How Businesses Are Affected by ENDO

End of contract, or most commonly known as ENDO”, has been one of the fieriest topic in the Philippines this year. The moment President Rodrigo “Digong” Duterte perched as the 16th President of the Republic of the Philippines, he mandated an iron-fist against endo.

But what is really endo and how does it work?

It is indicated in Article 281 in the Labor Code of the Philippines that after six (6) months of working with a company, workers shall be considered as regular employees unless one fails the qualification of being a candidate for regularization with reasonable standards at the period of his/her employment with the company.

In lay man’s term, a regularized employee shall enjoy benefits such as paid leaves, 13th month pay, health insurance, and other benefits that other regular employees have.

However, most of the companies today try to avoid this by hiring people under 6 months and end their contracts, eluding them for being regularized. Many are victimized by this scheme which leaves them jobless, and most of them are Filipino wage earners and working students.

This is the main reason why President Duterte has pointed his guns to businesses that practices this system. He clearly ordered both local and foreign companies situated in the Philippines to end endo, or he will literally kill them with his own hands.

Because of the President’s command, several companies had complied to his orders and backed up the battle against contractualization. The Department of Labor also issued a policy regarding the ban of “end-of-contract” and other related “labor only” employment pacts in the Philippines.

There are a lot of talks about this issue, though the majority supports this idea. However, there are a few skeptical minds querying if this is what the Philippines need at this point in time; Will it work? Will it be the solution to the growing unemployment rate in the country? What will be its impact to local and foreign businesses? What would happen if contractualization in the Philippines end?

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SUDDEN DISRUPTIONS OF BUSINESS PROCEDURES

The cessation of the Contractualization system in the Philippines will greatly impact businesses that are used to adding and removing people to work for them in a definite period. They will be forced to get rid of extra training teams that they saved for the 6-month hiring phase.

GROWTH OF UNEMPLOYMENT RATE WILL INTENSIFY

The result of endo can make millions of workers unemployed. Since businesses cannot hire them for a short span of time, the option of hiring short-term employees will be out of their preference. Companies will be obliged to appoint people who are fit for a possible regularization than others. Skilled workers in the construction industry will most likely be affected by the end-of-contractualization policy.

PHILIPPINES WILL BE LESS COMPETITIVE IN THE JOB MARKET

Employers are in constant search of workers that requires less cost, which is present in the Philippines. That is why proprietors are attracted to the country because of that reason. Exterminating the endo in the country would mean that companies would acquire less workers in the Philippines which will greatly affect not just the employment rate but the country’s economy.

The obliteration of the endo system in the Philippines has its upside points, too. One is the abolition of abuse to working Filipinos who are under this battering structure. Employees would not suffer being underpaid for their services to the company and their chances of getting what is right and just for them will be mistakably high. They can also enjoy the benefits of being a regular employee including SSS, NHIP, HDMF, 13th month pay, incentive leaves, and meal and rest allowances as per what the Labor Code denotes.

Another plus for the implementation of this campaign is the elimination of excessive resources devoted in the training program for future trainees of employees. In return, the additional resources of the business can be added on the benefits and incentives of present employees which will establish a secure and productive manpower within the company.

The end-of-contractualization has its fair share of pros and cons, but the significance of this matter is that the Filipino people are beginning to exercise their rights as an employee here in the Philippines; starting with the annihilation of endo in the employment domain.