Contractor’s employees

Summary

▪ The employees of a contractor or a subcontractor may be deployed personnel or administrative personnel.

▪ The contractor’s or subcontractor’s employees enjoy the same rights and benefits as any other employee under labor laws.

▪ The Contractor’s employees are required to be provided a written employment contract.

▪ In case of expiration of the Service Agreement, the contractor’s employees have several options, one of which will entitle them to separation benefits.

1. Employees of a Contractor or Subcontractor

The contractor’s or subcontractor’s employees may be deployed personnel or administrative personnel.

a. Deployed or assigned personnel

Under DO-174, a contractor’s employee refers to “employee of the contractor hired to perform or complete a job or work performed by the principal pursuant to a Service Agreement with the latter.” (Section 3(e), DO-174)

If a contractor’s employee is deployed or assigned at premises of the principal to perform the work therein, he/she is often referred to as a deployed or assigned personnel.

Administrative personnel

A contractor may hire employees as administrative personnel, who may work in the principal place of business of the contractor. Accordingly, they are not deployed or assigned to an account or principal.

2. Rights of the employees of the contractor or subcontractor

The employees of the contractor and subcontractor are entitled to all the rights and benefits under labor laws, including:

1) Security of tenure;

2) Safe and healthful working conditions;

3) Labor standards such as but not limited to service incentive leave, rest days, overtime pay, holiday pay, 13th month pay, and separation pay;

3) Retirement benefits under the SSS or retirement plans of the contractor/subcontractor;

4) Social security and welfare benefits; and

5) Self-organization, collective bargaining and peaceful concerted activities including the right to strike. (Section 10, DO-174)

a. Written employment contract

The employees of a contractor or a subcontractor are required to be provided with a written employment contract, which shall include the following stipulations:

1) The specific description of the job or work to be performed by the employee; and

2) The place of work and terms and conditions of employment, including a statement of the wage rate applicable to the individual employee. (Section 11, DO-174)

The contractor or subcontractor are required to inform the employees of the foregoing stipulations on/before the first day of his/her employment. (Ibid.)

3. Expiration of Service Agreement

If the Service Agreement expires, or phase/s for which an employee was hired have been completed, the contractor’s employee have the following options:

1) Resign from employment;

2) Wait for re-employment within three (3) months;

3) If no re-deployment within three months, resign from employment and receive separation benefits in addition and on top of his/her final pay as may be provided for by law or the Service Agreement, whichever is higher. (Section 13, DO-174)

..

References

Presidential Decree No. 442, a.k.a. Labor Code of the Philippines

DOLE Department Order No. 174, Series of 2017

▪ Jurisprudence or Supreme Court Decisions

Related content

Rotation of Workers

Summary ▪ Rotation of Workers refers to one where the employees are rotated or alternately provided work within the workweek.

Table of Contents

Topics

Management Prerogative, Labor Relations

Unfair labor practices

1. Summary ▪ Unfair labor practices are specific offenses against the right to self-organization of workers or employees. ▪ There

Retraction letter

Summary ▪ A retraction letter is a formal written notice from the employer informing a job candidate of the withdrawal

Certification election

Summary ▪ The certification election determines who will be the sole and exclusive bargaining agent in an organized establishment, particularly

Duty to bargain

Summary ▪ In the context of labor relations, the employer and the workers’ bargaining unit has the duty to bargain

Due Process, Post-Employment

Willful disobedience

1. Summary ▪ To be valid, the just cause of willful disobedience of a lawful order should comply with prescribed

two people having a meeting in the office

Just Causes

Just causes refer to “those instances enumerated under Article 297 [Termination by Employer] of the Labor Code, as amended. These

Just Causes

Summary ▪ Just causes are grounds for termination of employment due to employee violations. ▪ The employer is justified dismissing

General Labor Standards, Working Conditions

colleagues looking at laptop

Multiple employment

Due to the pandemic, many are forced to look for other sources of income. These usually come in the form

Special Leave for Women

Summary ▪ The special leave for women is given to female employees who have undergone surgery due to gynecological disorder.

Flexible Work Arrangements

Summary ▪ Flexible work arrangements refer to alternative arrangements or schedules other than the traditional or standard workhours, workdays, and

error: Content is protected.