FAJARDO, MICHELLE B.

LEGAL RESEARCH – 1Q

Topic: The Effects of Contractualization on Employment Security

Even though the Philippines is one of Asia’s brightest investment spots, the

country’s poverty rate remains high. Inclusive growth has become a farfetched dream due

to the lack of decent jobs and the existence of a high youth unemployment. In the present,

labor unions and political allies have tried to raise the issue of contractualization in the

government, making a socio-economic problem a political and legal one. President

Rodrigo Duterte had promised to put an end to the problem of contractualization, and now

in office, he is urging the government to uphold the mandate of the Constitution: “to

provide job security to all workers”. According to the data provided by the Civil Service

Commission (CSC), as of July 2016, there are 592,162 temporary employees combined

with Job Orders (JO) and Contract of Service (COS), nearly a quarter of the 2.4 million

workers comprising the Philippine bureaucracy.

One of the legal provisions that governs the Job Order and Contract of Service

workers is the Revised Omnibus Rules on Appointments and Personnel Actions

which defines JOs and COS employment:

“Rule XI, Section 2 (a). Contract of service covers lump sum work or

services such as janitorial, security, or consultancy services where no

employer-employee relationship exist.”

“Section 2 (b). Job order covers piece of work or intermittent job of short

duration not exceeding six (6) months on a daily basis.”

The issues surrounding contractualization must be addressed from an academic

perspective to create a deeper understanding from which future governmental decisions

or actions will be based upon. Contractualization is a recurring phenomenon in the

Philippines, and the effects of it on the workers’ employment security must be met with

academic curiosity.