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    Governing Law in Bpo and Construction Contracting And/Or Subcontracting

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    Emily Robertson
    The document discusses the governing laws for contracting and subcontracting arrangements in the BPO and construction industries in the Philippines. It defines contracting and subcontracting as an arrangement where a principal outsources a specific job to a contractor. For BPOs, which involve outsourcing of entire business processes, the Civil Code provisions on contracts apply rather than labor laws, as there is a vendor-vendee relationship. However, for construction contracting, labor laws like Department Order No. 19 and Department Order No. 13 continue to apply due to the trilateral employment relationship between the principal, contractor, and workers.

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    Governing Law in Bpo and Construction Contracting And/Or Subcontracting

    Uploaded by

    Emily Robertson
    85 views2 pages
    The document discusses the governing laws for contracting and subcontracting arrangements in the BPO and construction industries in the Philippines. It defines contracting and subcontracting as an arrangement where a principal outsources a specific job to a contractor. For BPOs, which involve outsourcing of entire business processes, the Civil Code provisions on contracts apply rather than labor laws, as there is a vendor-vendee relationship. However, for construction contracting, labor laws like Department Order No. 19 and Department Order No. 13 continue to apply due to the trilateral employment relationship between the principal, contractor, and workers.

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    law paper

    Original Title

    LabRev HW

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    The document discusses the governing laws for contracting and subcontracting arrangements in the BPO and construction industries in the Philippines. It defines contracting and subcontracting as an arrangement where a principal outsources a specific job to a contractor. For BPOs, which involve outsourcing of entire business processes, the Civil Code provisions on contracts apply rather than labor laws, as there is a vendor-vendee relationship. However, for construction contracting, labor laws like Department Order No. 19 and Department Order No. 13 continue to apply due to the trilateral employment relationship between the principal, contractor, and workers.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    85 views2 pages

    Governing Law in Bpo and Construction Contracting And/Or Subcontracting

    Uploaded by

    Emily Robertson
    The document discusses the governing laws for contracting and subcontracting arrangements in the BPO and construction industries in the Philippines. It defines contracting and subcontracting as an arrangement where a principal outsources a specific job to a contractor. For BPOs, which involve outsourcing of entire business processes, the Civil Code provisions on contracts apply rather than labor laws, as there is a vendor-vendee relationship. However, for construction contracting, labor laws like Department Order No. 19 and Department Order No. 13 continue to apply due to the trilateral employment relationship between the principal, contractor, and workers.

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    You are on page 1of 2

    Bismarck Ignatius M.

    Manzon
    Review

    Labor

    Law

    GOVERNING LAW IN BPO AND CONSTRUCTION CONTRACTING AND/OR


    SUBCONTRACTING
    Department Order No. 18-A Series of 2011 (DO 18-A), in Sec. 3(c) thereof,
    defines contracting and subcontracting as an arrangement whereby a principal
    agrees to put out or farm out with a contractor the performance or completion of a
    specific job, work or service within a definite or predetermined period, regardless of
    whether such job, work or service is to be performed or completed within or outside
    the premises of the principal.
    Additionally, in Sec.3(m) of the same Department Order, the law describes
    contracting or subcontracting as a Trilateral Relationship or the relationship
    in a contracting or subcontracting arrangement where there is a contract for a
    specific job, work or service between the principal and the contractor, and a
    contract of employment between the contractor and its workers. There are three
    parties involved in these arrangements: the principal who decides to farm out a job,
    work or service to a contractor; the contractor who has the capacity to
    independently undertake the performance of the job, work or service; and the
    contractual workers engaged by the contractor to accomplish the job, work or
    service.
    Thus, in Provisions 3.2 of DOLE Department Circular No. 01-12 Series of 2012
    (DC 01-12), the circular states that DO 18-A contemplates generic or focused
    singular activity in one contract between the principal and the contractor (for
    example, janitorial, security, merchandising, specific production work) and does not
    contemplate information technology-enabled services involving an entire business
    processes (for example, business process outsourcing, knowledge process
    outsourcing, legal process outsourcing, hardware and/or software support, medical
    transcription, animation services, back office operations/support). These companies
    engaged in business processes ("BPOs") may hire employees in accordance with
    applicable laws, and maintain these employees based on business requirements,
    which may or may not be for different clients of the BPOs at different periods of the
    employees' employment
    As such, 3.2, DC 01-12 explains that DO 18-A clearly speaks of a trilateral
    relationship
    that
    characterizes
    the
    covered
    contracting/subcontracting
    arrangement. Thus, vendor-vendee relationship for entire business processes
    covered by the applicable provisions of the Civil Code on Contracts is excluded.
    Therefore, with regard to BPOs, the applicable provisions of the Civil Code and not
    the Labor Code apples.
    However, with regard to the Construction Industry, Provision 2.2 of the DC 0112 states that contracting or subcontracting arrangements in the Construction
    Industry, under the licensing coverage of the Philippine Contractors (Construction)
    Accreditation Board (PCAB), shall be covered by the applicable provisions of these
    Rules and shall continue to be governed by Department Order No. 19, Series of
    1993 (Guidelines Governing the Employment of Workers in the Construction

    Industry); Department Order No. 13, Series of 1998 (Guidelines Governing the
    Occupational Safety and Health in the Construction Industry); and DOLE-DPWHDILG-DTI and PCAB Memorandum of Agreement-Joint Administrative Order No. 1,
    Series of 2011 (on coordination and harmonization of policies and programs on
    occupational safety and health in the construction industry). While other industries
    covered by a separate regulation of the DOLE or other government agency,
    contracting or subcontracting therein shall be governed by these Rules unless
    expressly provided otherwise, thereby expressly stating that the Construction
    Industry is governed by the applicable Provisions of the Labor Code as amended, as
    well as its Implementing Rules and Regulations.

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