It's not a law yet but i think it will be soon since the government is pushing it also.
It amends some provisions of PD 442 (Labor Code of the Philippines)
It focused mainly on securing Tenure of employees.
1. Labor Only Contracting
It is regarded as a labor only contracting when the following situation happens.
a) When the contractor doesn't have substantial capital or investment in the form of tools, equipment, machineries, work premises;
b) The contractor has no control over the workers’ methods and means of accomplishing their work;
c) the workers recruited and placed by such persons are performing activities which are directly related to the principal business of such employer.
In these cases, the contractor is a mere agent.
In these cases, the contractor is a mere agent.
Notes : Job contractors should secure license from DOLE. They should not fall any of the above mentioned conditions not to be a mere agent (labor only contractor).
Notes: If contractors fail to pay their employees...the employer (who give jobs) are jointly liable together with the contractor. Really? What if the employer already paid all to the contractor? hmmm.
Exceptions are:
1. Overseas Filipino Workers (OFWs)
2. Probationary employees
3. Relievers who are temporary replacements or absent regular employees. (less than 6 months only)
4. Project employees
5. Seasonal employees
They enjoy same benefits with regular employees. An employee who doesn't fall under this "exceptions" are considered as a regular employee from the day one of working.
3. Probationary employees
It shall not exceed 6 months. They may be terminated for a just cause when they fail to qualify as a regular employee. Once they served at least 1 month, employer should pay termination pay which is 1/2 month salary.