WITH companies, big or small, it is now commonplace to secure the services of security guards and janitors through agencies. The obvious advantages of agency-contracted security and janitorial services are that it is easy and cost-effective.
With the advent of the Internet, it has become so easy for companies to look for security and janitorial agencies. Gone are the days of flipping through the yellow pages; in just one click a business owner is hit with a plethora of advertisements. Thus, finding an agency is fast.
It is recommended that at least five agencies are selected and asked to submit proposals. In choosing the right agency, a business owner is advised to go beyond the “price.”
Focusing on the price can be misleading. The Department of Labor and Employment (DOLE) is aware of this business mind-set. Thus, the DOLE rolled out Department Order (DO) 18-A, which requires agencies to register with strict compliance standards.
It may appear that DO 18-A is business-friendly because it is supposed to address illegal-labor contracting and protect businesses from the direct consequences of the Labor Code and other labor laws as long as a valid job contract exists between the business owner and the agency.
However, DO 18-A did not repeal the compliance to the minimum-wage law, 13th-month pay law and overtime-pay law, etc. In other words, compliance with the monetary benefits of security guards and janitors is still in place.
Thus, in cases where the agency fails to pay security guards and janitors all monetary benefits provided for by the Labor Code and other labor laws, the business owner is still liable, jointly and severally liable. This means that each business owner that has a contract with an agency, that either underpays or does not pay the monetary benefits, can be sued by the security guard or janitor to pay monetary claims, notwithstanding the existence of a job contract.
In order to protect themselves from unnecessary lawsuits, a business owner is advised to attach, to the contract of services, a breakdown of the salary/wage paid to each security guard or janitor. The breakdown must show that said salary/wage includes the payment of the minimum wage in effect at the time of the contract, the proportionate 13th-month pay, the service incentive leave, the overtime pay, the holiday pay, aside from the usual agency fee and value-added tax.
Usually, of course, compliance with monetary benefits would mean that the agency will charge a price higher than the competition. In this instance, the old adage, better be safe than sorry, makes a sound business choice.