One of the delicate issues in our country today is the continued existence of job contractualization.

Even with the several efforts to weed out this very argumentative labor scheme, it has remained in
effect until now.

Contractualization is a term or practice of the Philippine firms and companies to outsource the
process of hiring their staff and employees to other organizations or agencies. It is by no means
tantamount or synonymous to endo or end of contract which is being used by employers in order
to reduce the employment costs and to get rid of their workers before their regularization to avoid
paying for benefits and bonuses. The labor force most especially the proletariat sees endo as a tool
of the capitalist to manipulate and exploit the vulnerability of the laborers. The laborers, as an
offshoot of prolonged unemployment and uncompetitive nature, would rather accept a below par
employment contract without full benefits enjoyed by a regular worker than have no paid
employment, Thus, this is then the strategy of many companies in the country to have resorted to
hiring employees on a contractual basis, even if task requires them to do the regular type of work
done in a company, thereby depriving the employees of “security of tenure” and undermines their
opportunity for long-term employment.

Under the existing parameter of the law, all employees are entitled to security of tenure, which
simply means that they cannot be dismissed without just or authorized cause after strict observance
of procedural due process. That constitutional guaranty applies to contractual, temporary, or
project employees whose tenurial right is protected under the terms of their contract of
employment. During the effectivity of their contracts, these employees can be assured that their
employment will be terminated without just or authorized cause and that they will be afforded the
benefits of procedural due process. Under Art. 295 of the Labor Code, such employees hired for a
particular position on a casual, seasonal or project basis automatically becomes regular employees
after one (1) year of service in the same position. Such is the essence of the phrase “security of
tenure”. It does not guarantee permanent or lifetime employment, a practice once adopted in Japan
in the 60’s but which it eventually scrapped for various reasons.
On this aspect, there are always two sides of a coin. These are the pros and cons that should be
considered when it comes to keeping the practice of contractualization in the Philippines which
were suggested by “Pinoybisnes” in their one of the articles posted in their websites. . They
includethe following:
On Pros

Growth in Economy
Contractualization has been devised by previous lawmakers in order to address and tackle the issue
of poor economic growth in the country. Many individuals like Cid Tereso from the Economics
Program at the University of Asia and the Pacific have argued that the time is right to end this
practice because of the improving status of the Philippine economics but there are also others who
have debated that it is simply not enough to sustain the country in the long term.
Creating job opportunities albeit temporarily will help cater into the growth of economics here in
the Philippines even more.

Staffing Flexibility for Companies

Today, big and small corporations are being asked to supply several requirements which include
flexible working arrangements for their employees. Providing temporary work is probably the best
step they could take in order to offer the required flexibility while meeting their own needs as well.
According to Denise Ridenour from Kelly Services, employing both a mix of permanent and
temporary workers will result into a more efficient and effective workplace. She adds that this
practice also leads to a flexible job market that presents greater prospects for both companies
and workers. The labor force especially the proletariat sees
On Cons

Issues with Training

It does not matter whether the temporary worker you are hiring has previous experiences with a
similar company to yours. You will still end up training them so that they can perform their
assigned tasks and responsibilities to best fit the specific needs of your company where they are
currently being employed.
There are times when you will have to exert more training periods to some of your temporary
employees which will waste so much time and effort, coming from the perspective of the company.
You are lucky if you manage to employ someone who is verse enough with your particular industry
that they will not need so much training.

Issues with Benefits

Big corporations and companies in the Philippines have come under fire because of maintaining
the practice of contractualization and endo. Many organizations working for the welfare of workers
and employees being subjected to them have made their thoughts known and protested about the
lack of benefits and bonuses workers are receiving because they are not being regularized.

Some of the benefits that they are not receiving include: PhilHealth, SSS, Pag-IBIG, Home
Development and Mutual fund along with many others. For the same reason, this creates a larger
disparity between the rich and the poor and deprives the poor the opportunity for economic growth.

Given the pros and cons of contractualization, there is a need to empathize with labor groups to
end all forms of contractualization in the country due to the circumventing practices of employers,
but at the same time, there is also need to understand the position of business groups that
regularizing all employees would eventually kill businesses and reduce job opportunities.
As a citizen of this nation, we must all uphold the dignity of work and the rights of workers for its
prime activity that truly makes us truly human, affecting the way we view ourselves, define our
position in society, and impact the lives of our respective families.

The debate on whether contractualization should be removed altogether in the Philippines is still
being discussed and continued not only in the Senate but also in multimedia platforms everywhere.
How about you; have you decided which stance to take on this very important issue?