Contractualization policy in the works

Labor Secretary Silvestre Bello III said  the Department of Labor and Employment (DOLE) will formulate a policy or guidelines on contractualization based on proposals from employers and labor groups before the year ends.

“We will decide whether we will end contractualization, allow contractualization, or come up with a balance of the two positions,” Bello said in a statement on Wednesday.

He said DOLE was also studying the proposed “win-win structure” submitted by the Department of Trade and Industry (DTI) and supported by various employers’ groups, including the Employers’ Confederation of the Philippines, Federation of Filipino Chinese Chambers of Commerce, and Philippine Association of Local Service Contractors.

The DTI’s proposal entails the following: workers will be hired as regulars by their contractors with full benefits, including leave credits, 13th month pay, SSS, PhilHealth; workers are deployed or redeployed to principals when needed; companies/principals will have the flexibility of hiring workers as regulars or outsourced; and strict compliance by service providers in giving full benefits to workers.