WHAT IS ENDO?

ENDO or end of the contract is the term used for contractualization of workers in the Philippines. As
differentiated from a regular employee, a contractual worker serves a particular company for a limited
period that is anchored on a project (project-based) or fixed-term, most often not exceeding six months.

ENDO in the Philippine Context

The Department of Labor and Employment later put into effect President Duterte's pledge to stop "endo" practices. An
Executive Order emphasizing the ban on unlawful labor contracting and subcontracting was released by the President in 2017. A
measure that specifically forbade labor-only contracting and expanded its definition by outlining job contractor qualifications was
submitted by Congress to the President in 2019. The business community was strongly against this bill since it would have outlawed
most types of contract labor. In July 2019, the President vetoed the bill, saying that lawful contracting for jobs should be permitted
as long as the contractor has adequate capital.

Global Problem House Bill 2173

Contractualization is not a problem unique to the Philippines but
rather one that pervades across the globe. The ILO uses the broader term
“non-standard employment’ which encompasses various employment
arrangements that “deviate from the ‘standard employment relationship’”,
understood as work that is full-time, indefinite, as well as part of a subordinate
relationship between an employee and an employer.”
Figure 1. Temporary workers as percentage of wage employees, selected Asia
countries
The proposed law aims to prohibit contractualization,
fixed-term employment, job contracting, and direct hiring of
contractual workers as unfair labor practices. This includes
work performed by contractors, subcontractors, manpower
agencies, workers' cooperatives, or similar entities. The law
also seeks to amend Article 294 of the Labor Code to bar
dismissal without just cause or due process, and ensure that
unjustly dismissed employees are immediately reinstated
with their privileges and benefits. The amendment also
guarantees illegally dismissed employees full backwages,
accrued benefits, and remunerations provided by law,
company policy, and collective bargaining agreement.

Advantages and Disadvantages

Why contractualization is good
Some experts argue that the practice has
significantly helped in the growth of the economy. To them,
hiring employees on a short-term provides employment to
the unemployed. This, in the long run, improves the status
of the economy. Also, contractualization promotes staffing
flexibility for companies. In other words, the mixing of both
regular and temporary workers promotes an efficient and
productive workplace.
Pros
❖ Creation of job opportunities for the unemployed.
❖ Fills the gap in a field where experience is required.
❖ May open a door for regularization.
❖ It creates room for staffing flexibilities for
organizations.
Why contractualization is bad
Overall, this system exploits workers in numerous
ways. For instance, employees have no say about their
rights here because the employer can fire them at will.
Also, they do enjoy benefits prescribe by law such as unpaid
leaves, Pag-IBIG, SSS, Home Development, Philhealth,
mutual fund, among many others.
Cons
❖ It slows down the economy due to the termination
of workers every five to six months, making them
jobless.
❖ No employee benefits.
❖ Low pay and employee manipulation.
❖ It creates a disruptive workplace environment.
❖ Low morale from the side of workers.
❖ Productivity may be low.
References
Gregorio, X. (2022, July 20). House bill seeks ban on all forms of contractualization. Retrieved from
Philstar.com: https://www.philstar.com/business/2022/07/20/2196771/house-bill-seeks-
ban-all-forms-
contractualization#:~:text=House%20Bill%202173%20seeks%20to,classifies%20as%20unf
air%20labor%20practices.
Osoro, Y. V. (2020, May 1). Retrieved from Contractualization: meaning, pros and cons, law, how to
solve: https://kami.com.ph/111155-contractualization-meaning-pros-cons-law-solve-
2020.html
Punongbayan, B. R. (2019, October 8). Endo: When and how does it end? Retrieved from
https://www.grantthornton.com.ph/insights/articles-and-updates1/opinion/endo-when-
and-how-does-it-end/
Purugganan, J. (2022, May 18). Precarious Road Ahead: The Continuing Struggle of Workers against
Contractualization in the Philippines. Retrieved from FOCUS Dispatch, Opinion/Analysis,
Philippines: https://focusweb.org/precarious-road-ahead-the-continuing-struggle-of-
workers-against-contractualization-in-the-
philippines/#:~:text=Commonly%20referred%20to%20as%20'endo,employment%20syste
m%20in%20the%20country.
https://www.rappler.com/nation/elections/218050-senatorial-bets-labor-endo-gender-
discrimination-cnn-philippines-forum/
https://www.bworldonline.com/economy/2021/11/14/410467/govt-benefits-for-
contractuals-seen-as-alternative-to-endo-ban/#google_vignette