DOLE junks call to criminalize contractualization

MANILA, Philippines - Calls to criminalize the hiring of contractual workers or the so-called “endo” (end of contract) scheme have been dismissed by the Department of Labor and Employment (DOLE).

Labor Secretary Rosalinda Baldoz said yesterday there is no need for a new law that would penalize unscrupulous employers engaging in contracting workers, as Article 288 of the Labor Code was created for such purpose.

“If there is sufficient evidence of violation of the Labor Code on subcontracting, we can invoke Article 288, which imposes criminal liability for unlawful acts,” Baldoz said.

She said such provision of the Labor Code is yet to be tested until this time. She gave assurance DOLE is strictly enforcing the new labor law compliance system.

The DOLE chief said the agency has hired 372 labor law compliance officers (LLCOs) to visit and inspect every establishment at least once a year.

“We now have 574 LLCOs equipped with mobile gadgets for real time assessment and compliance reporting,” she said.

Under the new labor law compliance system, DOLE shifted from the purely regulatory mode of enforcement to a developmental approach, hoping to foster a culture of voluntary compliance.

Baldoz said a total of 9,816 establishments have signed up in the system’s live registry. Of the number 1,478 were from the NCR, Regions 2, 3, and 4-A.

“The most common violations pertain to general labor standards and occupational safety and health standards. Our LLCOs have assisted the establishments to formulate corrective action plans,” Baldoz said.

DOLE, she said, issued an order requiring subcontractors to register.

“Those who were removed from the list were fly-by-night subcontractors that cannot comply with the requirement of Department Order 18-A (rules in subcontracting). What remains are legitimate subcontractors who comply with labor laws and are registered with the DOLE under the requirements, terms and conditions of D.O. 18-A,” Baldoz said.

When she issued D.O. 18-A, Baldoz considered the proliferation of fly-by-night subcontractors and ensured that all employers or companies and their subcontractors are compliant with the labor laws.

“D.O. 18-A, we believe, is leading us to achieve its aim of professional and ethical subcontracting, where subcontractors are compliant with labor standards and occupational safety and health standards,” she said.

Baldoz said the measure aimed to ban contractors and subcontractors that do not have the financial capability and legal personality to undertake and complete specific jobs, work or services.