Labor and Employment Secretary Silvestre H. Bello III yesterday said that the Department will formulate a policy on employment contractualization based on the proposals of the employers and labor groups before the end of 2016.


“We will come up with a policy or guideline that will be enforced by the Department 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 after the High Level Dialogue between representatives from employers and labor groups held at the OSEC Conference Room, DOLE Building in Intramuros, Manila.


Bello added that the Department is also studying the proposed “Win-Win Structure” which was submitted by the Department of Trade and Industry (DTI) and supported by various employers’ groups.


Among the employers’ group which support the DTI’s proposal are the Employers’ Confederation of the Philippines (ECOP); Federation of Filipino Chinese Chambers of Commerce (FFCCCII); and Philippine Association of Local Service Contractors (PALSCON).


The DTI’s “win-win structure” proposes the following arrangements: workers will be hired as regulars by their contractors with full benefits, including leave credits, 13th month pay, SSS, Phil-Health, among others; workers get deployed or re-deployed to principals when needed; companies/principals will have the flexibility to hire workers as regular or outsource due to seasonality or specific functions; and strict compliance of service providers in giving full benefits to the workers.


The labor groups, on the other hand, will come up with their unified proposal after the Visayas and Mindanao Island-wide Summit. On 17 October, representatives from various labor groups gathered at the Occupational Safety and Health Center (OSHC) in Quezon City for the Luzon Labor Summit and submitted an initial proposal.


The labor summit was convened to gather inputs from the labor sector for the implementation of labor and employment strategies, policies, programs, and activities that will support efforts in translating the eight-point policy agenda of Secretary Bello.


Earlier, Secretary Bello expressed confidence that government can end all illegitimate contractualization practices in the country.


“Putting a stop to ‘endo’ will not be that easy, but I am confident that with the determination of the department and the support of our partners, we can put an end to illegitimate contractualization, including ‘555’ and ‘endo’, and provide security of tenure to all our workers,” said Bello.




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