Employees demanded to pierce the corporate vail and personally sue a shareholder, contending that they were deprived of their social rights, did not give pay slips or notice of their employment conditions, and were transferred to be employed by another company, which was only a straw company.
The Labor Court rejected the claim and held that the starting point is the principle of separate legal personality of the corporation. Even though this case deals with labor relationship, and even though a disturbing picture emerges regarding the manner in which the company employed its employees, while depriving them of their social rights, this is not sufficient for piercing the corporate veil. No evidentiary basis was laid for the misuse of the corporate veil with the intent to deceive a person or to deprive creditors, or at the unreasonable risk of company's ability to repay its debts.