Press Releases
DOLE Region 3 Holds Orientation on D.O. 18-A for 71 Contractors/Subcontractors from Central Luzon


City of San Fernando – The Department of Labor and Employment (DOLE) Regional Office 3 this year kicks off its series of orientations on Department Order No. 18-A (D.O. 18-A), otherwise known as the “Rules Implementing Articles 106 to 109 of the Labor Code, as amended, which strictly defines primarily where the practice of contracting and subcontracting are considered legitimate says the DOLE RO3 Regional Director Leopoldo B. De Jesus.
In his report to Labor Secretary Rosalinda Dimapilis-Baldoz, the 3rd floor of the DOLE Regional Office 3 - Sugar Workers Livelihood and Training Center was jam- packed with seventy nine (79) representatives from seventy one (71) companies, engaging in subcontracting, who actively attended and participated the orientation on D.O. 18-A.
Well-known companies operating in the region from various industries engaging in subcontracting such as Hanjin Heavy Industries, Inc, Keppel Philipines, etc, are among those present in the said orientation.
De Jesus told participating companies that the amended D.O. was forged to further safeguard workers from being employed in “bogus subcontracting companies” that do not accord them their proper monetary and social benefits provided by law.
Many companies which were previously inspected through the DOLE’s Labor Enforcement Action Program (LEAP) were found to be circumventing the laws governing D.O. 18-02 (the previous order), De Jesus added.
Meanwhile, Assistant Regional Director Geraldine M. Panlilio provided an overview of the new features of the new D.O. and likewise its new requirements such as the contractor having substantial capital or investment, and the service agreement ensures compliance with all the rights and benefits under labor laws.
On top of these criteria, all contractors must be registered with regional offices of the Department of Labor and Employment where they principally operate, she added.
Lastly, companies engaging in subcontracting must at least have a minimum fully paid up capital of Php. 3 Million, as a requirement. A single proprietorship on the other hand must have net worth of at least Php. 3 Million.
Ms. Maylynn Gozun of the technical Support and Services Division for Labor Relations and Labor Standards (TSSD 1) on the other hand discussed the process flow involved on the applying for D.O. 18-A, while Ms. Yolanda Bugay, also from TSSD 1, briefly discussed on the cancellation of the D.O. 18-A.
An open forum was facilitated Engr. Eduardo Dela Cruz, head of the TSSD 1 towards the end of the orientation where some issues like the Php. 25,000 registration fee and 3 Million minimum paid-up capital requirements were raised and discussed.
Some participants expressed their sentiments over the said requirements because of the burden it will give to their companies as additional cost for them to operate. Others felt it a bit unfair because they are legitimate subcontractors.
ARD Panlilio responded to these issues by saying that the new department order was made to effect by a series of tripartite consultations for the past five years. She advised companies to first comply with the new requirements and assured them that consultations will be held with all concerned stakeholders regarding the implementation of the new department order.
DOLE Region 3 is set to do two (2) more orientations on the new D.O. this month on January 19 and 25 for the next batches of Subcontractors at the DOLE Regional Office Panlilio said.
“With the D.O. 18-A implemented in full blast, gone are the days of the “Fly-by-Night” Subcontractors that continue to exploit workers and circumvent existing labor standards set by law” said De Jesus. (Jerry Borja)
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