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Documenti di Professioni
Documenti di Cultura
2015 election, he said that “In 6 months, the employee cannot develop his or
her skills. If they are hired, enhance their skills, you make them more
productive. Because they have the skills and placed them in a regular position,
they enjoy benefits not just for themselves but also for their family.” Duterte
also pointed out: "How can they sustain the needs of their family, feed their
children if you employ them for 3 months only? They do not have security
which results to unrest and instability back home." He also added “I will not
run a country that way. If those who have money won't accept this, then you
campaign against me. Make sure you will beat me. I will not go for it, it is not
The time President Duterte won the 2016 elections, workers especially
who are under contract agreements throughout the Philippines waited for the
realization of his campaign promise to end "endo.” Prior his takeover, DOLE
Department of Labor and Employment (DOLE) was able to help around 36,
is one of the biggest businesses which hires and employs hundreds of workers
from Lucena and from nearby provinces. It is owned and run by a multi-
national corporation- Metro Retail Stores Group, Inc. which was founded by
Mr. Victor and Sally Gaisano on 1982 in Cebu City. As of today, the
corporation is being run by their 4 children namely; Edward, Jack, Frank and
Sally Gaisano together with the board of directors. Like other successful
businesses, it all started with their closest friends and families as workers.
They only had each other to do the task and selling. At present this
corporation has forty-four (44) branches already residing in both Luzon and
Metro Lucena is the company’s 5th branch which opened last July 2003. From
then on, it has given so many opportunities to lots of the natives of Lucena.
After its boom, Lucena City becomes one of the major destinations of
already.
like to know also its impacts to the current employees, non-current employees
of its laborers. It will give them benefits that they deserve and boost their
morale. Workers are not mere employees of companies but they are active and
equal partners. Employees are business partners as well. Their own respective
interests and welfare are critical not only to themselves, but to the company as
well.
Statement of the Problem
The study aims to find out and helps understand more about No
1.1 age
1.2 gender
1.10 salary
Contractualization?
3. Are employees also aware of the No Contractualization?
4.1 company
Lucena?
The result of this study would be helpful to the following for them to
now become his second home. From this home, possibly, he will acquire some
benefits and perhaps a higher compensation. Benefits for regular ones include
mandatory pension under Republic Act 7641 or based on the company’s terms
and sick leaves with pay, life insurance, de minimis benefits, allowances, sales
commissions, and other forms.. The regularized worker can even have
company resources and surely they may have to compete with one another in
the common goal, as a human capital, regular employees should have a good
must be always inculcated that multiple regular employees would make jobs
Contractulaization, this study would make them more educated and they
would be able to understand the very purpose of this Act. While businesses
can add up the increased cost to customers, they have to assess and weigh up
expect and understand possible higher prices for the consumption of goods
and services.
independent workers with higher morale and integrity which could lead to a
stronger society. Workers with secured job would help the society thru their
Metro Lucena.
Metro Lucena at ML Tagarao Street Barangay 3, Lucena City, this year, 2017.
present the company has 679 employees working under its roof. Out of those,
we gather data from 87 selected and available respondents who are composed
of employees from supervisory and rank and file positions coming from
Independent Variables
Dependent Variable
in order to come up with the output of study; “What are the effects of
Definition of Terms
For better understanding of the topic, the following terms are defined:
typical casual employee is employed on a daily basis when the need arises.
