Department of Labor and Employment (DOLE) Department Order No. 174 is a fresh batch of rules that oversee contracting and subcontracting. DO 174 singles out 2 situations that define labor-only contracting that the law prohibits.
The 1st kind is when a contractor does not have enough capital or does not have investments in terms of equipment, machines, facilities, overseers, or tools, amongst other possibilities.
The 2nd is when the contractor’s workers are doing duties that are directly relevant to the core business of the owners. This 2nd type occurs when the contractor has no right to exercise control over the output of the employees.
TOG complies with the issuance of DO 174 and the government’s latest declaration of advocacy against contractualization or “end of term” agreements and makes sure that its service contractors comply with the latest guidelines.