Press Releases
DOLE Makati Pasay Field Office Conducts Orientation-Seminar on D.O. 174-17

On April 4, 2017, 78 individuals from 50 different companies attended the orientation seminar regarding the D.O. 174-17 conducted by the DOLE-NCR Makati Pasay Field Office.

Mr. Allan Dacillo, a Senior Labor and Employment Officer of the MPFO discussed the salient features of the new D.O. 174. Among those tackled were the prohibited practices such as “Labor-Only Contracting” which refers to arrangement where the contractor or subcontractor merely recruits, supplies or places workers to perform a job or work for a principal, and the presence of elements such as the contractor or subcontractor does not have a substantial capital, or the contractor or subcontractor does not have investment in the form of tools, equipment machineries, supervision, work premises, among others and the contractor’s or subcontractor’s employees recruited and placed are performing activities which are directly related to the main business operation of the principal or the contractor or subcontractor does not exercise the right to control over the performance of the work of the employee.

Other prohibited practices or illicit forms of employment arrangements are when the principal farms out work to a “cabo” contracting out of job or work through an in-house agency; contracting out of job or work through an in-house cooperative which merely supplies workers to the principal; contracting out of a job or work by reason of a strike or lockout whether actual or imminent; contracting out of a job or work being performed by union members and such will interfere with, restrain or coerce employees in the exercise of their rights to self-organization as provided in Article 259 of the Labor Code, as amended; requiring the contractor ‘s/subcontractor’s employees to sign, as a precondition to employment or continued employment , an antedated resignation letter; a blank payroll; a waiver of labor standards including minimum wages and social or welfare benefits; or a quitclaim releasing the principal or contractor from liability as to payment of future claims; or require the employee to become member of a cooperative; repeated hiring by the contractor /subcontractor of employees under an employment contract of short duration; requiring employees under a contracting/subcontracting arrangement to sign a contract fixing the period of employment to a term shorter than the term of the Service Agreement, unless the contract is divisible into phases for which substantially different skills are required and this is made known to the employee at the time of engagement; and such other practices, schemes or employment arrangements designed to circumvent the right of workers to security of tenure.

Aside from the prohibitions, other changes that were discussed are the required substantial capital of contractors which increased from P3,000,000.00 to P5,000,000.00. The validity of the certificate of registration of contractors which shortened from three years to two years, and the registration fee that increased from P25, 000.00 to P100,000.00.

During the question and answer session, the participants raised their issue about the standard administrative fee of not less than ten percent (10%) of the total contract cost that needs to be stipulated on the Service Agreement between the principal and the contractors. According to them, the increasing number of fly-by night contractors that offers lower Administrative Fee affects their operations. Mr. Dacillo advised the companies to report to the Department those fly-by night contractors they find operating in order to resolve cases related with their existence.

 

The orientation seminar is in relation to the month long celebration of the Labor Day. The Department of Labor and Employment National Capital Region through its Field Offices shall organize orientation seminars on D.O. 174-17 this whole month of May 2017. END/Mark Avner P. Acosta

[Back]
[Print]
2017-05-15
Director's Corner
Welcome to the official home of the Department of Labor and Employment-NCR, in the information superhighway.On this site, you will know that the DOLE works to promote gainful employment...
Contact us:
Name

Your Email

Title/Subject

(Maximum characters: 50)
You have characters left.

Your Message

(Maximum characters: 300)
You have characters left.