“Endo,” or end of contract, is the practice of hiring employees for five months to circumvent labor laws providing them benefits and job security. The practice is also referred to as contractualization.
Contracting or subcontracting is allowed and governed by the Labor Code of the Philippines. In 2011, the Department of Labor and Employment issued Department Order No. 18-A, the implementing rules on making these arrangements legitimate if the service agreement between the contractor and principal ensures compliance with all the rights and benefits under labor laws.
The order prohibits endo, saying that subcontracting is illegal when it is done through repeated hiring of workers for a five- to six-month employment contract under the same employer or service agreement of the same duration.
Sources: Inquirer Archives, dole.gov.ph