Institute for Labor Studies ILS (ILS) banner logo
Philippine Standard Time

This research paper serves as one of the Department's many efforts to promote decent work and balance the interests of both labor and management. It acknowledges the necessity of social dialogue and feedback mechanisms, especially in contentious issues such as contracting and subcontracting employment arrangements. For its objectives, it seeks to 1) present a historical and thematic analysis of the Department of Labor and Employment's (DOLE) regulations on contracting to identify key/significant developments; and 2) present an evidence-based analysis of the issues to be addressed in the event of a review or revision of the current policy. Its framework and methodology are anchored in Section 3, Article XIII of the 1987 Constitution of the Republic of the Philippines, also known as the labor protection clause. Over the course of the study, it was found that no substantial changes have been introduced in provisions concerning the parties involved, bond, unfair labor practices, prohibited acts, registration requirements, cancellation effect, required contracts and contents, and monitoring.

On the other hand, provisions on coverage and limitations, permissible tasks, laboronly contracting (LOC), illicit forms of employment, capitalization, grounds for cancellation of registration, filing of complaints, implementing agency, and monitoring and regulations practices have been changing throughout the years. Narrowing down on the implementation of DOLE DO 174-17, some novel challenges have arisen, such as the lack of penalties or consequences for late renewal or non-claiming/payment of registration fee and the lack of express provision for the issuance of the certificate of non-coverage. With this, the researchers conclude that a review is necessary considering the existing gaps and emerging issues that need to be addressed, such as fast-paced technology and non-traditional forms of employment. It is therefore recommended to 1) provide additional safeguards for the processing of applications; 2) incorporate an express provision on the issuance of a certificate of non-coverage; 3) allow the Regional Director to motu-proprio investigate and revoke an issued certificate; 4) draft a process manual, and finally; 5) the conduct of a structured Regulatory Impact Assessment (RIA) in order to sustain the Department's commitment to ensure genuine and effective representation of workers and employers in policy-and decision-making bodies and formulate responsive and predictable labor regulations to balance interests of workers, employers, and investors, among others.

KEYWORDS: subcontracting, contracting, labor-only contracting, regulatory impact assessment, labor protection clause, motu-proprio
RESEARCHERS: Joanne Camille P. Bejarin  Ivan Cassidy F. Villena | Miraluna S. Tacadao | Christel S. Sobredo | Lara P. Fameronag

Click here to download