(Retrieved 10/14/17,
www.thepeopleindairy.org.au/LiteratureRetrieve.aspx?ID=118669)
would render their services for a finite amount of time, usually, for a few
months only. This is a system that has been practiced and used by many
http://asiapro.coop/contractualization-all-need-know/)
De Minimis Benefits are facilities and privileges of relatively small
promote their health, good will, contentment, or efficiency. These benefits are
exempt from withholding tax on compensation (WTC) and fringe benefits tax
https://www.pwc.com/ph/en/taxwise-or-otherwise/)
5” practice. This is because some employers hire workers and then terminate
their contracts after five months, to avoid regularizing them – something that
is mandated by the law. According to the law, an employee who has been
working for a company for six months should be regularized unless the
http://asiapro.coop/contractualization-all-need-know/)
employee who is not doing well at their job or is otherwise deemed not
https://en.wikipedia.org/wiki/Probation_(workplace)
specific project often work for a specific number of weeks or months until
the project is finished. ... You can set the hours, define the exact manner of
work, provide office space and facilities, and restrict employment activities to
receive benefits like subsidized health care, paid vacations, holidays, sick
https://en.wikipedia.org/wiki/Permanent_employment)
employee. It means that the employee qualifies for the permanent position in
Seasonal employees are the ones who works 120 days a year or less
for the employer. These days need not be consecutive. For example, if
an employee works only for the months of January, July, and October, then
the employee is seasonal, since that is less than 120 days. (Retrieved 10/14/17,
www.tnhealthcarereform.com/seasonal-employee)
and support personnel who are not client-facing. People who hold jobs in back
11/08/17, https://www.investopedia.com/terms/b/backoffice.asp)
its products or services, often an area for which a particular sales person or
A. Related Literature
Local Literature
precarious employment, and rightly so, since technically all employees are
contract which provides for, at the minimum, the nature of work and the
the current system of laws that address the need for labor flexibility.
contract workers who are directly employed through written contract based on
a particular period and type of work. Other forms enumerated include casual
accelerating since the early 1990s. On the employee side, it was reported that,
from 14 to 15% between the years 1990 – 1994, the share of contractual
1997.Onthe employer side, in 2004, two out of three Filipino firms utilized
in contracting-out work.
that words like “Endo” and “5-5-5” have seeped into the vernacular. “Endo” is
the shortened version of “end of contract” and is used to refer to the definitive
Meanwhile, under “5-5-5,” workers can only work for five months at a
time, renewable for another two 5-month contracts, after which they can work
as open contract workers.8 The limit is at five months because under the
Labor Code, an employee who is allowed to work after the probationary
entitled to the rights and benefits accorded such workers. The term “5-5-5”
also likens the employment to 555, a popular brand of sardines, and connotes
that the canned food is the only thing a contractual worker can afford to eat.
Freedom of Contracting
contracts have been advanced in the literature, all of which point to cost
contracts with their workers, even when product demand is expanding. In this
situation, labor standards and job security regulations that make terminations
increase hiring costs (Lazear [1990]). Firms avoid these expenses by resorting
result, employment has become more risky and workers’ incomes increasingly
employment. There are three major issues regarding Philippine labor policies.
One, they are based on the standards of highly developed markets, which is
not congruent with the country’s level of development. Two, labor policies are
highly regulatory and protective of workers’ rights, which is not suitable for a
country with a huge labor surplus. Thus, labor policies tend to be pro-
Foreign Literature
underlying most interventions is that free labor markets are imperfect, that as
employers abuse workers to extract these rents, leading to both unfairness and
fire workers who then need to be supported by the state, force employees to
work more than they wish under the threat of dismissal, fail to insure workers
against the risk of death, illness or disability, and so on. In response to the
workers.
takes four forms. First, governments forbid discrimination in the labor market
and endow the workers with some “basic rights” in the on-going employment
the range of feasible contracts and raising the costs of both laying off workers
unemployment, old age, disability, sickness and health, or death. The basic
Shleifer)
The Job as Property Right
majority of the people in the labor force are employees of organizations… and
the “means of production” is the legal sense. But it is a “right” in the means of
production, an ius in rem, which is the old definition of real property. Today
Employment Law
In a widely cited work, Wood (1877) argued for replacing this law
with the rule of at-will employment, where both parties can sever the
relationship whenever they wish and face no liability beyond the requirement
that the employer pay her employee the agreed-upon wage for work already
master-servant law.
