Author Topic: Job Contractor vs. Labor - Only Contractor  (Read 815 times)

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Job Contractor vs. Labor - Only Contractor
« on: June 23, 2012, 04:51:13 PM »
Natanggap si Juan sa inaplyan niyang kompanyang ABC Janitorial Services, bi. Sa loob nang isang linggo, nagtraining siya kung pano maging mabilis at malinis na janitor. Pagkatapos nang training, pinadala si Juan sa XYZ Hotel at doon nag-silbi bilang Janitor. Pagkatapos nang isang buwan, noong kukunin na niya ang suweldo, sinabi nang cashier nang XYZ Hotel na ang kanyang sweldo ay dapat niyang kunin sa ABC Janitorial Services. Naguguluhan tuloy si Juan, sino ba ang kanyang employer, ang ABC Janitorial Services, kung saan siya nag-apply, o ang XYZ Hotel, kung saan siya nag-sisilbi bilang Janitor.

Para masagot ang tanong ni Juan, dapat muna niyang malaman kung ang ABC Janitorial Services ba ay isang Job Contractor or isang Labor-Only Contractor, dahil sa kung ito ay Job Contractor, si Juan ay empleyado nito, pero kung Labor-only contractor, si Juan ay empleyado nang XYZ Hotel.

Ano ba ang Job Contractor? Labor-Only Contractor?

Ang Job Contractor ay isang independent company kung saan ang negosyo nito ay magbigay nang serbisyo sa ibang mga kompanya. Ang mga serbisyong kanilang binibigay sa ibang kompanya ay ang mga gawain na hindi direktang konektado sa negosyo nang mga kompanyang ito. Sa makatuwid, ang negosyo nang mga Job Contractor ay ang pagbibigay nang specialized services sa ibang kompanya, sa maiksing salita, sila ay service provider, at ang mga kompanya naman na nais kunin ang kanilang serbisyo, ang kanilang kliyente. Ang tawag sa kanilang kasunduan ay sub-contracting.  Ang mga sumusunod ay guidelines para masabi na ang isang kompanya ay Job Contractor:
Ang Job Contractor ay isang independent company;
Ang negosyo nito ay ang pagbibigay nang specialized services sa iba't ibang kompanya;
Ang mga kompanya na gustong kumuha nang kanilang serbisyo ay mga client company at ang tawag sa kanilang kasunduan ay sub-contracting;
Ang paraan at methodology na ginagamit nang  mga empleyado nang Job Contractor sa pagsisilbi sa mga client company ay hindi kontrolado nang mga client company maliban sa napagkasunduang resulta;
May sapat na kapital ang mga Job Contractor para patakbuhin ang kanilang negosyo tulad nang sapat na laki nang opisina, sapat na kagamitan sa opisina, sapat na empleyado, sapat na pera para sa patuloy na pagtakbo nang kanilang negosyo at pasuweldo, at sapat na kagamitan / equipment na kailangang gamitin nang kanilang empleyado sa pagsisilbi sa mga client company.
Sa kabilang banda naman, ang Labor-only Contractor naman ay ang mga kompanya na nagpapanggap na Job contractor, pero ang katotohanan ay hindi pagbibigay nang specialized services ang negosyo nila, kundi ang paghahanap lamang nang mga tao na magsisilbi para sa ibang kompanya. Ang mga trabaho nang mga taong kanilang pinapadala sa ibang kompanya ay direktang konektado sa negosyo nito kaya parehas lamang kung ano ang trabaho nang mga empleyado nang kompanya kung saan sila pinadala. Ito ay pinagbabawal nang Labor Code, dahil sa maliban sa hindi naman sila registered recruiter, ay nagiging modus operandi pa ito nang mga mapag-abusong kompanya. Ang indikasyon na Labor-only contractor lamang ang isang kompanya ay ang kakulangan nito nang sapat na kapital para maging service provider, at ang kanilang aktwal na ginagawa lamang ay maghanap nang mga tao na magsisilbi sa ibang kompanya. Sa makatuwid, hindi serbisyo ang kanilang binebenta kundi ang paghahanap nang tao para sa ibang kompanya.

Sa pangkalahatan, ang Job Contractor ay isang lehitimong kompanya na ang negosyo ay magbigay nang serbisyo sa ibang kompanya. Ang mga empleyadong pinapadala nila sa ibang kompanya ay mga empleyado pa rin nila kahit na sa ibang kompanya pa ang mga ito nagsisilbi. PERO ang Labor-only Contractor ay pinagbabawal nang batas dahil ang kanilang totoong negosyo ay ang paghahanap nang tao at hindi ang pagbibigay nang serbisyo, kung kaya't ang mga taong nagsisilbi sa kompanya kung saan sila pinadala ay empleyado nang mga kompanyang ito.

Supreme Court Case excerpt:

Manila Water Company Inc. vs. Jose J. Dalumpines, et. al.
G.R. No. 175501, October 4, 2010

"Contracting" or "subcontracting" refers to an arrangement whereby a principal agrees to put out or farm out with a contractor or subcontractor the performance or completion of a specific job, work, or service within a definite or predetermined period, regardless of whether such job, work, or service is to be performed or completed within or outside the premises of the principal.

 Contracting and subcontracting arrangements are expressly allowed by law but are subject to regulation for the promotion of employment and the observance of the rights of workers to just and humane conditions of work, security of tenure, self-organization, and collective bargaining. In legitimate contracting, the trilateral relationship between the parties in these arrangements involves the principal which decides to farm out a job or service to a contractor or subcontractor, which has the capacity to independently undertake the performance of the job, work, or service, and the contractual workers engaged by the contractor or subcontractor to accomplish the job, work, or service.

 Job contracting is permissible only if the following conditions are met: 1) the contractor carries on an independent business and undertakes the contract work on his own account under his own responsibility according to his own manner and method, free from the control and direction of his employer or principal in all matters connected with the performance of the work except as to the results thereof; and 2) the contractor has substantial capital or investment in the form of tools, equipment, machineries, work premises, and other materials which are necessary in the conduct of the business.

On the other hand, the Labor Code expressly prohibits "labor-only" contracting. Article 106 of the Code provides that there is labor-only contracting where the person supplying workers to an employer does not have substantial capital or investment in the form of tools, equipment, machineries, work premises, among others, and the workers recruited and placed by such person are performing activities which are directly related to the principal business of the employer. In such cases, the person or intermediary shall be considered merely as an agent of the employer who shall be responsible to the workers in the same manner and to the same extent as if the latter were directly employed by him.
Department Order No. 18-02, Series of 2002, enunciates that labor-only contracting refers to an arrangement where the contractor or subcontractor merely recruits, supplies, or places workers to perform a job, work, or service for a principal, and any of the following elements are present: (i) the contractor or subcontractor does not have substantial capital or investment which relates to the job, work, or service to be performed and the employees recruited, supplied, or placed by such contractor or subcontractor are performing activities which are directly related to the main business of the principal; or (ii) the contractor does not exercise the right to control the performance of the work of the contractual employee.
"Substantial capital or investment" refers to capital stocks and subscribed capitalization in the case of corporations, tools, equipment, implements, machineries, and work premises, actually and directly used by the contractor or subcontractor in the performance or completion of the job, work, or service contracted out. The "right to control" refers to the right reserved to the person for whom the services of the contractual workers are performed, to determine not only the end to be achieved, but also the manner and means to be used in reaching that end." | Your smart guide to money matters and entrepreneurship.

Job Contractor vs. Labor - Only Contractor
« on: June 23, 2012, 04:51:13 PM »

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