President Rodrigo Duterte on Tuesday — Labor Day — signed the executive order banning illegal contractualization. The order bans contracting and sub-contracting.
“I remain firm in my commitment to end ‘endo’ and illegal contractualization,” Duterte said in his Labor Day speech in Cebu City.
“Endo” or “end of contract” refers to the practice of companies to let go of employees before they complete six months of service, after which they are entitled to regular employment benefits.
He urged Congress to revisit and amend the labor code, because “an executive order is not enough.”
A bill to end endo has been passed at the House of Representatives, while the counterpart bill is still pending in the Senate.
He has also ordered the Labor Department to submit a list of companies suspected of engaging in labor contracting.
The executive order will take effect 15 days after publication.
Source: CNN Philppines