MALACAÑANG on Wednesday, May 2, released President Rodrigo Duterte's Executive Order (EO) 51, which prohibits illegal contracting or subcontracting arrangements between employers and their employees.
Duterte signed the EO during the Labor Day celebration Tuesday, May 1, in Cebu City to give Filipino workers a "full, dignified and meaningful employment."
As he issued the EO, however, he called on Congress to amend the "outdated" Labor Code of the Philippines "in order to implement an effective and lasting solution to the problems brought about by contractualization.
EO 51 orders the strict implementation of the Labor Code's Article 106, which allows the issuance of regulations to protect the rights of workers, and Article 128, which gives the Department of Labor and Employment (DOLE) visitorial and enforcement power.
Under EO 51, the President ordered the ban on unlawful contracting and subcontracting schemes of "all parties, including cooperatives engaged in any contracting and subcontracting arangement."
"Contracting or subcontracting, when undertaken to circumvent the worker's right to security of tenure, self-organization and collective bargaining, and peaceful concerted activities pursuan to the 1987 Constitution, is hereby strictly prohibited," the EO read.
Security of tenure refers to the right of employees not to be dismissed without just cause and due process.
Activities that may be contracted out will be declared by the Labor Secretary, after consultation with the National Tripartite Industrial Peace Council.
"The principal engaged in any arrangement in violation of this Order shall be considered the direct employer of the contractor's or subcontractor's workers for all purposes," the presidential directive added.
Duterte's EO also reinforces the visitorial and enforcement power of the Labor Secretary and his representatives and allows inspections "any time of the day or night."
The presidential directive gives the Labor Secretary and his representatives "full access to employer's records and premises as well as to any personnel at any time of the day or night whenever work is undertaken therein."
DOLE may "question any employee and investigate any fact, condition or matter which may be necessary to determine violations or which may aid in the enforcement" of labor laws and regulations.
Any compliance order affirmed by the Labor Secretary is immediately executory unless stopped by the court.
If DOLE orders the regularization of workers, the EO protects the workers while the employer appeals the order.
"In case the compliance order involves a directive to regularize workers, the employment of the latter shall not be terminated pending appeal of such order except for just or authorized cause. Any termination of workers pending appeal shall render the compliance order involving the regularization of workers executory," Duterte's order states.
Duterte issued the order to fulfill his campaign promise to put an end to "endo".
"Endo" or end-of-contract refers to the scheme where employers fire workers before their six-month contract ends to avoid regularization and payment of benefits such as paid leave, premium contributions to government pension fund, bonuses and health insurance. (Ruth Abbey Gita/VoxPop Philippines)