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  • DO No 174

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    George Habacon
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    DO 174

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    DO No 174

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    DO 174

    Copyright:

    © All Rights Reserved
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    Segnala contenuti inappropriati
    56 visualizzazioni12 pagine

    DO No 174

    Caricato da

    George Habacon
    DO 174

    Copyright:

    © All Rights Reserved
    Scarica in formato PDF o leggi online su Scribd
    Segnala contenuti inappropriati
    di 12
    Repub of he Pipines > DEPARTMENT OF LAWOR AND EMPLOYMENT oerarrment onver no. 1 Series of 2017 RULES IMPLEMENTING ARTICLES 106 TO 109 OF THE LABOR CODE, AS "AMENDED. By vinus ofthe power vestein the Saccatayof Labor and Employment under Artes Sand 106 #2 109 of the Labor Code of the Philppines, as amended, the following regulations governing ‘coniracting and subcontracting arangements are hereby issued! Section 1. Guiding Principle. Non-perissibie forms of contracting and subcontracting arrangements undermina the Canstiutonal and statutory right to secur of tenure of workers, Section 2, Coverage, These Rules shal apply to a partes n an arrangentent whor® | empioyer-empleyea rolalonship exists, Contractors and subcontractors referred to In these Rules are. prohibited rom } fengeging in reerutment ard placement actives es defined in Aricie 13(0) of the Labor Code, whether lacsl or overseas emoloyment Section 3. Definition of terms. ‘The following fers, as used in these Rules, shal 1) “Bond” ~ cefers to the bond under Article 108 of the Labor Code thal the principal may raquie from the contactor to be posted equal the cost of labor Unde? contrat, ) "Cabo" — refers to & person or group of parsons oF to a labor group Wr, under the guise of @ labor organization, Cooperative ot any enbly, guppies workers to an employer, with or wfthout any monetary or other consisertion, Whether in the eapact) of an agent of the employer or as an ostersible independent contactor ‘Contracting’ or “Subcontracting” ~ refers ton arrangement whereby princioal agrees to ferm ou to contractor the performance or completion of Epccie job or work wthin a definte or predetermined period, regardiess of ‘wethar such job or work Is te be performed or completed within or outside the pramigas of the pxincioa! 4) “Contractor” — refers to any person oF entity engaged in a legitimate contractng or subcorivactng arrangement providing services for a specif }ob Drundertaking farmec’ out By pracipal under a Service Agreement. ©) “Contractor's employee” ~ refers to employae of tha contractor hiree to perform or complete a ob or work farmed out by the principal pursuant a Service Agreement with the latter. 4) “Inhouse agency” ~ refers to a contractor which Is owned, managed. oF controled directly or Indirectly by the principal or one where tha princpal ‘ownairopresents any share of stack, and which operates solely or mainly for ‘he principal 9) “Inhouse cooperative” — refers to 8 cooperative which Is maneged, or controled directly oF indirectly by the principal or ane where the prinlpal ar any fits officers ownsirepresents any equity or intrest, and which operates sclely oF mainly forthe principal hy) “Labor-only contracting” - refers to srangement where the contractor oF ‘subconiactor merely recruits, supplies or plaoes workers to perform a job or work fora princi, andthe elenis enumerate in Secon 5 hereunder ae reser |) “Principat” ~ refers to any natural or jurcical ently, whether an employer or ‘nat, who pus Out oF farms Out & oD oF Work Yo @ contracor. |) “Service Agreement” ~ refers to the contract betwoen the princi! and contractor containing the tems and conditions governing the performance of completion of a spect job ot work belng farmed ut for a define or predetermined period. 1) “Solldary Habiity” ~ refers to the labity of tho principal, pursuant to the provision af Article 109 ofthe Labor Code, as crect employer together wih the Contract for any violation of any provision ofthe Labor Code. It algo refer to the Kablsy ofthe principal, in the same manner and extent that haisha in lable to hither direct employees, tothe extent ofthe work performed Under the contract when the contractor fas to pay the waged of hisher ‘employees, a8 provided in Article 108 of the Labor Code, as amended. 