[verify provisions in Labor book]

I. LEGITIMATE SERVICE CONTRACTING

May be found in Book Three, Chapter III. Article 106 provides, viz:
Art. 106. Contractor or subcontractor. Whenever an employer enters into a contract with
another person for the performance of the former’s work, the employees of the contractor
and of the latter’s subcontractor, if any, shall be paid in accordance with the provisions of
this Code.
In the event that the contractor or subcontractor fails to pay the wages of his employees in
accordance with this Code, the employer shall be jointly and severally liable with his
contractor or subcontractor to such employees to the extent of the work performed under
the contract, in the same manner and extent that he is liable to employees directly employed
by him.
The Secretary of Labor and Employment may, by appropriate regulations, restrict or
prohibit the contracting-out of labor to protect the rights of workers established under this
Code. In so prohibiting or restricting, he may make appropriate distinctions between labor-
only contracting and job contracting as well as differentiations within these types of
contracting and determine who among the parties involved shall be considered the
employer for purposes of this Code, to prevent any violation or circumvention of any
provision of this Code.
There is “labor-only” contracting where the person supplying workers to an employer does
not have substantial capital or investment in the form of tools, equipment, machineries,
work premises, among others, and the workers recruited and placed by such person are
performing activities which are directly related to the principal business of such employer.
In such cases, the person or intermediary shall be considered merely as an agent of the
employer who shall be responsible to the workers in the same manner and extent as if the
latter were directly employed by him.
Jurisprudence
The Department of Labor and Employment (DOLE) has issued Department Order No. 174, series
of 2017 (DO 174), providing a new set of guidelines to govern contracting and subcontracting.
DO 174 identifies two arrangements that constitute labor-only contracting, which is prohibited
under the law. The first type of arrangement arises when:
(a) i. The contractor does not have substantial capital, or
ii. The contractor does not have investments in the form of tools, equipment, machineries,
supervision, work premises, among others; and
iii. The contractor’s employees are performing activities which are directly related to the main
business of the principal.
 or
(b) The contractor or subcontractor does not exercise the right of control over the performance of
the work of its employees.
DOLE has also issued Department Circular No. 1-2017: Clarifying the applicability of Department
Order No. 174, Series of 2017 which provides for the businesses or industries that are not covered
by DO 174. [Should I elaborate?]

II. YOUTH EMPLOYMENT

A. LAWS, POLICIES, & RULES IN THE PHILIPPINES:
Primary Sources
1987 Constitution, Declaration of Principles and State Policies
Article II, Section 13:
SECTION 13. The State recognizes the vital role of the youth in nation-building and shall
promote and protect their physical, moral, spiritual, intellectual, and social well-being. It
shall inculcate in the youth patriotism and nationalism, and encourage their involvement in
public and civic affairs.
Labor Code Articles 137 and 138:
Title III: Working Conditions For Special Groups Of Employees

Art. 137. Minimum employable age.

a. No child below fifteen (15) years of age shall be employed, except when he works
directly under the sole responsibility of his parents or guardian, and his employment
does not in any way interfere with his schooling.

b. Any person between fifteen (15) and eighteen (18) years of age may be employed
for such number of hours and such periods of the day as determined by the Secretary
of Labor and Employment in appropriate regulations.

c. The foregoing provisions shall in no case allow the employment of a person below
eighteen (18) years of age in an undertaking which is hazardous or deleterious in
nature as determined by the Secretary of Labor and Employment.

Art. 138. Prohibition against child discrimination. No employer shall discriminate

against any person in respect to terms and conditions of employment on account of his age.

Omnibus Rules Implementing the Labor Code: Book III, Rule XII, Sec. 2-3
 SECTION 2. Employable age. — Children below fifteen (15) years of age may be
allowed to work under the direct responsibility of their parents or guardians in any non-
hazardous undertaking where the work will not in any way interfere with their schooling.
In such cases, the children shall not be considered as employees of the employers or their
parents or guardians.

SECTION 3. Eligibility for employment. — Any person of either sex, between 15 and
18 years of age, may be employed in any non-hazardous work. No employer shall
discriminate against such person in regard to terms and conditions of employment on
account of his age.

For purposes of this Rule, a non-hazardous work or undertaking shall mean any work or
activity in which the employee is not exposed to any risk which constitutes an imminent
danger to his safety and health. The Secretary of Labor and Employment shall from time
to time publish a list of hazardous work and activities in which persons 18 years of age and
below cannot be employed.

Statutes Implementing Policy of Youth Employment

The Child and Youth Welfare Code (P.D. No. 603)

Article 1. Declaration of Policy. - The Child is one of the most important assets of the
nation. Every effort should be exerted to promote his welfare and enhance his opportunities
for a useful and happy life.

The child is not a mere creature of the State. Hence, his individual traits and aptitudes
should be cultivated to the utmost insofar as they do not conflict with the general welfare.

The molding of the character of the child start at the home. Consequently, every member
of the family should strive to make the home a wholesome and harmonious place as its
atmosphere and conditions will greatly influence the child's development.

Attachment to the home and strong family ties should be encouraged but not to the extent
of making the home isolated and exclusive and unconcerned with the interests of the
community and the country.

The natural right and duty of parents in the rearing of the child for civic efficiency should
receive the aid and support of the government.

Other institutions, like the school, the church, the guild, and the community in general,
should assist the home and the State in the endeavor to prepare the child for the
responsibilities of adulthood.

Special Protection of Children Against Abuse, Exploitation and Discrimination Act (RA 7610, as
amended by RA 7658, and further amended by RA 9231)
Anti-Age Discrimination in Employment Act (RA 10911)

• An Act to Help Poor But Deserving Students Pursue Their Education By Encouraging
Their Employment During Summer and/or Christmas Vacations. . . (RA 7323, as amended by RA
10917)