Improvement of the Trilateral Relationship: An Augmentation of the Legal Framework of Manpower Agencies

Authors: Alon, Lanceyngwiel and Sarmiento, Nowell Gabriel S.

Year: 2020


In a standard relationship, it is expected that the parties involved have an equal footing with one another. After all, a healthy union ensures mutual benefits. However, this is not the case for trilateral relationships, as recent years have proven that employees under this setup suffer from lack of security of tenure, among other shortfall of fundamental worker rights. The non-fulfillment of worker rights relates to the schemes of contractors and contractees who prioritize each of their own self-interest. Examples of such schemes include ENDO-contracting and Labor-Only Contracting, of which are illegal activities that usually go unnoticed due to the gaps in law that leave room for circumventions and malpractices. In this research study, the researchers aimed to provide improvements to the trilateral relationship and put the favor of the law to the contracting employees, applying the

encompassing concept of social justice in the labor laws of the Philippines. By going through a legal positivist approach, the researchers pointed out the areas of improvement of the laws that govern contracting and subcontracting arrangements, and then provided augmentations therein that will allow the continued operation of manpower agencies whilst prioritizing the fulfillment of the basic worker rights of the employees.

Keywords: Manpower Agencies, ENDO, LoC, Contractualization, Security of Tenure, Retirement Pay, Labor Law