Outsourcing firms will be allowed to employ contractual workers provided they have an independent and distinct business from that of the principal, as stated under Department Order (DO) 174 of the Department of Labor and Employment’s. The Employers’ Confederation of the Philippines (Ecop) noted that the new DO strengthened the definition of “labor-only contracting” and what it covers and allows other forms of contractual work. The group expects the country’s unemployment and underemployment rates to decline steadily after the government allowed certain forms of labor contractualization to continue. Ecop president Donald G. Dee is optimistic that DO 174 can improve the job statistics in the Philippines.
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