Republic of the Philippines
Bem DEPARTMENT OF LABOR AND EMPLOYMENT.
Intramuros, Manila
‘AB
orate Nes AIMEE
DEPARTMENT ORDER NO. [SC ~ /¢@
Series of 2016
REVISED GUIDELINES GOVERNING THE EMPLOYMENT AND WORKING
CONDITIONS OF SECURITY GUARDS AND OTHER PRIVATE SECURITY
PERSONNEL IN THE PRIVATE SECURITY INDUSTRY
For the purpose of ensuring compliance with mandated employment benefits
and working conditions for security guards and other private security personnel in the
private security industry, this Guidelines is hereby issued
Section 1. Coverage. - This Revised Guidelines or Guidelines shall apply
to all private security, detective, investigative agencies or operators, their principals
or clients, and all companies employing security guards and other private security
personnel.
Section 2. Definition of Terms. — As used herein, the following terms shall
mean:
a. “Bond” refers to the bond under Article 108 of the Labor Code, as
amended, that the principal may require from the contractor to be posted
equal to the cost of labor under contract.
b. “Duty Detail Order” refers to a written order/schedulelassignment issued
to a security guard and other private security personnel by a superior
officer, usually the private security agency or branch manager or
operation's officer, for the performance of security and/or detective service
duty/ies
c. “Net Financial Contracting Capacity (NFCC)” refers to the formula to
determine the financial capacity of the contractor to carry out the job,
work, or services sought to be undertaken under a Service Agreement
NFCC is current assets minus current liabilities multiplied by K, which
stands for contract duration equivalent to: ten (10) for one year or less;
fifteen (15) for more than one (1) year up to two (2) years; and twenty (20)
for more than two (2) years, minus the value of all outstanding or ongoing
projects including contracts to be started.
d. “Philippine National Police (PNP), Civil Security Group (CSG) -
Supervisory Office for Security Investigation Agencies (SOSIA) and
Firearms and Explosives Division (FED)” refers to the agencies
charged with the implementation of Republic Act No. 5487.
e. “Principal” refers to any individual, company, cooperative, or
establishment, including government agencies and government-owned
and controlled-corporations, who or which puts out or farms out a securityand/or detective job, service, or work to a private Security Service
Contractor.
f. “Private Security Personnel” refers to natural persons, including private
detectives, security consultants and security officers, employed by private
security agency or firm, to render security and/or detective services
g. “Right to Control” refers to the right reserved to the Security Service
Contractor to determine not only the end to be achieved as required by
the principal, but also the manner and means to be used in reaching that
end within the limits of the law.
h. “Security Guard” refers to any person who offers or renders personal
service to watch or secure a residence, business establishment, building,
compound, any other area or property; or inspects, monitors, or performs
body checks or searches of individuals or baggage and other forms of
security inspection
i. “Security Service Contractor (SSC)” is synonymous with Private
Security Agency (PSA) which refers to any person, association,
partnership, firm, or private corporation engaged in contracting,
recruitment, training, furnishing, or posting of security guard and other
private security personnel to individuals, corporations, offices and
organizations, whether private or public, for their security needs as the
Philippine National Police (PNP) may approve.
j. “Service Agreement” refers to the contract between the principal and the
SSC/PSA containing the terms and conditions governing the performance
or completion of security service, job, or work being farmed out for a
definite or predetermined period
k. “Solidary Liability” refers to the liability of the principal, in the same
manner and extent that he/she is liable to his/her direct employees, to the
extent of the work performed under the contract when the SSC/PSA fails
to pay the wages of hisIher employees, as provided for in Article 106 of
the Labor Code, as amended
|. “Total Contract Cost” refers to the payment of wage and wage-related
benefits including social welfare benefits of security guards and other
private security personnel in conformity with the Standard Computation of
the Department of Labor and Employment using the form prescribed in
this Guidelines.
m. “Trilateral Relationship” refers to the relationship in contracting or
subcontracting arrangement where there is a contract for a specific
security job, work, or service between the principal and the SSC/PSA, and
a contract of employment between the latter and its security guards.
