MANILA — Malacañang on Wednesday released a copy of an executive order which President Rodrigo R. Duterte has signed to ban ‘endo’ (end of contract) or contractualization that violates the employees’ security of tenure.
Signed by the President on May 1, the Executive Order No. 51 seeks the implementation of Article 106 of the Labor Code of the Philippines “to protect the right of security of tenure of all workers based on social justice in the 1987 Philippine Constitution”.
“It is the declared policy of the government to protect the worker’s right to security of tenure by eradicating all forms of abusive employment practices through the strict implementation of the provisions of the Labor Code, as amended,” stated in a three-page EO.
The EO shall apply to all parties including cooperatives engaged in any contracting and subcontracting arrangement.
The Order “strictly” prohibits contracting or subcontracting “undertaken to circumvent the worker’s right to security of tenure, self-organization and collective bargaining, and peaceful concerted activities”.
Security of tenure refers to the right of employees not to be dismissed or removed “without just or authorized cause and observance of procedural due process”.
The EO also seeks to enforce labor standards and working conditions “so as to ensure compliance with all labor laws, including this Order”.
“In case the compliance order involves a directive to regular workers, the employment of the latter shall not be terminated pending appeal of such order except for just or authorized cause. Any termination of workers pending appeal shall render the compliance order involving the regularization of workers executory,” it said.
Presidential spokesperson Harry Roque clarified that the EO covers the so-called 555 ‘endo’ or contract which is being terminated before it reaches six months “so that an employee will be employed as regular”.
“So that’s the kind of EO the President signed, prohibiting the contractualization that violates the so-called security of tenure by the workers,” he said in a radio interview.
Roque said the EO also prohibits the so-called “cabo” or “labor only contracting” involving fly-by-night company that has no capital.
“If you are a big company that has enough capital and can prove that all its employees have security of tenure, giving all terms and conditions of employments, minimum wage, SSS, Pag-IBIG, PhilHealth, that’s not prohibited by law,” Roque said.
He said the government cannot grant the demand of the labor groups to include all kinds of contractualization under EO 51.
“I would like to remind our countrymen, the promise of the President is to end the endo, the 555, not all kinds of contractualization,” Roque explained.
As he announced the signing of EO in a Labor Day event in Cebu City on May 1, Duterte assured his government “will never cease in its efforts to provide every Filipino worker with full, dignified and meaningful employment.”
Duterte, however, pointed out that Congress also needs to do its part to amend the existing Labor Code which he described as “outdated.”
“I remain firm in my commitment to put an end to “ENDO” and illegal contractualization. However, I believe that in order to implement an effective and lasting solution to the problems brought about by contractualization, Congress needs to enact a law amending the Labor Code,” Duterte said.
Duterte said he had certified as urgent the passage of the bill on security of tenure “to once and full all address the issue and provide long-term solutions that would strengthen the workers’ right to security of tenure.”
Roque echoed the President’s remark that amendment of the law is needed to address the demands of the labor groups calling for banning of all kinds of contractualization. (Jelly Musico/PNA)
