Department Order No. 131-B

OVERVIEW / SALIENT AMENDMENTS

Department Order No. 131-B“Revised Rules on Labor Laws Compliance System”

DEPARTMENT OF LABOR AND EMPLOYMENTBureau of Working Conditions

Intramuros, Manila

BACKGROUND: Concept

What is the Labor Laws Compliance System ?

mix of regulatory and developmentalapproaches in response to existing rigiditieson labor laws compliance while ensuringdecent and productive work

developmental track to address labor lawviolations usually caused by lack ofinformation on labor laws, rules andregulations

BACKGROUND: Concept

What Is Developmental Approach ?

Focuses on VOLUNTARY COMPLIANCEand INCENTIVES instead of pure regulations. Establishments are urged to voluntarily comply with labor laws and standards.

Urges TRIPARTISM thru the involvement of representatives from both employer’s and employees’ side.

EMPLOYER EMPLOYEE

DOLE

BACKGROUND: LLCS Accomplishments

BEFORE( 2 0 0 4 - 2 0 1 3 )

NOW( 2 0 1 4 - 2 0 1 5 )

LABOR STANDARDS COVERED 23 94

COMPANY VISITATION Once every 16 years Once every 2 years

ESTABLISHMENTS COVERED233,425

(annual average - 23,000)127,041

(annual average – 63,521)

WORKERS COVERED6.816-M

(annual average – 681,604)5.781-M

(annual average – 2.9-M)AMOUNT RESTITUTED &

WORKERS COVEREDP311-M for 355,904 workers P234-M for 1.041-M workers

INCREASE IN PERSONNEL Labor Inspectors - 284 Labor Law ComplianceOfficer - 556

LABOR INSPECTORS PER 100,000 EMPLOYEES IN PRIVATE

ESTABLISHMENTS1.5% (2010 LFS) 3.1% (2014 LFS)

309%

96%

1.6%

BACKGROUND: LLCS Accomplishments

CO MPLIANCE O N:BEFORE( 2 0 0 4 - 2 0 1 3 )

NOW( 2 0 1 4 - 2 0 1 5 )

G L S 70.7% 77.6%

M I N I M U M WA G E81.24 % covering 17,021

establishments (annual average in 9 years)

88.54% coveringan average of 54,363

(annual average in 2 years)

S O C I A L S E C U R I T Y B E N E F I T S

89.59% coveringaverage of 681,605 workers

89.35% covering average of 2.89-M workers

C O R R E C T I O N R AT E 21% 27%

S Y S T E M D E V E L O P M E N T

Manual Online LLCS-MIS

BACKGROUND: Gaps / Observations

Limited database

No provision on issuance of COC tocontractors and principal

High incidence of OSHS violations inpublic utility bus companies

10 days is too short to correct GLSviolations

Centralized record keeping

BACKGROUND: Gaps / Observations

Some Accredited Practitioners/ Consultants are remiss in the performance of their functions

Rampant practice of 5-5-5 hiring policy

Need to review compliance after first year of issuance of COC

OBJECTIVES :

LABOR LAWS COMPLIANCE

SYSTEM

Awareness-raising/ capacity-building

Enhancement of plant-level partnership mechanism

Free technical assistance on

compliance

Plant-level Joint Assessment

Recognition of voluntary

compliance

Developmental Tracks…

RULE II − DEFINITION OF TERMS

Assessment Checklist

Period of Correction (revised)

LLCS-Management Information System (LLCS-MIS)

online web-based softwareapplication system for thetransmission and processing of real-time data collected from the fieldusing an electronic checklist

a form, hard copy or electronic,containing indicators in assessingcompliance of establishment,workplace or worksite with laborlaws and social legislation

number of days given toestablishments to correct noteddeficiencies:a. 2o days – GLS for JA or SAVEb. 10 days – CV or OSHSI

RULE II − DEFINITION OF TERMS

Hazardous Work Processes

review by LLCO of pertinent documents submitted by an establishment

work operations or practices performed by aworker in the establishment in conjunctionwith or as incident to such practices andwhich expose the employee to hazards

Verification

review by RD or his/her duly authorized representative of pertinent documents submitted by an establishment

Validation

SAVESpecial Assessment Visit

of Establishment

process of evaluating compliance with labor laws for policy formulation

TSITechnical Safety

Inspection

inspection/verification of boilers, pressure vessels, internal combustion engines, elevators and other mechanical equipment

RULE III − GENERAL PROVISIONS

Modes of Implementation

Joint Assessment (JA)

Compliance Visit (CV)

Occupational Safety and Health Standards Investigation (OSHI)

Special Assessment or Visit

of Establishments (SAVE)


Modalities of AssessmentsZonal Assessment

- Prioritize zones or areas with low levels of compliance based on records

In-House OSH Assessment

- Tap accredited OSH practitioners or consultants to monitor compliance with OSH standards in plants and worksites

