The Department of Labor and Employment (DOLE) region 10 has shifted its focus from labor standards and healthy and safe workplace to upholding the security of tenure and employment status of workers based on the mandate of President Rodrigo Duterte to end contractualization.
Based on Department Order 18-A, series of 2011, registration of new applicants as contractors or subcontractors is suspended.
However, all certificates of registration of contractors/subcontractors issued prior to the order shall be respected, unless otherwise revoked through the exercise of the enforcement and adjudicatory powers of the Secretary of Labor and Employment or his duly authorized representative.
Atheneus A. Vasallo, Director II of DOLE region 10 said during a regional consultation on contracting and sub-contracting agreements with stakeholders on 20 September 2016 in Cagayan de Oro City that there are 540 establishments in Northern Mindanao who are contracting and sub-contracting.
He said they will be visiting and inspecting 50% of these establishments this year to check for prohibited practices. The department has set a target to end prohibited acts of these establishments by 50% in 2016 and to completely eliminate such acts in all establishments in 2017.
Meanwhile, Felixberto L. Labor of DOLE region 10 said that Labor Advisory No. 10 series of 2016 states that labor-only contracting shall be declared prohibited. This refers to an arrangement where the contractor or subcontractor merely recruits, supplies or places workers to perform a job, work or service for a principal.
Prohibitions against Labor Only Contracting include No Substantial Capital; and Contractor does not exercise right to control over the performance of the work of the employee.
According to Bernadette Hallazgo of DOLE 10 that a legitimate job contractor or subcontractor must be registered under D.O. 18-A; carries on a distinct or independent business, has substantial capital or investment; corporations/partnership/cooperatives paid up capital stocks/share of at least three million and service agreement must ensure compliance to labor laws. (JMOR/PIA10)