Labor-only contracting (LOC) has been a hotly debated issue in the Philippines for many years. It refers to a scheme where a company hires workers through a third-party contractor, but the workers are under the direct control and supervision of the company. These workers are called “talent” or “manpower” by the contractor, but in reality, they are employees of the company.

The practice of LOC is illegal in the Philippines under the Labor Code. However, companies use this scheme to avoid providing benefits and security of tenure to their workers. They also use it to circumvent labor laws, such as minimum wage, social security, and health benefits.

In Tagalog, labor-only contracting is called “kontraktwalisasyon ng trabaho” or “kontraktwal na pagpapakalat ng trabaho”. This is a serious issue in the Philippines, where almost 60% of the workforce is considered informal. These workers are not covered by labor laws and are vulnerable to exploitation.

The government has been cracking down on LOC to protect the rights of workers. The Department of Labor and Employment (DOLE) has issued guidelines to prevent the abuse of contractual workers. These guidelines include requiring contractors to be registered with DOLE and to provide social security benefits to their workers.

Labor unions and workers’ rights groups have also been pressuring the government to end the practice of LOC. They argue that it is a form of modern-day slavery and that companies should be held accountable for their workers’ welfare.

In conclusion, labor-only contracting is a controversial issue in the Philippines. It is a scheme that allows companies to exploit workers and avoid their responsibilities under the law. While the government is taking steps to prevent the abuse of contractual workers, more needs to be done to protect the rights of the informal workforce. As individuals, we should also be aware of this issue and support efforts to end this practice.