Tag - labor-only contracting

Security of Tenure, Contracting and Subcontracting Under E.O. 51, Series of 2018

Security of tenure is a constitutionally guaranteed right. Employees may not be terminated from their regular employment except for just or authorized causes under the Labor Code and other pertinent laws. (SME Bank, Inc. vs. De Guzman, G.R. No. 184517, October 8, 2013). Malacañang issued E.O. 51, Series of 2018 emphasizing the principle of security of tenure of employees and even making its own definition. Likewise, providing perspective on contracting and subcontracting and how it should be implemented. Below is [...]

A Contractor is Presumed as Labor-Only Contractor

Diamond Farms, Inc. (DFI) and Diamond Farms Agrarian Reform Beneficiaries Multi-Purpose Cooperative (DARBMUPCO) entered into a Banana Production and Purchase Agreement (“BPPA”) to grow and cultivate only high grade quality exportable bananas to be sold exclusively to DFI. The BPPA is effective for 10 years. DARBMUPCO and DFI executed a “Supplemental to Memorandum Agreement” (“SMA”). The SMA stated that DFI shall take care of the labor cost arising from the packaging operation, cable maintenance, irrigation pump and irrigation maintenance [...]

Distributor Guidelines to Increase Sales and Maximize Profits cannot be considered as Labor-Only Contracting

Nestle Philippines, Inc. (NPI) engaged Ocho De Septiembre, Inc. (ODSI) as its distributor. Complainants alleged that on various dates, ODSI and NPI hired them to sell various NPI products in the assigned covered area. After some time, respondents demanded that they be considered regular employees of NPI, but they were directed to sign contracts of employment with ODSI instead. When complainants refused to comply with such directives, NPI and ODSI terminated them from their position. Thus, complainants were constrained to [...]

DOLE Issues D.O. 174 to Fight “Endo” and “Contractualization”

As reported, DOLE Secretary signed D.O. 174 superseding D.O. 18-A which implements Articles 106-109 of the Labor Code. Based on reports, this prohibits the following: Labor-only Contracting; Related: Burden of proof in labor-only contracting 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 [...]

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