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this is department order number 174 series of 2017. it contains the rules implementing articles 106 to 109 of the labor code as amended regulations governing contracting and subcontracting are as follows section 1 guiding principle non-permissible forms of contracting and subcontracting arrangements undermine the constitutional and statutory right to security of tenure of workers section 2 coverage these rules shall apply to all parties in an arrangement where employer employee relationship exists contractors and subcontractors referred to in these rules are prohibited from engaging in recruitment and placement activities as defined in article 13b of the labor code whether local or overseas employment section 3 definition of terms the following terms as used in these rules shall mean a bond refers to the bond under article 108 of the labor code that the principal may require from the contractor to be posted equal to the cost of labor under contract b kabu refers to a person or group of
