Ang sub-contracting ay ang pagkuha ng serbisyo ng isang kumpanya ng isa pang kumpanya para gawin

ang isang partikular na trabaho sa loob ng panahon at presyong napagkasunduan.

Maraming mga kumpanya ang pinipili amg ganitong uri ng paghahanap ng mga taong gagawa para sa
kanila kaysa mag-empleyo ng regular na empleyado sapagkat ito ay mas matipid at kumbebyente sa
parehong parte.

Bisitahin ang link na ito para sa kargdagang kaalaman:

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Endo ang tawag sa paulit-ulit na pagsailalim ng mga manggagawa sa iilang buwang kontrata lamang
sa trabaho kaya hindi sila maging regular na empleyado at nagkaroon ng benepisyong ibinibigay sa
regular na manggagawa.

Partikular na tinutukan ng naturang panukalang batas ang ilegal na kalakaran ng "labor-only

contracting."

"Kapag sinabi kasi nating labor-only contracting, ito na 'yong sinasabi nating contractualization,
nagkokontrata ka ng trabaho," ayon sa abogadong si Atty. Claire Castro sa programang "Usapang de
Campanilla" ng DZMM.

Kadalasan, sa ilalim ng labor-only contracting, sa halip na contractor ang direktang may hawak sa
mga manggagawang ipinasok sa isang kompanya, mismong ang kompanya na ang may kontrol sa
pagtatrabaho ng mga manggagawa ng contractor.

"Halimbawa, sa isang mall, ako 'yung labor-only contracting, ipapasok ko halimbawa yung mga
saleslady ko, pero wala akong kontrol, hindi ko sila makokontrol kapag nandodoon sila sa loob, kasi
ang may kontrol na doon, kung sino 'yung head ng employer," paliwanag ni Castro.

Ayon kay Castro, isa sa mga pagtitiyak ng panukalang batas para hindi na mangyayari ang labor-only
contracting ay ang pagbabawal na ipasok ang mga manggagawa ng job contractor sa trabahong nasa
linya talaga ng negosyo ng kompanya.

Kunwari sa isang mall, hindi puwedeng ipaubaya ng pamunuan ng mall sa contractor lamang ang
mga trabahong pang-saleslady at kahera dahil direkta itong may kinalaman sa operasyon ng mall.

Gayunman, puwedeng kumuha ang mall ng contractor na magsu-supply ng janitors dahil iyon ay
trabahong hindi mismo nakaugnay sa operasyon ng mall.
Dagdag pa ni Castro, mas pinalaki na rin ang kinakailangang kapital ng isang job contractor at
kailangan nang kumuha ng lisensiya.

"Kailangan silang magpa-license, every three years magpapa-license sila, at mayroon silang permit
fee o license fee," ayon kay Castro.

Paliwanag ni Castro, gagamitin ang lisensiya para makita kung bayad ang benepisyo ng mga
manggagawa na hawak ng job contractor.

Nauna nang sinabi ng Malacañang na walang kapangyarihan ang ehekutibo para tapusin ang endo.

Dapat daw kasi ay magkaroon ng batas mula sa lehislatibo para magkaroon ng ngipin ang reglamento
kontra end of contract.

 Duterte walang kapangyarihang tapusin ang 'endo' — Palasyo

Nitong Lunes, Abril 16, muling nabigo ang ilang labor group nang sabihin ng Malacañang na wala sa
iskedyul ni Pangulong Rodrigo Duterte na makipagpulong sa grupo ng mga manggagawa at pumirma
sa isang executive order (EO) na magwawakas umano sa endo.

 'Pirmahan ng EO vs endo, wala sa iskedyul'

 'EO sa kontraktuwalisasyon, naudlot dahil sa takutan'

