Seminar on Valid Job Contracting and Sub-Contracting

Seminar on Valid Job Contracting and Sub-Contracting

Valid Job Contracting and Sub-Contracting Seminar on D.O. 174 and DOLE Department Circular 01, Series of 2017 will be held by Atty. Villanueva, as follows:

EDSA Shangri-La Hotel, Mandaluyong City, Philippines
9:00am to 5:00pm, Thursday, September 12, 2019

Outsourcing The LEGAL Way To Prevent Labor Problems

When outsourcing any function of your business operations like security, janitorial, accounting, sales, PR, telemarketing, advertising, property management, construction, logistics, design, etc., make sure that you know all the technicalities, strategies and best practices to ensure that you prevent liabilities from unnecessary labor claims and illegal dismissal judgements. Don’t be a victim years ahead when you might have a labor problem. It can cost you MILLIONS! 

Learn all these from labor law practitioner, HR expert and author of 18 labor books, Atty. Elvin Villanueva, who launched his 12th book entitled Valid Contracting and Subcontracting as a topic focus for this program. Register on or before September 2 and avail of the EARLY PAYMENT and GROUP DISCOUNTS! This learning event is applicable to all business owners, decision-makers, HR practitioners and outsourcing service providers. 

The Center for Global Best Practices invites everyone to attend this one-day training program entitled, Best Practices Guide to Valid Job Contracting and Subcontracting, on Thursday, September 12, 2019 at the EDSA Shangri-La Hotel, Mandaluyong City, Philippines. 

Attendees from the government are exempted from the P2,000.00 limit for attending training provided by the private sector based on Department of Budget and Management Circular No. 563 dated April 22, 2016. 

For inquiries, please call Manila lines: (+63 2) 556-8968 or 69; telefax (+63 2) 842-7148 or 59; Cebu lines: (+63 32) 512-3106 or 07; Baguio line: (+63 74) 423-2914. You may also check details and all other upcoming best practices seminars at

Register Now!

This is a “limited-seats-only” event on a first-come, first-served basis. The Seminar schedule may be subject to change without prior notice. Pre-registration is suggested in order to receive notifications about changes in schedule and venue.


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Best Practices Guide to Valid Job Contracting and Subcontracting - Flyer 

Best Practices Guide to 
Valid Job Contracting and Subcontracting

What Decision-Makers Must Know About Contracting Outsourced Services

EDSA Shangri-La Hotel, Mandaluyong City, Philippines
9:00am to 5:00pm, Thursday, September 12, 2019

Below is the Course Outline:

Course Outline
I.     Constitutional Bases of Contracting & Subcontracting 

       a. Promotion of Welfare (Section 18, Article 2)
       b. Full Protection to Labor (Section 3, Article 13)
       c. Guarantee for Rights to Self-Organization (Section 3, par 2, Article 13)
       d. Promotion of Full employment (Section 9, Article 2)
       e. Promotion of Social Justice (Section 1, Article XIII) 

II.    Laws, Rules and Regulations Governing Contracting & Subcontracting 

       a. Article 106 of the Labor Code, as amended
       b. Article 107 of the Labor Code, as amended
       c. Article 108 of the Labor Code, as amended
       d. Article 109 of the Labor Code, as amended
       e. D.O. 174, Series of 2017, Rules Implementing Articles 106-109 of the Labor Code,
          as amended
       f. Article 259 (c) [formerly 248] of the Labor Code, as amended, which disallows contracting 
         out of services or functions being performed by union members when such will interfere
          with, restrain or coerce employees in the exercise of their rights to self-organization
       g. Article 295 of the Labor Code, as amended which classifies employees into regular, 
         project or seasonal employees
       h. Article 2180 of the Civil Code, under which the principal, in a civil suit for damages 
         instituted by an injured person, can be held liable for any negligent
          acts of the employees of a labor-only contractor
       i. Republic Act No. 5487 and its implementing rules, which regulate the operation of security 
       j. Jurisprudence interpreting the foregoing laws
       k. Department Circular No. 1, Series of 2017 (Clarifying the Applicability of D.O. 174)
       l. Department Order No. 19, Series of 1993 (Guidelines Governing the Employment of
          Workers in the Construction Industry)
       m. Department Order No. 13, Series of 1998 (Guidelines Governing the Occupational 
         Safety and Health in the Construction Industry); R.A. 11058 (An Act 
         Strengthening Compliance with Occupational Safety and Health Standards 
         and Providing Penalties for Violations)
       n. D. O. No. 19, Series of 1993, for subcontracting arrangements in the construction
          industry; and
       o. Contractual stipulations provided these are not in conflict with Labor Code provisions,
          jurisprudence, and D. O. Nos. 
         174 and 19. 

