Firms urged to tap only service providers with valid DOLE registration

The Department of Labor and Employment in Central Visayas (Dole-7) is urging  businesses to deal only with service providers that have valid registration, as required by Department Order 174-17. /CDN File Photo

CEBU CITY, Philippines–Business establishments could be held liable if they tap contractors or subcontractors that are without valid registration for additional workers.

In a statement, Director Salome Siaton of the Department of Labor and Employment in Central Visayas (Dole-7) urged businesses to deal only with service providers that have valid registration, as required by Department Order 174-17.

“Establishments or principals should stay cautious in choosing service providers they would engage with as they are solidarity liable pursuant to the provision of Article 109 of the Labor Code,” Siaton said.

She stressed on the need for the mandatory registration of all persons or entities acting as contractors in Central Visayas.

As of April 30, 2019, Central Visayas has 243 establishments with an existing and valid D.O. 174-17 registration.

DOLE issues D.O. 174-17 registration only to companies that have at least P5 million paid-up capitalization for corporations and partnership or P5 million net worth for sole proprietorship.

This requirement would ensure that the contractors or subcontractors have enough funds to pay their employees’ wages and other benefits that are required by law.

“We encourage everyone to visit the Dole-7 website and double check the status of establishments that are into contracting and subcontracting services,” Siaton said.

She said the Dole-7 website https://ro7.dole.gov.ph/index.php has an updated monthly posting of the list of legitimate contractors and subcontractors in the region.

However, the presumption of legitimacy is given to registered contractors unless proven otherwise, according to Dole.

The labor department has been strictly monitoring labor contracting, also known as Endo (end of contract), which is illegal.

Labor contracting occurs when the contractor or subcontractor merely recruits, supplies or places workers to perform a job for work for a principal, which is directly related to the latter’s main business.

Aside from this, a contractor or subcontractor is considered engaged in Endo if it does not have the required capital and has no investments in tools, equipment and machinery, among others./dcb