Will There Be A Law Before May 1 Ending The Practice of Endo?

In January of this year, A bill intended to end the practice of the so-called
“endo” or the system of end of contract was passed by congress.

A bill becomes a law when the President of the Philippines signs it.

Endo is the system of contracting workers for less than 6 months and for the purpose of preventing them from becoming a regular employee.

A non regular employee will not be entitled to all the privileges and entitlements
granted by Philippine law to regular employees.

A regular employee is an employee hired to perform tasks usually necessary or
desirable to the business of the employer.


A probationary employee will be considered regular after 6 months of employment.

It is important for an employee to get the status of a regular employee because
a regular employee can not just be terminated from employment for any reason but can only be terminated for just and authorized causes enumerated by law.

The bill which I personally hope to become a law is intended to eliminate the illegal practice of labor-only contracting.

There is labor-only contracting when there is an arrangement where the contractor or sub-contractor merely recruits, supplies or places workers to perform a job, work or  service for a principal and the following elements are present:

  • The Contractor or sub-contractor does no have substantial capital or investment in the form of tools, equipment, machineries, work premises among others, and the workers recruited and placed by such person are performing activities which are directly related to the principal business of such employer. In such cases, the person or intermediary shall be considered merely as an agent of the employer who shall be responsible to the workers in the same manner and extent as is the latter were directly employed by him  or
  • The Contractor does not exercise the right of control over the performance
    of the work of the employee.

Some of the measures included in the bill are the requirements for the job contractor to obtain a license and increase in the required capital for the job contractor.

It seems that the executive branch of government headed by the President has no
power to end the practice of Endo and the branch of government that has the power to do this falls on the legislative branch of government which is the congress of the  Philippines through legislation, hence, the bill.

The Practice of entering into employment contracts which would prevent the workers from becoming regular employees is contrary to public policy and morals.

Will the government finally put an end to the system of Endo in the Philippines.

Let us hear your opinion by posting a comment below.

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