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Under the law, all employees are entitled to security of tenure, which
simply means that they cannot be dismissed without just or authorized cause,
and after strict observance of procedural due process. That constitutional
guaranty applies to contractual, temporary, seasonal or project employees
whose tenurial right is protected under the terms of their contract of
employment. During the effectivity of their contracts, these employeescan be
assured that their employment will not be terminated without just or
authorized cause and that they will be afforded the benefits of procedural due
process. Under Art. 295 of the Labor Code, such employees hired for a
particular position on a casual, seasonal, or project basis automatically
becomes regular employees after one (1) year of service in thesame position.
Such is the essence of the phrase “security of tenure”. It does not guarantee
permanent or lifetime employment, a practice once adopted in Japan in the
60’s, but which iteventually scrapped for various reasons.
These rules have been written in stone since the effectivity of the Labor
Code in 1974, and has withstood the issuance of ImplementingRules and a
successive series of amendments,the latest of which was Department of Labor
and Employment Department Order No. 18-A (D.O. No. 18-A). The various
amendments were all made in response to the incessant demand of Unions for
the review,amendment ortotal repeal of the laws recognizing outsourcing.
1
See Temic Automotive Philippines, Inc. vs. Temic Automotive Philippines, Inc. Employees Union-FFW, G.R. No.
186965, December 23, 2009.
represented by a small contingent from the Employers Confederation of the
Philippines (ECOP).
Endo, not unlike the term contractualization, elicits the same, if not
more, contempt. Yet outsourcing or contractualization should not be equated
or confused with endo, for the latterpractice deserves the scorn heaped upon
it. Endo is unconditionally prohibited while contractualization is
conditionally allowed. In fact, contractualization owes its tainted reputation to
endo and other similar labor only contracting arrangements.What is needed,
to maintain the balance between management and employee interests is not
the termination or abrogation of contractualization but the stricter
enforcement of the provisions of DO18-A prohibiting Endo and other forms of
labor only contracting arrangements.
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