Labor Law Talk

While most Constitutions provide workers’ security of tenure under fixed compensation packages and employee benefits, the increasing practice of manpower agency hiring and business power outsourcing are proving to be disadvantageous to the present generation workers. It has become a common practice of business establishments, especially the above-medium enterprises, to enter into contracts with manpower agencies to provide majority of the workforce that are required in the operations and maintenance of their business. The important feature of the said contract which the enterprise is actually primarily interested in is the undertaking of the agency to assume responsibility to provide all labor-related benefits that the workers are entitled to under existing laws, effectively releasing the business enterprise from all obligations it should have been required by law. In the process, the practice extinguishes what is supposed to be en employer-employee relationship between the enterprise and the workers.

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