President Rodrigo Roa Duterte on Tuesday “Labor Day” signed Executive Order 51, series of 2018 “Implementing Article 106 Of The Labor Code Of The Philippines, As Amended, To Protect The Right To Security Of Tenure Of All Workers Based On Social Justice In The 1987 Philippine Constitution”.

Under Section 2 of the signed EO, contracting or subcontracting is strictly prohibited “when undertaken to circumvent the worker’s rights to security of tenure, self-organization, and collective bargaining and peaceful concerted activities pursuant to the 1987 Philippine Constitution.”

“security of tenure” as the right of employees “not to be dismissed or removed without just and authorized cause and observance of procedural due process pursuant with the Constitution and Labor Code, as amended, and prevailing jurisprudence.

The Secretary of Labor and Employment may, by appropriate issuances, in consultation to with National Tripartite Industrial Peace Council under Article 290 (c) of the Labor Code, as amended, declare activities which may be contracted out.

As to Enforcement of Labor Standards and Working Conditions, Section 4 states that consistent with Article 128 (Visitorial and Enforcement Power) of the Labor Code, as amended, and pertinent implementing rules, the Secretary of Labor and Employment, though his/her duly authorized representatives and deputized labor and employer representatives, shall conduct inspection of establishments so as to ensure compliance with all labor laws, including EO 51-18.

The DOLE authorized representatives and deputized labor and employer representatives will have full access to employer’s records and premises as well as to any personnel at any time of the day or night whenever work is being undertaken therein, and the right to copy therefrom, to question any employee and investigate any fact, condition or matter which may be necessary to determine violations or which may aid in the enforcement of the labor code, as amended, and any other labor law, wage order, or relevant rules and regulations.

Based on the visitorial and enforcement power of the Secretary of Labor and Employment in Article 128 (b), he/she or his/her designated representative shall issue compliance orders after due hearing to give effect to the labor standards provisions of the Labor Code, and other labor legislation, rules and regulations. Compliance orders affirmed by the Secretary of Labor and Employment shall be immediately executor unless restrained by an appointed court.

In case the compliance order involves a directive to regularize workers, the employment of the latter shall not be terminated pending appeal of such order except for just or authorized cause. Any termination of workers pending appeal shall render the compliance order involving the regularization of workers executory.

Labor-only contracting is already prohibited in Labor Code and DOLE Order 174, or the implementing rules on three articles of the Labor Code.

Contractualization refers to the outsourcing of work that is essential or a key role in a business operation. It also refers to the hiring of employees from a contracting agency-for example a manpower agency that supplies security guards to companies-that does not have substantial capital or investments in tools and supervision.

Under “End of Contract” or Endo, a company or employer hires an employee. But what some employers or companies do is that they fire these employees after five months. In the Philippines, it is mandated by law that after six months of working for a company, an employee automatically becomes regularized

In Article 281 of the Labor Code, it says that: “Probationary employment shall not exceed six (6) months from the date the employee started working, unless it is covered by an apprenticeship agreement stipulating a longer period. The services of an employee who has been engaged on a probationary basis may be terminated for a just cause or when he fails to qualify as a regular employee in accordance with reasonable standards made known by the employer to the employee at the time of his engagement. An employee who is allowed to work after a probationary period shall be considered a regular employee.”

For those asking about the pay rules for May 1 Labor Day, a regular holiday, the Labor Department remind employers in the private sector to strictly observe proper payment of wages of their worker.

Pursuant to Proclamation No. 269 issued by President Rodrigo Duterte on July 17, 2017, Labor Secretary Silvestre Bello III issued the rules prescribing the proper payment of wages for May 1 Labor Day.

If the employee did not work, he/she shall be paid 100% of his/her salary for that day [(Daily rate + COLA)] x 100%]; while for work done during the regular holiday, he/she shall be paid 200% of his/her regular salary for that day for the first eight hours [(Daily rate + COLA) x 200%];

For work done in excess of eight hours (overtime work), he/she shall be paid an additional 30% of his/her hourly rate on said day (Hourly rate of the basic daily wage x 200% x 130% x number of hours worked);

For work done during a regular holiday that also falls on his/her rest day, he/she shall be paid an additional 30% of his/her daily rate of 200% [(Daily rate + COLA) x 200%] + [30% (Daily rate x 200%0]; and

For work done in excess of eight hours (overtime work) during a regular holiday that also falls on his/her rest day, he/she shall be paid an additional 30% of his/her hourly rate on said day (Hourly rate of the basic daily wage x 200% x 130% x 130% number of hours worked)./Patrick T Rillorta