Question & AnswerQ&A (DOLE DEPARTMENT ORDER NO. 5)
This Rule applies to any person who performs industrial homework for an employer, contractor, or subcontractor.
Industrial Homework is a system of production where work for an employer or contractor is carried out by a homeworker at his/her home, with or without materials furnished by the employer or contractor, characterized by decentralized production with little supervision of methods of work.
An Industrial Homeworker is a worker engaged in industrial homework.
An employer is a natural or artificial person who, for their account or benefit, or on behalf of persons outside the Philippines, delivers goods or materials to be processed at home or sells goods for processing at home and repurchases them after processing, either directly or through employees, agents, contractors, or subcontractors.
Homeworkers have the right to form, join, or assist organizations of their own choosing in accordance with the law.
Requirements include a P55 registration fee; names and addresses of officers and members; minutes of organizational meetings; a list of members representing at least 20% of the bargaining unit if applicable; annual financial reports if applicable; and copies of the constitution and by-laws.
The employer must pay the homeworker, contractor, or subcontractor immediately upon receipt of finished goods, less the homeworkers' share of SSS, Medicare, and ECC contributions, which must be remitted by the employer or contractor with the employer's share.
Standard output or minimum rates are established by the Secretary of Labor through time and motion studies, collective agreements approved by the Secretary, or consultation with employer and worker representatives in a tripartite conference.
Deductions for loss or damage to materials are allowed only if the homeworker is responsible, given a chance to explain, the deduction is fair and doesn't exceed actual loss, and the deduction does not exceed 20% of weekly earnings.
The Regional Director can order compliance, hear and decide complaints involving money claims up to P5,000, and enforce decisions as final and executory; cases exceeding P5,000 are referred to the National Labor Relations Commission.
If contractors or subcontractors fail to pay homeworkers as required, the employer shall be jointly and severally liable to pay the workers for work performed under the contract.
Yes. Homework should not involve explosives, fireworks, drugs, poisons, or articles requiring exposure to toxic substances.
They can receive technical assistance on wages and benefits, conduct of time and motion studies, skills training, workplace safety, social security benefits, facilitation of loans, and information on housing programs under PAG-IBIG.
Employment of minor homeworkers is governed by provisions on minors and working children under the Labor Code and the Child and Youth Welfare Code.
It took effect fifteen (15) days after its publication in two newspapers of general circulation following its adoption on February 4, 1992.