How to Know if the Company You’re Applying for is Legitimate and Legal?

          With today’s employment and earning opportunities that promises huge incomes, how true is being too good? There have been many cases of illegal recruitments and employee abuses – how do you know if the company you are applying for is  legitimate and legal?

          You are on your job application stage – how informed are you? How do you choose your employer?Did your know that the Department of Labor and Employment are on the process of reviewing all the existing companies and contractors for their legitimacy and legality?  And According to the DOLE’s website [ ] , as of now,

  • 24,774 companies with contractors have been reviewed for compliance and non-compliance with the Labor Law
  • 20,475 companies have been reviewed with compliance and non-compliance that voluntarily paid the correct wages and benefits based on DOLE’s corrective plan
  • 5,029 legitimate contractors have been registered to DOLE.
  • 11,000 fly by night contractors have been removed from the DOLE registry.
    That’s a lot of companies. Are you sure your company is not one of them? Visit their website for the list.
  • 4,299 companies have been reviewed with non – compliance, didn’t undergo the corrective action plan and was penalized  to pay their employees their rightful wages and benefits.

How to Know if the Company You’re Applying for is Legitimate and Legal?

          So, according again to the DOLE’, here are the criterion needed to be satisfied to be considered as a legitimate and legal contractor or company.

  1. Has sufficient capital of Php3,000,000, mechanisms, machinery and supplies.
  2. Has independent business to perform service or labor to companies or principals.
  3. Has control on its workers’ methods, processes and performance.
  4. Has service agreement with companies/principals which states:
    • Description and type of the contracted job or service.
    • Job location, term and job conditions or sub-contracting, administrative fee not less than 10% of the total value of the contract.
    • Compliance to all employees’ rights and benefits.
    • Net financial contracting capacity equivalent to the total value of the contract.
    • Direct payment of SSS, Pag-ibig and Philhealth contributions.
    • Length or duration of the service agreement.
  5. Has worker employment contract which describes the following:
    • Workers’ Job type and description
    • Job location, term and working condition and the proper salary
    • Job length or duration that is equivalent to the length of service agreement.
  6. Fulfillment of everything stated on the service agreement and employment contract on employee rights and benefits.
  7. Submission of semi-annual report to the DOLE with the following:
    • List of companies / principal contracts.
    • Number of employees of the contractor to every company / principal.
    • Proof of payment of SSS, Philhealth, Pag-ibig contributions and Employees Compensation Commission.
  8. Not being a Labor-only contractor a.k.a. “Cabo”  and avoiding those prohibited by law based on Section 6 and 7 of D.O. 18-A.
  9. Compliance to the Labor Advisory  No.11, S.2014  on allowable salary deductions. For example, tax, insurance premiums, union dues and Philhealth, SSS, Pag-ibig contributions.

          So, now you have an idea on how to choose the right company for you. It’s true that sometimes we just don’t have a choice but the truth is, we have. With our current governmentat our backs, we have the power to report, the right to claim our benefits and to practice our rights as employees.

“Creative risk taking is essential to success in any goal where the stakes are high. Thoughtless risks are destructive, of course, but perhaps even more wasteful is thoughtless caution which prompts inaction and promotes failure to seize opportunity”.

                                                                                                              – Gary Ryan Blair – 


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