Dole Rules on Contract Employment
2023年7月7日
The Department of Labor and Employment (DOLE) has recently released guidelines on the implementation of contractual employment in the Philippines. These rules are meant to regulate the use of contractual employment, ensuring that workers are protected and their rights upheld.
Under DOLE Department Order No. 174, contractual employment is defined as an arrangement where an employee is hired for a specific task or employment period, which is different from regular employment. The rules cover all employers, regardless of their size or nature of business.
One of the most significant rules under DOLE’s guidelines is the limitation of the duration of contractual employment. Employers are no longer allowed to enter into more than two consecutive contracts with an employee, as this would constitute a “labor-only contracting” scheme, which is prohibited under the Labor Code.
Contractual employees are also entitled to the same benefits and protections enjoyed by regular employees. This includes social security and health insurance, 13th-month pay, and leaves such as sick leave and vacation leave.
In line with this, employers are required to provide their contractual employees with written agreements detailing the terms and conditions of their employment. This written agreement must be submitted to DOLE and be made available to the employee upon request.
DOLE has also implemented stricter penalties for employers who violate these rules. Employers found guilty of violating the rules may face fines and imprisonment, as well as revocation of their business permits.
These guidelines are a significant step towards protecting the workers’ rights in the Philippines. Contractual employment has been a prevalent practice in the country, often leading to the exploitation of employees who are not provided with the benefits and protections due to them.
With these rules in place, contractual employees can now enjoy their rights and benefits, and employers are held accountable for their obligations. As the country continues to move towards progress and development, ensuring fair and just employment practices is crucial for the well-being of the workforce and the growth of the economy.