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Sponsored by: The ChanRobles Group
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This web page features the full text of
Department Order No. 03 (Series of 2001).
REVOKING DEPARTMENT ORDER NO. 10, SERIES OF 1997, AND CONTINUING TO PROHIBIT LABOR-ONLY CONTRACTING
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Section 1. Revocation of Department Order No. 10. - Department Order No. 10, Series of 1997, otherwise known as the rules implementing Article 106 to 109 of Book III of the Labor Code, is hereby revoked effective immediately.
Section 2. Prohibition against labor-only contracting. - Labor-only contracting is hereby declared prohibited. There is labor-only contracting where the contractor or subcontractor merely recruits, supplies or places workers to perform a job, work or service for a principal, and the following elements are present:
(a) The contractor or subcontractor does not have substantial capital or investment to actually perform the job, work or service under its own account and responsibility; andSection 3. Non-impairment of existing contracts; Non-diminution of benefits. Subject to the provisions of the Civil Code and existing jurisprudence, nothing herein shall impair the rights or diminish the benefits being enjoyed by parties to existing contracting or subcontracting arrangements.(b) The employees recruited, supplied or placed by such contractor or subcontractor is performing activities, which are directly related to the main business of the principal.
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