Question

In 2011, Amer and Raj worked as welders on board the barges of Magiting Shipping Company (MSC), which later changed its corporate name to Perlas Corporation (PC). In 2018, PC verbally dismissed Amer and Raj from employment. Thus, they jointly filed a complaint for illegal dismissal against PC, which countered that it already had a separate and distinct personality from MSC. It also alleged that both complainants were not its regular employees as they were merely helpers brought in by its own regular employees on certain occasions when urgent repairs were required for its barges. The Labor Arbiter (LA) held that there was an employer-employee relationship between the parties based on Article 295 [280] of the Labor Code since Amer and Raj: 1) were engaged to perform activities which are usually necessary or desirable in the usual business or trade of PC; and 2) have rendered at least one year of service. Was the LA correct in using Article 295 [280] as the basis? Explain briefly. (2023 BAR)

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