Question & AnswerQ&A (DEPARTMENT ORDER NO. 14, S. 2001, DECEMBER 18, 2001)
It applies to all private security agencies or operators, their principals or clients, all companies allowed to directly employ security guards, and to all security guards—whether agency or company employees—for compliance with labor standards laws and benefits.
A 'principal' refers to any employer, company or establishment to whom a security job, service or work is provided by a security service contractor, whether or not there is a written contract.
The security service contractor is the employer of its security guards, while the principal is considered an 'indirect employer' jointly and severally liable for unpaid wages and wage-related benefits, unless the principal controls the manner of service or directly hires the guard.
The probationary period shall not exceed six (6) months.
The contract must state that guards shall be paid not less than the minimum wage, contain an escalation clause for wage increases, comply with coverage under SSS, ECC, PhilHealth, and HDMF, specify the nature of security service, and include the schedule for 13th month and retirement pay.
Security guards must be paid at least the minimum wage rate for the non-agricultural sector in the region where they are assigned, or the region where they were engaged, whichever is higher.
Benefits include basic salary for workdays and 10 regular holidays, allowance if prescribed, premium pay for special/rest days, overtime pay, night shift pay, service incentive leave, paternity leave, and 13th month pay.
Deductions may only be made for SSS, EC, HDMF, PhilHealth contributions, withholding tax (with receipt), union dues if applicable, and other deductions authorized by law.
The principal is jointly and severally liable with the security service contractor for unpaid wages to the extent of work performed under the contract.
A guard may be placed on reserved status due to lack of service assignments after contract termination or temporary suspension of agency operations, but not if it deprives the guard of available assignments, as retaliation, or constructive dismissal.