Bello says new labor department order on contractualization best it can do

December 28, 2016

Labor officials on Wednesday have crafted a new department order which says contractors must provide their workers with financial assistance for not more than three months after a project has ended. If no project is available after that, contractors must give their workers separation pay.

Labor Secretary Silvestre Bello III said this is the best it can do in meeting the campaign promise of President Rodrigo Duterte to end all forms of contractualization.

“What we are envisioning is that assuming that we proceed with the contractual operations as provided by law, the regular employees will continue to become regulars and those being sourced out, although they will be sourced out by a service provider, they will also attain the status of a regular employee to their contractors. So, in effect, there are no more contractuals. They will all become regular employees,” said Bello.

He said the labor department cannot prohibit contractualization as this is provided for by the Labor Code of the Philippines.

Jobs which are secured from contractors are usually security guards, janitorial, and other seasonal workers.

Bello said they are finalizing a few details before signing it. He said the labor department  wants Duterte to review the new order even if this is not a requirement.

“Our commitment is release it today (Wednesday). Before 12 midnight, probably. Although probably before the end of working hours,” said Bello.

In a two-page document shown to media, “the proposed DO ( department order) disallows the termination of contractors’ employees simply due to the completion of the service agreement between the principal and the contractor.”

“As a legitimate contactor, he is legally and contractually bound to provide another employment to his employees,” it added.

Last week, the labor department said the new department order is set to outlaw subcontracting, which it termed a “breeding ground” for violations of labor laws. DMS