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 ▪ 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…