Official Publication of the Philippine Information Agency Bicol Regional Office, in cooperation with the RIAC-REDIRAS - RDC Bicol

Friday, October 7, 2016

Illegal 'endo' or contractual labor: DOLE consults Bicol employers

By Rosalita B. Manlangit

DAET, Camarines Norte, Oct. 7 (PIA) – The office here of the Department of Labor and Employment (DOLE) has conducted a dialogue on labor contractualization with business establishment owners in this province.

Raymund P. Escalante, labor communications officer, said the activity sought to have a uniform understanding on the present administration’s directives on “endo” (the colloquial term for “end of contract”) and “LOC” (the acronym for Labor Only Contracting).

He said that the activity also aimed at soliciting comments, suggestions or reactions from the participants regarding the issue.

Escalante said endo is prohibited.  It is the process by which companies hire employees for less than six months to avoid being covered by the labor code requirement to regularize employment after that period.

He said that contrary to what is widely believed, the prohibition on LOC or endo is not new because it is specifically stated in Art. 106-109 of the Labor Code.

The code empowered the secretary of DOLE to, by appropriate regulations, restrict or prohibit the contracting-out of labor to protect the rights of workers; established solidary liability between principal and contractor; empowered SOLE to determine who among the parties involved shall be considered the employer; and defined labor-only contracting.

He also said that several department orders were issued and one of these was DOLE Department Order 18-A, series of 2011 which also prohibits LOC.

Under the LOC the contractor or subcontractor merely recruits, supplies or places workers to perform a job, work or service for a principal and with the elements that the contractor does not have the substantial capital or equipment, and the contractor does not exercise the right to control over the performance of the work of the employee.

He said that due to the endo issue, the DOLE issued Department Order No. 162-16 dated July 25, 2016 which is the suspension of new applicants as contractor and subcontractor under Department Order No. 18-A, series of 2011.

Under the said order, existing certificates shall be respected and this took effect on Aug. 1, 2016.

Also Labor Secretary Silvestre Bello III issued Labor Advisory No. 10 Series of 2016 on prohibition against LOC.

He said that the Secretary invites all employers, principals, contractors to institute necessary actions to eliminate labor-only contracting before they will be assessed by labor laws compliance officers.

On the other hand, the DOLE regional office in Bicol will continue its assessments of establishments by the compliance officers with the provision of technical assistance to business owners. (EAD/RBM-PIA5/Camarines Norte)

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