Press Releases
Central Luzon contractors/subcontractors oriented on D.O. 174-17
CITY OF SAN FERNANDO – Some 51 contractor/subcontractor firms operating in Central Luzon were recently orientated on Department Order (D.O.) No. 174-17 by the Department of Labor and Employment (DOLE).
D.O. 174-17, which supersedes D.O. 18-A or “the rules governing contracting and subcontracting,” sets stricter guidelines for those who wish to engage in contracting and subcontracting.
DOLE Regional Director Atty. Ana Dione reported to Labor Secretary Silvestre Bello III that some 81 company representatives participated in the said orientation held at the DOLE regional office.
In her message, Dione urged subcontractors for their cooperation and support and asked them from refraining in engaging in ‘ENDO,’ labor-only contracting (LOC), and similar schemes.
“The Labor Secretary has just signed D.O. 174-17, which puts stricter rules in the regulation of contracting and subcontracting. In this light, we continue to appeal to you all to voluntary comply with our labor laws and occupational safety and health standards, and ensure that your workers will receive their rightful benefits. Avoid engaging with illicit forms of employment schemes which will deprive your workers of their basic rights and benefits,” Dione said.
DOLE Med-Arbiter Atty. Remedios Vegim-Teves kicked-off the orientation with an overview and comprehensive discussion on D.O. 174-17.
Vegim-Teves highlighted the D.O.’s new provisions which include increase in substantial capital from P3 to P5 million, as well as the increase in registration fee from P25,000.00 to P100,000.00.
Another major provision Vegim-Teves highlighted in the new D.O. is the shortened validity of the registration of contractors/subcontractors from 3 years to 2 years.
Vegim-Teves said that the amended D.O. also thoroughly explains the prohibition of labor-only contracting and likewise specifies other illicit forms of employment arrangements.
“The existence of LOC is evident if contractor does not have substantial capital or investments in the form of tools, machineries, supervision, work premises, among others, and its employees recruited are performing activities which are directly related to the business of the principal. In addition, contractor/subcontractor does not exercise the right to control over the performance of the work of the employee,” Vegim-Teves, explained.
Some illicit employment arrangements Vegim-Teves cited are farming out work through “cabo” and contracting out a work through in-house agency or in-house cooperative by merely supplying workers to the principal.
Other illicit employment arrangements include contracting of work by reason of strike or lockout and requiring contractor employees to perform tasks performed by regular employees of the principal.
Meanwhile, Technical Support and Services for Labor Relations and Labor Standards head Ma. Rima Hernandez, for her part, discussed Workers Rights and Benefits.
Hernandez highlighted in her lecture General Labor Standards covering minimum wages, holiday and premium pays, 13th month, overtime and night differential pays, and service incentive leaves, among others.
Aside from this, normal hours of work, meals and rest periods, rules on regular and special holidays, special leave benefits for women, and flexible work schemes were also discussed.
Last but not least, Supervising Labor and Employment Officer Rani David discussed and explained Labor Turnovers covering Security of Tenure, Termination, and Procedural Due Process.
Attending participants had the opportunity to clarify some of the provisions contained in the new D.O. in an open forum that was facilitated after the learning sessions.
The DOLE Field Offices in other parts of the region will be holding their respective orientations on the amended D.O. with their partners and stakeholders in the days to come.


END/Jerry Borja
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