BAGUIO Representative Mark Go recently filed House Bill 3556 or An Act Regulating Outsourcing of Work, which seeks to amend Article 106 of the Labor Code by redefining job contracting and labor-only contracting and to regulate outsourcing of work.

“It is the intent of my bill to redefine and simplify job contracting and labor-only contracting under the term outsourcing of work. Under this bill, outsourcing of work will refer to the contracting out of work or service by an employer to a contractor or sub-contractor whose employees perform functions and activities which are directly or indirectly related to the principal business of the employer,” said Go.

The lawmaker added there is a need to resolve recurring problems in the practice of contractualization and to achieve a “win-win” situation for both employees and employers as both are essential components of a progressive economy.

House Bill No. 3556 entitled, “An Act Regulating the Outsourcing of Work Amending for the Purpose Article 106 of Presidential Decree No. 442, as Amended, Otherwise Known as The Labor Code of The Philippines” was filed several days after Go delivered his privilege speech on contractualization.

“I am hoping that thru this bill, both workers’ and employers’ rights will be protected. The bill seeks to regulate outsourcing of work by providing conditions for its practice and penalties for any violation. These include no termination without due process; outsourced employees must not exceed 20% of the total workforce of any company; and payment of separation pay for outsourced employees equal to 1 month salary at the end of the contract period,” the solon noted.

“Service contracting is the current trend and we must be able to compete with neighboring countries. We must make changes in the light of current domestic situation and global order that will be beneficial for our employees, employers and the economy’” he ended. (PR)