Clarifying the Applicability of Department Order No. 18, Series Of 2002, to Cooperatives

May 15, 2007DOLE DEPARTMENT CIRCULAR NO. 001-07CLARIFYING THE APPLICABILITY OF DEPARTMENT ORDER NO. 18, SERIES OF 2002, TO COOPERATIVES1. Purpose. This Circular is being issued in response to queries on the issue of whether cooperatives engaged in contracting and/or sub-contracting are covered by D.O. 18-02 — Rules implementing Articles 106 to 109 of the Labor Code of the Philippines, as amended. 2. The Existing Law and D.O. 18-02.2.1 Article 119 (Compliance with Other Laws) of the Cooperative Code of the Philippines provides that "[t]he Labor Code and all the other labor laws show * apply to all cooperatives."2.2 Article 6 (Applicability) of the Labor Code,on the other hand, mandates that all workers, whether agricultural or non-agricultural, shall be entitled to all rights and benefits granted under the Code.2.3 In the implementation of Articles 106 to 109 of the Code, D.O. 18-02 states that a contractor or sub-contractor refers to any person or entity engaged in a legitimate contracting or sub-contracting arrangement whereby a principal agrees to put or farm out to the contractor or sub-contractor...