In the study, titled “Beware of the End Contractualization!

Battle Cry,” Philippine

Institute for Development Studies (PIDS) research fellows Vicente B. Paqueo and
Aniceto C. Orbeta Jr. said ending contractualization would be more expensive for
companies than the government estimated. Hiring more permanent employees would
increase the cost of firms by about 30 percent to 40 percent, higher than the
government’s estimate of around 10 percent. (pids.gov.ph)
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Growth in Economy
Contractualization has been devised by previous lawmakers in order to address and tackle
the issue of poor economic growth in the country.

Creating job opportunities albeit temporarily will help cater into the growth of economics
here in the Philippines even more.
Staffing Flexibility for Companies
Today, big and small corporations are being asked to supply several requirements which
include flexible working arrangements for their employees. Providing temporary work is
probably the best step they could take in order to offer the required flexibility while
meeting their own needs as well.

According to Denise Ridenour from Kelly Services, employing both a mix of permanent
and temporary workers will result into a more efficient and effective workplace. She adds
that this practice also leads to a flexible job market that presents greater prospects for
both companies and workers. (pinoybisnes.com)
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Philippine Long Distance Telephone Company, Inc. (PLDT) was forced to terminate
7,000 contractual employees after the Department of Labor and Employment (DOLE)
insisted that these 7,000 contractuals should be regularized, based on the executive order
51, prohibiting illegal contracting and subcontracting signed by President Rodrigo
Duterte on May 1, 2018.
--
However, there are companies in certain industries that hire contractual laborers for
various reasons that do not necessarily violate the basic rights of these workers. For
instance, a publishing company might hire contractual workers during the last month of
school, throughout summer, and up until the first few months of a new school year.
Why? Because during this time, schools will be making their orders and textbooks have
to be delivered swiftly. However, the demand for book deliveries will not be that high for
the rest of the year. Therefore, it will make more sense to hire contractual workers only
during the peak season. Otherwise, the company may find itself employing and
compensating unproductive staff during idle stretches of the year.
Here’s another example: a certain department in a company is experiencing some
problems with its personnel. To fix the situation, management decides to hire an HR
expert as a contractual worker who can provide professional insight on the issue and
offer solutions to help remedy the problem. Since this is purely situational, it would make
no sense to hire an HR expert as a full-time employee.

This is what contractualization is – a practice where a company hires contractual workers

only when necessary. This does not only benefit the company, but the workers as well.
After all, how will workers grow professionally if a company hires them to work during
limited periods of the year only? Instead of working full time for one business,
contractual workers may work on other projects when they want to continue earning
money and enhance if not learn new skills to advance their careers. This will not just give
them total control over their schedule, but expand their knowledge and experience
readily as well. (asiapro.coop)

Advantages of Taking a Temporary Job

A temporary job definitely offers some advantages to the job seeker:

 The temporary job may be exactly the job the job seeker wants, with a time limit
for the employment commitment.
 It provides an income stream while the "real" job search continues. (We called
this the "salary continuation plan" in the past.)
 It fills a gap on the resume - a gap in experience needed for the next job or a gap
in the resume's employment history.
 It may give the job seeker a chance to "test drive" a job, an employer, or an
industry.
 The job seeker has an opportunity to start their career migration to a new field.
 Sometimes, it provides both income and benefits (health insurance, etc.)
 Sometimes, it opens the door to a permanent job, often referred to as "temp-to-
perm." These jobs give both the employee and the employer an opportunity to
see how they work together.

With luck, a temporary job may provide all of these benefits and more. (job-hunt.org)