BLR Director Benjo Santos M. Benavidez discussed the Labor Advisory No. 10, Series of 2016 or the Prohibition Against Labor-Only Contracting on 14 November 2016 at the Crowne Plaza Manila Galleria in Ortigas, Quezon City.
The discussion was part of the Philippine Association of Labor Service Contractors’ (PALSCON’s) 6th National Forum for Service Contractors, Private Employment Agencies, Principals, Employers, Business Owners, CEOs and HR Practitioners with the theme “PALSCON: A Partner for Progress and Industrial Peace through Collaborative Efforts with Government, Labor and Business”.
The forum aimed to highlight the collective effort of all stakeholders towards the increased accountability and professionalism in ending endo and continued compliance with the Labor Laws Compliance System (LLCS).
Dir. Benavidez discussed the DOLE Secretary’s regulatory power on contracting and subcontracting and the definition of labor-only contracting under Article 106 of the Labor Code, as amended. He further explained that labor-only contracting exists if the contractor or subcontractor does not have substantial capital or investment in the form of tools, equipment, machineries, work premises, among others, and the workers recruited and placed by such person are performing activities which are directly related to the principal business.
He added that labor-only contracting is present when the contractor or subcontractor merely recruits, supplies or places workers to perform job, work or service for a principal, and the contractor or subcontractor does not exercise the right to control the performance of the work of the employee. Also, the Regional Directors have the power to declare the existence of labor-only contracting based on the findings of the Labor Laws Compliance Officers after the conduct of inspection. Likewise, he cited examples of labor-only contracting based on jurisprudence.
“Through cooperation and commitment, we can strike the right balance between equally significant concerns of workers and employers,” Dir. Benavidez said.