USELESS | Duterte's anti-endo EO just a copy of DO 174, Arts. 106-109 of Labor Code

Duterte's anti-endo EO is actually useless and powerless. Anyone who knows anything about law should understand this.

Duterte's EO is a simple reecho of what is already provided under DOLE's DO 174, implementing Articles 106 to 109 of the Labor Code (PD 442). This new anti-endo EO does not do anything; it prohibits what is already illegal. It does not add any protection to workers. This means that "contractualization" and "endo" will still haunt the working class.

Here's a link to DO 174. Read it and educate yourselves. https://www.dole.gov.ph/files/DO%20174-17%20Rules%20Implementing%20Articles%20106%20to%20109%20of%20the%20Labor%20Code,%20As%20Amended(1).pdf. On the other hand, below is a verbatim reproduction of Articles 106 to 109 of the Labor Code:
Article 106. Contractor or subcontractor. Whenever an employer enters into a contract with another person for the performance of the former’s work, the employees of the contractor and of the latter’s subcontractor, if any, shall be paid in accordance with the provisions of this Code.

In the event that the contractor or subcontractor fails to pay the wages of his employees in accordance with this Code, the employer shall be jointly and severally liable with his contractor or subcontractor to such employees to the extent of the work performed under the contract, in the same manner and extent that he is liable to employees directly employed by him.

The Secretary of Labor and Employment may, by appropriate regulations, restrict or prohibit the contracting-out of labor to protect the rights of workers established under this Code. In so prohibiting or restricting, he 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 this Code, to prevent any violation or circumvention of any provision of this Code.

There is "labor-only" contracting where the person supplying workers to an employer does not have substantial capital or investment in the form of tools, equipment, machineries, work premises, among others, and the workers recruited and placed by such person are performing activities which are directly related to the principal business of such employer. In such cases, the person or intermediary shall be considered merely as an agent of the employer who shall be responsible to the workers in the same manner and extent as if the latter were directly employed by him.

Article 107. Indirect employer. The provisions of the immediately preceding article shall likewise apply to any person, partnership, association or corporation which, not being an employer, contracts with an independent contractor for the performance of any work, task, job or project.

Article 108. Posting of bond. An employer or indirect employer may require the contractor or subcontractor to furnish a bond equal to the cost of labor under contract, on condition that the bond will answer for the wages due the employees should the contractor or subcontractor, as the case may be, fail to pay the same.

Article 109. Solidary liability. The provisions of existing laws to the contrary notwithstanding, every employer or indirect employer shall be held responsible with his contractor or subcontractor for any violation of any provision of this Code. For purposes of determining the extent of their civil liability under this Chapter, they shall be considered as direct employers.

ABS-CBN NEWS: The executive order against labor contractualization recently signed by President Duterte is "useless", a lawmaker said Friday. On Labor Day, Duterte signed Executive Order 51 stopping illegal contractualization, a move criticized by labor groups. "It's a useless executive order because you're prohibiting what is already prohibited. Jurisprudence and labor laws already prohibit [that]," Akbayan party-list Rep. Tom Villarin told ANC's Headstart. (Duterte's anti-endo EO 'useless', lawmaker says; by ABS-CBN News; Posted on May 04 2018 10:45 AM)

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