I.

S Gas Corp. is engaged in the manufacture and distribution to the general public of various petroleum products. On January 1, 2010, S Gas Corp. entered into a Service Agreement with APS Manpower Co., whereby the latter undertook to provide utility workers for the maintenance of the former's manufacturing plant. Although the workers were hired by APS Manpower Co., they used the equipment owed by S gas Corp. in performing their tasks, and were likewise subject to constant checking based on W gas Corp.'s procedures. On February 1, 2010, Mr. T, one of the utility workers, was dismissed from employment in line with the termination of the Service Agreement between S Gas Corp. and APS Manpower Co. Thus, Mr. R filed a complaint for illegal dismissal against S Gas Corp., claiming that APS Manpower Co. is only a labor-only contractor. In the course of the proceedings, S Gas Corp. presented no evidence to prove APS manpower Co.'s capitalization.

(a) Is Q Manpower Co. a labor-only contractor? Explain. (5%)

(b)Will Mr. R's complaint for illegal dismissal against W Gas Corp. prosper? Explain. (5%)