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KINDS/TYPES OF CONTRACTORS:
1. Job Contracting
2. Labor-Only Contracting (prohibited)
PROHIBITED/DISALLOWED ACTS:
1. Contracting out job, work or service when not done in good faith and not justified by
the exigencies of the business which results in termination of regular employees and
reduction of work hours or reduction or splitting of the bargaining unit
2. Contracting out of work to a CABO (a labor group or group of persons which, in the
guise of a labor organization, supplies the worker to an employer)
3. Taking advantage of the economic situation or the lack of bargaining strength or
undermining his security of tenure or basic rights or circumventing the provisions of
regular employment in:
a. requiring to perform functions currently being performed by regular employees of
the principal or of the contractor/subcontractor
b. requiring to sign as precondition of employment or continued employment,
antedated resignation letter, waiver of labor standards including minimum wage,
social and welfare benefits or a quitclaim releasing the principal, contractor or
subcontractor from liability as to payment of future claims
c. requiring to sign a contract fixing the period of employment to a shorter term than
the term of the contract between the principal and the contractor unless the
contract is divisible into phases for which substantially different skills are
required and this is made know to the employee at the time of his engagement
4. Contracting/subcontracting through an in-house agency
5. By reason or occasion of a strike or lockout, contracting/subcontracting a job, work or
services directly related to the principal’s business or operation
6. Contracting/subcontracting of a job, work or services being performed by union
members when such will interfere with, restrain or coerce employees in the exercise of
their right to self-organization