The DOLE has issued a new regulation that prohibits ‘endo’.
DOLE – The Department of Labor and Employment has issued a new regulation that prohibits the practice of end-of-contract or ‘endo’.
After assuming the highest post in the country through a landslide victory in the 2016 presidential election, Pres. Rodrigo Roa Duterte has been very vocal on how much he wants to give Filipinos the stability in their jobs.
The 71-year-old Chief Executive has been loud on his desire to put an end to contractualization practices in the field of employment.
Based on a previous news report, he has even warned those who will oppose the move to end the job contractualizations in the country.
In a recent news report in Phil Star Global, it is stated that the DOLE has issued a new regulation that bans the ‘endo’ and other contracting practices which are considered to be ‘labor only’.
According to the Secretary of DOLE, Silvestre Bello III, stopping the work of an employee after his service agreement has expired is now prohibited. He emphasized that the old practices of cooperatives and manpower agencies of providing only labor are no longer allowed.
The report also made mention that higher capital requirements have been set by DOLE to ensure that only legitimate contractors can apply permissible arrangements of contracts. Such firms are required from P3 million up to P5 million.
The posting of P100,000 cash bond is required of the contractors and as well as an additional cash bond that amounts to 50 percent of the wage of 10% of the workers.
The working capital requirement of the contractor which should be equivalent to 50% of the total wage of all the workers should also be maintained.
For workers who are waiting for new tasks, the contractors should provide financial aid to them for up to three months. A separation pay should be given to the worker in case the three months have passed without the employee getting a new job.
Penalty fees ranging from P10,000 up to P50,000 and the cancellation of the registration await for those who would violate the order.
The new order which has been submitted to the 71-year-old President for his approval gives Bello the authority to order, under certain conditions, the regularization of the employees.
However, the Labor Secretary also emphasized that the total prohibition of all of the contractualization cannot be done by Department. It cannot repeal all the laws that are existing.