Government Service Insurance System (Gsis) v. National Labor Relations Commission

Summary

This case establishes the joint and several liability of principals/clients and contractors for unpaid wages under Labor Code Articles 106-107. GSIS contracted with Lanting Security for security services and incorporated mandated wage increases in the contract price, but the security guards received only P3,100/month instead of the increased rates. The Supreme Court affirmed that principals cannot evade liability by claiming they paid contractors adequate amounts if workers remain unpaid. The joint liability provision ensures immediate worker protection and compensation, with the principal retaining reimbursement rights against the contractor. This decision reinforces constitutional labor protection policies and prevents circumvention of wage payment obligations through contracting arrangements.