Labor department to remove subcontracting in new order
Labor contractors must find new jobs for their workers who have ended their previous employment within three months and they must provide financial assistance until they get jobs.
This is one of the points of the labor department’s new policy, which also includes removing subcontracting, senior officials said in a year-end briefing on Tuesday.
Labor Undersecretary Dominador Say said one of the main points of the new contractualization policy is “there will only be one contractor.” “If they are financially capable, then they should be able to finish the service on their own account,” he added.
Bureau of Labor Relations Director Benjo Benavidez said “Subcontracting is a breeding ground for violations of labor laws.”
Say said the labor department will require contracting agencies to post bonds.
“Before we could call them legitimate contractors or businessmen, they should have a decent capital, in which case we will be requiring them to post a bond registration,” said the labor official.
Say said the bond will be computed through number of employees multiplied by 50 percent of the monthly minimum wage of workers.
He said the bond can be used if the contractor has problems in paying their employees.
“The contractor could pay on his own account. He should not wait for collections,” said Say.
The new contractualization policy will be released on December 28 as earlier announced Labor Secretary Silvestre Bello.
Bello said over 32,000 workers have become regular employment as part of the administration’s campaign against illegal contractualization.
Among those which opted to regularize workers are mall chain giants, SM and Rustan’s, with 4,796 and 1,200 workers respectively; as well as convenience store chain, 7-11, with 800 workers. DMS
