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The Supreme Court has upheld the Department of Labor and Employment’s order to PLDT Inc. to regularize its employees engaged in the installation, repair, and maintenance services of the telecommunication giant’s lines.
“With regard to those workers performing installation, repair and maintenance functions, we clarify that the Supreme Court remanded the case to the DOLE regional director to determine whether or not regularization is appropriate,” PLDT said.In its decision, the High Court explained that labor contracting—which means a non-employee of a company is contracted to work based on a specific rate and period—is not necessarily illegal.
The High Court explained that under Article 295 of the Labor Code, regular employment is determined through the connection between the employee’s work and the “usual” business or trade of the employer. Labor-only contracting is done when a contractor or sub-contractor merely recruits, supplies, or places workers, or when the following elements are present, according to the High Court:
Contractors that were able to show proof of compliance with Department Order No. 18-A implementing Articles 106 to 109 of the Labor Code were declared as legitimate contractors.
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