1

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF LABOR AND EMPLOYMENT
NATIONAL CAPITAL REGION
DOLE-NCR Building, 967 Maligaya Street, Malate, Manila

IN THE MATTER OF JOINT

ASSESSMENT CONDUCTED AT
AMICI FOODSERVE VENTURES,
INC.,

CASE NO. NCR00-CFO-1609-JA-185-17-141-SOT

4TH DIMENSION MULTI-PURPOSE COOP.

#27-B Benitez Street, Brgy Horseshoe Village
Cubao, Quezon City

UNLISOLUTIONS MANPOWER SERVICES & EVENTS

MANAGEMENT, INC.,
729 Estrera Building
J.P. Rizal St., Poblacion
Makati City

PHILPOWER INTEGRATED SERVICES CO.,

120 Unit 28 K-6th St., East Kamias
Quezon City

BEST OPTIONS ASSISTANCE, INC.,

608 Sierra Madre St., Boni Avenue
Mandaluyong City
Contractor,

AMICI FOODSERVE VENTURES, INC.,

G/F Missouri Building
101 Missouri cor Connecticut Sts.
Greenhills, San Juan City

MR. PHILIP RAYMOND M. MORAN

President/General Manager
Principal.
x----------------------------------x
 2

POSITION PAPER
4th Dimension Multi-Purpose Cooperative (“4 th Dimension”), by
the undersigned, unto this Honorable Office, most respectfully alleges
the following:

PREFATORY STATEMENT

This has reference to the findings on the work arrangement by

the joint assessment conducted on May 12,2017 in Amici Foodserve
Ventures Inc (“AMICI”), G/F Missouri Building, 101 Missouri cor.
Connecticut Sts. Greenhills, San Juan City by LLCO Frederick who came up
with the following observations;

Agency does not have Team Leader who Supervises deployed workers;

Work Schedule emanates from the Agency/ies;

Equipment/Utensils are owned by the Principal.

The “PRINCIPAL” referred to in the foregoing is Amici where the employees of 4 th

Dimension were assigned and the “AGENCY”” is 4 th Dimension.

4th Dimension and the PRINCIPAL were then directed to file position paper/comment on
the Notice of Results.

4th Dimension was organized in accordance with the

Cooperative Code of the Philippines, and is registered with the
Cooperative Development Authority (CDA).

A copy of 4th Dimension’s Certificate of Registration duly issued

by the CDA is attached as Annex “1”.

4th Dimension is an outsourced service provider that provides

entities and companies various work services that it and its members
can offer and render. The Department of Labor and Employment
(DOLE) issued a Certificate of Registration in favor of 4 th Dimension
stating that it has “complied with the requirements as provided for
under the Labor Code, as amended, and its Implementing Rules.”
The implementing rules referred to therein is Department Order No.
18-A, Series of 2011 entitled Rules Implementing Articles 106 to 109
of the Labor Code, as amended.

The copy of the Certificate of Registration is attached as

Annex “2”.
 3

The DOLE also issued 4th Dimension a Certificate of Compliance

on General Labor Standards on December 28, 2016, copy of which is
attached as Annex “3”.

4th Dimension has a Business Permit issued by the Office of the

Mayor, a copy attached as Annex “4”. It possesses substantial
capital or investment to actually perform the job, work or services
under its own account and responsibility. A proof of this is the Bank
Certificate issued by RCBC, a copy attached as Annex “5”.

Among the clients of 4th Dimension is Amici. The Service

Contract entered into by the parties is attached as Annex “6” to “6-
F”.

Pursuant to the Service Contract, 4 th Dimension deployed

several of its members-owners to perform various services required
by Amici. For this purpose, the employees/members signed and
entered into an Employment contract with 4 th Dimension after
complying with and submitting the requirements, duly filled up
member’s profile and Membership agreement, copies of which are
attached as Annexes “7” to “7-S”

4th Dimension pays for the salaries, benefits, wages and other
emoluments required by law, of above-deployed employees/
members. This can be substantiated by verifying the remittances of
4th Dimension with the Social Security System, Philhealth and Pag
Ibig.

