Thursday, February 13, 2014

ON CONTRACTUAL/CONTRACTING EMPLOYEES

Department of Labor and Employment, Department Order 18-A, with the Implementing Rules on Article 106 to 109 of the Labor Code is all about Job Contracting.
There are different types and terms of Job Contracting. One which is familiar to me is the Contractual Type of employment wherein a worker works only for a specified period time. They are not considered regular.
However, they are covered too by the rules on Labor Standards.
a.      They are entitled to government-mandated benefits - SSS, PAG-IBIG, Philhealth, 5 days Service Incentive Leave after 1 year of service.
b.       It is legally advisable not to renew their contracts. A six months service in a company, whether continuous or broken, entitles them to claim for regularization.
Another type in which I am also familiar with is hiring of personnel through an agency or contractors. The following are considered in checking if said contractor is prohibited or not.
It is a legitimate contractor when:

a)      The contractor or subcontractor carries on a distinct and independent business and undertakes to perform the job, work or service on its own account and under its own responsibility according to its own manner and method, and free from the control and direction of the principal in all matters connected with the performance of the work except as to the results thereof; (b) The contractor or subcontractor has substantial capital or investment; and (c) The agreement between the principal and contractor or subcontractor assures the contractual employees entitlement to all labor and occupational safety and health standards, free exercise of the right to self-organization, security of tenure, and social and welfare benefits.

No comments:

Post a Comment