“The Minister of Labour and Employment may, by means of appropriate provisions, restrict or prohibit the outsourcing of workers in order to protect the rights of workers under this Code. By prohibiting or restricting this, it may make appropriate distinctions between pure employment contracts and employment contracts, as well as differentiations within these types of contracts, and determine who among the parties involved is considered an employer for the purposes of this Code in order to prevent the violation or circumvention of any provision of this Code. “(Article 106 of the Labour Code) Only employment contracts refer to an agreement in which: Para maging job contracting ang isang transaksyon paliwanag ng Korte Suprema kailangang ang trabahong ginagawa ng kontratista ay nagagawa niya sa sarili niyang paraan na walang. Ngayon only employment contracts ba o employment contracts ang ginawa ng kompanya. FEATURED JOBS Registration is easy and always free for military and law enforcement veterans Employment ID. Partikular na tinutukan ng naturang panukalang batas ang ilegal na kalakaran ng employment contract only Kapag sinabi kasi nating work only contractor ito na yong sinasabi nating contractualisation nagkokontrata ka ng trabaho ayon sa abogadong si Atty. Only Contract Jobs is a leading website for contract job search and an information portal for anyone looking for a contract job with new jobs every day. PMCI has no significant capitalization or investment in the form of tools, equipment, machinery, workplaces and the like to qualify as an independent contractor. Although it has an authorized registered capital of P1,000,000.00, only P75,000.00 is actually filed, which, in our opinion, cannot be considered a significant capitalization [at that time Php1 million was paid; currently it is php5 million]. (Vinoya v. NLRC, Regent Food Corporation, G.R.
No. 126586, February 2, 2000) The award of employment contracts is authorized and recognized in accordance with article 106 of the Labor Code and implemented by various DOLE regulations. Previous rules called this regulation legitimate public procurement as opposed to pure employment contracts. `Authorized contract or subcontracting` means an agreement by which a procuring entity undertakes to perform with a contractor or subcontractor the performance of a particular contract, work or service within a specified or specified period of time, whether such work, work or service is performed or provided within or outside the premises of the procuring entity. Under this agreement, the following conditions must be met: (a) the entrepreneur carries out an independent and independent activity and performs the contract work on his own account under his own responsibility in his own way, free from the control and instructions of his employer or client for all matters related to the performance of his work, with the exception of results; (b) the entrepreneur has significant capital or investment; and c) the agreement between the Customer and the Contractor or Subcontractor guarantees the Contractual Employees the right to all occupational health and safety standards, the free exercise of the right to self-organization, the safeguarding of seniority and social benefits. (Alilin v. Petron Corporation, G.R. No. 177592, June 9, 2014) According to Ministry Order No.
174, Series of 2017 (DO-174), issued by the Ministry of Labor and Employment (DOLE), pure employment contracts are prohibited. In Agito, the Tribunal also rejected Coca-Cola`s [principal]`s] allegation that the vendors were employees of Interserve, notwithstanding Coca-Cola`s submission of their personal data files from Interserve`s records; their employment contract with Interserve [the Contractor]; and Interserve pay slips. In stating categorically that Interserve was a pure contractor, the Court held that the work of the defendant sellers, which constituted the distribution and sale of Coca-Cola products, was manifestly indispensable to the applicant Coca-Cola`s main activity. (Quintanar v. Coca-Cola Bottlers, Philippines, Inc., En Banc, June 28, 2016, citing Coca-Cola Bottlers Phils. Inc.c. Agito, G.R. No. 179546, 13. February 2009) ▪ Although the DOLE regulations have qualified the agreement as legitimate employment contracts and now as authorized employment contracts, they refer to the same concept.
In the case of pure contract award, the employees recruited, delivered or placed by the contractor carry out activities directly related to the main activity of his client. In this case, the petitioner`s work as a commercial agent is directly related to RFC`s activities. Since RFC operates in the field of food production and food sales, it is necessary for RFC to hire a sales representative such as the petitioner to take care of booking its sales orders and collecting payments for them. Therefore, the petitioner`s work as a commercial agent in RFC can only be classified as clearly related to his business and the pursuit of his business. Logically, when PMCI`s petitioner was assigned to the RFC, PMCI simply acted as a pure entrepreneur. (Vinoya v. NLRC, Regent Food Corporation, G.R. No. 126586, 2 February 2000) Here, subcontracts are considered contracts, not pure contracts of employment, since the three subcontractors not only recruited the workers, but also controlled them, paid their wages and other benefits, and provided the necessary equipment and tools. “Outsourcing” is synonymous with employment contracts in the digital age. “The certification issued by the DOLE, which demonstrates that Interserve is an independent contractor, does not lead our court to take it at face value because the primary purpose set out in Interserve`s laws is misleading.