Workplace compliance & solutions plus, inc., Briefing on Dole d.o.174 Workplace compliance & solutions plus, inc.,

Contracting environment Chapter iii (conditions of work), Article 106-109 of the labor code (wages) empowers seclab to restrict or prohibit contracting of labor to protect workers’ rights. There is a solidary liability between a principal & a contractor Definition of labor-only contracting

Previous orders-d.o.10-97 Allowed legitimate contracting for business expansion & adaptation (employment creation) Allows occasional employment for intro of new products (promotions), display of products (marketing) Premised on contracting activity not directly related to main business of principal Requires specialized skills to be provided by contractor In an LOC case, contractor employees becomes employees of principal

Previous orders 2001-d.o. no. 3.-Eliminated contracting; revoked previous d.o.10-97 2002-d.o. 18-included element of control in l.o.c.; listed other prohibited employment arrangements; re-introduced solidary liability of principal with contractor. 2011-d.o. 18-a-repeated contents of d.o.18, imposed contractor’s registration fee.

Intent of dole order 174-17 Increase level of awareness on the constitutional right of workers to security of tenure Govern situations where a principal assigns a part of the business to be performed by a contractor or a sub-con, with employees Pass-on the responsibility to the principal to exercise oversight over the contractor to comply with labor laws on its employees Make the principal accountable for violation of its contractor of the labor laws

Accountability of principal (failure of oversight) Contractor violates labor laws Contractor fails LOC test Contractor does not fulfil employment contract with worker Contractor does not perform contract per Service Agreement Principal enters into a contract with delisted contractor

REITERATION OF PRINCIPAL’S LIABILITY (principal, consignor, locator) Sec.7. when contractor, sub-contractor or service provider is engaged in L.O.C.(sec 5) & other prohibited act (sec. 6), principal becomes the employer Sec 9. principal is solidarily liable to employees of providers for their failure to pay wage & for any violation of the labor code, to the extent of contracted work under the employment contract.

What is contracting? A principal farms out with a contractor, the performance or completion of a specific(a) job, (b)work or (c)service, within a (d)definite or predetermined period, regardless of whether such job, work or service is to be performed or completed (e)within or outside the premises of the principal. A,b,c, refers to type or kind of activity D, time-bound E, location

Prohibited labor-only contracting Insufficient capital OR No investment in equipt, tools, etc. AND Employees do work of principal No control on employees Contractor is de-listed, principal absorbs employees

OTHER PROHIBITed practices Cabo (guise of labor organization, cooperative or other entity that supplies workers) in-house agency (or cooperative that is a labor supplier) Contracting out during strike/lockout, union shops, occupied regular positions Employment documentary pre-conditions that are pre-judicial to the interest of workers(antedated resignation, waivers, etc), or membership to a cooperative) before employment Repeated hiring on short-duration contracts (555, endo), circumvent sot Employment shorter than service agreement of contractor to principal;

LEGITIMATE JOB CONTRACTING Contractor able to perform activity at his own accord Capital of contractor is sufficient Contractor controls the assigned activity Compliant with labor standards Sec. 8. permissible contracting or sub-contracting arrangement

SERVICE CONTRACT Place of work & duration Description of work Terms & conditions, contract amount, 10%+ admin fees Performance or surety bond Essential elements of a service contract (required to be presented to an llco) Contract shall ensure compliance with all rights & benefits of employees under the labor law

EMPLOYMENT CONTRACT Job description Place of work Wage Terms & conditions of employment Wage Part of the required contracts under the department order

Rights of employees Safe & healthful work conditions (OSH) Labor standards (SIL, rest days, OT pay, holiday pay, 13th mo.,separation pay) SSS retirement benefits or contractors’ retirement program SSS and welfare benefits Self-organization *security of tenure*

REGISTRATION OF CONTRACTORS Name & address of applicant, nature of business Number of regular workers & total workforce Clients list, no.of workers, & type of service to provide Description of phases of contract & no.of employees Proof of substantial capital compliance

Grounds for cancellation Did not submit Service Agreement Did not submit semi-Annual Report Final LOC Findings Did not follow Labor Standards Violated the Labor Code

Contractor’s Cancellation Timeline(33d) 7 workdays to answer/affidavit 7 calendar days clarificatory hearing, counter Affidavit, rectify/correct 10 calendar days terminate hearing 7 days to resolve case

Appeal Timeline (56d) 10 days to appeal 30 workdays for OSEC to resolve 10 days from receipt, Final & executory

EFFECTIVITY & EFFECTS EFFECTIVE FROM 03 APRIL 2017 D.O. 162-16 (SUSPENSION OF REGISTRATION OF NEW APPLICANT) IS LIFTED REGISTATION UNDER 18-A SHALL REMAIN VALID UNTIL EXPIRATION APPLICATION FOR RENEWAL FILED BEFORE 03APR17 SHALL BE PROCESSED UNDER 18-A-11 CONTRACTS & AGREEMENTS EXECUTED UNDER 18-A SHALL BE RESPECTED UNTIL EXPIRATION

EFFECT RESOLUTION OF PENDING GLS CASES BEFORE 03APR17 SHALL BE GOVERNED BY 18-A ON CROSS-REGIONAL OPERATION BY CONTRACTORS; SUBMISSION OF AUTHENTICATED COPY OF C.O.R.FROM MAIN OFFICE LOCATION, TO THE REGION OF OPERATION, WITH COPY OF SERVICE AGREEMENT THERE WILL BE A REGISTRY OF LEGITIMATE CONTRACTORS/SUBCON/SERVICE PROVIDERS IN THE REGIONS