Professional Documents
Culture Documents
Asiapro MDC Opinion, Re DO 174
Asiapro MDC Opinion, Re DO 174
Asiapro MDC Opinion, Re DO 174
Gentlemen:
At the outset, the DO was issued to supersede the former Department Order
No. 18-A and other regulations on contracting/subcontracting and to provide more
stringent rules with respect to contracting and subcontracting arrangements.
Or
b) The contractor or subcontractor does not exercise the right of control
over the performance of the work of the employee.
Notably, the said DO also raised the substantial capital requirement from
Php3,00,000.00 under old DO 18-A to Php5,000,000.00 under the current DO. If
there is a finding that the contractor or subcontractor is engaged in labor-only
contracting or prohibited activities as provided for above, then the principal, in this
case, MDC, may be considered as the direct employer of the owner-members
deployed by Asiapro to MDC.
Notably, the Supreme Court of the Philippines, the Court of Appeals, as well
as the National Labor Relations Commission have already decided in numerous
cases that Asiapro is not a labor-only contractor and is a legitimate job contractor.1
Thus, it is indubitable that Asiapro is a legitimate contractor. Even with the onset of
the new DO, Asiapro is still compliant with the same.
We trust that the foregoing is sufficient for your purposes. Should you have
questions or need clarification, please let us know.
1See Republic v. ASIAPRO (GR No. 172101, 23 November 2007), Ernesto S. Gementiza, et al. v. Social
Security System, et al. (GR SP No. 115221 27 April 2012), Asiapro Cooperative v. The Social Security
Commission and Social Security System (CA GR SP No. 115223, 30 April 2013), Alaska Milk
Corporation v. National Labor Relations Commission, et al. (CA GR SP No. 135845, 31 May 2016), Joel
Rosales, et al. v. Alaska Milk Corporation (NLRC LAC No. 08-002402-16, 6 February 2017), Bersalona
v. Alaska Milk Corporation, et al. (NLRC-LAC No. 08-002063, 9 December 2016), among others.
Copy furnished:
GARY QUEMADO
Asiapro Multi-Purpose Cooperative
#70 San Rafael St.,
Bo. Kapitolyo, Pasig City