IN RE: JOINT ASSESSMENT
CONDUCTED AT 4TH DIMENSION MULTI-PURPOSE
COOPERATIVE”, for and in behalf of the cooperative, including
but not limited to Position Paper, Reply and Motions, Memorandum,
Memorandum of Appeal, in connection with any and all cases filed
or be filed against them before the Department of Labor and
Employment and to represent the company in the conferences,
hearings and other proceedings thereon.

“RESOLVED FURTHER that the above authority shall

likewise apply to all petitions and other pleadings which may be
filed with the appellate courts, namely, the Court of Appeals and
the Supreme Court.

RESOLVED FINALLY that the foregoing authority shall

continue to be in full force and effect until revoked by the Board of
Directors in a resolution duly certified by the Corporate Secretary.”

IN WITNESS WHEREOF, I have hereunto affixed my signature this 7th day

of July 2017 at the City of Quezon City.
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PERLA P. HUERTO
Corporate Secretary

SUBSCRIBED AND SWORN to before me this 7th day of July 2017 at Quezon
City. Affiant exhibited to me her SSS ID No. 33-4773458-6.

NOTARY PUBLIC

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Page No. ______
Book No. ______
Series of ______