Labor only contracting is prohibited by law. If a company hires a labor only contractor, the company will be considered the employer of the employees of the contractor.
When is there labor-only contracting? Article 106 of the Labor Code of the Philippines defines “labor-only” contracting as follows:
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.
Did you know that women were generally prohibited from working at night? Under the Labor Code:
Art. 130. Nightwork Prohibition. — No woman, regardless of age, shall be employed or permitted or suffered to work, with or without compensation:
(a) In any industrial undertaking or branch thereof between ten o’clock at night and six o’clock in the morning of the following day; or
(b) In any commercial or non-industrial undertaking or branch thereof, other than agricultural, between midnight and six o’clock in the morning of the following day; or
(c) In any agricultural undertaking at nighttime unless she is given a period of rest of not less than nine (9) consecutive hours.
Through Republic Act No. 10151 (approved by the President on 21 June 2011), Congress removed the general prohibition against employment of women for nightwork by repealing Article 130 of the Labor Code. In lieu of Article 130, RA 10151 inserted provisions into the Labor Code relating to the employment of nighttime workers. It provides, among others, for: (a) the implementation of health assessment of nighttime workers; (b) the provision of mandatory facilities for night work; (c) rules for transfer of nighttime workers; (d) special measures for the protection of women nighttime workers; (e) rules on compensation and special services for nighttime workers.
Presidential Decree No. 442, otherwise known as the Labor Code of the Philippines, revised and consolidated Philippine labor and social laws for the purpose of protecting labor, promoting employment and human resources development and insuring industrial peace and stability based on social justice. It became effective on November 1, 1974.
The Labor Code regulates the following:
(a) pre-employment, such as the hiring and recruitment of workers;
(b) human resources development, which includes the training and employment of apprentices and learners;
(c) conditions of employment, such as working conditions, rest periods, and payment of wages;
(d) health, safety and social welfare benefits;
(e) labor relations, which covers unions, strikes, unfair labor practices and collective bargaining agreements;
(f) post-employment, which covers termination of employment, security of tenure and retirement from the service.