DOLE suspends registration of new contractors

MANILA, Philippines - The Department of Labor and Employment (DOLE) has stopped the registration of new contractors and subcontractors as part of the government efforts to curb illegal contractual employment.

Labor Undersecretary Joel Maglungsod said they have already issued an order suspending the registration of new applicants as contractors or subcontractors.

“With the approval of Department Order No. 162, DOLE is no longer issuing certificates of registration of contractors and subcontractors,” Maglungsod said. Maglungsod said existing certificates of registration will be reviewed by the department.

 The labor official expressed confidence that with the order, DOLE would be able to stop illegal contractual scheme or the so-called “endo” within six months of the Duterte administration.

Labor Secretary Silvestre Bello earlier announced DOLE will issue an order aimed at reducing endo practice by 50 percent before the end of the year.   

Under endo, Bello said, workers are deprived of ovetime pay and other mandated benefits since workers are hired for only about five months without security of tenure, monetary, non-monetary, and social protection benefits.

Bello earlier ordered all DOLE regional offices to come up with a list of establishments engaging in contractualization.

During the presidential campaign, President Duterte promised to stop contractualization in response to the call of various labor groups for an end to endo.  

In an order signed last Monday, Bello said previously issued certificates of registration of contractors and subcontractors shall be respected unless otherwise revoked.

The order shall take effect upon publication in a newspaper of general circulation.

The DOLE chief has the adjudicatory power to revoke the registration certificate.

Bello said contracts entered into by duly registered contractors and subcontractors prior to the issuance of the order shall not be impaired or diminished.

In 2011, DOLE has ordered the registration of contractors and subcontractors in a bid to purge fly-by night contractors as well as provide additional protection for workers.

However, trade groups have been demanding the revocation of the order which they said legalizes endo.