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

2. Contracting environment
Chapter iii (conditions of work), Article 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

3. 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

4. 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.

5. Intent of dole order
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

6. 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

7. 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.

8. 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

9. 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

10. 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;

11. 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

12. 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

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

14. 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*

15. 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

16. 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

17. 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

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

19. EFFECTIVITY & EFFECTS EFFECTIVE FROM 03 APRIL 2017
D.O (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

20. 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