the New York courts and remains the default rule today. In California, the
legislature adopted what is now Section 2922 of the California Labor code,
performance or number of hours worked, the firm will have to pay relatively
high wages or else the worker will leave. Similarly, if a worker demands a
higher wage or better working conditions, the firm is free to search for another
worker who will abide by the current arrangements. In equilibrium, all firms
and workers are satisfied with their lot relative to the alternatives. (Great
B. Related Studies
Local Studies
Fille Saint Merced Cainglet, Thea Elyssa Vega, and Jerome Albert T.
worker as well as the firm. Rather than being locked into keeping the hours
designated by the employer, some contractors are able to vary their hours of
work in desirable ways. Kunda et al. (2002) found that control over time was
the worker is towards the employer, avoiding unions. The emancipated social
and the employers are as follows: presence of fly by night agencies worsen
emancipated social representations were found between the worker and the
agency.
a case study to answer if the retail industry is avoiding the law through
employee benefits costs, this has been the easy lure for investors. While the
constitution recognizes the role of the private sector, the incentives for
interpretations.
In the practice of subcontracting majority of their employees by most
retail establishments, particularly by, but not limited to, department stores, it
engagement period of less than six months. This certainly elicited cynicism
from among the labor advocates since six months is the maximum prescribed
contract with a principal with the knowledge of the employment period of less
than six months, such contract is deemed valid and void. (Less-than-six-
months contract periods: Is the Retail Industry Circumventing the Law? The
Mindanao State)
Vicente Paqueo and Aniceto Orbeta stated in their research study that
there is little doubt that the “endo” practice is illegal. Therefore, to uphold the
majesty of the law, the government is obligated to end the practice. This fact,
however, should not prevent citizens from questioning the wisdom of the
current worker regularization law and from examining the need for its
should not blind politicians and voters to the potential adverse consequences
campaign has become necessary for making informed decisions about labor
observations:
further TEC curtailment and outsourcing are likely to result in worsening the
labor markets. First, it would disproportionately reduce good formal sector job
is expected to be more pronounced over the long run. This is especially true
about widespread jumps in the use of robots and automation of other devices
other sciences.
The concern for endo appears overblown. Available data suggest that
including practitioners of endo, are satisfied by their current jobs. This result,
which needs further confirmation, is consistent with data showing that by and
large, those workers receive mandated minimum wages, SSS, Pag-Ibig and
deny that many of those workers do not have guaranteed job security and may
not have received some benefits they are entitled to. We believe, however,
that this issue is less urgent than the need to facilitate, rather than impede,
more disadvantaged workers in the informal sector can take advantage of.
and difficult for temps to become permanent employees and for small
not have SSS, Pagibig, PhilHealth and other benefits currently enjoyed by
formal sector workers. As mentioned, the policy would also likely push many
small enterprises with serious financing and survival issues to stagnate or fail.
Aniceto Orbeta)
Foreign Studies
Forest Service.” From her research, it was concluded that short term
staff in the organization since a lot of time and effort was used in training new
employees as their turnover was high. The research also noted that the very
the part of temporary workers. This reduces their level of commitment and
hence their productivity. To cope with the effects of short term employment,
the study found that Kenya Forest Service was implementing the following
short-term employees to equip them with skills so that they could be more
productive and frequently reviewed the compensation and benefits terms for
staff under short term contracts. The study found that in Kenya Forest Service
and Kenya in general, the use of temporary workers was on the increase due
globally.
In Ireland, “Temporary Employment Contracts and the Application of
Real Options Theory: A Case Study in the Irish Third Level Academic Sector
pay and pension bill, its aim is to restrict the filling of posts across the public
framework was put in place to provide for the application of the cessation to
contracts long before any moratorium was implemented, and well ahead of the
is, a key element is the exploration undertaken to identify the most appropriate
and applicable theory of the firm within which to frame the purpose of the
research.
