do174 Workplace compliance amp solutions plus inc Contracting environment Chapter iii conditions of work Article 106109 of the labor code wages empowers seclab ID: 613496
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Slide1
Briefing on Dole d.o.174
Workplace compliance & solutions plus,
inc.
, Slide2
Contracting environment
Chapter iii
(conditions of work),
Article 106-109
of the
labor
code (wages) empowers
seclab
to restrict or prohibit contracting of
labor
to protect workers’ rights.
There is a solidary liability between a principal & a contractor
Definition of
labor
-only contractingSlide3
Previous orders-d.o.10-97
Allowed legitimate contracting for business expansion & adaptation (employment creation)
Allows occasional employment for intro of new products (promotions), display of products (marketing)
Premised on contracting activity not directly related to main business of principal
Requires specialized skills to be provided by contractor
In an LOC case, contractor employees becomes employees of principal Slide4
Previous orders
2001
-d.o. no. 3.-Eliminated contracting; revoked previous d.o.10-97
2002
-d.o. 18-included element of control in
l.o.c
.; listed other prohibited employment arrangements; re-introduced solidary liability of principal with contractor.
2011-
d.o. 18-a-repeated contents of d.o.18, imposed contractor’s registration fee.Slide5
Intent of dole order 174-17
Increase level of awareness on the constitutional right of workers to security of tenure
Govern situations where a principal assigns a part of the business to be performed by a contractor or a sub-con, with employees
Pass-on the responsibility to the principal to exercise oversight over the contractor to comply with labor laws on its employees
Make the principal accountable for violation of its contractor of the labor lawsSlide6
Accountability of principal
(failure of oversight)Slide7
REITERATION OF PRINCIPAL’S LIABILITY
(principal, consignor, locator)
Sec.7. when contractor, sub-contractor or service provider is engaged in L.O.C.(sec 5) & other prohibited act (sec. 6), principal becomes the employer
Sec 9. principal is
solidarily
liable to employees of providers for their failure to pay wage & for any violation of the labor code, to the extent of contracted work under the employment contract. Slide8
What is contracting
?
A principal farms out with a contractor, the performance or completion of a specific(a) job, (b)work or (c)service, within a (d)definite or predetermined period, regardless of whether such job, work or service is to be performed or completed (e)within or outside the premises of the principal.
A,b,c
, refers to
type or kind of activity
D,
time-bound
E,
locationSlide9
Prohibited
labor-only contractingSlide10
OTHER
PROHIBITed
practices
Cabo (guise of
labor organization, cooperative or other entity that supplies workers)
in-house agency (or cooperative that is a labor supplier)
Contracting out during strike/lockout, union shops, occupied regular positions
Employment documentary pre-conditions that are pre-judicial to the interest of workers(
antedated resignation, waivers,
etc
)
, or membership to a cooperative) before employment
Repeated hiring on short-duration contracts (555, endo),
circumvent sot
Employment shorter than service agreement of contractor to principal; Slide11
LEGITIMATE JOB CONTRACTING
Sec. 8. permissible contracting or sub-contracting arrangementSlide12
SERVICE CONTRACT
Essential elements of a service contract (
required to be presented to an
llco
)
Contract shall ensure compliance with all rights & benefits
of employees under the labor law
Slide13
EMPLOYMENT CONTRACT
Part of the required contracts under the department orderSlide14
Rights of employees
Safe & healthful work conditions (OSH)
Labor standards (SIL, rest days, OT pay, holiday pay, 13
th
mo.,separation
pay)
SSS retirement benefits or contractors’ retirement program
SSS and welfare benefits
Self-organization
*security of tenure*Slide15
REGISTRATION OF CONTRACTORS
Name & address of applicant, nature of business
Number of regular workers & total workforce
Clients list,
no.of
workers, & type of service to provide
Description of phases of contract &
no.of
employees
Proof of substantial capital complianceSlide16
Grounds for cancellationSlide17
Contractor’s Cancellation Timeline(33d)Slide18
Appeal Timeline (56d)Slide19
EFFECTIVITY & EFFECTS
EFFECTIVE FROM 03 APRIL 2017
D.O. 162-16 (SUSPENSION OF REGISTRATION OF NEW APPLICANT) IS LIFTED
REGISTATION UNDER 18-A SHALL REMAIN VALID UNTIL EXPIRATION
APPLICATION FOR RENEWAL FILED BEFORE 03APR17 SHALL BE PROCESSED UNDER 18-A-11
CONTRACTS & AGREEMENTS EXECUTED UNDER 18-A SHALL BE RESPECTED UNTIL EXPIRATION Slide20
EFFECT
RESOLUTION OF PENDING GLS CASES BEFORE 03APR17 SHALL BE GOVERNED BY 18-A
ON CROSS-REGIONAL OPERATION BY CONTRACTORS; SUBMISSION OF AUTHENTICATED COPY OF C.O.R.FROM MAIN OFFICE LOCATION, TO THE REGION OF OPERATION, WITH COPY OF SERVICE AGREEMENT
THERE WILL BE A REGISTRY OF LEGITIMATE CONTRACTORS/SUBCON/SERVICE PROVIDERS IN THE REGIONS