Law Summary
Scope and Applicability
- The Order applies to all parties, including cooperatives, engaged in any form of contracting and subcontracting.
Prohibition of Illegal Contracting or Subcontracting
- Illegal contracting or subcontracting that circumvents workers' rights to security of tenure, self-organization, collective bargaining, and concerted activities is strictly prohibited.
- Security of tenure is defined as the right of employees not to be dismissed without just or authorized cause and due process.
- The Secretary of Labor and Employment has the authority, in consultation with the National Tripartite Industrial Peace Council, to declare which activities can be contracted out.
Legal Consequences for Violations
- Any principal employer involved in illegal contracting or subcontracting shall be deemed the direct employer of the workers in question for all legal purposes.
Enforcement and Inspection Powers
- The Secretary of Labor and Employment and authorized representatives have broad visitorial and enforcement powers to inspect establishments to ensure compliance with labor laws.
- They have access to employer records, premises, employees, and may conduct investigations any time work is being performed.
- Issuance of compliance orders follows due process and these orders are immediately executory unless restrained by court.
- Compliance orders involving worker regularization prohibit termination of workers pending appeal except for just cause; unlawful termination renders the order executory.
Sanctions
- Violations of the Order shall be penalized in accordance with existing laws and regulations.
Inter-agency Cooperation
- All Executive Branch government agencies are directed to assist the Department of Labor and Employment in implementing the Order.
Separability Clause
- Any unconstitutional or invalid provisions will not affect the remaining provisions, which will continue to be in full force.
Repealing Clause
- Prior inconsistent laws, orders, or regulations are repealed, amended, or modified to the extent of inconsistency.
Effectivity
- The Order takes effect 15 days after its publication in a newspaper of general circulation.