The Supreme Court of the Philippines has reaffirmed the difference between job contracting and labor-only contracting, emphasizing that a Certificate of Registration from the Department of Labor and Employment (DOLE) does not automatically validate job contracting practices. The Court stressed that determining the legitimacy of contracting requires a thorough examination of all facts and circumstances. The SC reiterated its previous ruling, stating that labor-only contracting occurs when the manpower agency lacks substantial capital investment and the workers perform activities directly related to the employer's principal business.
The Supreme Court has ironed out anew the difference between “ job contracting ” and “ labor-only contracting ” employed by some manpower service agencies in supplying workers to firms and businesses in the country.
In “labor-only” contracting, it said “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 extent as if the latter were directly employed by him.” A case background issued by the SC’s Public Information Office stated that Nozomi hired Naredo and other workers between 2003 and 2005. They were assigned to Samsung, a company that produces and exports microchips, to work as production operators.
Additionally, they found no evidence of illegal dismissal, as the complainants had submitted voluntary resignation letters, it also said. “Under this arrangement, the contractor is a mere agent of the employer who is ultimately responsible to the workers as if the employer directly employed them.
Supreme Court Labor-Only Contracting Job Contracting Manpower Agencies Department Of Labor And Employment
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