Department order banning subcontracting to be released next week – DOLE

The Department of Labor and Employment (DOLE) said that subcontracting is no longer allowed under Department Order No. 30 (DO 30) which is set to be released next week.

DOLE Undersecretary Dominador Say noted that the new order totally removed the practice of subcontracting by some private companies.

"One of the features that differentiate this from Department Order 18-A, which allows contracting and subcontracting. Aalisin na totally 'yung subcontracting. There will only be one contractors, if they are financially capable then they should be able to finish the service on his own account," he explained in a press briefing Friday in Manila.

The DOLE official noted that DO 30, which is set to be released on Dec. 28 would also eliminate "fly by nights" contractors since they will be asking for bonds from contractors.

"Hihingi din tayo ng bond for the purpose 'yung mga contractor. Ang bond nila is they should be able to post, dahil if they will be presenting themselves as legitimate contractors kasi ang basic feature nito aalisin na natin ang tunay na contractors doon sa hindi tunay na contractors," he said.

Say added, "'Yung mga fly by nights na nambibiktima ng mga ating employees. Bago we could call them legitimate contractors or businessmen dapat they should have a decent capital, in which case we will be requiring them to post a bond registration."

He noted that the companies are required to pay the bond.

"Halimbawa, may 100 slang empleyado, taking into consideration yung National Capital Region rate as the basis, 12,000 per month ang basic minimum nun. So they will be filing 50 percent of that. Of the 6,000 times total number of employees. They have 100. Iyan ang idedeposit nila. That will stand as a safeguard kung halimbawa, nagkaproblema ang contractor may pambayad siya. Kung halimbawa hindi siya mababayaran ng principal niya. The contractor could pay on his own account sa kanilang empleyado," Say said.

He added that another salient factor of the DO is that the contractor with its principal is obligated to find a job for the employee after the service agreement has ended.

"Kapag natapos ang service agreement ng sang contractor with its principal, obliged po hanapan ng trabaho yung empleyado niya. Within three months lang. Within 3 months kapag hindi niya nabigyan ng alternate job, he will have to separate the employee. Babayaran yung separation pay," Say said.

Source: Philippines News Agency