[author: Emerico de Guzman]*

Executive Order Aims to Curb Prohibited Labor-Only Contracting

New Order or Decree

Author: Emerico O. de Guzman, Managing Partner – Angara Abello Concepcion Regala & Cruz Law Office

On May 2, 2018, the President released Executive Order No. 51 as part of the current administration’s efforts to curb prohibited labor-only contracting. The Order delegates power to the Secretary of the Department of Labor and Employment to declare which activities may be contracted out. Further, in enforcing the procedure on inspections, the Order grants compliance officers the power to access an employer’s records, question employees, and investigate fact potential labor law violations.

Restriction on Applications to Renew a Contractor’s Certificate of Registration

New Regulation or Official Guidance

Author: Emerico O. de Guzman, Managing Partner – Angara Abello Concepcion Regala & Cruz Law Office

On April 24, 2018, the Department of Labor and Employment (DOLE) issued Advisory No. 6 to harmonize the effects of labor law compliance inspections with a contractor’s applications to renew its Certificate of Registration. Under this regulation, a contractor’s application for renewal of registration shall be denied once a Compliance Order finding violations has become final and enforceable, upon the resolution of an appeal. A perfected appeal against a Compliance Order, however, shall not stay the processing of the contractor’s application.

*Managing Partner – Angara Abello Concepcion Regala & Cruz Law Office