Why Some Workers Have to Go with Contractualization Agreement

However, this revision under the administration of Corazon Aquino did not deal directly and effectively with control. For example, article 279 of the Labour Code has been amended to provide workers with greater security of seniority. This article states: If you are one of the millions of Filipino workers facing the reality of Endo and you feel that you are running out of options in terms of finances, it is high time that you try Blend PH. We are a peer-to-peer marketplace that enables ordinary Filipinos to pursue their specific financial goals through borrowing and lending. . There are some who point out that the practice is abusive and illegal, others who say that contracting is essential to economic growth, while others who also talk about how it affects the workers who are subject to it. The contract dates back to 1974 during the reign of Ferdinand Marcos, when Ernesto “Boy” Herrera was involved in the drafting of Presidential Decree 442. This decree, which Marcos eventually passed, would give the provisions and reasons for the workers` contract in the Philippines. In 2017, DOLE commissioned PLDT to regularize nearly 9,000 employees. This order came after DOLE found that many PLDT contract agencies had violated the labor laws of the Philippines. [9] Several authorities have denied their workers the rights set out in the Philippine Labor Code, such as the 13-month wage. PLDT appealed to the Ministry of Labour to reconsider this decision, but it was rejected in January 2018 when Labour Minister Silvestre Bello III said that “his office had found no reason to rescind the order”. However, some contract agencies turned out to be legal and the number of employees who needed to be regulated increased from nearly 9,000 to about 8,000 employees.

DOLE also asked PLDT to pay about PHP 66 million in unpaid services. [10] Although its history has made the practice legal, subsequent revisions to Philippine labor laws have classified the practice as illegal. However, despite the controversy, it is still regularly used by large companies in the Philippines to reduce labor costs. There are two types of regular employees under the Philippine Labor Code: (1) those who are responsible for performing necessary or desirable activities in the employer`s usual business or commerce; and (2) casual workers who have worked continuously or interrupted for at least one year in respect of the activity in which they are employed. (a) the contractor or subcontractor does not have significant capital or investment to actually carry out the works, works or services on its own account and under its own responsibility; and “the contractor or subcontractor merely recruits, provides, or places workers to perform work, work, or service for a customer, and the following are present: From the early drafts of the Philippine Labor Code to the present day, there have been no drastic contracting measures. This issue about Endo has been the subject of much debate that has covered various presidencies, each promising to end this abusive labor practice, with each of the president`s contributions representing a small change to the Philippine Labor Code. The word Endo is derived from an abbreviated version of the term “termination of contract”. Endo is sometimes referred to as “5-5-5,” which refers to the number of months before a non-regular employee terminates or terminates the contract. According to the Philippine Labor Code (PD 442), employers can employ people for a probationary period not exceeding six months. Under this system, the employee`s employment contract ends before the expiry of the six months by his employer. At the end of the six-month period, employees then become regular employees who are entitled to several health, safety and insurance benefits required by law. The Labor Code of 1974 introduced the concept of experimental employment in the Philippines and Section 281 states that “employers may hire persons on probation for a maximum period of six months.

These 6 months are used as a trial period for the employee. If the employee is allowed to work after the 6 months of the probationary period, he is considered a regular worker. Which, on further reading, continues as follows: “The services of an employee who has been hired on a trial basis may be terminated for cause or if he or she does not qualify as a regular employee in accordance with the reasonable standards that the employer provides to the employee during the period of his or her engagement. If an employee cannot prove that he or she has the necessary skills to keep his or her job, he or she may be dismissed from the employment relationship. [6] Some experts argue that this practice has contributed significantly to the growth of the economy. For them, the short-term hiring of employees provides employment for the unemployed. This improves the status of the economy in the long run. In addition, contracting promotes staff flexibility for companies. In other words, mixing regular and temporary workers promotes an efficient and productive workplace. Endocontracturalization is a practice in which employees are hired for a short period of time before being fired. Often, you are hired in this system for less than six months. Employees under this form of agreement are dismissed or transferred to other companies before the deadline expires.

In this way, it becomes almost impossible for them to make requests for regularization. .