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    DO 174 Write-Up

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    camileholic
    DO 174 requires registration for all contractors, defined as entities providing services under a service agreement. Contracting refers to an arrangement where a principal agrees to farm out a specific job to a contractor within a set period, whether inside or outside the principal's premises. However, DO 174 does not apply to certain industries and relationships, including IT enabled services, certain construction phases under PCAB, private security agencies, and contractual relationships governed by the Civil Code like sales, leases, and carriage. It also does not apply to individuals hired for their unique skills. The Bureau of Working Conditions can confirm if a service provider needs to register under DO 174, and registration is advisable if the arrangement involves a principal, service provider, and the provider

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    DO 174 Write-Up

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    camileholic
    123 views1 page
    DO 174 requires registration for all contractors, defined as entities providing services under a service agreement. Contracting refers to an arrangement where a principal agrees to farm out a specific job to a contractor within a set period, whether inside or outside the principal's premises. However, DO 174 does not apply to certain industries and relationships, including IT enabled services, certain construction phases under PCAB, private security agencies, and contractual relationships governed by the Civil Code like sales, leases, and carriage. It also does not apply to individuals hired for their unique skills. The Bureau of Working Conditions can confirm if a service provider needs to register under DO 174, and registration is advisable if the arrangement involves a principal, service provider, and the provider

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    DO 174 write-up

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    DO 174 requires registration for all contractors, defined as entities providing services under a service agreement. Contracting refers to an arrangement where a principal agrees to farm out a specific job to a contractor within a set period, whether inside or outside the principal's premises. However, DO 174 does not apply to certain industries and relationships, including IT enabled services, certain construction phases under PCAB, private security agencies, and contractual relationships governed by the Civil Code like sales, leases, and carriage. It also does not apply to individuals hired for their unique skills. The Bureau of Working Conditions can confirm if a service provider needs to register under DO 174, and registration is advisable if the arrangement involves a principal, service provider, and the provider

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    123 views1 page

    DO 174 Write-Up

    Uploaded by

    camileholic
    DO 174 requires registration for all contractors, defined as entities providing services under a service agreement. Contracting refers to an arrangement where a principal agrees to farm out a specific job to a contractor within a set period, whether inside or outside the principal's premises. However, DO 174 does not apply to certain industries and relationships, including IT enabled services, certain construction phases under PCAB, private security agencies, and contractual relationships governed by the Civil Code like sales, leases, and carriage. It also does not apply to individuals hired for their unique skills. The Bureau of Working Conditions can confirm if a service provider needs to register under DO 174, and registration is advisable if the arrangement involves a principal, service provider, and the provider

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    Registration under the DOLE Department Order No.

    174 (“DO 174”) is a separate


    registration requirement for all “contractors”, which is defined as any person or entity
    engaged in a legitimate contracting or subcontracting arrangement providing services
    for a specific job or undertaking farmed out by a principal under a Service Agreement.
    “Contracting” or “Subcontracting” refers to an arrangement whereby a principal agrees
    to farm out to a contractor the performance or completion of a specific job or work
    within a definite or predetermined period, regardless of whether such job or work is to
    be performed or completed within or outside the premises of the principal. (DO 174,
    Sections 3(c), 3(d), and 14)

    DO 174, including the requirement for registration, would not be applicable to certain
    industries and contractual relationships provided under DOLE Department Circular
    No. 01-17 (“DC 01-17”), which are as follows:
    1. Information technology enabled services involving an entire or specific
    business process such as: (a) business process outsourcing; (b) knowledge
    process outsourcing; (c) legal process outsourcing; (d) IT Infrastructure
    outsourcing; (e) Application Development; (e) Hardware and/or Software
    Support; (f) Medical Transcription; (g) Animation Services; and (h) Back Office
    Operations/Support;
    2. Construction industry, for certain phases of construction project, under the
    licensing coverage of Philippine Contractors Accreditation Board (“PCAB”);
    3. Private Security Agencies;
    4. Other contractual relationships such as contract of sale or purchase, contract
    of lease, contract of carriage, growership agreement, toll manufacturing,
    contract of management, operations, and maintenance, and such other
    contracts governed by the Civil Code of the Philippines and other special
    laws; and
    5. Contracting-out to professionals, or individuals with unique skills and talents,
    who himself or herself performs the job or work for the principal.

    Based on our informal (no-name) inquiry with the Bureau of Working Conditions
    (“BWC”), we were informed that the BWC issues confirmation on whether a service
    provider is required to register under DO 174. Preliminarily, we were also advised that
    if the arrangement involves a trilateral relationship -- the principal (client), the service
    provider (contractor), and the contractor’s employees -- it is advisable to register under
    DO 174, or seek confirmation of exemption with the BWC.

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