Employers’ group wants limited ban on contractualization

Employers’ group wants limited ban on contractualization

Not all forms of contractualization, particularly those that are adopted worldwide, should be banned, according to a statement by an employers’ group after the Senate passed the Security of Tenure bill. Sergio Ortiz-Luis, president of the Employers Confederation of the Philippines (ECOP), said some provisions in the law aimed at ending contractualization could discourage investors. Ortiz-Luis said labor providers should be the ones responsible for giving their employees regular status. He explained that the government should not outlaw all sorts of contracts practiced globally as long as they can eventually become permanent, whether with the principal or outsourcing. President Rodrigo Duterte vowed to end “endo” — employers’ practice of avoiding paying benefits to regular workers by hiring and re-hiring them in cycles — when he assumed office in 2016.

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