The encompassing of the key characteristics of real options theory -
management area adds a very tangible strategic element to the area which
de Vrande et al. (2006) advice flexibility and reversibility are more important
Options Theory: A Case Study in the Irish Third Level Academic Sector by
outcomes of the unemployed is not clear a priori. On the one hand, temporary
work may improve workers’ human capital and also provide them with labor
market contacts that can later lead to stable employment In this case,
temporary agencies may reduce the time job-seekers spend looking for a new
job and may facilitate rapid entry into regular employment. This holds the
On the other hand, it can be argued that any human capital effects
arising from temp work cannot be strong due to the primarily short-term, low-
skilled nature of temp jobs, which are often below the worker’s qualifications
(Segal & Sullivan 1997). These jobs may even be dead-ends since firms may
not plan to fill these jobs permanently, thus limiting the temp worker’s regular
productive job search networks, and it may even crowd out direct job search,
qualified job applicants, and they may find it too costly to assess the
temp agencies face lower hiring and firing costs than conventional direct-hire
employers do, they may choose to hire individuals, who would otherwise have
It is a well-known fact that the demand for temp workers moves pro-
cyclically. If the labor market tightens, client firms use temp agencies not only
to screen potential candidates to fill vacancies but also to buffer core workers
workers are the first to be laid off in a recession. (Looking Beyond the Bridge:
Research Locale
highly accessible and that the respondents are knowledgeable of the research
topic.
Research Respondents
At present, Super Metro Lucena has a total of 679 workforces; 108 are
regulars, 125 are under probationary period, 39 are under labor contracts from
Easy Link Agency, 10 are seasonal employees, 357 are consignors (promos
From 679 employees, the researchers were able to get the sample size
of 87 respondents through the use of Slovin’s formula with the maximum 10%
used by researchers are 90%, 95% and 99%. Margin of error tells you how
much error surrounds a measure. It’s a percentage that describes how much
the opinion and behaviors of the sample you survey are likely to deviate from
size was taken using the Slovin's formula which allowed the researchers to
Research Instruments
length of service, job title or position, salary, department assigned and number
of hours of work. The next part is composed of questions about company and
employee’s awareness of No Contractualization and what is the level of its
were benefited. Definitely, this part also would make the researchers
Rona T. Lobos last October 17, 2017. Thereafter, the researchers explained to
the respondents the very purpose of the study before letting them answer the
guide questions.
After the approval of the research topic and problems, the researchers
which will help them to get the results resolving the statement of the
problems. Then, letters to conduct survey in Super Metro Lucena were duly
Aside from getting data through survey, the researchers also gathered
information from library and internet to make this research more informative
and effective. Finally, all the data were carefully collected and interpreted.
Statistical treatment
interpreted the results with the use of statistical tools. Surveyed answers were
Formula:
i. Percentage (%)
P = f x 100
N
Where:
P = Percentage distribution
f = frequency
To compare the proportion and distribution of the first and second part
statistical tool.
Chapter IV
ANALYSIS, PRESENTATION AND INTERPRETATION OF DATA
This chapter presents the gathered data which were tabulated and
analyzed for the purpose of presenting data in clearer form, for finding the
above. Age bracket aged 22 to 25 years old has the second most numbers of
distribution of 17.24%. And the last age group which has the least distribution
11.49% only. The data presented showed that most of the employees of Super
Metro Lucena are experience already and have a long tenure. They have been
loyal to the company for a long time that’s why they became pioneers. Most
of the respondents are matured enough to handle the job assigned to them
since their records show that they have been employed since the establishment
them were male which has percentage distribution of 57.47% and thirty-seven
table shows, there’s a big difference in number between male and female
all of the employees except the supervisor and one encoder are male because
are very much needed also in transporting and piling of heavy products.
