6M workers to benefit from contractualization ban

Two to six million workers are expected to benefit as the House of Representatives approved a bill that puts an end to contractualization.

With 199 affirmative votes and none negative, lawmakers approved on its second reading the House Bill 6908 that bans the practice of hiring employees on five-to-six month contracts, except in cases of overseas Filipino workers, workers on probation, workers as temporary replacements, as well as project-based and seasonal workers.

Under the said bill, those who will continue imposing contractual-based employment will be fined from PhP 30,000 to PhP 5 million per employee.

“The fine will be imposed jointly, severally against the principal employer, contractor, manpower agency, workers’ cooperative or any other similar entity or the latter’s responsible partners, directors or officers engaged the prohibited arrangements,” the bill clarifies.

Meanwhile, Associated Labor Unions-Trade Union Congress of the Philippines, the country’s biggest labor federation welcomed the passage of the bill, saying that it’s a major step toward meeting the election promise of President Duterte to help contractual workers.