Are new rules on labour contracting worth the wait?

By Ma Clarissa Excelsis S Villanueva, ACCRA Law Offices
0
3345
LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link

Finally, the long wait is over. After almost nine months of numerous dialogues and consultations, the Department of Labour and Employment (DOLE) secretary Silvestre Bello III issued Department Order (DO) No. 174, series of 2017. It sets out the new rules implementing articles 106 to 109 of the Labour Code, replacing DO 18-A, series of 2011. The new order became effective on 2 April, 2017.

Ma-Clarissa-Excelsis-S-Villanueva
Ma Clarissa Excelsis S Villanueva
Junior Associate
ACCRA Law Offices

At first reading, it appears that DO 174 did not deviate to a great extent from DO 18-A. It would seem that it simply borrowed the provisions of the old order and tweaked it a little to adjust to current conditions. For instance, DO 174 no longer provides for a Net Financial Contracting Capacity (NFCC), nor does it require that the same be included in service agreements.

The required substantial capitalization of contractors was increased from at least P3 million (about US$60,000) to at least P5 million. The registration and renewal fee was also increased, to P100,000 from P25,000, and in addition the certificate of registration must now be effective for only two years.

You must be a subscribersubscribersubscribersubscriber to read this content, please subscribesubscribesubscribesubscribe today.

For group subscribers, please click here to access.
Interested in group subscription? Please contact us.

你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章,欢迎成为我们的订阅会员成为我们的订阅会员

已有集团订阅,可点击此处继续浏览。
如对集团订阅感兴趣,请联络我们

Ma Clarissa Excelsis S Villanueva is a junior associate at ACCRA Law Offices

accralaw

ACCRA Law Offices

Manila office: ACCRALAW Tower, 2nd Avenue corner
30th Street, Crescent Park West, Bonifacio Global City

1635, Taguig City, Metro Manila, Philippines

www.accralaw.com

Contact details:

Tel: +63 2830 8000

Email: csvillanueva@accralaw.com

LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link