Table 3. The profile of respondents in terms of civil status
single and married respondents because nowadays both the single and married
their families, singles remain singles. This is also an indication that single
employees that were hired earlier got married during their employment in
R
RESIDENCY
E 80
67
S
P 60
O
N 40
D
E 20
N 7 8
1 1 3
T 0
S BATANGAS LUCENA PAGBILAO SAN SARIAYA TAYABAS
FRANCISCO
RESIDENCE
residing in Tayabas, Pagbilao and Sariaya which are towns next to Lucena
the least town having one (1) respondent each is Batangas and San Francisco.
Majority of the workers are from Lucena City since Super Metro is situated in
the same area and is giving more opportunities to the city’s natives or locals.
Table 4. The profile of respondents in terms of employment status
regulars because of loyalty and long tenancy. Super Metro has been
established in 2003 and along with its growth were these employees who help
the business sustained and in the long run became regulars. Due also to the No
Metro Lucena
Lucena. The data gathered shows that the 43 respondents or 49.43% were
consignees and 5 or 5.75% were project- based. It clearly shows that the
workforce which is composed mainly of outright employees has the vital role
them in-house. Additionally, it may allow the business to exert higher levels
of control over the actions of the divisions by keeping the services and
personnel under direct control. It may also pose fewer security risks
or 5.75% were also hired. In 2007, 4 or 4.60% started their employment while
from 2009 to 2011, there were 3 or 3.45% hired each year. 2 respondents or
2.30% were deployed in 2004 and 2005 and in 2006 as well as in 2008; there
was only 1 each or 1.15% of the total distribution employed. This illustration
merely presents that most of the employees were new in the business. Due to
some circumstances and personal reasons, most of the regular employees who
started since the opening of Metro resigned and chose other field of work or
better career paths. Due to decreasing numbers of regulars who fill essential
9.20% distribution. Next are 4 and 5 years of tenure with both 7 and 8.05%,
9 years of tenure there was 1 or 1.15% same with 11 years with 1 or 1.15%
also.
shows that there were more new employees who were being hired and
deployed this year. Some of them filled- in the positions that were vacated by
regular employees upon their resignation. One reason why the employees
chose not to stay in the company is the lack of benefits and salary increase.
There were no more back pays or separation pays once a personnel has
resigned. This is an indication that after all the efforts and hardships resigned
employees will have nothing to start with their new lives. Another reason why
Lucena plus 2 managers which means that most of its workforces were really
title/ position, it was noted that 34% were in rank and file positions and 28%
₱12,000 top the data. This means that most of the employees were minimum
wage earners.
Table 10. The profile of respondents in terms of department assignment
10.34% were form department store and 5 or 5.75% were from security
department. The data shows that Supermarket had the most numbers of
being sold. Since food is the basic necessity of people, supermarket creates
Those 3 who worked for 12 hours a day were the security guards.
day. But in the status of security personnel, they render 12 hours of duty but
Figure 1
that they were aware of the law and only 3 or 3.44% admitted that they were
not aware of it. Because of television, social media, and newsprints, many
the government.
Figure 2
of the total respondents agreed that they discussed this new policy inside their
5.75% who believed that it was not yet implemented. One proof of partial
entails a lot of expenses perhaps more than double than what a contractual
33.33% from the total surveyed employees answered yes, it is beneficial to the
implementation just took effect this year and some of the employees were still
figure shows that most of the respondents answered yes. Among all of them,
employees were given a chance and became regulars. They were given
50
44
R 45
E 40 37
S 35
P 30
O
25
N
20
D
15
E
10 6
N
T 5
S 0
YES NOT CERTAIN NO
IS THE LAW BENEFICIAL TO NON-CURRENT
EMPLOYEES?
and 6 or 6.90% are said that it is not beneficial to non-current employees. For
non-current employees, they will have greater opportunity to land in new jobs
and get regularized already. Unlike before, it will take years before you
become a regular employee. For the record, there were current employees who
employees.
