How is DOLE 147-17 registration cancelled?

It starts with a Verified Complaint.

The complaint is thus required to be in writing, sworn to, and subscribed under oath with the Regional Office which issued the DOLE 174-17 Certification to the Contractor or Subcontractor.

Grounds for Cancellation

As for the grounds for cancellation, Section 23 of DOLE 174, Series of 2017 enumerates them as follows:

  1. Misrepresentation of facts in the application;
  2. Submission of falsified or tampered application or supporting documents to the application for registration;
  3. Non-submission of Service Agreement between the principal and the contractor when required to do so;
  4. Non-submission of the required semi-annual report as provided in Section 22 of DOLE 174-17 (Semi-Annual reporting) thereof;
  5. Final findings that the contractor has engaged in labor-only contracting and/or other illicit forms of employment arrangements as provided in Section 6 of DOLE 174-17;
  6. Non-compliance with labor standards and working conditions;
  7. Findings of violation of Section 10 of DOLE 174-17 (Rights of contractor’s employees) and Section 11 (Required contracts);
  8. Non-compliance with SSS, the HDMF, Pag-IBIG, PhilHealth, and ECC Laws;
  9. Collecting any fees not authorized by law and other applicable rules and regulations; and
  10. Violations of any provisions of the Labor Code.

To initiate a Complaint, at least one of the grounds above have to be cited. Otherwise, the Complaint may be dismissed.

Contents of Complaint

Section 24 of DOLE 174, Series of 2017 requires the following to be in the Complaint:

  1. The name/s and address/es of the complainant/s;
  2. Name and address of the contractor;
  3. The grounds;
  4. When and where the action complained of happened;
  5. The amount of claim if  any; and
  6. The relief sought.

There is no provision as to who may be the Complainant.

Due Process

After receiving the complaint, the Regional Director shall require the issuance of a Notice to the Respondent (Contractor or Subcontractor) to file a Verified Answer/Counter-Affidavit within seven (7) working days – without extension.

The responsive pleading shall incorporate all pertinent and relevant documents that would support the defense of the Respondent.

Motion to Dismiss is prohibited and thus not allowed.

At its discretion, the Regional Director (or its duly authorized representative) may conduct a clarificatory hearing within seven (7) calendar days from receipt of the responsive pleading of the Respondent.

Within seven (7) calendar days, the Respondent is required to make necessary corrections/rectifications on the violations which are immediately rectifiable on its own initiative to be compliant.

The proceedings before the Regional Director are summary in nature. Accordingly, the Regional Director is empowered to “avail of himself all reasonable means to ascertain the facts of the case.” This may include conducting inspection of the employment records, workplace, interviewing informed persons.

The hearings are required to be terminated within 10 calendar days from the first scheduled clarificatory hearing. Thereafter, the Regional Director is mandated to resolve the case within seven (7) working days from the last hearing date.

If hearing is not necessary, the case has to be resolved within seven (7) working days from the receipt of the Verified Answer / Counter-Affidavit.

Appeal to DOLE Secretary

Once a decision is received, the Respondent may file an appeal to the DOLE Secretary within 10 working days from receipt of the copy of the Order. (Should the Respondent file a Motion for Reconsideration with the Regional Director, it will be treated as an Appeal to the DOLE Secretary.)

The Appeal is required to be filed with the Regional Office which issued the cancellation order.

The DOLE Secretary has thirty (30) working days to resolve the appeal counted from receipt of the records of the case.

The DOLE Secretary’s Decision shall be final and executory after 10 days from receipt by the parties.

Motion for Reconsideration is prohibited and thus not allowed.

Effects of Cancellation

Section 26 of DOLE 174, Series of 2017 states that the Order of cancellation results in the revocation of the status of the Contractor or Subcontractor, viz:

“A final Order of cancellation shall divest the contractor of its legitimate status to engage in contracting and subcontracting.”

Further, the Order shall also serve as a ground for denial of any registration or renewal of the Contractor or Subcontractor.

Additional consequences are likewise provided, particularly for the officers:

“No contractor whose registration is cancelled under these Rules or any of its officers shall be allowed to operate, and apply for new registration as contractor under either the same or different name.”

If there are existing legitimate job-contracting arrangements, the same may still continue so long their Service Agreements were entered into prior to the cancellation of the registration. “Any valid and subsisting Service Agreement shall be respected until its expiration; thereafter, contracting with a delisted contractor shall make the principal direct employer of all employees under the Service Agreement pursuant to Article 106 and 109 of the Labor Code, as amended.”

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