Scope and Coverage
- The Order applies to all parties, including cooperatives, involved in contracting and subcontracting arrangements.
Prohibition Against Illegal Contracting or Subcontracting
- Illegal contracting/subcontracting intended to circumvent workers' right to security of tenure and related rights is strictly prohibited.
- Security of tenure: the right of employees not to be dismissed without just cause and due process.
- The Secretary of Labor may identify activities that may be contracted out, in consultation with the National Tripartite Industrial Peace Council.
Effect of Violation
- Violating contracting/subcontracting provisions renders the principal employer directly liable as the employer of the contractor’s or subcontractor’s workers.
Enforcement of Labor Standards and Working Conditions
- The Secretary of Labor, through authorized representatives, has visitorial and enforcement powers to inspect establishments anytime labor is being performed.
- Full access to employer’s records, premises, and personnel is authorized for investigation and compliance verification.
- Compliance orders may be issued after due hearing and are immediately executory unless restrained by court order.
- In orders for worker regularization, employment cannot be terminated pending appeal except for just cause.
- Termination pending appeal causes the compliance order for regularization to become executory.
Sanctions
- Violations of the Order are subject to penalties as prescribed by existing laws or regulations.
Inter-agency Cooperation
- All executive government agencies are mandated to assist and support the Department of Labor and Employment in implementing the Order.
Separability Clause
- If any provision is declared unconstitutional or invalid, the rest of the Order remains effective.
Repealing Clause
- Existing laws, rules, or orders inconsistent with this Order are repealed, amended, or modified accordingly.
Effectivity
- The Order takes effect 15 days after publication in a newspaper of general circulation.