Clarifying the Applicability of Department Order No. 18-A, Series of 2011, to Business Processing Outsourcing (BPO)/knowledge Process Outsourcing (KPO) and the Construction Industry

March 13, 2012DOLE DEPARTMENT CIRCULAR NO. 001-12CLARIFYING THE APPLICABILITY OF DEPARTMENT ORDER NO. 18-A, SERIES OF 2011, TO BUSINESS PROCESSING OUTSOURCING (BPO)/KNOWLEDGE PROCESS OUTSOURCING (KPO) AND THE CONSTRUCTION INDUSTRY1. Purpose. This Circular is being issued in response to queries on whether firms or companies in the Business Process Outsourcing (BPO) or Knowledge Process Outsourcing (KPO) and in the Construction Industry are covered by Department Order No. 18-A, Series of 2011, or the Rules Implementing Articles 106 to 109 of the Labor Code of the Philippines, as amended.2. Existing Rules under Department Order No. 18-A, Series of 2011.2.1. In the implementation of Articles 106 to 109 of the Labor Code, as amended, Department Order No. 18-A, Series of 2011, states in Section 3 (c) that contracting or subcontracting is "an arrangement whereby a principal agrees to put out or farm out with a contractor the performance or completion of a specific job, work or service within a definite or predetermined period, regardless of whether such job, work or service is to be performed or completed within...