Guide to Valid Job Contracting and Subcontracting 2nd Edition
The subject matter of job contracting and subcontracting is a trick territory for businesses their owners. Understanding the technical sides of it are left to the experts and practitioners.
Nonetheless, even experts find the topic challenging. This book is intended to help companies, business owners, managers, expats, and HR practitioners navigate through the “treacherous waters” of job contracting and subcontracting.
While the word “treacherous” used to describe it may be strong the association to it is justified by the fact that engaging in contracting is very technical. A single mistake, regardless of intentions, of the parties will be catastrophic.
Imagine, for instance, a big company contracting hundreds of workers with what it thought was a legitimate contract, which due to technical errors the
authorities suddenly found the relationship a labor-only contracting. The said scores of employees of contractor will become regular with the principal. This will surely blow the pay grade of the company out of proportion. The correction and/or adjustments needed will be enormous and costly.
This work provides not just laws, rules, and regulations. It gives perspective, insight, and the bird’s-eye view of the situation to serve as a map to the right direction. It tackles D.O. 174, Series of 2017 which superseded D.O. 18- A. The DOLE Advisory 01, Series of 2017 providing exceptions. Relevant rules such as D.O. 19, D.O. 13, and D.O. 198, among others.
Also, R.A. 11058 and relevant decisions of the Supreme Court on the matter, most especially, on off-detail status in a 2019 case, Bognot vs. Pinic International (Trading) Corporation/CD-R King, et al., (G.R. No. 212471, March 11, 2019). Can individuals with unique skills and talents engage in contracting without registration under D.O. 174? The author discussed the answer in this work.
Salient points of D.O. 174 include the substantial capital of P5 million, shortened validity of the registration, concepts of temporary off-detail, expiration of service agreement, termination for just cause, authorized cause, and not due to expiration of service agreement and their implications.
This book is a compliance guide, first and foremost, to help businesses in their quest to achieve their objectives the legal way and without accidentally falling in the traps of technicalities.
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