1. In 1997, the Department of Labor & Employment (DOLE) issued Department Order No. 10 in pursuance of the Herrera amendments to the Labor Code. DO No. 10 stipulated at once that the “contracting and subcontracting arrangements are expressly allowed by law” although subject to some regulations. According to DO No. 10, such arrangements are essential “for the purpose of increasing efficiency and streamlining operations which is essential for every business to grow in an atmosphere of free competition.”
1. Noong 1997, inilabas naman ng Department of Labor & Employment (DOLE) ang Department Order No. 10 alinsunod sa sinasaad ng Herrera Law. Itinalaga agad ng DO No. 10 na ang ‘sistema ng contracting at subcontracting ay sadyang pinahihintulutan ng batas, bagamat napapailalim sa ilang regulasyon.’ Alinsunod sa DO No. 10, ang sistema ng contracting at subcontracting ay esensyal ‘para palakasin ang bisa at ayusin ang pamamahala sa mga operasyon na esensyal para lumago ang negosyo sa klima ng malayang kompetisyon.’