No total ban of contractualization under DOLE’s ‘DO 30’

Dec. 28, 2016


Incoming Labor Secretary Silvestre Bello says the Duterte administration is determined to resolve the issue of contractualization of workers. Bello also met with the business sectors in a consultative forum held at the SMX Convention Center in Lanang, Davao City to discuss the said issue. (Ace R. Morandante/

Labor Secretary Silvestre Bello III ( file photo)

DAVAO CITY, Philippines— The government will be issuing a new labor policy aimed at modifying, not ending, the present labor contractualization laws.

According to Labor Secretary Silvestre Bello III, the new order, tentatively called “DO 30” will modify  DO 18-A which contains the implementing rules of articles 106-109 of the Amended Labor code, among which prohibits “core service” for outsourcing by companies.

Bello admitted they cannot end contractualization, “because there is a law which allows it.”

“Until there is a law that repeals this law, then we have to comply with the provisions of the law which allows legal or legitimate contractualization,” he said.

“The president wants to end illegal or unlawful contractualization but cannot end those legal and lawful because it is allowed under our laws,” Bello said.

“Wala tayong magagawa kundi sundin yung law, allowing in some instances, yung contractualization,” he added.

Under the existing law there are jobs that can be sourced out by the company, including security and janitorial services.

But under the new order, core services like those made by sales girls will be banned.

“We know that retail stores like malls need the service of sales girls, this should not be sourced out. It should be regularized,” Bello said.

Under the law, companies are also allowed to get “seasonal employees” and “project-based employees.”

“If a company expects the upsurge of costumers in a coming season, they are allowed to get the services of seasonal employees,” Bello said.

Meanwhile, project-based employees are terminated after a project engaged to by employers is finished, Bello said.

Labor contracting or “subcontracting” under DO 18-A is an arrangement where “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 capital.”

Articles 106-109 of the Amended Labor Code of the Philippines allows contracting and subcontracting in the form of manpower or service providing agencies. The said agency will hire regular workers to be sourced out to companies needing their services.

‘Cheap trick’

Militant labor group Kilusang Mayo Uno, in a statement, slammed DO 30 as a “cheap trick to legitimize contractualization.

“It does not end but further legitimize contractual employment schemes in the country,” Elmer Labog said, KMU chairperson.

Labog said DOLE cannot end contractualization by continuing the implementation of Articles 106-109 of the amended Labor Code.

“The DOLE cannot end contractualization by upholding the same laws that has legalized it. Strict implementation of these laws would only serve to further proliferate various contractualization schemes,” he said.(

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