Labor group welcomes House bill vs. “endo”

PASSED ON 2ND READING

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The Trade Union Congress of the Philippines (TUCP) welcomed on Thursday the passage of House Bill 6908, or the proposed “Security of Tenure Act,” on second reading at the House of Representatives.

While it does not completely eradicate the practice of “end of contract” or “endo,” TUCP president and Rep. Raymond Mendoza said the bill paves the way for stringent hurdles before a job contractor can register. It also imposes heavier fines for violators.

HB 6908 makes it easier to declare a contractor as practicing illegal “labor-only” contracting or LOC.

A contractor can be deemed as engaging in endo based on any of the following criteria: no substantial investment, tools or equipment; and no handle on workers’ methods and means of accomplishing work.

“If declared LOC, the principal employer shall be responsible to the workers as if he directly employed them,” Mendoza noted.

“Under the proposed bill, it will be simpler to go after the contractor. This will ensure regularization of anywhere from 2 million to 6 million workers,” he said.

Fixed-term employment and further subcontracting work that has already been contracted out will be prohibited.

Mendoza said the TUCP wants workers to be regularized under the principal employer, not under the agency or contractor.

“The agency is only the vehicle used by the employers to avoid their legal, social and financial obligations towards their workers. We all need to help regularize more workers to make our society more fair and equitable,” he said.

TUCP also welcomed Labor Secretary Silvestre Bello III’s announcement that President Rodrigo Duterte will soon issue an executive order against endo.

Passed on January 23, HB 6908 makes both the employer and contractor liable if the contractor fails to pay the wages, allowances, and benefits of employees.

The bill also requires “just cause” to terminate the services of a regular employee. It defines an employee as one hired for an indefinite period.

Relievers, project, and seasonal employees will also get the same rights as regular employees during their contract period. —Rie Takumi/VDS, GMA News