Job contracting vs labor-

only contracting
 To understand the raging issue of “contractualization,” imagine the owner (also
called “principal”) of a residential lot entering into an agreement with and
obligating a contractor (who has sufficient capital or investment) to build his
dream house.
 Simple example. According to DO 174, Series of 2017 (the latest issuance on
the subject by the Department of Labor), the term “sufficient capital” means
paid-up capital or net worth of at least P5 million. “Investment” refers to the
equipment and tools needed to fulfill the contract.
The agreement required the owner to pay the contractor P5 million in tranches: P1
million upon the signing of the contract and the balance upon the accomplishment of
certain specified construction milestones.
In turn, the contractor is obliged to supply all the necessary cement, gravel, sand,
wood and other construction materials, plus the labor force, equipment and tools to
finish the house.
Under this scheme, the carpenters and other workers hired by the contractor are his
employees, not of the owner. He is required to pay them at least the minimum wage,
overtime and other benefits imposed by law. The owner will not be liable for such
benefits unless the contractor underpays their salaries, in which case he would be
solidarily liable.
However, if the agreement requires the contractor to recruit the workers only and
nothing more, with the owner paying for their salaries and benefits, OR supervising
their work, OR providing the equipment and tools needed, then the owner will be
deemed their employer.
This latter scheme is “labor-only contracting” which is prohibited by the Labor Code
(Art. 106). The earlier example is “job contracting” which is allowed by the same law.
This characterization will not change even if the owner supplies the construction
materials like cement, gravel, wood, etc.
More complicated example. Let us assume further that the contract involved several
multistory buildings costing P5 billion. Instead of doing everything, the contractor
subcontracted the cleaning and the guarding of the construction premises as well as
the medical clinic of the workers to three sufficiently capitalized entities, which
separately hired the janitors, security guards, and doctors/nurses, and provided the
cleaning tools, guns, medical equipment, and training needed to accomplish their
respective tasks.
Here, the subcontracts are deemed job contracting, not labor-only contracting, because
the three subcontractors did not merely recruit the workers but also controlled them,
paid their salaries and other benefits, and supplied the needed equipment and tools.
“Outsourcing” is the digital-age synonym of job contracting.
Detailed legalese. In Sasan vs NLRC (Oct. 17, 2008), the Supreme Court held that a
company is “engaged in legitimate job contracting or sub-contracting, if [it] a) carries
on a distinct and independent business and undertakes to perform the job, work or
service on its own account and under its own responsibility according to its own
manner and method, and free from the control and direction of the principal in all
matters connected with the performance of the work except as to the results thereof; b)
…has substantial capital or investment; and
“c) The agreement between the principal and contractor or subcontractor assures the
contractual employees entitlement to all labor and occupational safety and health
standards, free exercise of the right to self-organization, security of tenure, and social
and welfare benefits.

To understand the raging issue of “contractualization,” imagine the owner (also called
“principal”) of a residential lot entering into an agreement with and obligating a
contractor (who has sufficient capital or investment) to build his dream house.
Simple example. According to DO 174, Series of 2017 (the latest issuance on the
subject by the Department of Labor), the term “sufficient capital” means paid-up
capital or net worth of at least P5 million. “Investment” refers to the equipment and
tools needed to fulfill the contract.
ADVERTISEMENT

The agreement required the owner to pay the contractor P5 million in tranches: P1
million upon the signing of the contract and the balance upon the accomplishment of
certain specified construction milestones.
In turn, the contractor is obliged to supply all the necessary cement, gravel, sand,
wood and other construction materials, plus the labor force, equipment and tools to
finish the house.
Under this scheme, the carpenters and other workers hired by the contractor are his
employees, not of the owner. He is required to pay them at least the minimum wage,
overtime and other benefits imposed by law. The owner will not be liable for such
benefits unless the contractor underpays their salaries, in which case he would be
solidarily liable.
However, if the agreement requires the contractor to recruit the workers only and
nothing more, with the owner paying for their salaries and benefits, OR supervising
their work, OR providing the equipment and tools needed, then the owner will be
deemed their employer.
This latter scheme is “labor-only contracting” which is prohibited by the Labor Code
(Art. 106). The earlier example is “job contracting” which is allowed by the same law.
This characterization will not change even if the owner supplies the construction
materials like cement, gravel, wood, etc.
More complicated example. Let us assume further that the contract involved several
multistory buildings costing P5 billion. Instead of doing everything, the contractor
subcontracted the cleaning and the guarding of the construction premises as well as
the medical clinic of the workers to three sufficiently capitalized entities, which
separately hired the janitors, security guards, and doctors/nurses, and provided the
cleaning tools, guns, medical equipment, and training needed to accomplish their
respective tasks.
Here, the subcontracts are deemed job contracting, not labor-only contracting, because
the three subcontractors did not merely recruit the workers but also controlled them,
paid their salaries and other benefits, and supplied the needed equipment and tools.
“Outsourcing” is the digital-age synonym of job contracting.
Detailed legalese. In Sasan vs NLRC (Oct. 17, 2008), the Supreme Court held that a
company is “engaged in legitimate job contracting or sub-contracting, if [it] a) carries
on a distinct and independent business and undertakes to perform the job, work or
service on its own account and under its own responsibility according to its own
manner and method, and free from the control and direction of the principal in all
matters connected with the performance of the work except as to the results thereof; b)
…has substantial capital or investment; and
“c) The agreement between the principal and contractor or subcontractor assures the
contractual employees entitlement to all labor and occupational safety and health
standards, free exercise of the right to self-organization, security of tenure, and social
and welfare benefits.
ADVERTISEMENT

