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Endo contractualization
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Endo contractualization
Endo (derived from "end-of-contract") refers to a short-term de facto employment practice in the Philippines. It is a form of contractualization in which companies provide workers with temporary "employment" that lasts for less than six months (or strictly speaking, 180 calendar days) and then terminate their employment just before they can be regularized, to skirt the costs that come with the benefits of regularization. Some examples of such benefits are the de jure "employer-and-employee relationship"-mandated SSS, PhilHealth, and Pag-IBIG Fund contributions, paid time off (leaves), and a 13th month pay, among others.
The term endo is derived from an abridged version of the phrase "end-of-contract." It is also sometimes referred to as "5-5-5," which alludes to the practice of terminating a non-regular employee's contract after five months.
Under the Labor Code of the Philippines (Presidential Decree No. 442), employers may employ individuals on a probationary status for a period not exceeding six months. The Supreme Court of the Philippines, in various rulings, has specified that this period is 180 calendar days from the first day of work. In the endo system, a worker's employment contract is terminated before they complete the six months (180 days), which would otherwise lead to them becoming a regular worker entitled to mandated benefits such as health, security, and insurance.
Contractualization is one of the most controversial labor practices in the Philippines. Since the Labor Code's adoption in 1974, it has been amended with several implementing texts. As of June 2016, there were an estimated 356,000 probationary workers in the Philippines.
A regular employee is defined by the 1974 Labor Code as one who is "engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer."
The Labor Code recognizes two types of regular employees:
A regular employee (whether de jure, fixed-term, or project-based) is entitled to several mandated benefits, including but not limited to:
The employee's portion of these benefits is deducted from the employee's gross monthly salary by the employer, as required by law.
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Endo contractualization
Endo (derived from "end-of-contract") refers to a short-term de facto employment practice in the Philippines. It is a form of contractualization in which companies provide workers with temporary "employment" that lasts for less than six months (or strictly speaking, 180 calendar days) and then terminate their employment just before they can be regularized, to skirt the costs that come with the benefits of regularization. Some examples of such benefits are the de jure "employer-and-employee relationship"-mandated SSS, PhilHealth, and Pag-IBIG Fund contributions, paid time off (leaves), and a 13th month pay, among others.
The term endo is derived from an abridged version of the phrase "end-of-contract." It is also sometimes referred to as "5-5-5," which alludes to the practice of terminating a non-regular employee's contract after five months.
Under the Labor Code of the Philippines (Presidential Decree No. 442), employers may employ individuals on a probationary status for a period not exceeding six months. The Supreme Court of the Philippines, in various rulings, has specified that this period is 180 calendar days from the first day of work. In the endo system, a worker's employment contract is terminated before they complete the six months (180 days), which would otherwise lead to them becoming a regular worker entitled to mandated benefits such as health, security, and insurance.
Contractualization is one of the most controversial labor practices in the Philippines. Since the Labor Code's adoption in 1974, it has been amended with several implementing texts. As of June 2016, there were an estimated 356,000 probationary workers in the Philippines.
A regular employee is defined by the 1974 Labor Code as one who is "engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer."
The Labor Code recognizes two types of regular employees:
A regular employee (whether de jure, fixed-term, or project-based) is entitled to several mandated benefits, including but not limited to:
The employee's portion of these benefits is deducted from the employee's gross monthly salary by the employer, as required by law.