III.   Important Definitions 

       a. Contracting
       b. Subcontracting
       c. Contractor
       d. In-house agency
       e. Principal
       f. Right to control
       g. Solidary liability
       h. Substantial Capital 

IV.   What is Permissible Contracting? 

       a. Nature of relationship of the parties on permissible contracting
       b. Permissible contracting is expressly allowed by law
       c. Requisites of legitimate job contracting or subcontracting
       d. Concept of independent contractor
       e. Difference between subcontractor and private recruitment and placement agency (PRPA) 

V.    Labor-Only Contracting 

       a. Definition of labor-only contracting
       b. Labor-only contracting is expressly prohibited; Absolute Prohibition
       c. Distinction between permissible contracting and labor-only contracting
       d. Power of the Secretary of Labor to determine existence of labor-only contracting
       e. Criteria for the existence of labor-only contracting
       f. The presumption is that a contractor is a labor-only contractor
       g. Elements of labor-only contracting
       h. Substantial capitalization
       i. Performance of directly related jobs
       j. Right to Control
       k. DOLE Certification that an entity is a job contractor
       l. Effect of labor-only contracting
       m. Principal may still be held liable even in the absence of labor-only contracting 

VI.   Bond Requirement in Job Contracting 

VII.  Concept of Reimbursement 

VIII. Other Illicit Forms of Employment Arrangements / Prohibited Activities Other Than Labor-Only Contracting 

IX.   Payment of Wages of Employees in Contracting Arrangement 

       a. Payment of wages as element of employer-employee relationship
       b. Payment of wages need not be made directly to prove this element
       c. Pay slip to prove who paid the worker’s wage
       d. Joint and several liability for non-payment of wages
       e. The court takes judicial notice of the practice of employer of not issuing pay slip to evade
       f. Status in contracting relationship determines parties’ liability for payment of wages
       g. Rights of Contractor’s / Subcontractor’s Employees
       h. Labor standards such as SIL, rest days, overtime pay, holiday pay, 13th month pay, 
          and separation pay 

X.    Concept of Floating Status, Off-Detail or Reserve Status 

XI.   Required Contracts Under D.O. 174: Service Agreement and Employment Contract

       a. Effect of violation

XII.  Dismissal from Employment of Employees in Contracting Arrangement 

       a. Article 297 of the Labor Code
       b. Article 298 of the Labor Code
       c. Article 299 of the Labor Code

XIII. Expiration of Service Agreement

       a. Option for re-employment within three (3) months
       b. Separation Benefits for Failure to Provide New Employment
       c. Mere Expiration of Service Agreement not Deemed Termination of Employment

XIV. Rules on Registration, Renewal and Cancellation of Registration 

       a. Mandatory registry
       b. Requirements
       c. Verification Inspection
       d. Registration Fee
       e. Validity
       f. Semi-Annual Reporting
       g. Grounds for Cancellation of Registration
       h. Due Process
       i. Appeal
       j. Effects of Cancellation
       k. Enforcement of Labor Standards
       l. Duty to Produce Copy of Contracts 

XV. Rules Governing Contracting in Construction Industry; PCAB 

       a. Department Order (DO) No. 19-93 is the prevailing rules on contracting in construction
       b. Coverage
       c. Practice of contracting and sub-contracting in the construction industry is recognized 
          by law
       d. Workers, where job contracting is permissible, are employees of the contractor
       e. Classification of employees employed in the construction industry
       f. Definition of project employees
       g. Definition of non-project employees
       h. Definition of probationary employees
       i. Meaning of regular employees
       j. Definition of casual employees
       k. Indicators of project employment
       l. Security of tenure of project employees
       m. Statutory benefits of construction employees
       n. Wage rates shall depend on the skills or level of competence but not lower than the 
          prescribed minimum wage
       o. Basis in determining rates for workers paid by results
       p. Liability of the construction company and general contractors to the workers in
          their employ
       q. Wage increases shall be borne by the principal and the contract shall be deemed 
          amended accordingly
       r. Completion of project or phase thereof and its effect on employment status of workers
       s. Bonus upon completion of the project or phase thereof when there is such an undertaking
       t. Project employees, as a rule, are not entitled to separation pay if separation is due 
          to completion of project
       u. Instance when project employees become entitled to separation pay
       v. Situation when project employees become regular
       w. Meaning of “day” in day certain
       x. Instance where there is no regularization notwithstanding one-year duration
          of employment
       y. Reckoning period for the completion of the project
       z. Dismissal from employment of project employee
       aa. Separation pay of employees

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