Endo

I. Introduction

During the previous few months, contractualization and endo (short for ‘end of contract’) have

emerge as two of the most up to date and most touchy topics in the Philippines. Ranking

excessive amongst the important problems all through the presidential elections closing year,

labor businesses and presidential candidates weighed in on these subjects and argued about the

outcomes of contractualization and endo on Filipino workers.

End of contract or endo refers to the scheme that corrupt corporations exercise to abuse their

workers. In the Philippines, the regulation requires agencies to regularize their employees after

six months. Unfortunately, some firms terminate their people a month or two before their sixth

month of employment.

In the Philippines, it is mandated by using law that after six months of working for a company,

an employee automatically will become regularized. In Article 281 of the Labor Code, it says

that:
Probationary employment shall not exceed six (6) months from the date the employee began

working, unless it is covered with the aid of an apprenticeship agreement stipulating a longer

period. The services of an worker who has been engaged on a probationary foundation can also

be terminated for a simply reason or when he fails to qualify as a regular worker in accordance

with sensible requirements made recognized with the aid of the corporation to the worker at the

time of his engagement. An employee who is allowed to work after a probationary period shall

be considered a regular employee.

Contractualization has its roots tracing again to 1974 underneath the rule of Ferdinand Marcos

when Ernesto “Boy” Herrera helped draft Presidential Decree 442. This decree which Marcos

ultimately passed, would provide the provisions and grounds for the contractualization of people

in the phillipines.

The Labor Code of 1974 introduced the thinking of probationary employment to the Philippines

and Under Article 281 it states that "employers are allowed to hire people beneath a probationary

repute for up to six months. These 6 months are used as a trial period for the employee. If the

employee is allowed to work after the 6 month of the probationary period, he/she will be

considered a normal employee." which upon in addition analyzing continues as follows “the

offerings of an worker who has been engaged on a probationary groundwork may additionally be

terminated for a simply motive or when he fails to qualify as a ordinary employee in accordance

with lifelike standards made acknowledged by way of the company to the worker at the time of

his engagement.”
II. Statement of the Problem

Endo has a large terrible impact on Filipinos’ lives. Through this unjust practice, groups

chorus from regularizing their people who have been employed for six months or longer.

Aside from not receiving due compensation, they are disadvantaged of the advantages

enjoyed by full-time employees such as paid leaves, 13th month pay, and authorities

mandated SSS, Philhealth, and Pag-IBIG coverage, amongst different mandatory

requirements.

Another impact when there is no contractualization anymore is that employers will have to

rent lesser range of human beings doing the equal workload, which would end result again to

stractural unemployment

Technically, when human beings are unemployed because of modifications in the

commercial enterprise environment, it is categorised as structural unemployment. It occurs

when there is a fall in the demand for labor. In this case, on the grounds that all employees

are permanent, there are no accessible vacancies, thus there is obviously no need or demand

for extra employees.

Another case that can end result to decrease demand for labor is when groups fold up, either

due to the fact there is no profit brought on by means of decrease revenues or higher costs.

Having a high cost for labor can end result to this.

This type of unemployment is said to be the worst kind of unemployment due to the fact it

may be described to be something that is more permanent, and the most tough to solve, even

by means of the government.

Furthermore, the mismatch of capabilities and training vs. the on hand jobs is very prevalent.

A news report disclosed that there are handy jobs but there is no one who is qualified for the

job. On the different hand, there are fairly qualified people but simply settle for jobs that pay

much less than what they are certified for. This is called HIDDEN UNEMPLOYMENT (not

underemployment as frequently mistaken). Much like when a nurse takes a job at the name

center.
 III. Discussion

Contractualization really commonly refers to the exercise of Philippine companies and

organizations to outsource the manner of hiring their team of workers and personnel to different

companies or agencies. It is by using no capacity synonymous to endo, which is being applied by

means of employers in order to get rid of their people before their regularization to avoid paying

for advantages and bonuses; unluckily even though many can't disassociate the two phrases from

one-another.

There are pros and cons that have to be viewed when it comes to maintaining the practice of

contractualization in the Philippines.

PROS

Growth in Economy

Contractualization has been devised by preceding lawmakers in order to tackle and address the

difficulty of negative financial growth in the country. Many persons like Cid Tereso from the

Economics Program at the University of Asia and the Pacific have argued that the time is proper

to quit this practice due to the fact of the improving fame of the Philippine economics however

there are also others who have debated that it is truely no longer adequate to sustain the u.s.a in

the lengthy term.

Staffing Flexibility for Companies

Today, massive and small corporations are being requested to supply various requirements which

encompass flexible working preparations for their employees. Providing brief work is probably

the high-quality step they ought to take in order to provide the required flexibility while

assembly their personal wants as well.

According to Denise Ridenour from Kelly Services, employing each a mix of everlasting and

temporary employees will result into a extra efficient and wonderful workplace. She adds that

this practice additionally leads to a bendy two job market that provides increased potentialities

for each companies and workers.

CONS

Issues with Training

It does not depend whether or not the transient worker you are hiring has previous experiences

with a similar organization to yours. You will still cease up coaching them so that they can

function their assigned duties and duties to exceptional healthy the particular desires of your

company where they are presently being employed.

There are instances when you will have to exert greater coaching durations to some of your

transient personnel which will waste so lots time and effort, coming from the perspective of the

company. You are fortunate if you control to hire anybody who is verse adequate with your

specific enterprise that they will no longer want so an awful lot training.
Issues with Benefits

Big firms and businesses in the Philippines have come under hearth due to the fact of keeping the

exercise of contractualization and endo. Many businesses working for the welfare of workers and

personnel being subjected to them have made their thoughts regarded and protested about the

lack of benefits and bonuses employees are receiving due to the fact they are now not being

regularized.

Some of the advantages that they are now not receiving include: PhilHealth, SSS, Pag-IBIG,

Home Development and Mutual fund along with many others.