Toyota Presentation SOT

Security of Tenure
SB1826/HB6908
Atty. Maria Consuelo S. Bacay
Bureau of Labor Relations
Department of Labor and Employment
Vision:
 To strengthen the right of workers to security of tenure, ensuring stable
business environment and promoting decent work and enterprise’s
expansion and growth.
Timeline:
 21 September 2018 – SBN 1826 was certified as urgent by the President
 22 May 2019 – Approved by the Senate of the Philippines
 28 May 2019 – Adopted by the House of Representatives
Endorsed to the President on 27 June 2019
 Sign it into law
 Veto the bill or its parts
 Lapse into law after 30 days from receipt. Unlesss signed or vetoed, it will
lapse into law on 28 July 2019
Salient Features of SBN 1826
1. Prohibiting labor-only contracting
 Prohibition by legislation instead of mere administrative regulation.
 Legitimate contracting will continue to be allowed.
 It will apply to non-licensed job contractors as well
2. Re-defining Labor-only Contracting
 Labor-Only Contracting; Redefined.
 It exists in ANY of the following:
 1. job contractor, whether licensed or not, merely recruits and supplies or places
workers to a contractee has no substantial capital or investment in the form of
tools, equipments, machineries, work premises, among others (substantial
capitalization); OR
 2. the workers recruited and supplied or placed by such person are performing
activities which are directly related to the principal business of the contractee
(direct relation of the activity performed); OR
 3. the workers are under the control and supervision of the contractee.
3. Determination of the job, work or service
 Determination of the job, work, or service that are directly related to the
principal business shall be done through:
 1. Appropriate Industry Tripartite Council
 2. Regulations issued by the Secretary of Labor and Employment , in consultation
with the National Tripartite Industrial Council
4. Imposition of a Fine
 The Secretary of Labor and Employment is authorized to impose a fine up
to Php5M against any labor-only contractor and to preventively or
permanently close its operations.
5. Licensing Requirement
 Requires the licensing of job contractors by complying with the following
requirements:
 1. it must be an independent, separate and distinct business;
 2. paid-up capital or net worth of Php5M;
 3. expertise in the job, work or service being contracted out shall not be directly
related to principal business of the contractee;
 4. employment of regular employees and possession of equipment, machineries,
or tools necessary to carry out the job, work, or service contracted out;
 5.exercise control over the performance of the job, work, or service contracted
out;
 6.certification of compliance with labor and social welfare laws;
 7. payment of license fee of not lower than Php100,000.00
6. Prohibition against PRPA/PEA
 Does not prohibit PRPA/PEA
 Private Recruitment and Placement Agencies or Private Employment
Agencies are prohibited from engaging in job contracting.
7. All Employees are regular
 Sets the general rule that all employees, except those under probationary,
seasonal or project employment, are deemed regular.
 Seeks to limit the type of employment by impliedly prohibiting “fixed-term
employment”
 Brent jurisprudence on fixed term employment shall be strictly applied.
 Employees of Job Contractors are entitled to terms and conditions not
lower than the minimum standards set by law and regulations.
 Employer-Employee relationship exists when the worker is engaged to
render work or service under the control of the employer, not only as to the
end to be achieved but also the manner, means and method in reaching
the end.
Other provisions:
 Posting of bond equivalent to the cost of labor under contract.
 Solidary Liability of contractee and job contractor
 Termination of employee shall be for just cause or authorized causes ; the
employer shall have the burden of proof that termination is with cause and
due process.
STUDIES and WAY FORWARD
 Providing Security of Tenure to workers increases their productivity, leading
to an improvement in their work environment.
 Studies from from ILO and OECD reflect a positive effect between workers
being tenured and their productivity.
 Once signed or lapsed into law, DOLE shall have 120 days to formulate
Implementing Rules and Regulations
 Nationwide simultaneous consultations will be conducted
 Industry consultations
THANK YOU!
www.dole.gov.ph
www.blr.dole.gov.ph
http://lees.dole.gov.ph/moodle/

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Security of Tenure

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