Labor-only Contracting

Labor-only Contracting

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…

Control in Contracting

Control in Contracting

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…

Contractor’s employees

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…