Assessment by Industry- Mobilize Industry Tripartite Councils (ITCs) and associations

for effective and expanded reach

Ecozone-wide Assessment on Voluntary Compliance- Coordinate with PEZA for conduct on ecozone-wide assessment

of locators’ voluntary compliance with LS and OSHS


ORGANIZED

Designated by the soleand exclusive bargainingunit in the CBA

any rank-and-file employee designated by the majority of the employees present at the time of assessment or from any of the ff:

Labor-Management Committee

Compliance Committee

Safety and Health Committee

Family Welfare Committee

Employer’s representative

Owner, President, Vice President, Manager or any authorized person

Employees’ representative

UNORGANIZED


1. Occupational safety and health2. Workplace relations3. Productivity enhancement4. Occupational skills enhancement5. Livelihood assistance

Toolbox of Programs and Services

DOLE Feedback Form shall be filled out by employer’s and employees’ reps. and submit to DOLE RO

Based on the feedback, RD shall submit to BWC an analysis of the impact of LLCS on the productivity and sustainability of enterprises, compliance with labor laws and possible enhancement of the System

Feedback Mechanism


Use of electronic gadget in conducting assessments.

Findings are synced to DOLE Server within 72 hours after assessment.

Data gathered shall be used in the generation of reports.

LLCS-MIS information is available to RDs, Directors of Services, Bureaus and Attached Agencies of the DOLE.

Utilization of LLCS-MIS

done by LLCOs who are mechanical or electrical engineers and shall be governed by the Revised Technical Safety Inspection Manual

Conduct of Technical Safety Inspection


DOLE shall conduct summits in Luzon, Visayas and Mindanao as capability-building trainings, and program and policy adjustment consultation process.

Annual Area-wide Summit for Stakeholders

Capability-building Trainings

conducted by DOLE for representatives of employers and employees through Workers Organization Development Program (WODP)

RULE IV − ESTABLISHMENT’S COMPLIANCE REQUIREMENT

All establishments, principal/user enterprise and contractor/subcon, unless expressly exempted, must comply with labor standards, OSH standards and social welfare benefits for their employees

Required Compliance with Labor Laws

All employment records shall be kept and maintained in the premises of all workplaces for at least 3 years.

Establishments with a centralized recording system shall inform the LLCO of the RO where its central or head office is located of such fact.

Employment Records


must be registered, carries a distinct and independent business, and exercises control over the workers in the performance of work, job or service.

Principal and Contractor or Subcontractor Compliance Requirement

must have substantial capital and/or investments.


The contractor or subcontractor and its principals must have a

Service Agreement which includes the following:

Specific description of thejob, work or service

Place of work and terms andconditions governing thecontracting arrangement

Provision on Net FinancialContracting Capacity

Provision on the issuanceof the bond/s

Contractor shall remitmonthly the employers’share and employees’contribution to SSS, ECC,PhilHealth and Pag-Ibig

Term or duration ofengagement


The contractor or subcontractor and its employees must have

employment contracts

Specific description of the job, work, or service to be performed by the employee

Place of work and terms and conditions of employment including a statement of the wage rate applicable to the individual employee

Term or duration of employment that must be co-extensive with the Service Agreement or with the specific phase of work for which the employee is engaged


Compliance with the semi-annual reportorial requirements under Section 22 of D.O. 18-A

Compliance with the “no cash bond, no deposit for or damage on occupation or industry not allowed to do so by law of by the Secretary of Labor and Employment” (Labor Advisory No 11, Series 2014)


The contractor shall NOT engaged in labor-only contracting which is prohibited in Section 6 of D.O. 18-A

does not have substantial capital or investments in the form of tools, equipment, machineries, work premises among others

does not exercise the right to control over the performance of the work of the employee


Contracting out of jobs or services resulting in the termination or reduction of regular employees

Contracting out with a cabo

Contracting out through an in-house agency

Contracting out necessary or desirable jobs by reason of a strike or lock-out

Prohibited activities under Section 7 of D.O. 18-A


Contracting out of jobs performed by union members when such will coerce employees in the exercise of their rights to self-organization

Repeated hiring of employees under an employment contract of short duration

Requiring employees to sign a contract fixing the period of employment to a term shorter than the term of the Service Agreement



Taking undue advantage of the lack of bargaining strength of the contractor’s employee

Refusal to provide a copy of the Service Agreement and employment contracts

Engaging by the principal of subcontracted employees in excess of those provided for in the applicable CBA

Engaging the services of apprentices, learners, trainees or probationary workers


RULE V − JOINT ASSESSMENT

Priority establishments

Public utility bus

Other establishments as determined by DOLE Secretary

Compliance Verification and follow-up assessment

Period of correction of deficiencies:

