Employers protest Senate bill seeking end to subcontracting

Published by rudy Date posted on September 4, 2009

A bill pending before the Senate committee on labor and employment that proposes to radically amend Labor Code provisions on contracting and subcontracting will wreak havoc on the economy by forcing out of business independent contractors and service providers.

The Employers Confederation of the Philippines (Ecop) issued the warning in the wake of Senate Bill (SB) 2212, which introduces amendments in Articles 106 and 106-A to 106-E of the Labor Code by making it unlawful for employers to: Maintain subcontracted employees in excess of 10 percent of its total workforce; contract out a job, work or service when the same results in the termination of regular employees and reduction of work hours or reduction or splitting of the collective bargaining unit; and contract out a job, work or service being performed or previously performed by regular employees and/or members of the bargaining unit.

Ecop president Sergio Ortiz-Luis Jr. charged that these proscriptions constitute an abridgment of management prerogative to contract out based on the exigencies of business operations, and in the process, to dismiss employees on the ground of redundancy or retrenchment.

Ortiz-Luis said the bill, once enacted into law, would virtually outlaw job contracting and outsourcing and force of out business independent contractors and service providers.

The bill also envisions to amend Article 248 of the Labor Code by prohibiting employers to engage a labor-only contractor or to contract out services or functions being performed by members of, or positions covered by the bargaining unit and/or regular rank-and-file and supervisory employees.

“Contracting out the performance of work by the employer/principal to a legitimate job contractor has been determined by case law as a constitutional right of the employer, so long as it is done in good faith, based on the exigencies of business and not intended to bust a union,” Ortiz-Luis argued.

SB 2212 also makes it unlawful to deny the existence of employer-employee relationship and/or to classify as casual, contractual, subcontracted employees, agency employees, or other non-regular classification those employees who are regular by virtue of Article 280 of the Labor Code.–Daily Tribune

June 2025

Philippine Environment Month!
“Action for Nature, for the Future!”


Invoke Article 33 of the ILO Constitution
against the military junta in Myanmar
to carry out the 2021 ILO Commission of Inquiry recommendations
against serious violations of
Forced Labour and Freedom of Association protocols.

Accept National Unity Government (NUG)
of Myanmar.  Reject Military!

#WearMask #WashHands #Distancing #TakePicturesVideosturesVideos

Time to support & empower survivors. Time to spark a global conversation. Time for #GenerationEquality to #orangetheworld!

Monthly Observances:

  1 Jun – World Day of Parents

  5 Jun – World Environment Day 

  7 Jun – World Food Safety Day 

  8 Jun – World Oceans Day

12 Jun – World Day Against Child Labour

15 Jun – World Elder Abuse Awareness Day 

16 Jun – International Day of Family Remittances 

17 Jun – World Day to Combat Desertification and Drought

20 Jun – World Refugee Day 

25 Jun – Day of the Seafarer 

27 Jun – Micro-, Small and Medium-sized Enterprises Day

 

 Daily Observances:

June 6: Migrant Workers Day

June 19: Filipino Youth Day 
June 25: Day of the Filipino Seafarer

Categories