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    DO 174 Series of 2017

    Uploaded by

    jearnaez
    The document outlines guidelines for contracting and subcontracting arrangements. It prohibits "labor-only contracting" and other illicit forms of employment arrangements that undermine workers' rights. Specifically: - Contractors must have a minimum paid-up capital of 5 million pesos for corporations/partnerships and 3 million pesos for single proprietorships. - Labor-only contracting and other arrangements intended to circumvent the law or undermine workers' security of tenure, rights, and benefits are prohibited. - Contracting work currently performed by regular employees or requiring contractor employees to sign waivers of rights are also prohibited.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    DO 174 Series of 2017

    Uploaded by

    jearnaez
    313 views2 pages
    The document outlines guidelines for contracting and subcontracting arrangements. It prohibits "labor-only contracting" and other illicit forms of employment arrangements that undermine workers' rights. Specifically: - Contractors must have a minimum paid-up capital of 5 million pesos for corporations/partnerships and 3 million pesos for single proprietorships. - Labor-only contracting and other arrangements intended to circumvent the law or undermine workers' security of tenure, rights, and benefits are prohibited. - Contracting work currently performed by regular employees or requiring contractor employees to sign waivers of rights are also prohibited.

    Original Description:

    DO 174-17 v DO 18-A

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    The document outlines guidelines for contracting and subcontracting arrangements. It prohibits "labor-only contracting" and other illicit forms of employment arrangements that undermine workers' rights. Specifically: - Contractors must have a minimum paid-up capital of 5 million pesos for corporations/partnerships and 3 million pesos for single proprietorships. - Labor-only contracting and other arrangements intended to circumvent the law or undermine workers' security of tenure, rights, and benefits are prohibited. - Contracting work currently performed by regular employees or requiring contractor employees to sign waivers of rights are also prohibited.

    Copyright:

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

    DO 174 Series of 2017

    Uploaded by

    jearnaez
    The document outlines guidelines for contracting and subcontracting arrangements. It prohibits "labor-only contracting" and other illicit forms of employment arrangements that undermine workers' rights. Specifically: - Contractors must have a minimum paid-up capital of 5 million pesos for corporations/partnerships and 3 million pesos for single proprietorships. - Labor-only contracting and other arrangements intended to circumvent the law or undermine workers' security of tenure, rights, and benefits are prohibited. - Contracting work currently performed by regular employees or requiring contractor employees to sign waivers of rights are also prohibited.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    DO 174 Series of 2017 DO 18-A

    Guiding Principles: Guiding principles

    Non permissible terms of contracting and subcontracting Contracting and subcontracting arrangements are
    arrangements undermine the Constitutional and statutory expressly allowed by law and are subject to regulations
    right to security of tenure for the promotion of employment and observance of
    rights or workers to just and humane conditions of work,
    security of tenure, self-organization, and collective
    bargaining

    Labor-only contracting is prohibited


    SUBSTANTIAL CAPITAL SUBSTANTIAL CAPITAL

    Paid-up capital of at least 5 Million Pesos (5,000,00.00) in Paid-up capital of Three Million Pesos (3,000,000.00) in
    the case of corporations, partnerships and cooperatives case of corporations
    partnerships and cooperatives
    In case of single proprietorship- a net worth of at least Five
    Million Pesos (5,000,000.00) In case of single proprietorship- a net worth of at least
    Three Million Pesos (3,000,000.00)
    Absolute Prohibition of Labor-only Contracting Prohibition of Labor-Only Contracting
    Other Illicit Forms of Employment Arrangement. Other Prohibitions for being contrary to law or public
    policy:
    a. When the principal farms out of work to a “Cabo”
    b. Contracting out of job or work through an in house a. Contracting of jobs, works or services when not
    agency done in good faith and not justified by the
    c. Contracting out of job or work through an in- exigencies of the business such as the following:
    house cooperative which merely supplies workers 1. Contracting out of jobs, works or services
    to the principal when the same results in the termination
    d. Contracting out of job or work by reason of a strike or reduction of regular employees and
    whether actual or imminent reduction of work hours or reduction or
    e. Contracting out of a job or work being performed splitting of the bargaining unit
    by union members and such will interfere with, 2. Contract out of work with a “Cabo”
    restrain or coerce employees in the exercise of 3. Taking undue advantage of the
    their rights to self-organization as provided in Art economic situation or lack of bargaining
    259 of the Labor Code strength of the contractor’s employees
    f. Requiring contractor’s subcontractor’s employees and/or undermining their security of
    to perform functions which are currently being tenure or basic rights, or circumventing
    performed by the regular employees of the the provisions of regular employment
    principal a. Requiring them to perform
    functions which are currently
    being performed by the regular
    employees of the principal
    b. Requiring them to sign as a
    precondition to employment or
    continued employment an
    antedated resignation letter,
    blank payroll, a waiver of labor
    standards including minimum
    wages and social benefits or a
    quitclaim releasing the principal
    and contractor from any liability
    as to payment of future claims.
    b. Contracting out of job or work through an in
    house agency
    c. Contracting out of job or work through an in-
    house cooperative which merely supplies workers to the
    principal
    d. Contracting out of job or work by reason of a
    strike whether actual or imminent
    e. Contracting out of a job or work being
    performed by union members and such will interfere
    with, restrain or coerce employees in the exercise of
    their rights to self-organization as provided in Art 259 of
    the Labor Code
    f. repeated hiring of employees under an employment
    contract of short duration under a Service Agreement
    of short duration with the same or different contractors.

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