Contracting Arrangement

Contracting Arrangement
Contracting Arrangement



- Found in the labor code (Articles 106 to
109)
- Whenever an employers enters into a
contract with another person for the
performance of the formers work, the
employee of the contractor and of the
latters subcontractor, shall be paid in
accordance with this provision.

Obligations of the Contractor
- He must register in compliance with DO
No. 18-A (provided under Section 14
and 15)
- Reason: restrict or prohibit the
contracting out of labor to protect the
rights of the workers
- Register with the RD of DOLE
- Requirements of Registration (Section
15, DO No. 18-A)
o Name and address of applicant
o Name and address of officers
o Nature of business
o Number of regular workers and
workforce
o List of clients and personnel
assigned to each client and the
services provided
o Description of the contract
o Proof compliance with
substantial capital requirement
(section 3)
Refers to paid up
capital stocks/shares of
at least 3m in case of
corporations,
partnerships, and
cooperative, and a net
worth at least 3m for
single proprietorship.