Figure 7
were 51 employees and above who were being regularized and benefitted with
there were only 25 employees and below who were regularized and 17 or
19.54% also believed that there were 26 – 50 employees who were befitted
about 125 employees who were put under probations. As of now some of
them were already regulars because they already passed their training and
probationary period.
Figure 9
50 (49.43%)
R 45 (42.53%) 43
E 40 37
S 35
P 30
O 25
N 20
D 15 (8.05%)
E 10 7
N 5
T 0
S INCREASED NO EFFECT DECREASED
THE LEVEL OF EFFECTS OF THE LAW IN TERMS OF
TARDINESS
are presented in figure 10. From the data gathered it is noticeable that the
Aside from this, knowing that employees would easily get another job
absent.
Figure 12
the data gathered, 52 or 59.77% of the total respondents said that the
the tardiness. Employees nowadays are not afraid to be late at work because
they are still young they could easily get jobs after whenever they have not
been regularized.
One of the common arguments against regularizing staff is that
employees turn lazy and only deliver the bare minimum once they are
regularized. With this the company will suffer. But when employees know that
the company cares about them and their welfare and that the employer
genuinely wants them to do well, they give the best of themselves and go over
and beyond the call of duty in order to help the company succeed.
Figure 13
90 (91.95%)
R 80
80
S
E 70
S 60
P 50
O
40
N
D 30
E 20 (8.05%)
N 7
10
T 0
0
S
INCREASED NO EFFECT DECREASED
THE LEVEL OF EFFECTS IN TERMS OF SALARY
Figure 13 shows the answers for the question what are the level of
However, there are still 7 or 8.05% of the total surveyed employees who said
him/her is not enough that is the time that he/she will change his amount of
or 51.72% of the total respondents, the company had decreased its manpower
company’s workforce. But there are still 5 or 5.75% of the total surveyed
that there was an increased in benefits since the implementation and there
were only 2 or 2.30% who believed that the benefits had decreased since its
execution.
the company provides vacation leave, sick leave, health care, SSS, Pag-ibig
Summary
the company, their date of employment, length of service, job title or position,
salary, department assigned and total numbers of work per day. This also
the company itself, current employees or non- current employees were also
answered. Aside from these, the respondents were also requested to answer if
how many in their work organization were benefited with the implementation
benefits.
The study was conducted in Super Metro Lucena at ML Tagarao
Findings
Based from the data gathered, the following were the findings:
11.49%.
1.2 When it comes to gender, male got the highest number which was
42.53%.
1.3 As to civil status, married and single status almost got even.
while single were 42 or 48.28% and the least is widow which was
2 or 2.30%.
1.4 It is noticeable in this study that almost all of the employees of the
project-based employees.
in 2004 and 2005 and lastly 1 or 1.15% both in 20016 and 2008.
were working for 1 year already, there were 10 or 11.49% both for
years.
stated that it was fully executed and there were still 5 or 5.75%
current employees.
respondents were asked what the levels of effects are after the
50.57% of them said that it did not affect the number of turnovers
increased and there were still 7 or 8.05% who said that tardiness
2.10As for absenteeism there were 48 or 55.17% who said that there
effect.
1. From the demographic profile; Most of the respondents were regular male
and company outright employees who are already married aged 30 years old
and above and residing in Lucena City. Majorities also are the respondents
with almost 1 year of tenure and belong in rank and file positions receiving a
salary range of ₱9, 000 to ₱12, 000. Big numbers of surveyed employees were
expected that all businesses should conform. This study will show how Super
Metro Lucena addressed the call for “Endo” abolishment and identify its
means that social media, televisions and even print ads had help employees to
be aware and become knowledgeable of the social and political issues in the
Philippines which gave them also the ability to discuss or disseminate it inside
their work organization. From the respondents, it was learned that the
contracts is not fully abolished but instead the company used manpower
agency as its leeway. Since the implementation just took over just recently, it
is still vague for the employees whether No Contractualization is beneficial to
the company or not. According to them, they were still uncertain if the law
was beneficial to the company but guaranteed that it was beneficial to current
and non-current employees. One proof of being beneficial to current and non-
current employees was the 51 workers and above who were about to be
When complying with new regularizations like this, the company and
its employees are the ones who are directly affected. The effects of this new
salaries and benefits, it is noticeable that the company was tying knot to
reduce its expenses, no more merit increase and additional bonuses for them.
