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In contracting business: Whom to engage with in Central Visayas?

Cebu City, Philippines. As one of the measures to prevent ENDO to which the Department of Labor and Employment is strictly monitoring, only service providers that have a valid registration with the DOLE under Department Order No. 174-17 may engage in contracting or subcontracting business, said DOLE-7 Regional Director Salome O. Siaton.

The DOLE-7 maintains a list of contractors or subcontractors in Central Visayas with existing valid D.O. 174-17 Registration that everyone can always refer to in case of doubt.

“We encourage everyone to visit the DOLE-7’S website and double check the status of establishments that are into contracting or subcontracting services,” added Director Siaton.

She said http://ro7.dole.gov.ph/index.php, the DOLE-7’s official website, has an updated monthly posting of the list of legitimate contractors/subcontractors in the Region.

As of 30 April 2019, there are about 243 establishments located in the different provinces of Region 7 with an existing valid D.O. 174-17 Registration.

Director Siaton emphasized mandatory registration of all persons or entities acting as contractors in Central Visayas, which she said is consistent with the authority of Secretary Silvestre H. Bello III.

Registration under D.O. 174-17 pre-supposes service contractors possess substantial capitalization requirement of at least P5 Million paid-up capitalization for corporations or partnerships and P5 Million Net Worth for sole proprietorship to ensure that they have enough funds to answer for employees’ wages and other related benefits required by law. Presumption of legitimacy is given to registered contractors unless proven otherwise. 

Labor-only Contracting, which is prohibited by law, happens when the contractor or subcontractor merely recruits, supplies or places workers to perform a job for work for a principal, and certain elements are present, which included the following, namely:

(a)        i. The contractor or subcontractor does not have substantial capital, or

ii. The contractor or subcontractor does not have investments in  

the form of tools, equipment, machineries, supervision, work premises, among others, and

iii. The contractor’s or subcontractor’s employees recruited and placed are performing activities which are directly related to the main business of the principal; or

(b)       The contractor or subcontractor does not exercise the right to control over the performance of the work of the employee.

 

“Establishments or principals should stay cautious in choosing service providers they would engage with as they are solidary liable pursuant to the provision of Article 109 of the Labor Code,” the Regional Director added. 

According to her, it is highly important that companies be guided thru our website, which is regularly updated on a monthly basis, where the names of contractors and subcontractors could be checked including the validity of their D.O. 174-17 registration.

 

Contracting or subcontracting, she explained, is an arrangement whereby a company or so-called principal, agrees to sourcing or farming out to a contractor the performance or completion of a specific job or work within a definite or predetermined period, regardless of whether such job or work is to be performed or completed within or outside the premises of the principal.

 

End//LSenarlo-Taniza

 

For more information on this report, you may contact Luchel SenarloTaniza, Regional Labor Communication Officer at telefax number (032) 266-2792 or you may send an email at dole_centralvisayas@yahoo.com.

 

 

 

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2019-05-10
SALOME O. SIATON
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