JOB CONTRACTING AND SUB-CONTRACTING IN THE NEW NORMAL

by Atty. Josephus B. Jimenez
Former DOLE Undersecretary

October 15, 2020
1:30pm – 4:30pm
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Regular Rate           Php 1,499.00 + VAT starting October 9, 2020
Early Bird Rate        Php 1,399.00 + VAT until October 8, 2020
Group Rate              Php 1,299.00 + VAT per pax for 5 or more pax

Inclusive of the Webinar Session and the Digital Certificate
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COURSE OUTLINE

Part I – JOB CONTRACTING AND SUB-CONTRACTING
1. The Labor Code Provisions on Legitimate Job Contracting
2. The Law Against Labor-only Contracting
3. Four (4) Labor Code provisions enunciating the rules on contractualization, to wit:
A. Article 106 – Contractor or Subcontractor;
B. Article 107 – Indirect Employer;
C. Article 108 – Posting of Bond; and
D. Article 109 – Solidary Liability.

4. The Framework of Trilateral Relationship in Contracting/Sub-contracting
A. Parties to Trilateral Relationship
a. Principal
b. Contractor/Subcontractor (Agency)
c. Contractual Employer

 5. Leading Labor Jurisprudence
   a. The Manila Water Company Case (75501, 02 Oct. 2010)
b. The Lorenzo Shipping Case (186091, 15 Dec. 2010), and
c. The Procter and Gamble Case (1605606, 10 March 2010 and 20 June 2011)

6. CONCLUSIONS: Lessons Learned from the Law and the Cases
a. Labor Contracting Cases
b. Labor – Only Contracting In the Shipping Industry
c. Reasons for Declaring BSMI Labor – Only Contractor
d. Two Indicators OD Labor Only Contracting
e. The Three (3) Indicators of Permissible or Legitimate Job Contracting
f. The Law, Not the Will of the Parties, Determine the Nature of The Business
g. The Law Itself, Not the Language of the Contract, Is Determinative of And Conclusive on the True Relationship of the Parties

Part II. Department Order No. 174
1. What is Contracting and Subcontracting?
2. What is new with DO 174?
3. How much is the substantial capital or investment required to become legitimate subcontractor?
4. How many subcontractors will be covered by new issuance?
5. How many the new DO induced ethical and professionalization of subcontracting?
6. Is there a difference between a Subcontractor and a Private Recruitment and Placement Agency (PRPA)?
7. In the employment of workers, is there a difference between an ordinary employer-employee relationship and subcontracting?
8. Is legitimate subcontracting different from Labor-only contracting? How is Labor-only contracting defined?
9. What is the basis of the state in prohibiting Labor-only contrating? What is the objective of prohibition?
10. What will be the effect of Labor-only contracting arrangement?
11. If a legitimate subcontractor cannot pay the wages of the employees it engaged to perform the job or service, will the principal automatically become the employers of such employees?
12. Is the hiring practice or repeated “5-5-5” or “ENDO” workers covered by DO174?
13. Will DO DO174 be able to address the issue of declining union membership which has been attributed by labor groups to indirect employment schemes such as subcontracting?
14. Will it address the issue of violation of labor standards and occupational health and safety standards by the subcontractors?
15. Is the “OPT-OUT” enforcement and compliance scheme available to contracting/subcontracting in specific industries?
16. What will happen to the workers, either the regular employees who are terminated due to company’s resort to contracting/subcontracting or the workers employed by the subcontractor after the expiration of the Service Agreement?
17. Will the substantial capital of P3Million be immediately enforced on existing subcontractors? What is the effect of DO 174 on existing registration and Service Agreement?
18. What does non-impairment of existing contracts means and why is this necessary?
19. What will happen to the registry of subcontractors established under Department Order No. 18, Series 2002?
20. How do we know whether the subcontractor is legitimate of not?
21. Is DO 174 applicable to manpower cooperative?
22. What is the extent of the security of tenure of a contractual employee under a subcontracting arrangement?
23. What are the rights of a contractual employee? Is there a difference between a regular employee and a contractual employee?
24. Is there a difference between a regular employee and a contractual employee?25. How is tripartite engagement operationalized in the determination of functions that can or cannot be subject of subcontracting?
26. What is the remedy of the workers against a subcontractor or principal who violates the provisions of DO 174?
27. When is the effectivity of DO 174

RESOURCE SPEAKER – Atty. Josephus B. Jimenez

• Former Undersecretary of Department of Labor and Employment 2014 President of People Management Association of the Philippines (PMAP)
• 15 years of successful government service and 20 productive years in the business sector:
• 12 years in San Miguel Corporation, 3 years in Petron/PNOC and 5 years in Pepsi Cola
• He has been a professor of Law and Humanities in various universities with a total academic experience of more than 30 years
• He has had successful stints as Labor Attache in Taichung, Taiwan, in Malaysia and in Kuwait
• He is an experienced labor relations lawyer with various training exposures here and in New York, San Francisco, Singapore, Geneva, Beijing, Tokyo, Kuala Lumpur, Kuwait, Taiwan, Bahrain, Dubai and Honolulu, Hawaii.
• He has been recognized as a FELLOW in Personnel Management, a rare honor given only to the top 5% of the country’s HR Professionals
• An author (of several books), a newspaper columnist, a Bar Reviewer, etc.
• He graduated from the College of Law Magna Cum Laude and Class Valedictorian At the University of the Philippines where he was an MM (Masters in Management) full scholar, he was conferred by then UP President O.D. Corpuz, a Certificate of Merit for Academic Excellence.
• Born in Argao, Cebu.

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