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Liabilities and responsibilities of SSC/PSA

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1. Coverage of solidary liability and responsibilities

The Security Service Contractor / Private Security Agency (SSC/PSA) and its principal or client shall be jointly and solidarily liable with each other in any of the following circumstances:

1) When the SSC/PSA fails to pay the wages of its security guards and other private security personnel, the principal or client shall be considered the “indirect employer” and shall be jointly and severally liable with the SSC/PSA to the extent of the work performed by such security guards and other private security personnel under the Service Agreement, in the same manner and extent that the principal is liable to its direct employees. (Section 9.1 [a], D.O. No. 150, Series of 2016)

2) If there are wage increases or adjustments after the execution of the Service Agreement, the prescribed increases in the wage rates of security guards and other private security personnel shall be borne by the principal the Service Agreement shall be deemed amended accordingly. In the event that the principal fails to pay the prescribed increases, the SSC/PSA shall be jointly and solidarily liable with the principal. (Section 9.2 [b], Ibid.)

The immediate recourse of security guards and other private security personnel for payment of wage increase before litigation is with their employer, the SSC/PSA. To enable the SSC/PSA to comply with the new rates, the consideration paid by the principal for the security guards’ wages has to be adjusted in conformity with the mandated wage increase. (Paragraph 2, Section 9.2 [b], Ibid.)

3) When the SSC/PSA is found to be engaged in labor-only contracting, the principal shall be jointly and solidarily liable with it in the same manner that the principal is liable to employees directly hired by him/her. (Section 9.2 [b], Ibid.)

4) When the SSC/PSA is found to be an in-house agency, the principal shall be the direct employer of the security guards and/or other private security personnel deployed with it. (Section 9.2 [c], Ibid.)

5) When a violation of the relevant provisions of the Labor Code, as amended, has been established by the DOLE Secretary or his/her duly authorized representative in the exercise of his/her enforcement power, the principal shall be deemed solidarily liable with the SSC/PSA to the extent of accrued wage and wage-related benefits that the latter may owe to its security guards and other private security personnel in the following instances:  (a) When the certificate of registration of the SSC/PSA is cancelled, revoked, or not renewed by the competent authority; or (b) When the contract between the principal and the SSC/PSA is pre-terminated for reasons not attributable to the fault of the latter. (Section 9.2 [d], Ibid.)

2. Mandatory registration and registry of legitimate security service contractors

Consistent with the authority of the Secretary of Labor and Employment to protect the rights of security guards and other private security personnel, it shall be mandatory for all SSC/PSA to register pursuant to the provisions of Department Order 18-A, Series of 2011 (cf. DO 174-17). In addition to the requirements set forth under said Department Order, the applicant shall submit the following documents:

1) Certificate of Membership issued by the Philippine Association of Detective and Protective Agency Operators, Inc. (PADPAO) or other associations recognized by the PNP-CSG-SOSIA, and License to Operate issued by the latter;

2) A certificate of pending or no pending labor standards violation case/s issued by the National Labor Relations Commission (NLRC) and DOLE. (Section 9.2, Ibid.)

The pendency of a case will not prejudice the renewal of the registration, unless a Compliance Order has already been issued by the DOLE Regional Director and remained unsatisfied. (Paragraph 2, Section 9.2, Ibid.)

3. Keeping of Records

The principals, as indirect employers, shall keep and maintain their own separate records or files on the assignment of security guards in their premises during the period of the service contract, which shall be open for inspection and verification by this Department. (Section 9.4, Ibid.)

All employment records shall be kept and maintained in and about the premises of all workplaces for at least three (3) years, unless the establishment has been in existence for less than three (3) years, in which case it shall be required to maintain employment records only during such shorter duration. (Paragraph 2, Section 9.4, Ibid.)

However, SSC/PSA with a centralized recording system shall inform the Labor Laws Compliance Officer (LLCO) of the Regional Office where their central or head office is located of such fact. (Paragraph 3, Section 9.4, Ibid.)

4. Service Agreement

a. Submission of original copy to DOLE Regional Director

The SSC/PSA and/or the principal shall produce or submit the original copy of the Service Agreement when directed to do so by the [DOLE] Regional Director or his/her duly authorized representative. (Section 4, Ibid.)

b. Duty to produce copy of Service Agreement between the Principal and the Security Service Contractor/Private Security Agency during Assessment

The principal and SSC/PSA shall have the obligation to produce a copy of the Service Agreement in the ordinary course of assessment. The SSC/PSA shall likewise have an obligation to produce a copy of any contract of employment when directed to do so by the DOLE Regional Director or his/her authorized representative. (Section 9.5, Ibid.)

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References

  • DOLE D.O. No. 15, Series of 2016
  • Jurisprudence or Supreme Court Decisions
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