Proposed ‘endo’-end scheme better than existing law for workers? | Inquirer Opinion

Proposed ‘endo’-end scheme better than existing law for workers?

12:03 AM December 14, 2016

I wish to take exception to the article “End to ‘endo’ scheme nears” by Amy R. Remo (Business, 10/17/16).

In the proposed scheme, the worker becomes a permanent employee of the third-party service provider or contractor.


Under the present setup, big companies realize big savings by employing contractual or temporary workers to fill regular jobs and limiting their employment to only five months, thus skirting the Labor Code requirement to make them regular workers after a six-month period of employment.

On the other hand, international companies have job evaluation systems in place and classify jobs as “regular” or “temporary.” A job is classified regular when there is a need for it on a regular basis and where trained personnel can undertake the task without endangering or compromising the quality of the product or the service required. Regular employees in such companies or establishments enjoy bonuses, sick leaves, maternity leaves and eligibility for higher-paying positions in the company.


The wage or salary scale for each job category is ladderized. Good performance at yearend qualifies the employee to a wage or salary increase within the wage or salary scale for each position. While in the service of the company, the worker or employee is a member of the Social Security System and can avail of SSS loans, apart from benefits like salary, emergency loans, etc.

The proposed solution to the scheme enables contractual workers to become regular workers of third-party service providers where they will be provided workers benefits, including retirement and separation packages. Could these match the benefits that would accrue to them in the companies that would hire them on a temporary basis and classify them regular employees after six months?

Third-party service providers or sources of contractual workers flourish because big local companies, in their desire to increase their income, deprive Filipino workers of their right to become regular employees by “ending” their service after five months, contrary to Labor Code pertinent provisions which they now plan to amend. This could make the late labor secretary Blas Ople turn in his grave.


APOLONIO G. RAMOS, 42 Mindanao St., Marikina City

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TAGS: contractual worker, employment, endo, letter, Letter to the Editor, opinion
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