The employees/members assigned at Amici are under the

supervision and/or control of an Account Supervisor of 4th Dimension.
The said Supervisor is tasked to monitor their work performance,
their respective assigned tasks, including determination of their work
schedules, giving out of work instructions and monitoring of their
attendance. Attached as Annex “8” is the Affidavit of Ms Michelle
Alican, the Account Supervisor assigned in Amici. The work schedules
are attached as Annexes “9” to ___”.
Each Account Supervisor is assisted by a Team Leader in the
monitoring and supervising the employees/members. Copies of the
appointment of the Team Leader and his affidavit are respectively
attached as Annexes “10” to “_____”

ISSUE
 4

The lone issue here is: WHETHER THERE IS A

VIOLATION OF DEPARTMENT ORDER No. 18-A,
Series of 2011.

ARGUMENTS/DISCUSSION

There is NO violation of
Department Order No. 18-A
------------------------------------------------------

4th Dimension is a legitimate outsource service provider that

satisfies all the requirements under the law and settled jurisprudence to be such. This is
shown in the authority and licenses of 4TH Dimension (Annexes “1” to “4”) and fulfills
the pertinent Rule on the matter, specifically Section 3, paragraphs (d) & (e) of
Department Order No. 174, series of 2017, that reads:

“(d) “Contractor” refers to any

person or entity, including a
cooperative, engaged in a legitimate
contracting or subcontracting
arrangement providing services for a
specific job or undertaking farmed out
by principal under a Service Agreement”

“(e) “Contractor’s employee”

refers to employee of the contractor
hired to perform or complete a job or
work farmed out by principal pursuant
to a Service Agreement with the latter”

xxx

“(j) “Service Agreement” refers

to the contract between the principal
and contractor containing the terms and
conditions governing the performance or
completion of a specific job, or work
being farmed out for a definite or
predetermined period.”
 5

“(l) “Substantial capital” refers

to paid-up capital stocks/shares of at
least Five Million Pesos (P5,000,000.00)
in the case of corporations, partnership
and cooperatives; in the case of single
proprietorship, a networth of at least
Five Million Pesos (P5,000,000.00)”

The Service Contract (Annex “6”) of Amici and 4th Dimension

complies with the above regulation. There is no doubt that 4 th
Dimension more than fulfilled the substantial capital mentioned
above as shown in Annex “5”. 4th Dimension can definitely carry out
the job, work or services sought to be undertaken under the Service
Contract.

On the observation that the Agency does not have Team Leader who Supervises
deployed workers;

Each Account Supervisor is assisted by a Team Leader in the

monitoring and supervising the members/employees. (Annex “10”).
The affidavit and the appointment of the Team Leader admits that
the supervision, monitoring and control of the members/employees is
made by the Account Supervisor of 4th Dimension with the assistance
of the Team Leader. (Annex “10”).

On the observation that the Work Schedule emanates from

the Agency/ies;

For every client, 4th Dimension has an Account Supervisor, plus a team
leader, who administers the performance of the workers, including their specific
work assignment, monitors their attendance, gives instruction to the workers and
ensures that they perform their job. Under the Service Agreement, (Annex “6”), 4th
Dimension shall be solely responsible for the assignment of its members/employees, the
Account Supervisor is responsible to monitor the performance of the employees of their
assigned duties in accordance with the specified criteria and standards set by the client
and 4th Dimension, this is substantiated by the work schedules submitted and prepared by
the Account Supervisor (Annex “9”).

On the observation that the Equipment/Utensils are owned by the Principal.

The PRINCIPAL is engage in a specialized business or industry

that require unique and specific tools and equipment. They are tools
or equipment not generally known or easily ascertainable by others
by which the business or industry can obtain an economic advantage
over its competitors. To prevent possible exposure of its trade secrets
and to protect its business or industry, the PRINCIPAL and 4 th
 6

Dimension agreed that the former will provide the right and suitable
tools and equipment.

The PRINCIPAL additionally prefer that equipment for their particular business
or industry, such as kitchen tools/appliances, (i.e., plates, utensils, apparatus and similar
implements) will belong to them. This is the preference of the PRINCIPAL. They simply
wish to be practical and ensure that the kitchen tools and equipment are suitable to their
standards. For other tools, appliances and equipment, 4TH Dimension supplies them.

4th Dimension is more than financially capable and has sufficient

assets to carry on its legitimate business as an independent
contractor (Annex “5”).

