DTI: Contractors and subcontractors are here to stay | mb.com.ph | Philippine News
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DTI: Contractors and subcontractors are here to stay

While contractual employees will soon be a thing of the past under the administration of President Duterte, contractors and subcontractors will still be here to stay.

MB FILE - New Trade and Industry Secretary Ramon Lopez (2016.mb.com.ph)

MB FILE – New Trade and Industry Secretary Ramon Lopez (2016.mb.com.ph)

The Department of Labor and Employment (DOLE) and Department of Trade of Industry (DTI) revealed that under the new employment scheme they are developing, contractors and subcontractors will now be required to absorb the employees, which they deploy to their principals.

The “absorbed” workers will be then given a regular status and will be able to enjoy basic labor benefits like Social Security System (SSS) membership and even vacation leaves.

“Our proposed model does not differ much from the current practice. Except the provision, where service providers will be required to regularize their workers instead on their employment being dependent on the contract with their principals,” Trade Secretary Ramon Lopez told reporters in an interview.

He said this will give companies their needed “flexibility,” when it comes to their manpower demands by allowing them to direct-hire workers or hire through service providers.