December 20, 2013

Several months ago the Department of Labor and Employment issued Department Order No 131-13 titled “Rules on Labor Laws Compliance System”. The main purpose of the order was to establish the visitorial and enforcement power of the secretary of labor in making sure companies are compliant with all Labor Rules and Guidelines.

As we have begun to see with many other government agencies, compliance is the new heart song of of all departments in ensuring that the rules that have been passed are actually followed. The result of this order has seen DOLE officials making spot checks of offices (much like the BIR and BFP already do) to ensure that company and employment records are complete.

Some key things the DOLE are looking for is:

  • Proper storage of all company employment records with retention period
  • Company has in place all policies as required by their industry and size
  • All employees are operating in safe environment
  • Any contracting and subcontracting taking place on premises

This is not jsut affecting factory workers but offices in Metro Manila, Makati, Ortigas, Alabang, etc. as well. Our experience has shown us that while most companies are not purposely attempting to be non-compliant, the compliance required is often very cumbersome or neglected.

Failure to be certified as compliant may result in fines and penalties as well as additional spot checks.

However transversely companies that are found to be fully compliant with all Labor Laws (as with Triple i’s audit) will not be audited for at least 2 years, and when labor cases are brought before the DOLE against the company they will have a much more favorable decision as DOLE is aware that they are a compliant company.

For any assistance in Labor Compliance or any Compliance Audit by our expert HR and Labor Lawyers contact us to schedule an appointment.

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