The employees deployed to Amici are the regular employees of 4TH DIMENSION.

The workers assigned to Amici are the regular employees of 4TH Dimension. It
assumes full responsibility for its compliance with all labor laws and
regulations and implements the following:

1) The hiring, selection and employment of the employees/workers. This is never

done by Amici. Proof of this is the duly signed employment contract and the
endorsement attached to the member’s profile. The endorsement form from
4th Dimension serves as a proof that the applicant has successfully passed and
undergone the selection and hiring process of 4th Dimension. The member’s
profile duly accomplished by the employee/member with the attached copies
of his employment requirements; valid government ids, NBI, Police and Brgy.
clearance, CTC’s, Birth certificate.

2) Determines the particular employees/members to be deployed to the clients

after entering into a Service Agreement.

3) Pays the salaries, wages and all benefits of the workers in accordance with
laws, rules and regulations. This includes the manner, mode and terms of
payment, the process of attendance monitoring needed for timekeeping.

4) Has the power to terminate, re-assign or transfer, recall the workers deployed.

5) Defines work assignment and the place of work, implements

the process and grounds of disciplinary actions and provision
for instructions. Proof of this is the employment contract
with job description duly explained, accepted and signed by
the employees/members.

While the employees/members of 4th Dimension performed

their tasks at a designated working area assigned by Amici, they are
under the control and supervision of Ms. Michelle Alican, the Account
Supervisor of 4th Dimension assigned in Amici, who directs the
 7

employees/members in all matters connected with the performance

of the work except as to the results thereof.

On matters pertaining to routine or day to day tasks under the

service contract, the Account Supervisor may receive written
instructions and/or communications from the designated personnel of
Amici. This is simply to carry out the objectives in the service
agreement. It is the Account Supervisor who maintains efficient and
effective discipline over the employees/members assigned at Amici
and will ensure that they report promptly and are ready to render the
services during workdays and observe regular office hours including
such days/or work on holidays and Sundays, when their services are
required by Amici.

The personnel supplied by 4th Dimension are reliable, skilled,

professionally-trained and carefully selected not only in terms of work
performance but also in terms of academic qualifications, ethics and
general attitude. They possess adequate NBI/Police clearances and
medical/health certificates. All of these are determined and
conducted by 4th Dimension during the application and prior to hiring.
Nonetheless, as matter of industry practice and due courtesy, Amici
reserves the right to pre-screen, reject or accept the personnel
supplied to it.

The obligation of Amici is to pay the agreed contractual

consideration and is only interested in the faithful performance of the
agreed objectives in the service contract.

With due respect, the observations in the Notice of Results of the LLCO may not
be entirely accurate. This may be the result of the misapprehension of the
employees/workers who were interviewed.

CONCLUSION

THE FOREGOING SHOWS THAT there is no violation of

Department Order No. 18-A series of 2011.

Quezon City for Manila, August 01, 2017.

MARICEL B. PADIERNOS
General Manager
 8

4th Dimension Multi-Purpose Cooperative

#27-B Benitez Street, Brgy. Horseshoe Village
Cubao, Quezon City
 9

VERIFICATION, OATH AND CERTIFICATION

I, MARICEL B. PADIERNOS of legal age, Filipino citizen, after

having been duly sworn to in accordance with law, hereby depose
and state the following:

1. I am the duly authorized representative of 4 TH DIMENSION

in the foregoing case;
 10

2. As such, I caused the filing and/or the preparation of this

position paper and have read its contents and allegations which are
true and correct of my personal knowledge and based on authentic
records;

3. 4TH DIMENSION has not commenced any other action or

proceeding involving the same issues in, and there is no other action
or proceeding pending before, the Supreme Court, the Court of
Appeals, or different divisions thereof, or any tribunal or agency. If
ever I should learn that a similar action or proceeding has been filed
or is pending before the Supreme Court, the Court of Appeals or
different divisions thereof, or in any tribunal or agency, I shall notify
this Honorable Court within five (5) days from such notice.

MARICEL B. PADIERNOS

SUBSCRIBED AND SWORN to before me this

__________________. Affiant exhibited to me her valid
identification: ___________________________________________.

Doc. No. _____;

Page No. _____;
Book No. _____;
Series of 20____.
11