The Department of Labor and Employment (DOLE) issued Department Order No. 174, series of 2017 (DO 174) which provides a set of guidelines to govern contracting and subcontracting in the Philippines.
Under the said Department Order, all parties engaged in legitimate contracting and subcontracting arrangements shall apply for registration at the DOLE Regional Office in the region where it seeks to principally operate.
Requirements for Registration
- Application form
- A certified true copy of a certificate of registration of firm or business name from the Securities and Exchange Commission (SEC), Department of Trade and Industry (DTI), Cooperative Development Authority (CDA), or from the DOLE if the applicant is a labor organization;
- A certified true copy of the license or business permit issued by the local government unit or units where the contractor operates;
- A certified listing, with proof of ownership or lease contract, of facilities, tools, equipment, premises implements, machineries and work premises, that are actually and directly used by the contractor in the performance or completion of the specific job or work contracted out;
- Photo of the office building and premises where it holds office;
- A copy of audited financial statements if the applicant is a corporation, partnership, cooperative or a labor organization, or a copy of the latest ITR if the applicant is a sole proprietorship; and
- A sworn disclosure that the registrant, its officers and owners or principal stockholders or any one of them, has not been operating or previously operating as a contractor under a different business name or entity or with pending cases of violations of these Rules and/or labor standards, or with a cancelled registration. In case any of the foregoing has a pending case, a copy of the complaint and the latest status of the case shall be attached.
Note: The application and supporting documents shall be filed in triplicate copies to the Regional Office where the applicant principally operates.
Where to Apply for Registration?
- Regional Offices
- DOLE NCR – https://ncr.dole.gov.ph/
- DOLE Region IV-A – http://calabarzon.dole.gov.ph/
Who are not covered by the Department Order No. 174?
Department Order No. 174 only applies only to trilateral relationships between the principal, subcontractor, and the employee which characterize contracting or subcontracting arrangements. It does not cover information technology-enabled services involving an entire or specific business process such as:
- Business Process Outsourcing
- Knowledge Process Outsourcing
- Legal Process Outsourcing
- IT Infrastructure Outsourcing
- Application Development
- Hardware and/or Software Support
- Medical Transcription
- Animation Services
- Back Office Operations/Support
DO No. 174 is also not applicable to contracting or subcontracting arrangements in the construction industry which fall under the licensing coverage of the Philippine Contractors Accreditation Board (PCAB). The said construction industry arrangements shall be governed by DO No. 19, series of 1993 (Guidelines Governing the Employment of Workers in the Construction Industry), DO No. 13, series of 1998 (Guidelines Governing the Occupational Safety and Health in the Construction Order), and the DOLE-DPWH-DILG-DTI and PCAB Memorandum of Agreement-Joint Administrative Order No. 1, series of 2011.
Further, DO No. 174 does not cover contractual relationships such as contracts of sale, contracts of lease, contracts of carriage, contracts of growing, toll manufacturing contracts, contracts of management, operation and maintenance, contracts, and other similar contracts governed by the Civil Code and other laws. Moreover, it does not cover the contracting out of a job or work to a professional or individual with unique skills and talents who performs the work for the principal.
Requirements for Non-Coverage to Department Order No. 174
- Letter request showing the company name and working contact number and addressed to Bureau of Local Employment’s Office;
PATRICK P. PATRIWIRAWAN, JR.
Bureau of Local Employment
6th Floor, First Intramuros, BF Condominium
Soriano Ave. cor. Solana St., Intramuros Manila
Certified true copies of the following:
- SEC Registration with Articles of Incorporation/Partnership, indicating the company’s primary purpose, DTI Registration for sole proprietorship, CDA Certificate of Registration, or DOLE Certificate of Registration for labor organizations;
- BIR Certificate of Registration 2303;
- Valid Business/Mayor’s Permit;
- Copy of Contract between contracting parties and/or Purchase Order, whichever is applicable, if any; and
- Company profile.
Other supplementary required documents, according to the nature of business:
For Construction-related business
- Valid CTC of Philippine Contractors Accreditation Board (PCAB) License
For private security company
- Valid CTC of License to Exercise Security Profession (LESP)
For Private Employment Agency (PEA)
- Valid CTC of PEA License
For Hazardous Waste Transporter
- Valid CTC of Hazardous Waste Transporter Registration Certificate issued by the DENR
Note: The applicant may be requested to submit other supporting documents upon evaluation of the requirements.