ROLLYN DEE PIOCOS
LLB 2-A
DEPARTMENT ORDER 174-17
RULES IMPLEMENTING ARTICLES 106 TO 109 OF THE LABOR
CODE, AS AMENDED
Section 1. Guiding Principles. Non-permissible forms of
contracting and subcontracting arrangements undermine the
Constitutional and statutory right to security of tenure of
workers.
No co-terminous employment
Mere expiration of Service Agreement shall not be deemed
as termination of employment of the contractor employees
who are regular employees of the latter.
Labor-Only Contract is ABSOLUTELY PROHIBITED.
Labor-Only Contracting Version 1:
-The contractor does not have substantial capital
-The contractor does have investments in the form of tool,
equipment, machineries, supervision, and work premises
among others.
-The contractor’s or subcontractor’s employees recruited and
placed are performing activities which are directly related to
the main business operation of the principal.
Labor-Only Contracting Version 2:
The contractor does not exercise the right to control over the
performance of the work of employee.
Section 6. Other Illicit Forms of Employment Arrangements:
-Cabo
-In-house Agency
-In-house Cooperative
-Strike or Lockout
-Union Members
-Performed by Regular Employees
-Ante-dated Resignation Letter, Blank Payroll, Waiver of
Labor Standards, Quitclaim Releasing Principal or Contractor,
and Requiring Membership to a Cooperative
-Repeated Short Term Employment
-Employment Shorter than Service Agreement
-Practices circumventing security of tenure
Principal is deemed as direct employer:
Engaged in:
1. Labor-Only Contracting
2. Other illicit forms of employment arrangements
3. Violation of employee’s rights
4. Violation of required contracts
N/A
Expiration of Service Agreement
-Employee may opt to wait for re-employment for 3 months
to resign and transfer to another employer.
-Failure to provide new employment, the employee shall be
entitled to separation benefits as may be provided by law or
the Service Agreement, whichever is higher, without
prejudice to entitlement completion of bonuses or other
emoluments including retirement benefits whenever
applicable.
Mandatory enrolment to DOLE Programs: Principals and
Contractors or Subcontractors
DEPARTMENT ORDER 18-A-11
RULES IMPLEMENTING ARTICLES 106 TO 109 OF THE LABOR
CODE, AS AMENDED
Section 1. Guiding principles. Contracting and subcontracting
arrangements are expressly allowed by law and are subject to
regulations for the promotion of 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.
Co-terminous employment is allowed
The term of employment that must be coextensive with the
Service Agreement or with the specific phase of work for which
the employee is engaged.
Labor-Only Contract is PROHIBITED.
Labor-Only Contracting Version 1:
-The contractor does not have substantial capital
-The contractor does have investments in the form of tool,
equipment, machineries, supervision, and work premises
among others.
-The employees recruited and placed are performing activities
which are usually necessary or desirable to the operation of the
company, or directly related to the main business of the
principal within a defined or predetermined period, regardless
of whether such job, work or service is to be performed within
or outside the premises of the principal.
Labor-Only Contracting Version 2:
The contractor does not exercise the right to control
performance of the work of employee.
Section 7. Other Prohibitions:
-Cabo
-In-house Agency
-In-house Cooperative
-Union Members
-Performed by Regular Employees
-Ante-dated Resignation Letter, Blank Payroll, Waiver of Labor
Standards, and Quitclaim Releasing Principal or Contractor
-Repeated Short Term Employment
-Employment Shorter than Service Agreement
-Results in termination or reduction of regulars and reduction
of work hours
- Results in termination or reduction of regulars and reduction
of work hours or splitting of bargaining unit
-Refusal to give copy of required contracts to the sole exclusive
bargaining agent
-Engaging or maintaining in excess of CBA or set by Industry
Tripartite Council
N/A
Non-impairment of existing contracts
Expiration of Service Agreement
-Employee may opt for payment of separation benefits as may
be provided by law or the Service Agreement, without
prejudice to his or her entitlement completion of bonuses or
other emoluments including retirement benefits whenever
applicable.
N/A