Book III — Conditions of Employment
Article 106
ELI5— what this means for you
Endo and contracting: if your employer hires a contractor who fails to pay you, your employer (the principal) is jointly and severally liable for your wages. 'Labor-only' contracting — where the middleman has no real capital or equipment — is illegal, and you are effectively directly employed by the principal.
Key point
Contractor didn't pay you? The principal (main company) is equally liable. Labor-only contracting is illegal.
RELATED RIGHTS
Legal disclaimer: BatasKo provides general legal information, not legal advice. For advice on your specific employment situation, consult a licensed Filipino lawyer or the Public Attorney's Office (PAO) at pao.gov.ph.