implemented was that the number of workforces had decreased which means
that the new regularized workers tend to be more burdened by heavier and
tedious work. Aside from this, unemployment would increase and become a
bigger problem in the near future. That would be another and foregoing issue
drawn;
1. Super Metro Lucena should conduct job interviews not just within Lucena
half of the employees were regulars, it should still increase its regulars or
better yet do not rely on outsourcing by the used of Easy Link Agency in
tenure, since most of Super Metro’s employees now are new while some old
and competitive employees are abandoning their posts, the company should be
alarmed and extend effort to regain their trust and loyalty. The business had
invested so much for the trainings in order to make them more skillful and
competitive. For the new employees, make sure to train them well and
inculcate in their minds the value of their work, trust and loyalty. Perform
salary would also increase. According to the data gathered, most of the
workforces are receiving 9, 000 to 12, 000 which means even though you
have been in the company for such a long time; your salary is not increasing.
earners. Maybe this is one of the reasons why some regular employees are
2. As for the awareness of law, it is good that the employees are aware of No
Contractualization. This means that they are also conscious of their rights and
orientations and seminars to teach them the value, benefits and essence of No
mission and vision plus the core value in order for them to become happy.
done for employees who got perfect attendance and consistently punctual.
While the company gets higher profits, the employees must also have higher
take home pay. Happy workers are productive. And productive staffs create
.
Appendices
Philippines
contracting arrangements emerged with the decline of the cabo system. Cabos
independent contractor, engages its members, who are paid through union
present, the cabo system is prohibited under the Implementing Rules of the
Labor Code.
started in the export processing zones in the 1970s. The first export processing
enacted Presidential Decree (“P.D.”) No. 66, which created the Export
all personnel, including temporary workers. It also provided that the Civil
Service Law and regulations of the Wage and Position Classification Office
would not be applicable to the workers, effectively exempting them from the
amending the Implementing Rules of Books III and VI of the Labor Code. It
and had substantial capital, and the agreement between them and the principal
Four years later, in 2001, the said department order was modified by
D.O. No. 3-01, which added the element of a direct business relation, such
the main business of the principal; otherwise, the scheme would be deemed
Article 10624 of the Labor Code by issuing D.O. No. 18-0225 which
interpreted Articles 106 to 109 of the Labor Code. It provided for a trilateral
as long as it did not fall within the category of “labor-only contracting,” which
also equated security of tenure with having a definite contract, instead of the
regular and permanent status previously enjoyed by workers who have worked
for more than six months. D.O. No. 18-A-11, the latest interpretation to Art.
106, superseded D.O. No. 18-02 but did not propose substantial changes. It
Under the new order, DOLE Secretary Silvestre Bello III said that
agreement with his employer is no longer allowed. With the new policy,
expects the regularization of more workers and the end to illegal contractual
provider will also attain the status of a regular employee,” Bello pointed out.
contracting arrangements, DOLE has set higher capital requirements for such
waiting for new assignment, for a maximum of three months. If the three-
month period lapses without the worker getting new employment, the
contractor should give him or her separation pay. Violators of the new DO
P50,000.
arrangement can enjoy their right to security of tenure as well as just and
Figure 1
Above shows that after the implementation of No Contractualization,
there were about 125 personnel who were put under probationary period.
There were no more casual employees who were directly employed this year.
And it can be noticed that Super Metro Lucena hired some of its employees