Overview/Background

It is the policy of DOLE to enforce regulations, restrict or prohibit the contractingout of labor to protect the rights of workers established under the Labor Code, as amended. In doing so, DOLE may make appropriate distinctions between labor-only contracting and job contracting as well as differentiations within these types of contracting and determine who among the parties involved shall be considered the employer for purposes of preventing any violation or circumvention of any provision in the Labor Code, as amended.

There is contracting or subcontracting when an employer, referred to as the principal, farms out the performance of a part of its business to another, referred to as the contractor or subcontractor. For the purpose of undertaking the principal’s business that is farmed out, the contractor or subcontractor then employs its own employees.

Forms:

• Application Checklist
• Application Form for Registration of Contractors and Sub-contractors
• Semi-Annual Report Form

Legal Bases:

• Administrative Order No. 08 Series of 2023 – Program Administration and Management of Contracting Arrangement Pursuant to Articles 106 to 109 of the Labor Code as Amended, and it’s Implementing Rules and Regulation
• Labor Advisory No. 06-18: Clarificatory Guidelines on Renewal of Registration of Contractors under Department Order No. 174-17
• Department Circular No. 01-17: Clarifying the Appplicability of Department Order 174-17
• Executive Order No. 51
• DO 174-17: Rules Implementing Article 106 to 109 of the LCP, as Amended
• Uniform Implementation of Department Order No. 174, Series of 2017
• Department Circular No. 01 series of 2012: Classifying the Applicability of DO18-A 2011 BPO & KPO and Construction Industry
• Labor Advisory 11 series of 2013: Time and Interval of Payment of Wages in Subcontracting/ Job Contracting Arrangement under DO 18-A, series of 2011