6. Industrial Homeworkers (See also DO 5, s. 1992)

Homeworker

Applies to any person who performs industrial homework for an employer, contractor or subcontractor

Industrial Homework

Industrial Homework is a system of production under which work for an employer or contractor is carried out by a homeworker at his/her home. Materials may or may not be furnished by the employer or contractor. It differs from regular factory production principally in that it is a decentralized form of production where there is ordinarily very little supervision or regulation or methods of work. (D.O. No. 05-92, Sec. 2[a])

Industrial Homeworker

An industrial homeworker is a person who performs industrial homework for an employer, contractor, or subcontractor (DOLE Department Order No. 5, s. 1992, Sec. 2). Materials may or may not be furnished by the employer or contractor (Labor Code, Art. 154)

Employer of Homeworker

Includes any person, natural or artificial who, for his account or benefit, or on behalf of any person residing outside the country, directly or indirectly, or through an employee, agent contractor, subcontractor or any other person:

• Delivers, or causes to be delivered, any goods, articles or materials to be processed or fabricated in or about a home and thereafter to be returned or to be disposed of or distributed in accordance with his directions
• Sells any goods, articles or materials to be processed or fabricated in or about a home and then re-buys them after such processing or fabrication, either by himself or through some other person (D.O. No. 05-92)

Rights and benefits accorded to homeworkers

Immediately upon receipt of the finished goods or articles, the employer shall pay the homeworker or the contractor or subcontractor, as the case may be, for the work performed less corresponding homeworkers’ share of SSS, MEDICARE AND ECC premium contributions which shall be remitted by the contractor/subcontractor or employer to the SSS with the employer’s share. However, where payment is made to a contractor or subcontractor, the homeworker shall likewise be paid immediately after the goods or articles have been collected from the workers. (D.O. No. 05-92, Sec. 6)

Conditions for deductions from homeworker’s earnings

No employer, contractor, or sub-contractor shall make any deduction from the homeworker's earnings for the value of materials which have been lost, destroyed, soiled or otherwise damaged unless the following conditions are met:

• The homeworker concerned is clearly shown to be responsible for the loss or damage;
• The homeworker is given reasonable opportunity to show cause why deductions should not be made;
• The amount of such deduction is fair and reasonable and shall not exceed the actual loss or damages; and
• The deduction is made at such rate that the amount deducted does not exceed 20% of the homeworker's earnings in a week.

Prohibitions for Homework

• Explosives, fireworks and articles of like character
• Drugs and poisons
• Other articles, the processing of which requires exposure to toxic substance