Secure jobs with security guards

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This article was originally published on October 12, 2017 and has been updated to reflect recent legal developments.

The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.

Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.

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AT A GLANCE:

Although securing one’s business premises is not an essential part of business operations, the demand for security services is still constant for many enterprises. Though this involves job contracting by farming out security concerns to the security agencies, compliance with Department of Labor and Employment Department Order No. 174 on legitimate job contracting is not enough for security agencies, because the employment of security guards and other private security personnel is also governed by a set of rules embodied under Department of Labor and Employment (DOLE) Department Order No. 150-16 and Republic Act No. 11917, also known as the Private Security and Services Industry Act. This holds true not only for engaging the services of private security agencies, but also that of detective and investigative agencies or operators.

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The Republic Act No. 11917, also known as the Private Security and Services Industry Act, 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 of Republic Act No. 11917 provides for the Declaration of Policies which states that the State recognizes the vital role of the private sector in the protection of the people and safeguarding of property as well as maintenance of peace and order in the country.

 

Towards this end, the State shall adopt measures to strengthen the regulation of the private security services industry and establish quality standards to ensure competent private security personnel and professionals that complement our law enforcement authorities in preservation of public order in the country.

 

Security Guard

Under Section 2(h) of the DOLE Department Order No. 150-16, a 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.

 

Private Security Agency (PSA)

Any Filipino citizen or juridical entity wholly owned and controlled by Filipino citizens may organize a private security agency and provide security services: Provided, that they shall not employ more than two thousand (2,000) private security professionals as defined in Republic Act No. 11917. (Section 4)

 

License to Exercise Security Profession (LESP)

Under Section 12 of Republic Act No. 11917, No applicant shall be granted license to exercise private security profession unless the applicant possesses the following qualifications:

 

1. Must be of legal age;
2. Must be a Filipino citizen;
3. Must be physically and mentally fit;
4. Must be of good moral character; and
5. Must not have been convicted of any crime or offense involving moral turpitude.

 

For purposes of securing an LESP, a letter of authority to conduct training must be issued by the Supervisory Office for Security and Investigation Agency (SOSIA). Such training includes the pre-licensing requirements of the individual PSPs, periodic and non-periodic in-service skill refreshers for such security personnel, and other specialized, individual or group, PSP skills development: Provided, That the Chief PNP shall provide for additional qualifications for security consultant and security officers based on the industry requirements and practice.

 

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 3.3 of DOLE Department Order No. 150-16)

 

Service Agreements

In engaging the services of security contractors, business owners must be aware that they are required by law to stipulate certain terms and conditions, which must appear in their Service Agreements with the security service contractor [See: Sec. 4 of DOLE Department Order No. 150-16 ]. Some of which are as follows:

1. The specific description of the nature of the security job or service being contracted, as well as the place of assignment.
2. 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.
3. 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;

 

Rights of Security Guards and Other Private Security Personnel.

All security guards and other private security personnel, whether deployed or assigned as reliever, seasonal, week-ender, or temporary, shall be entitled to all the rights and privileges as provided for in the Labor Code, as amended, which shall include the following: 

1. Safe and healthful working conditions;
2. Labor standards such as but not limited to service incentive leave, premium pay, overtime pay, holiday pay, night shift differential, 13th month pay, and separation pay as may be provided in the Service Agreement or under the Labor Code, as amended; 
3. Retirement benefits under Republic Act No. 7641, Republic Act No. 1161, as amended by Republic Act No. 8282, and retirement plans of the security service contractor, if any;
4. Social security and welfare benefits; e. Right to self-organization and collective bargaining, subject to the provisions of existing laws; and f. Security of tenure. (Section 6 of DOLE Department Order No. 150-16)

 

Requirements for Pre-employment and Continued Employment

The security guards and other private security personnel in the employ of any SSC/PSA or firm should be duly licensed and must have passed the physical and neuro-psychiatric examination and drug test required by the PNP for preemployment and for continued employment. Expenses for these examinations and tests shall be shouldered by the security guards. Any additional test may be required at the expense of the requesting party. (Section 7.1 of DOLE Department Order No. 150-16)

 

Entitlement to Minimum Wage

Unless a higher minimum wage is agreed upon by the parties, the security guards and other private security personnel shall be entitled to receive a salary of not less than the minimum wage rate prescribed for non-agricultural sector or industry in the region where he/she is assigned, regardless of the nature of business of the principal. (Section 7.3 of DOLE Department Order No. 150-16)

 

Transfer of Assignment.

In case of transfer, the wage rate most favorable to the security guards and other private security personnel shall apply. Thus, transfer of security guards and other private security personnel to areas outside the region of the domicile or head office of the SSC/PSA shall not result to reduction of the wage rate being enjoyed by the security guards and other private security personnel prior to such transfer. Transfer to an area or region with higher wage rate shall render the higher rate the applicable wage rate for the transferred security guards and other private security personnel. (Section 7.4 of DOLE Department Order No. 150-16)

 

Reserved Status

A security guard and other private security personnel may be placed in a work pool or on reserved status due to lack of service assignment after the expiration or termination of the Service Agreement with the principal where he/she is assigned, or due to the temporary suspension of security service operations, or due to valid relief from the current place of work and there is no work assignment available.

No security guard and other private security personnel can be placed in a workpool or on reserved status in any of the following situations: 

1. after expiration of a service contract, if there are other principals where he/she can be assigned; 
2. as a measure to constructively dismiss the security guard; and 
3. as an act of retaliation for filing any complaint against the employer for violation of labor laws, among others. 

 

If after a period of six (6) months, the SSC/PSA cannot provide work or give an assignment to the reserved security guard, the latter can be separated from service and shall be entitled to separation pay as described in Subsection 7.5 (m) hereof. An assignment of the security guard and other private security personnel as a reliever for less than one-month shall not be considered as an interruption of the six (6) months period. (Section 10.3 of DOLE Department Order No. 150-16)

 

Retaliatory Measures.

Pursuant to Article 118 of the Labor Code, as amended, it shall be unlawful for the principal, SSC/PSA, or any party privy to the Service Agreement to refuse to pay or reduce the wages and benefits, and discharge or in any manner discriminate against any security guard and other private security personnel who has filed any complaint or instituted any proceeding on wages, labor standards violation, or has testified or is about to testify in such proceedings. (Section 10.4 of DOLE Department Order No. 150-16)

 

Preventive Suspension. 

Subject to the constitutional rights of the workers to security of tenure and the right to be protected against dismissal except for a just and authorized cause and without prejudice to the notice requirement under Article 297 (formerly 282) of the Labor Code, as renumbered, security guards and other private security personnel may be preventively suspended if their continued employment poses a serious and imminent threat to life or property of the SSC/PSA, its principal, or the co-workers of security guards and other private security personnel. No preventive suspension shall last longer than thirty (30) days. The SSC/PSA shall thereafter reinstate the security guard and other private security personnel to his/her former position or it may extend the period of suspension, provided that during the period of extension, the SSC/PSA shall pay the wages and other benefits due the security guard and other private security personnel. (Section 10.5 of DOLE Department Order No. 150-16)

 

Related Articles:

• Revised Guidelines Governing the Employment and Working Conditions of Security Guards and the Private Security Services Industry Act
• SC decides: Placing an employee on floating status is a valid management prerogative, but must not exceed six (6) months
• Security Guards in Broken Shift Scheme Entitled to Overtime Pay

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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 09175772207/ 09778050020.

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