“In contrast, labor-only contracting, a prohibited act, is an arrangement where the

contractor or subcontractor merely recruits, supplies or places workers to perform a
job, work or service for a principal. In labor-only contracting, the following elements
are present:
“(a) The contractor or subcontractor does not have substantial capital or investment to
actually perform the job, work or service under its own account and responsibility,
and
“(b) The employees recruited, supplied or placed by such contractor or subcontractor
are performing activities which are directly related to the main business of the
principal.”


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Ang labor-only contracting ay

tumutukoy sa mga kaayusan kung saan ang mga kontratista o subkontraktor lamang

ay nagre-recruit, nagsusupply o naglalagay ng mga manggagawa upang magsagawa ng

gawain, trabaho o serbisyo para sa may-ari at ang mga sumusunod na elemento ay

naroroon: Ang kontratista o subkontraktor ay walang malaking kapital o

pamumuhunan sa anyo ng mga kagamitan, kagamitan,mga makina, mga lugar ng

trabaho, bukod sa iba pa, at ang mga manggagawa na hinihikayat at inilagay ng

gayong tao ay gumaganap mga aktibidad na direktang nauugnay sa pangunahing

negosyo ng naturang tagapag-empleyo; o ang kontratista ay hindi gumagamit ng

karapatan ng kontrol sa pagganap ng trabaho ng empleyado.

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Ang halimbawa nito (LABOR-ONLY CONTRACTING)ay yaong mga nagtatrabaho sa pabrika kung
saan ay pumirma o nagkaroon ng pagpayag sa pagkakaroon ng kontrata. Maaari silang makapagtrabaho
sa loob ng ilang buwan kagaya ng anim na buwan. Sa pagtatapos nito ay maaari silang magpanibagong
kontrata depende sa mataas na mga tao o maaari din namang tapusin na ang kanilang kontrata.

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Ang HALIMBAWA ng job contracting ay pinahihintulutan ng batas na kung saan ang manggagawa
ay manggagawa ng kontratista at hindi ng kumpanya. Halimbawa, ang trabahong ginagawa ng
kontratista ay nagagawa niya sa sarili niyang paraan na walang pakialam ang kompanya. Sa madaling
sabi, walang kontrol ang kompanya sa pamamaraan ng paggawa ng kontratista sa kanyang trabaho,
maliban lamang sa magiging resulta nito. Kailangang mayroong kalayaan ang kontratista sa pagpili ng
mga pamamaraan kung paano niya matatapos o magagawa angtrabahong pinakontrata sa kanya.

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Collective Bargaining Agreement

Ang “Collective Bargaining Agreement” ay isang espesyal na uri ng kontrata at kasunduan sa pagitan ng
isang kompanya at mga empleyado ng kompanya. Nakapaloob sa kasunduang ito ang tamang pasahod,
oras ng trabaho at ang kaayusan ng lugar ng pinagtratrabahuhan ng isang empleyado. Ito ay isang
kontrata at kasunduan na tungkulin sundin ng bawat empleyado at kompanya. Ito ay ginawa upang
magkaroon na maayos at malinaw na usapan sa pagitan ng kompanya at mga empleyado nito.

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Ang collective bargaining agreement ay nangangahulugan at tumutukoy sa isang kontrata o kasulatan ng

isang emlpleyado at ng kumpanya may kinalaman sa halaga ng sahod at oras ng trabaho. Kinakailangan
ito upang maging malinaw ang usapan sa pagitan ng dalawa nang sa gayon ay hindi magkakaroon ng
anumang problema sa kanila sa mga susunod na panahon.

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Ang Collective Bargaining Agreement o CBA ay isang kasunduan sa pagitan ng employer at ng unyon ng
mga manggagawa tungkol sa sahod, oras ng pagtatrabaho at nauukol na lugar sa pagtatrabaho. Ang
layunin ng CBA ay pagiging gabay o basehan kung sakaling magkaroon ng di pagkakaunwaan sa
hinaharap. Pinoproteksyunan din ng CBA ang mga karapatan ng mga manggagawa laban sa mga
mapang-abusong employer.

