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DOLE D.O. 174-17 DOLE D.O.

18-A-11
SECTION 1 GUIDING PRINCIPLES SECTION 1 GUIDING PRINCIPLES
Non-permissible forms of contracting and sub-contracting Contracting and subcontracting arrangements are expressly
arrangements undermine the Constitutional and statutory right to allowed by law and are subject to regulations for the promotion of
security of tenure of workers employment and the observance of the rights of workers to just
and humane conditions of work, security of tenure, self-
organization and collective bargaining. Labor-only contracting as
defined herein shall be prohibited.
SECTION 3 DEFINITION OF TERMS SECTION 3 DEFINITION OF TERMS
(l) “Substantial capital” refers to paid-up capital stocks/shares of at (l) “Substantial capital” refers to paid-up capital stocks/shares of
least Five Million Pesos (P5,000,000.00) in the case of corporations, at least Three Million Pesos (P3,000,000.00) in the case of
partnerships and cooperatives; in the case of single proprietorship, a corporations, partnerships and cooperatives; in the case of single
net worth of at least Five Million Pesos (P5,000,000.00). proprietorship, a net worth of at least Three Million Pesos
(P3,000,000.00).
No co-terminus employment for regular employees Co-terminus employment allowed
Labor-Only Contract: ABSOLUTELY PROHIBITED Labor-Only Contract: Prohibited

EXPIRATION OF SERVICE AGREEMENT EXPIRATION OF SERVICE AGREEMENT


Employee may opt to wait for re-employment within 3 months to Employee may opt for payment of separation benefits as may be
resign and transfer to another employer. provided by law or the Service Agreement, without prejudice to
Failure to provide new employment, employee shall be entitles to his/her entitlement to the completion bonuses or other
separation benefits as may be provided by law or Service emoluments, including retirement benefits whenever applicable.
Agreement, whichever is higher, without prejudice to entitlement
completion of bonuses or other emoluments, including retirement
benefits whenever applicable.
Mandatory Enrollment to DOLE Programs: Principal and N/A
Contractor/Subcontractors
The Regional Office shall deny or approve application within 3 The Regional Office shall deny or approve the application within
working days after the verification inspection one (1) working day after the verification inspection.

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