So as to hasten the handling of applications for renewal of registration by labor contractors, the labor department has issued an advisory setting the grounds for approval or denial of their applications.
Labor Advisory No. 06 clarifies the guidelines on the renewal of registration of contractors under Department Order No. 174, series of 2017, and provides that renewal application of labor contractors with no inspection findings or pending cases shall be acted upon.
The application for the renewal of registration of contractors which has complied with the requirements set under Section 21 of D.O. 174-17 shall be acted upon by the DOLE in accordance with its existing process.
The advisory also provides that application for renewal of registration of contractors with inspection findings or pending cases with issued Compliance Order that has become final and executory shall be denied.
Such application shall only be processed upon presentation of proof of compliance with findings or order of dismissal of the case.
In case of contractors with inspection findings or pending cases with issued Compliance Order but have timely and validly filed an appeal with the Labor Secretary, their application for renewal of registration shall be acted upon by the DOLE in accordance with its existing process.
Cancellation proceedings shall only be initiated by the DOLE office where the contractor is registered when the resolution of Labor Secretary has become final and executory.
Meanwhile, the application for registration of contractors whose registration is cancelled shall be denied.
D.O. 174-17, or the rules implementing Articles 106 to 109 of the Labor Code, as amended, replaces D.O. 18-A which was being circumvented to allow labor-only contracting and blamed for the proliferation of ‘endo’ practices and other illegal forms of contractualization.