Bills on contractualization in Congress

TWENTY-FOUR house bills and privilege speeches tackling the issue of contractualization were discussed by the Congress’ Committee on Labor and Employment chaired by Cong. Randolph Ting (Tuguegarao) on November 23.

Various stakeholders including representatives from DOLE and DSWD plus different workers’ groups attended the hearing together with the authors of the bills.

Baguio Representative Mark Go, who filed House Bill 3556 titled, “An Act Regulating the Outsourcing of Work Amending for the Purpose Article 106 of Presidential Decree 442, as Amended, Otherwise Known as The Labor Code of The Philippines” and delivered a privilege speech on the same topic, was present to introduce his version of the bill on “outsourcing of work”.

Go asserted it is the intent of his bill to redefine and simplify job contracting and labor-only contracting under the term “outsourcing of work”.

Under the 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.

“As of 2014, the Philippine Statistical Authority (PSA) estimated that there are 621,905 agency-hired workers employed in various business establishments in the Philippines. For 2016, the figure rose to an estimate of two million contractor’s employees. These figures covered those contractual workers who are employed under legitimate contractors registered with the Department of Labor and Employment (Dole). As per DOLE records, there are now 5,600 legitimate service contractors registered with the Department,” Go said.

The solon added HB 3556 seeks to resolve recurring problems in the practice of contractualization and to achieve a favorable situation for both the employees and employers, being essential components of a progressive economy, and as partners in attaining sustainable growth and development for the country.

Addressing his colleagues in the committee, Go said this is an opportune time to do what is necessary and to make changes in the light of current global order that will be beneficial for employees, employers, manpower service contracting industry and the economy. From the office of Cong. (Mark Go)

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