Book III — Conditions of Employment
Article 108Posting of bond.
ELI5— what this means for you
An employer or indirect employer may require the contractor to post a bond equal to the total labor cost, to guarantee that workers get paid if the contractor defaults.
Key point
Official text — PD 442
Posting of bond.
An employer or indirect employer may require the contractor or subcontractor to furnish a bond equal to the cost of labor under contract, on condition that the bond will answer for the wages due the employees should the contractor or subcontractor, as the case may be, fail to pay the same.
Source: lawphil.net (PD 442 as amended)
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