Clarifying the Applicability of Department Order No. 174
DOLE recently published Department Circular No. 01 clarifying the applicability of Department Order No. 174 or the Rules Implementing Articles 106 to 109 of the Labor Code, as amended. Among others, the Department Circular states that: “D.O. 174, Series of 2017, applies only to trilateral relationship which characterizes contracting or subcontracting arrangement. It does not contemplate to cover information technology-enabled services involving an entire or specific business
Are Employers Required to Give Employees Bonuses?
The Supreme Court in Kimberly Clark Philippines, Inc. v. Nora Dimayuga et.al. reiterated the ruling in Businessday Information Systems and Services, Inc. v. NLRC (Businessday): With regard to the private respondents claim for the mid-year bonus, it is settled doctrine that the grant of a bonus is a prerogative, not an obligation, of the employer. The matter of giving a bonus over and above the workers lawful salaries and allowances is entirely dependent on the financial