Labor-only contracting: What are prohibited

NEW ‘ENDO’ RULES Labor Secretary Silvestre Bello III issues the new order on labor contracting. With him are
Undersecretaries Ciriaco Lagunzad III (left) and Joel Maglunsod.—GRIG C.MONTEGRANDE

When the principal farms out work to a “cabo” (a person or group supplying workers, with or without any monetary or other consideration, whether in the capacity of the employer’s agent or an independent contractor).

Contracting work through an in-house agency or cooperative.

Contracting work because of a strike or lockout.

Contracting work being performed by union members.

Requiring employees of contractor or subcontractor to do work currently performed by regular employees of the principal.

Requiring them to sign an antedated resignation letter; a blank payroll; a waiver of labor standards, including minimum wages and social or welfare benefits; or a quitclaim releasing the principal or contractor from liability in paying future claims; or requiring them become members of a cooperative;

Requiring them to sign a contract fixing the period of employment to a term shorter than the term of service agreement, unless the contract is divisible into phases for which substantially different skills are required and this is made known to the employee at the time of engagement.

Repeated hiring of employees by contractor or subcontractor under a contract of short duration.

Other practices, schemes or employment arrangements  designed to circumvent the right of workers to security of tenure. —TINA G. SANTOS