There are three (3) parties involved in these arrangements: the principal
who decides to farm out a security job, work, or service to a security
service contractor; the SSC/PSA who has the capacity to independently
Revised Guidelines on SG and Other Private Security Personnel Page 2 of 17undertake the performance of the security job, work, or service; and the
security guards and other private security personnel engaged by the
SSCIPSA to accomplish the security job, work, or service.
Section 3. Employment Status. —
3.1. Employer-Employee Relationship. - The SSC/PSA is the employer of
its security guards and other private security personnel on duty detail to a principal or
client under a Service Agreement.
3.2. Probationary Employment. — The probationary period of newly-hired
security guard and other private security personnel in the private security industry
shall not exceed six (6) months. While engaged on probationary basis, their services
may be terminated for failure to meet reasonable standards or criteria made known
by the SSC/PSA to the security guards and other private security personnel at the
time of their engagement or for any just cause contained in the probationary
contract.
3.3. Regular Employment. - Any security guard or other private security
personnel who is allowed to work after the probationary period or in the absence of a
valid probationary contract shall be considered a regular employee. Security guards
and other private security personnel affected by repeated hiring-firing-rehiring
scheme for short periods of time, the aggregate duration of which is at least six (6)
months, shall be considered regular employees.
Section 4. Service Agreements. - 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 Regional Director or his/her duly authorized representative. The Service
Agreement must conform to the DOLE Standard Computation and Standard Service
Agreement, as provided for under this Guidelines. The Service Agreement shall
stipulate, among others:
a. The specific description of the kind or nature of security job, work, or
service being subcontracted;
b. The place of work and terms and conditions governing the contracting
arrangement which shall include the agreed amount of the security
services to be rendered and the standard administrative fee of not less
than twenty percent (20%) of the total contract cost;
c. The basic equipment to be provided by the SSC/PSA which shall be as
follows:
1. For every two (2) security guards and other private security personnel,
‘one (1) handgun as prescribed by R.A. 5487; but in no case shall a
security guard be posted without a firearm, unless required otherwise
by the client; and
2. One (1) handheld radio; provided that, if the principal requires more
than these basic equipment, it shall be shouldered by the principal.
Revised Guidelines on SG and Other Private Security Personnel Page 3 of 17An “automatic crediting provision” which shall immediately give effect to
the common provision in wage orders that prescribed increases in wage
rates and other wage-related benefits of security guards and other private
security personnel shall be borne by the principals or clients of the
SSCIPSAs and the Service Agreements shall be deemed amended
accordingly;
Provisions which shall ensure that the principal and the SSC/PSA shall
uphold the rights and provide all the benefits of security guards and other
private security personnel under the Labor Code, as amended, and other
existing laws, and that violation of which will render the service contractor
ineligible to participate in any bidding and the principal ineligible to engage
the services of such SSC/PSA;
A provision on the NFCC of the SSC/PSA, which must be equal to the
total contract cost per month, provided that posting of the corresponding
bond shall be required only when the NFCC is less than the total contract
cost;
An undertaking that the SSC/PSA shall directly remit monthly the
employers’ share and employees’ contribution to the Social Security
System (SSS), Employees’ Compensation Commission (ECC), Philippine
Health Insurance Corporation (PhilHealth), and Home Development
Mutual Fund (Pag-IBIG); and
‘An undertaking that the expenses for any training required by the principal
or other government instrumentalities, in addition to those required by the
PNP, shall be shouldered by the principal.
Section 5. Employment Contracts. -
5.1. Status of Employment. - Notwithstanding any oral or written stipulations
to the contrary, the contract between the SSC/PSA and its security guards and other
private security personnel shall be governed by the provisions of Articles 294
(formerly 279) and 295 (formerly 280) of the Labor Code, as renumbered. The
SSCIPSA shall provide his/her security guards and other private security personnel a
copy of the employment contract duly signed by the parties, which shall contain the
terms and conditions of employment, such as those provided under Section 7 hereof.
5.2. Contents of Duty Detail Order. - For every assignment of security
guards and other private security personnel to a principal, the Duty Detail Order shall
contain the following, among others:
paogD
Name, address, and telephone number of agency;
Issue serial number and date of the Duty Detail Order;
Complete name and designation of grantee;
Purpose;
Inclusive dates of detail;
Revised Guidelines on SG and Other Private Security Personnel Page 4 of 17