Labor and Employment Secretary Rosalinda Dimapilis-Baldoz enjoined employers in the private security industry to comply with Department Order No. 150-16, or the “Revised Guidelines Governing the Employment and Working Conditions of Security Guards and other Private Security Personnel in the Private Security Industry, to ensure that mandated employment benefits and working conditions for security guards and other private security personnel are properly given.
“I enjoin all employers in the private security industry to comply with D.O. 150-16 which spelled out the rules on employment and working conditions of security guards and other security personnel who put their lives and limbs on the line in the performance of their duties,” said Baldoz.
D.O. 150 amends Department Order No. 14, Series of 2001 by introducing key improvements in simplifying description of employment status. It also specifies the composition of a service agreement; stipulates the rights and benefits of a security personnel; and explains further the rules on deductions for loss or damage as well as deductions for the cash bond.
The Labor and Employment Chief added that D.O. 150-16 concretized the guidelines toward voluntary compliance of security agencies with general labor standards (GLS) and occupational safety and health standards to ensure the social welfare and protection of security guards.
D.O. 150-16 also states that security guards and other private security personnel assigned to a person or company/principals are considered employees of the security service contractor or private security agency (PSA). When a service agreement is entered into between a PSA and a principal, the DOLE Regional Office concerned can order the parties to submit to them a copy of the agreement.
“The service agreement between the two parties should contain, among others, provisions relating to the nature of the work to be done, its terms and conditions, and the basic equipment to be provided to the guards,” said Baldoz.
D.O. 150-16 also provides for “automatic crediting provision” in the service agreement. This means that in case DOLE’s Regional Tripartite Wages and Productivity Boards issue wage orders increasing the wages and other wage-related benefits of minimum wage earners, the principal shall shoulder the increase and the agreements shall be deemed amended accordingly.
This means the burden of making upward adjustments in the guards’ wages pursuant to DOLE’s orders has to be assumed by the principal even if they are considered employees of the PSA, and not of the principal.
In addition, the private security agency should make an undertaking to directly remit every month the employer’s share and employee’s contribution to the Social Security System, Employees Compensation Commission, Philippine Health Insurance Corp., and Home Development Mutual Fund.
The revised guidelines also provides for the inclusion of the Single Entry Approach (SEnA) program and the oversight function of the National Tripartite Industrial Peace Council and the Private Security Industry Tripartite Council, and a provision increasing the administrative fee of private security establishments from 10 percent of the total contract cost to not less than 20 percent of the total contract cost.
D.O. 150-16 also recommended formulas for the computation of the equivalent monthly rates of security guards and security personnel to ensure uniform treatment in the computation of wages and other wage-related benefits. The formulas can be used to determine the guards’ equivalent monthly rates using their applicable daily rate.
The formulas take into consideration the number of days the guards are required to work in a year and whether or not they are considered paid or unpaid on Sundays, holidays and rest days.
D.O. 150-16 also emphasized that security guards and security personnel are entitled to retirement benefits under Republic Act Nos. 7641 and 1161 as amended by Republic Act No. 8282, and retirement plans of the security service contractor, if any; social security benefits; rights to self-organization and collective bargaining, subject to the provisions of existing law; and security of tenure.