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REPUBLIC OF THE PHILIPPINES

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

IN RE: CANCELLATION OF DO 18
REGISTRATION IN RELATION TO
VIOLATION OF LABOR ONLY
CONTRACTING

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
Contractor,

FIL-UNITED MFG. CORP.,

8 ITC Compound, Bagbaguin
Valenzuela City
Principal.
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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 October 19,2016 in Fil-United
Manufacturing Corporation (“Fil-United”), 8 ITC Compound,
Bagbaguin Valenzuela City by LLCO Richard Camit and Karen Joy
Tongo.

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”.
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4th Dimension is engaged in an independent job contracting

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”.

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 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 Fil-United Mfg.

Corporation (“Fil-United”). 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 Fil-United. 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.
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The employees/members assigned at Fil-United 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 Mr. Jonathan Doon,

the Account Supervisor assigned in Fil-United. The memos are
attached as Annexes “9” to 9-C”.

ISSUE

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
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4th Dimension is a legitimate independent contractor 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 “5”) 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
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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.”

“(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 Fil-United and 4 th

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

The employees deployed to Fil-United are the regular employees of 4TH DIMENSION.

The workers assigned to Fil-United 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 Fil-United. 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.
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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 Fil-United, they
are under the control and supervision of Mr. Jonathan Doon, the
Account Supervisor of 4th Dimension assigned in Fil-United, who
directs the 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
Fil-United. 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 Fil-
United 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 Fil-United.

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, Fil-
United reserves the right to pre-screen, reject or accept the
personnel supplied to it.

The obligation of Fil-United is to pay the agreed contractual

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

PRAYER

WHEREFORE, premises considered, it is most respectfully

prayed of this Honorable Office that 4TH DIMENSION be declared to
have duly complied with Department Order No. 18-A series of 2011.

Other reliefs just and equitable under the premises are further
prayed

Quezon City for Manila, August 01, 2017.

MARICEL B. PADIERNOS
General Manager
4th Dimension Multi-Purpose Cooperative
#27-B Benitez Street, Brgy. Horseshoe Village
Cubao, Quezon City
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;

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;
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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____.
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