Summary ▪ Labor-only contracting is prohibited. ▪ It refers to an arrangement that violates the laws and regulations on contracting and job contracting. ▪ All contractors are presumed to be labor-only contractors by default. ▪ Finding of labor-only contracting results in the principal being declared as the employer. ▪ There are illicit forms of employment…
Summary ▪ Controlling an employee is one of the rights and powers of the employer. ▪ As the employer., the contractor or subcontractor controls the deployed personnel, and not the principal. ▪ Labor-only contracting results if the principal exercises control over the deployed personnel. ▪ Right, and not actual, control is sufficient. 1. Concept Controlling…
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…
Summary ▪ Principal is the one who farms out or outsources a job or work in a contracting and subcontracting arrangement. ▪ The principal’s main interests is on the desired results. ▪ The principal has no interest in supervising or controlling the contractor’s employees. ▪ The principal is solidarily liable with the contractor for labor…
Summary ▪ A contractor or a subcontractor is registered with the Department of Labor and Employment (DOLE) as legitimate job contractors, who perform a job or work farmed out or outsourced by a principal under a Service Agreement. ▪ They have a distinct and independent business, which enables them to perform the outsourced job or…
Summary ▪ Job contracting is an arrangement whereby a principal outsources a job, work, or service to the contractor who performs these through its deployed personnel, otherwise known as the contractor’s workers. ▪ While DOLE Regulations have referred to the arrangement as legitimate job contracting and now permissible job contracting, they refer to the same…
Summary DO-174 contractors are required to submit twice a year a report to DOLE. Applicable laws, regulations DOLE Department Order No. 174, Series of 2017 (DOLE DO 174-17) Compliance Report Semi-Annual Reporting “The contractor shall submit in triplicate its subscribed semi-annual report using a prescribed form to appropriate Regional Office. The report shall include: a)…