A TECHNICAL working group at the House of Representatives has consolidated legislation aimed at strengthening the security of tenure of private-sector workers and restrict the practice of fixed-term employment.
The legislation aimed at curbing the practice known as “endo,” which denies employees a path towards permanent status. The measure, which remains unnumbered, consolidates House Bills (HB) 55, 76, 170, 341, 556, 563, 709, 712, 895, 916, 1045, 1208, 1351, 1563, 1837, 1857, 1910, 2389, 3556, 3769, 3802, 4443, 4444, 5130, and 5267, which all seek to amend Presidential Decree No. 442 or the Labor Code of the Philippines.
The consolidated measure features amendments to Article 106 which limits labor contracting “if the person supplying workers to an employer does not have substantial capital or investment in the form of tools, equipment, machineries, work premises, among others” or if the workers employed “are performing activities which are directly related, indispensable, and essential to the principal business of the employer.”
The contract is also considered labor-only “if the control over the outcome of the employee lies with the person supplying the worker.”
Article 106-A was also added to the measure which mandates that “licenses for existing job contractors shall not be renewed by the Department of Labor and Employment (DoLE) unless they are in an industry or perform work classified by the DoLE secretary as open for legitimate job contracting” subject to the unanimous recommendation of the National Tripartite Industrial Peace Council.
The new measure also provides through the amendments to Article 294 that employees cannot be terminated “without just or authorized cause, or without observance of due process.” However, terminated employees are entitled to back wages which includes the employer’s share of contributions to the Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth) and PAG-IBIG “which will be free from interest and late remittance penalties.”
The labor group Kilusang Mayo Uno (KMU) said the bill in its current form will only “further institutionalize contractualization through third-party contracting agencies.”
“They rejected the labor sector’s proposal to junk all forms of contractualization by junking the articles 106-109 of the Labor Code. They disregarded our position papers and finalized the bill amidst workers’ strong opposition,” Niel Ambion, KMU’s media liaison officer, said in a text message.
Mr. Ambion added that KMU will oppose the passage of the bill. — Minde Nyl R. Dela Cruz
