Service Agreement Under D.o. 174

The new D.O. defines a client as a physical or legal entity, whether or not it is an employer who works or works with a contractor. The sentence underlined appears to contradict section 2 of the new D.O., which states that it applies to all employer-employee relations. If the client is not an employer, how can this new D.O. apply in his case? The underlined sentence refers to what is meant by substantial capital. According to D.O. 18-A, there was no such qualification; There were only 3 million pesos. The new D.O. now calls for a significant amount of capital to be capital that allows the contractor to do the work done. It`s Neri`s abandonment. This is not D.O. 18-A, but a repetition of section 118 of the Labour Code. The new D.O.

extends the scope of contractual and subcontracting agreements (according to D.O. 18-A) to all parties in an agreement that provides for relations between employers and workers. This is not in D.O. 18-A (and, in fact, D.O. 18-A delegate some supervisory and supervisory powers to TIPC), but underlines the regulatory powers of the Minister of Labour and Employment, absolutely prohibiting awarding only contracts and limiting authorized contracts. 1. Companies that work, work or service under a service contract with a contractor (the contractor`s “employees”) must ensure that their agreements with DO 174 are consistent with DOLE`s continuing campaign against contracting. (2) persons whose duties do not depend on the performance or performance of a particular job, job or service (the “administrative staff” of the contractor) 1. The contractor or subcontractor acts in a separate and independent company and undertakes to carry out the work or work under its own responsibility in its own way and in accord to its method; According to the new D.O., the loan relates only to the borrowing under section 108 of the labour code (equal to the cost of contract work). It removes the loan that the client has reserved as collateral or guarantee for the payment of services provided by contractors or subcontractors under the service contract.

Under the new D.O., the above meaning has been modified by removing the highlighted passages and by installing this definition: according to D.O. 18-A, the contractor relates to any person or entity, including a co-operative operating under a legal contract or subcontract that provides either services, skilled workers , temporary workers, a combination of services to a client as part of a service contract. DO 174 requires a service agreement between the client and the contractor or subcontractor. It must include provisions concerning the specific description of the work or work under contract, its duration and the agreed amount of work or contract work. 7. Blacklist a contractor, including one of his senior managers whose registration has been cancelled, to work under the same name or a different name as a contractor or to apply for a new registration. The termination of the contractor`s staff before the expiry of the service contract is governed by articles 297, 298 and 299 of the labour code (authorized redundancy reasons). In other words, the new D.O. applies to all companies, whether or not they enter into contracts or subcontracts.

This also stems from the fact that the new D.O. removed any reference to a “trilateral relationship” that characterizes contractual or subcontracting agreements. In this regard, the new D.O. is a departure from Supreme Court decisions, in which the uniqueness of contracts or subcontracts is governed by section 106 of the labour code. 4. In the event of termination due to the expiry of a service contract, the contractor is required to grant a new job to the worker within three months and pay him separation benefits.