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.
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