The Department of Labor and Employment maintained its previous order to the telecommunications giant PLDT Inc. to regularize the more than 7,000 service providers’ employees or face legal actions in accordance with the law.
Labor Secretary Silvestre Bello III claimed that the PLDT violated the labor law by engaging in “labor-only contracting schemes” by employing the services of 38 of PLDT’s service contractors.
The DoLE also issued cease and desist orders to 38 contractors for engaging in labor-only contracting schemes. This means that they are prohibited from operating a contracting business and that the workers they deployed to PLDT must be regularized under the telecommunications company
The department denied PLDT’s motion for reconsideration directing the company and its contractors to grant their employees regular employment status and pay workers’ monetary benefits amounting to P51.6 million.
Bello said PLDT should absorb the workers, as stipulated under labor laws.
“This office clarifies that pursuant to existing laws, the regularization of workers as a result of the finding of labor-only contracting takes effect by operation of law, and is not subject to any condition,” Bello said.
“Any act or condition imposed that frustrates or tends to frustrate the order to regularize is contumacious and shall be dealt with in accordance to law,” Bello said in a clarificatory order signed on July 11.
Bello reiterated his directive for companies found to be labor-only contractors to desist from further engaging in contracting activities.