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Last April 1, 2017, the Nonato Nonato Nonato-Luciano & Luciano Law Offices held a seminar for its clients on DOLE Department Order No. 174 (DO No. 174) or the new rules on contractualization. DO No. 174 was issued last March 16, 2017 and became effective this April.

DO No. 174 bans labor-only contracting and other illicit forms of employment arrangements. DO No. 174 increased the substantial capital requirement of contractors and subcontractors to Five Million Pesos (Php5,000,000) from Three Hundred Thousand Pesos (Php300,000). It also shortened the validity of the certificate of registration of contractors and subcontractors from three (3) years to two (2) years and it also increased the registration and renewal fee from Twenty Five Thousand Pesos (Php25,000) to One Hundred Thousand Pesos (Php100,000).

This article does not constitute and is not intended to be legal advice. If you have any question or need any assistance, please feel free to send us an email at roselle.jean@nonatolaw.com.