It declares labor-only contracting or subcontracting as illegal. The State shall promote social justice in all phases of national development. The State shall promote a just and dynamic social order that will ensure the prosperity and independence of the nation and free the people from poverty through policies that provide adequate social services, promote full employment, a rising standard of living, and an improved quality of life for all. “Article II, DECLARATION OF PRINCIPLES AND STATE POLICIES 4 For example, the constitutional provisions under Article II of the Constitution below: No less than the 1987 Constitution provides for the provision in support of labor, promotion of the state and welfare of the workers, other labor standards and labor relations concerning the rights of the workers. Workers should have a security of tenure for a just and secured livelihood. The business sector is thriving while the workers are set aside and exploited. However, different companies among various industries managed to find loopholes and set aside the spirit of the provision for cheaper labor fees and to maintain their towering revenues by outsourcing workers from different manpower agencies. The labor provision was supposed to protect workers or employees. Stating it otherwise, Article 296 of the Labor Code of the Philippines states that that those who continue to work after the probationary period of six (6) months must be regularized and must be given benefits such as paid leaves, medical insurance, and security of tenure for a secured livelihood. An employee who is allowed to work after a probationary period shall be considered a regular employee. The services of an employee who has been engaged on a probationary basis may be terminated for a just cause or when he fails to qualify as a regular employee in accordance with reasonable standards made known by the employer to the employee at the time of his engagement. – Probationary employment shall not exceed six (6) months from the date the employee started working, unless it is covered by an apprenticeship agreement stipulating a longer period. Thus, this should be the proper practice:Īrticle 296. Contractualization has also been coined as the “5-5-5” practice because the employee is terminated after 5 months otherwise when she reaches her 6th-month, she will be evaluated, and if she meets the standards, then, she must be regularized unless she is not qualified, as mandated by law. These cheap labor fees are received by workers who are rendering services with all their might just for a living. This is still a prevalent practice among various industries in the Philippines because it allows companies to maintain their revenues with a very cheap labor fees. Contractualization | Contractual Workers in the PhilippinesĬontractualization is well defined as the practice of hiring employees who will render their services for a finite amount of time, usually, for a few months only. This is, otherwise, called contractualization. This is a prevalent practice in various industries the Philippines. Therefore, contractual workers are those hired under a fixed term contract and maybe stripped of the benefits that regular workers or employees enjoy. Who would have wanted short-lived jobs and easy-peasy “end of contract” engagements? If only they have the liberty to choose from and without the mouth and stomach to consider. Workers aim for stability and permanency in work. As a general rule, the courts are not at liberty to ignore the freedom of the parties to agree on such terms and conditions, as long as they are not contrary to law, morals, good customs, public order or public policy. What does the contract state then? Before a person enters a contract, in the eyes of the law, he or she is bound and obligated to know the contents and scope of his or her contract. However, in the latter, security of tenure is protected by law. It must be noted though that employment arrangement, not being a fixed period one, is also a contract. However, it may technically refer to fixed-period employment to be performed within an agreed period in a contractual term. The question before us is what are contractual workers? Apparently, they are workers who are bound by their contracts. Now that we already mapped out the essence of what a contract is, in a nutshell.
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