1) “Substantil capital” ~ refers to palcup captal stock/shares at least Five Mion Pesos (PS,000,000.00) In the cate cf corporations, partnerships and 00 in the cate of single proprietorship, a nat worth of at least Five Million Pesos (P5,000,000.00). Section 4, Regulation of Contracting or Subcontracting. The Secretaty of Labor and Employment. shall regulate contracing and subcontracting arrangement by bsoiutely prohibiting taboronly contracting, and restcting Job contracting alowed. Under the provisions ofthe Labor Code, as amended. Section 6, Absolute Prohibition against Labor-only Contracting. Laboronly ‘contracting, which is fetaly prohibited, refers to an arrangement where: 18) The contractor or subconactor does not have substan cepa, or |The contractor or subcontractor dows not have investments in the frm Sf, equipment machetes, supervise, wa romies, anor ‘ans |i._The contractors or suboonracto’s employees recruited and placed aro Performing activites which are directly related to the main business ‘operation of the principal b) The contractor or subcontractor does not exercise the right to control ever the performance ofthe work ofthe employee. ‘Section 6, Other lit Forms of Employment Arrangements. In addition to Section ‘of thase Rules, the folowing are hereby declared prohibited for being contrary tothe law or public policy: ‘8) When the principal farms out work toa “Cabo. 3) Contacting out of fob or work through en in-house agency. «) Contracting out of job or work through an in-house cooperative which merely supplies workers o the principal 6) Contig et fb or Wr by rato ow stk oracout wheter acu orimninent, «) Contracting out of job or work being performed by union members and such ‘il interfere with, resirain oF coerce employees in tho exercise of ther irs to ‘sell-organizaion 99 provided in Article 269 ofthe Labor Code, a8 amend. 1). Requiring the contractor sisubcontraciors employees. t© perform functions \which are currently being performed by the regular employees ofthe princpal 19) Requling the contractor s/subcontractar's employees to sign, as @ptecondtion to emplovment or continued employment, an antedated resignation letter & Dank payrol; @ waiver of labor standards Including minimum wages. an soca (of welfare benefits; or a quiclaim releasing the principal or contactor fom Tabity 28 to payment of future claims; oF require the employee to become membor of a cooperative. hy Repeated hinng. by the contractorlaubeontractor of employees under an ‘empleyment contact of short duration. 1) Requiring employaes under @ conracting/subcontracting arrangement to ign ‘2 contrac xing the period of employment to term shorter than the term cf the Service Agreement, uniess the contract is dvisble into phases for vhich Substantial diferent akils are required and ths Is made known to the employee al the time of engagement |) Such other practioes, schemes or employment arrangements designed to ‘Sreumvent the right of workers to sacunty of tenure. ‘Section 7. When principal is doomed the direct employer of the contractors oF Subcontractor’e employees. Inthe event hal ther is a finding thatthe contracor or subcontractor is engaged i labor-only contracting under Section 6 and other Wick forms of employment arrangoments under Section 6 of these Rules the principal ral be deemed the direct employer ofthe contractor's or subeontractor’s employees, Section 8. Permissible Contracting or Subcontracting Arrangements. Notwithstanding Sections 8 ané 6 hereot, contracting or subcontracting shall only be ‘lowed if al the folowing ckeumstances concur: 1) The contactor or subcontractor Is engaged in a distinct and indopencent, business and undertakes to perform th Job oF work on its own responsibly, ‘coring to its own manner and mathod: 'b) The contractor or subcontractor has substartil capt to carry out the job farmad out by the principal on his account, manner and method, investmert in the fom of tools, equipment, machinery and superiion; ©) In performing the work farmed out, the cartractor or subcontractor i fee from ‘the contol endior direcion of the principal In all mattors connected withthe Derformance ofthe work except as to the resul thereto; and 6) The Service Agreement ensures compllance wth all the rights and benefits for all th employees of the contractor or subcontractor under the labor laws. ‘Section 9, Solldary Llabiliy. In the event of Violation of any provision of tho Labor Code, inlucing the falur to pay wages, thore exes a solidary lability on the pat of the principal andthe contractor for purposes of enforcing the provisions ofthe Labor Code and other socal legislations, to the extent of the work performed under the ‘employment contract. Section 10. Rights of Contractor's! Subcontractor's Employees. All ‘conivactorsieubcortractor's employees, shal be entitled to securty of tenure an a the nights and priviegos as provided forin the Labor Coda, as amended, to includ the folowing: 2) Safe and healthful working conditons: ') Labor standards suchas but not imted to service incentive leave, rest days, ‘overtime pay, holiday pay. 13! month pay, and separation pay. Rotrament Denefts, under "a SSS or retirement plans of the

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