20 days for GLS

90 days for OSHS

1 day for imminent danger

3 days for PPE

RULE V − JOINT ASSESSMENT

Joint Assessment Procedure

Certificate of Compliance

Notice of Assessment

Actual Site Visit

Notice of Results

Opportunity for corrective

action

Technical assistance leading to

compliance

Period of correction20 days – GLS

90 days – OSHS

1 day – imminent danger

3 days – PPE

RULE VI − COMPLIANCE VISIT [Coverage]

Employer fails to submit Compliance Report

Anonymous complaint

Complaint against an establishment with TCCLS or COCs on GLS and OSHS

Finding by NLRC of labor standards and DO 18-A violations, regardless of whether COC has been issued

Request in NCMB proceedings to verify labor standards violation and DO 18-A, regardless of whether COC has been issued

RULE VI − COMPLIANCE VISIT

Compliance Visit Procedure

Presentation of Authority

to Assess

Verification of Compliance

Issuance of NR

Period of correction

10 days

LLCO to recommend &

RD to issue Certificates of

Compliance

1 2

3 4 5

Receipt of Referral or Complaint

Authority to

Assess

Notice of

Results

______

_______

_______

RULE VII − OCCUPATIONAL SAFETY AND HEALTH INVESTIGATION

Suspension, cancellation or revocation of DOLE Accreditation

− if there is false statement ormisrepresentation of safetyand/or health personnel of theestablishment

RULE VIII − WORK STOPPAGE ORDER

Non-compliance with OSH Standards posesimminent danger to the health and safety ofemployees in the workplace

Work Stoppage Order Form

Facts surrounding the incident Initial findings of the proximate cause The workplace or part thereof covered by WSO Names, number and positions affected by WSO Recommendations for abatement

Lifting the WSO – upon receipt of proof andcertification safety officer, practitioner or consultantthat cause of imminent danger was abated

RULE IX − SPECIAL ASSESSMENT OR VISIT OF ESTABLISHMENT

D.O. 131-A (Guidelines in the Conduct of SAVE)

Creation of composite team

Participation of Labor Organizations

Additional indicators:

establishment’s profile, number &location of branches

organizational structure

recruitment and termination practices

contractors/subcontractors

RULE X − CERTIFICATE OF COMPLIANCE

COC on Labor Relations

Regional COC issuance to establishments

Establishment shall execute an undertaking that it shall maintain compliance with labor laws and social legislation during the effectivity of the COC

Establishment must undergo Orientation on LMC and SEnA

List of establishments recommended for COC issuance shall be published in the website of DOLE - RO for 10 days


Regional COC issuance to establishments engaged incontracting/subcontracting arrangements

1. COC to contractor − when all its contractingactivities within the region are compliant withDO 18-A and other laws.

2. COC to Principal or User Enterprise − when itand its contractor/subcontractor within theregion are found compliant with DO 18-A andother laws; and its contractors/subcontractorswithin the region have been issued with COCs.


Exceptions to No Assessment Rule

SEnA referral

Instances under OSH investigation

Report on Expanded Anti-trafficking in Persons, Migrant Workers Act, Anti-child Labor law

When establishment is under SAVE program

Failure to submit Compliance Report

Analogous circumstances


Grounds for COC Revocation

1. If COC was obtained thru deceit, misrepresentation, intimidation of workers, false reporting, and other analogous acts.

2. If establishment, principal, or contractor is unable to effect correction of deficiency after the conduct of Compliance Visit or OSHS Investigation, within the prescribed period.


3. If dangerous occurrence results in disabling injury attributable to negligence or fault of the employer.

4. Other analogous circumstances.


Submission of Compliance Report within 10 days after 1 year of COC issuance

Expiring and Expired COC

Submit Compliance Report not later than 3 months before the COC expiration

RULE XI − REFUSAL OF ACCESS TO RECORDS AND/OR PREMISES

Filing of criminal action in the following cases:

committed twice during the conduct of JA, CV or SAVE

Committed on first attempt to conduct OSH investigation

Execution of Affidavit of refusal of Entry

Receipt of authority to assess Conduct JA, CV, OSHI or SAVE The fact of refusal by employer on 1st attempt Issuance to employer of notice of assessment The fact of refusal by employer on 2nd attempt

RULE XVII − MISCELLANEOUS PROVISIONS

Coordination with Relevant Government Agencies

- The conduct of any of the modes of implementationmay be covered by Memorandum of Agreements toensure proper coordination with other relevantgovernment agencies.

RULE XVIII − TRANSITORY AND FINAL PROVISIONS

Penalty Clause

Article 303 (formerly Art. 288) of theLabor Code

Republic Act No. 8188 (Double Indemnity law)

Oversight Function of TIPC

The National Tripartite Industrial PeaceCouncil (NTIPC) shall serve as theoversight committee to monitorcompliance with the DO

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Documents

Department Order No. 131-B