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Collective Bargaining
1. What is Collective Bargaining?

It is a process where the parties agree to fix and administer terms and conditions of
employment which must not be below the minimum standards fixed by law, and set a
mechanism for resolving their grievances.

2.What is Collective Bargaining Agreement (CBA)?

It is a contract executed upon request of either the employer or the exclusive bargaining
representative of the employees incorporating the agreement reached after negotiations
with respect to wages, hours of work and all other terms and conditions of employment,
including proposals for adjusting any grievances or questions under such agreement.

3.Is the ratification of the CBA by the majority of all the workers in the bargaining
unit mandatory?

Yes. The agreement negotiated by the employees’ bargaining agent should be ratified
or approved by the majority of all the workers in the bargaining unit.

4.Is there any exception to the requirement of mandatory ratification by the

majority of all the workers in the bargaining unit?

Yes. Ratification of the CBA by the employees in the bargaining unit is not needed when
the CBA is a product of an arbitral award by appropriate government authority or by a
voluntary arbitrator.

5.What constitutes CBA registration?

It is a process of determining whether the application for registration of a Collective

Bargaining Agreement complies with the Rules on CBA registration specifically Rule
XVII of the Department Order No. 40-03 or the Rules amending the Implementing Rules
of Book V of the Labor Code of the Philippines.

6.What is the effect of the CBA registration?

The registration of the CBA will bar a certification election except within the last sixty
days (freedom period) before the expiration of the five-year CBA.

7.What is the lifetime of a CBA?

With respect to representation aspect, the CBA lasts for 5 years. However, not later
than 3 years after the execution of the CBA, the economic provisions shall be
renegotiated.

8.What is the freedom period?

It refers to the last sixty days immediately preceding the expiration of the five-year CBA.
A petition for certification election may be filed during the freedom period.

9.Where to file the application for CBA registration?

The application for CBA registration shall be filed at the Regional Office that issued the
certificate of registration or certificate of creation of chartered local of the labor union-
party to the agreement.

10.When to file the application for CBA registration?

 The application for registration of the CBA shall be filed within thirty (30) days from the
execution of such CBA.

11.What are the requirements for CBA registration?

The following are the requirements for CBA registration (original and two (2) duplicate
copies which must be certified under oath by the representative of the employer and
labor union concerned):

a) The Collective Bargaining Agreement;

b) A statement that the Collective Bargaining Agreement was posted in at least two (2)
conspicuous places in the establishment concerned for at least five (5) days before its
ratification; and

c) A statement that the Collective Bargaining Agreement was ratified by the majority of
the employees in the bargaining unit of the employer concerned.

12.Is registration fee required?

Yes. The certificate of CBA registration shall be issued by the DOLE Regional Office
only upon payment of the prescribed registration fee.

13.How long will it take to process the CBA registration?

The application for CBA registration shall be processed within one day from receipt
thereof.

14.What is the ground for denial of the CBA registration?

Failure of the applicant to complete the requirements for CBA registration but such deni

https://blr.dole.gov.ph/2014/12/11/collective-bargaining/

The difference between contractors and subcontractors

There is an important distinction between using contractors and subcontractors.

What are contractors?

Contractors provide agreed services to a client for a set fee and usually for a set duration under a contract for
services. (This is in contrast to a contract of service, eg the employment contract, which is between an
employee and employer.)
Examples of using contractors
Many businesses typically use contractors for:

 building work
 catering
 cleaning
 gardening
 marketing services
 IT maintenance and support
 security services
 recruitment
Contractors can charge the client fees by the hour, day or on a lump-sum basis. Their contracts often specify
milestones for part payment, eg on completion of specific goals.

See contractors and the Construction Industry Scheme.

What are subcontractors?
Subcontractors undertake a contract from the contractor. Subcontractors undertake work that a
contractor cannot do but for which the contractor is responsible.
Subcontractors can be anything from an individual self-employed person - eg a plumber carrying out work for
a building contractor - to a large national organisation. A subcontractor has a contract with the contractor for
the services provided - an employee of the contractor cannot also be a subcontractor.

Subcontractor example
For example, a building contractor may hire a subcontractor to complete the electrical wiring part of the
contractor's building job. The contractor is responsible to the client for the building job including the part
performed by the subcontractor.

Subcontractors might work on task-based contracts with no fixed date, long-term arrangements which can be
discontinued at any time, or fixed-term contracts.

See subcontractors and CIS.