DOLE disallows termination of employees by contractors after completing contracts

DOLE disallows termination of employees by contractors after completing contracts

MANILA, Dec. 28 (PNA) — The Department of Labor and Employment (DOLE) will no longer allow the termination of employees by contractors after completing of their contracts.

The DOLE order disallows the termination of contractors’ employees simply due to the completion of the service agreement between the principal and the contractor.

“As a legitimate contractor, he is a legally and contractually bound to provide another employment to his employees,” according to the two-page document submitted by DOLE Secretary Silvestre Bello III to President Rodrigo Duterte on Wednesday.

He said doing such would ensure that only legitimate contractors can engage in permissible contracting activities thus, eliminating fly-by-night contractors.

Under the proposed Department Order (DO), that would need the approval of Duterte, also ensures the rights of workers.

“The proposed D.O. ensures that workers in legitimate contracting arrangements are ensured of their right to security of tenure, just and humane conditions of work, self-organisation and collective bargaining and social benefits,” added the document.

Likewise, it said that financial assistance will be provided to employees while waiting for new assignment for a period of not exceeding three (3) months and the payment of separation pay if the contractor is unable to find another employment for the said period.


“Itong DO ngayon, obligating hanapan ng bang trabaho within three months. Kapag hindi nabigyan, they will be required to give a separation pay. During the 3 months bibigyan miya ng allowance for 3 months,” he said in a press briefing.

On the other hand, DOLE chief noted that there are still some jobs that can be outsourced.

“Under the existing laws, there are services that can be outsourced. Right now what can be outsourced are the security guards, janitorial, seasonal and temporary or project based,” Bello explained.

At the same time, he reiterated that subcontracting will no longer be allowed, as the contractors will have to take the responsibility of their employees.

“Subcontracting will be strictly prohibited. Bawal na iyan. In other words kung ikaw ay isang service provider, kung meron kang nakuhang kontrata, hindi mo puwedeng isubcontract iyan. Ikaw lang ang puwede,” Bello added.

The DO, once approved will be effective 15 days after publication. (PNA)