Labor and Employment Secretary Silvestre H. Bello III yesterday issued Department Order No. 162 which suspends registration of new applicants as contractors or subcontractors under Department Order No. 18-A as part of the government’s effort against illegitimate contractualization.
“The department order (D.O.) is pursuant to the strategy of the government to end illegitimate contractualization and ‘endo’ practice. Integral to the strategy is the evaluation of contracting practices/arrangement,” said Bello.
He added that the issuance is part of the Department’s strategy to reduce illegitimate contractualization or “endo” practice by 50 percent by the end of the year.
Under the new department order, all certificates of registration of contractors/subcontractors issued prior to D.O. shall be respected, unless otherwise revoked through the exercise of the enforcement and adjudicatory powers of the Secretary of Labor and Employment or his duly authorized representative.
Contracts entered into by duly registered contractors/subcontractors before the issuance of the said department order shall not be impaired or diminished consistent with the provisions of the Labor Code, the Civil Code, and existing jurisprudence.
The department order shall be effective immediately after publication in newspaper of general circulation.
The Department also came out with an action plan to reduce “endo” practice by 50 percent by the end of the year. The strategies in the action plan include 100 percent assessment and re-assessment of priority sectors, such as hotels, food chains, manufacturing, malls, agricultural plantation and corporate farms; 100 percent assessment and re-assessment of all contractors and subcontractors; issuance of new rules implementing Articles 106 to 109 and Articles 293 to 296; and provision of 100 percent assistance to affected workers.
Secretary Bello added that the goal to reduce the number of establishments that are practicing “endo” is part of the Department’s effort to realise the pronouncements of Pres. Rodrigo R. Duterte to abolish the unlawful contractualization scheme, which he described as unfair labor practice and tool for exploiting the Filipino workers.