Contracting: Financial Relief Program

Details

Category: HR, Labor and Office

(Part 6 of a 6-part series. On 14 November 2011, the Department of Labor and Employment (DOLE) issued Department Order No. 18-A, which becomes effective fifteen (15) days after completion of its publication in a newspaper of general circulation. Considering that Department Order 18-A was published on 19 November 2011, it shall take effect on 4 December 2011.)

The new guidelines (Department Order No. 18-A) issued by the Department of Labor and Employment (DOLE) contains a number of new and interesting provisions. One novel component is the Financial Relief Program or Unemployment Assistance Fund.

The Financial Relief Program or Unemployment Assistance Fund shall be established for employees under a Service Agreement or employees in transition from one Service Agreement to the next. A “service agreement” refers to the contract between the principal and contractor containing the terms and conditions governing the performance or completion of a specific job, work or service being farmed out for a definite or predetermined period. [See Contracting: Contracts and Rights of of Contractual Employees]

Exactly how this program would be funded, as well as the mechanics and details in setting up the fund, is still to be seen. The Local Service Provider Tripartite Working Group (LSP-TWG), to be constituted by the National Tripartite Industrial Peace Council (NTIPC) upon the effectivity of D.O. 18-A, is tasked to recommend the mechanics and details in setting up the Financial Relief Program or Unemployment Assistance Fund with proposed funding sources before end of June 2012.

You may also want to read:

New Guidelines for Contracting or Subcontracting

Contracting: Contracts and Rights of of Contractual Employees

Contracting: Termination of Contractual Employees

Contracting: Liabilities of Principal and Contractor

Contracting: Registration of Legitimate Contractors

Full text of Department Order No. 18-A