A Certificate of Registration from the Department of Labor and Employment (DOLE) does not automatically mean a manpower agency is engaged in lawful job contracting, according to the Supreme Court (SC).
In a decision penned by Associate Justice Japar Dimaampao, the High Court’s Third Division held that although a DOLE Certificate of Registration may help prevent assumptions of labor-only contracting, it does not serve as conclusive proof of legality.
The SC explained that determining whether a manpower agency is engaged in legitimate job contracting or labor-only contracting requires looking at all the facts and circumstances.
The High Tribunal added that the Labor Code differentiates between two types of contracting: legal job contracting and prohibited labor-only contracting.
In job contracting, the contractor supplies another business or company with workers, along with the necessary tools and equipment for their tasks. The contractor is responsible for controlling and supervising the workers as their employer.
Labor-only contracting involves the contractor supplying only workers without the necessary tools or equipment. In this arrangement, the business or company manages these workers and is considered their true employer.
