Labor chief to issue memo to cut ‘endo’

Labor Secretary Silvestre Bello. INQUIRER FILE

LABOR Secretary Silvestre Bello III said Tuesday he was set to issue a memorandum to reduce by 50 percent this year the widespread practice of “endo,” which companies use to avoid employing a worker on a permanent basis with full benefits.

“Endo” is the popular, shortened term for “end of contract” or contractualization, typically used by companies to let go of workers before they reach six months under employment, which under the law, technically makes them regular employees entitled to benefits.

“I plan to reduce contractualization by 50 percent by the end of 2016,” Bello said. “Workers under ‘endo’ or ‘555’ receive less than the mandated minimum wage without social protection benefits such as Social Security System (SSS), Pag-ibig and PhilHealth.”

Bello said the Department of Labor and Employment was already finalizing a memorandum which would provide directives to regional offices to start the clearing out of companies found to be employing workers for only about five months, without the promise of security of tenure or other social protection benefits.

Establishments listed

Bello said he has asked senior department officials to come up with a list of establishments which are into contractualization, and identify those using the practice.

Bello said there were already proposals from various labor groups on how to end unlawful contractualization in the country. The proposals, which range from reviewing to revoking Department Order 18-A that allowed for contracting employees for the short term, are currently being studied.