Revoking Department Order No. 10, Series of 1997, and Continuing to Prohibit Labor-Only Contracting
On May 8, 2001, the Department of Labor and Employment (DOLE) issued Department Order No. 003-01, which revokes the earlier Department Order No. 10 from 1997 and continues to prohibit labor-only contracting in the Philippines. Labor-only contracting occurs when a contractor merely supplies workers without substantial investment or capital to perform jobs, particularly when those jobs are integral to the principal's business. The order emphasizes that existing contracts and benefits shall remain unaffected and intact. It will take effect fifteen days after publication in two newspapers until new guidelines are established following consultations with relevant stakeholders.
Quick Answers
- What is Revoking Department Order No. 10, Series of 1997, and Continuing to Prohibit Labor-Only Contracting about?
- On May 8, 2001, the Department of Labor and Employment (DOLE) issued Department Order No. 003-01, which revokes the earlier Department Order No. 10 from 1997 and continues to prohibit labor-only contracting in the Philippines. Labor-only contracting occurs when a contractor merely supplies workers without substantial investment or capital to perform jobs, particularly when those jobs are integral to the principal's business. The order emphasizes that existing contracts and benefits shall remain unaffected and intact. It will take effect fifteen days after publication in two newspapers until new guidelines are established following consultations with relevant stakeholders.
- What type of law is DOLE Department Order No. 003-01?
- Revoking Department Order No. 10, Series of 1997, and Continuing to Prohibit Labor-Only Contracting (DOLE Department Order No. 003-01) is a Philippine Other Rules and Procedures enacted by the Congress of the Philippines.
- When was Revoking Department Order No. 10, Series of 1997, and Continuing to Prohibit Labor-Only Contracting enacted?
- Revoking Department Order No. 10, Series of 1997, and Continuing to Prohibit Labor-Only Contracting (DOLE Department Order No. 003-01) was enacted on May 8, 2001.
- What is the citation for Revoking Department Order No. 10, Series of 1997, and Continuing to Prohibit Labor-Only Contracting?
- Revoking Department Order No. 10, Series of 1997, and Continuing to Prohibit Labor-Only Contracting, DOLE Department Order No. 003-01, May 8, 2001 (Philippines)
Law Information
- Reference Number
- DOLE Department Order No. 003-01
- Date Enacted
- Category
- Other Rules and Procedures
- Subcategory
- Labor and Employment
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
May 8, 2001
DOLE DEPARTMENT ORDER NO. 003-01
REVOKING DEPARTMENT ORDER NO. 10, SERIES OF 1997, AND CONTINUING TO PROHIBIT LABOR-ONLY CONTRACTING
Pursuant to Articles 5 and 106 of the Labor Code, as amended, the following are hereby issued:
SECTION 1. Revocation of Department Order No.10. — Department Order No. 10, Series of 1997, otherwise known as the rules implementing Article 106 to 109 of Book III of the Labor Code, is hereby revoked effective immediately.
SECTION 2. Prohibition against labor-only contracting. — Labor-only contracting is hereby declared prohibited. There is labor-only contracting where the contractor or subcontractor merely recruits, supplies or places workers to perform a job, work or service for a principal, and the following elements are present:
a) The contractor or subcontractor does not have substantial capital or investment to actually perform the job, work or service under its own account and responsibility; and
b) The employees recruited, supplied or placed by such contractor or subcontractor are performing activities which are directly related to the main business of the principal.
SECTION 3. Non-impairment of existing contracts; Non-diminution of benefits. — Subject to the provisions of Articles 106 to 109 of the Labor Code, as amended, the applicable provisions of the Civil Code and existing jurisprudence, nothing herein shall impair the rights or diminish the benefits being enjoyed by parties to existing contracting or subcontracting arrangements.
SECTION 4. Effectivity. — This Order shall be effective fifteen days after publication in two newspapers of general circulation until a new set of guidelines implementing Articles 106 to 109 of the Labor Code shall have been promulgated. Such new guidelines shall be formulated upon prior consultations with all sectors concerned, particularly the Tripartite Industrial Peace Council (TIPC) established under Executive Order No. 49, Series of 1998. aSIDCT
(SGD.) PATRICIA A. STO. TOMASSecretary
Cite This Law
Revoking Department Order No. 10, Series of 1997, and Continuing to Prohibit Labor-Only Contracting, DOLE Department Order No. 003-01, May 8, 2001 (Philippines)
Revoking Department Order No. 10, Series of 1997, and Continuing to Prohibit Labor-Only Contracting, DOLE Department Order No. 003-01 (Phil. 2001)
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