Duterte said he will seek to end contractualization – a practice where workers are hired for a fixed period
Although Philippine President Rodrigo Duterte is widely known for his harsh stance against illegal drugs, he has also placed labour issues among his administration’s top concerns. Even before taking his oath of office, Duterte said he will seek to end contractualization – a practice where workers are hired for a fixed period.
Labour groups say the practice leaves workers vulnerable to abuse. Employers could keep on hiring them under short term contracts – They wouldn’t to pay for benefits accrued to permanent employees.
“The Philippines has been the centre of gravity as far as global HR is concerned. Our millions of OFWs [overseas Filipino workers] have been the most sought after personnel across industries all over the world. In the same vein, foreign multinational corporations have outsourced their back-office functions, back-office activities, and every conceivable business process here in the Philippines,” said lawyer Charles Dela Cruz, during the Employment Law for HR Professionals Masterclass held in Manila. He is a senior partner at the Del Rosario & Del Rosario Law Offices.
Last March, the Department of Labor and Employment expanded rules on the practice and put an end to “labour-only” contractualization – but Duterte asked labour groups on 1 May to draft an order that would put an end to the practice.
Other bills seeking to strengthen workers’ rights also sit in Congress. Lawyer Winston Esguerra, a partner at Bello Valdez Caluya & Fernandez (JGLaw) outlined some of them during the Masterclass event. They include:
Anti-Age Discrimination Law
Esguerra also discussed the Anti-Age Discrimination Law, which took effect on July last year. “It does not pertain only to employees; it also pertains to applicants,” he said.
The law has “constitutional basis,” according to Esguerra, as it relates to state policies outlined in the Constitution. He pointed out that the law put an end to some widespread aspects of job applications: “Most of the common forms of job applications include date of birth – these were declared unlawful by this law.”
He said another “innovative” provision is that the law covers publishers. They are not allowed to print, publish, or release in the internet any job notice or advertisement relating to preferences, limitations, specifications, and discrimination based on age.
“The common practice of publishing in newspapers indicating age requirements is a prohibited act – and the publisher is included.”
The law also affects’ companies’ redundancy policies, he said. Age should not be included in a company’s criteria for choosing workers who will be let go.
However, there are some exceptions – such as when age is a bona fide occupational qualification that is “reasonably necessary” in the normal operation of a business.
Skills training & career development
Legislation has also been passed to help transition students towards full-fledged careers. The “JobStart Philippines Act,” for example, was signed into law June last year.
“Basically, the law wants to have a collaboration between the private sector and the government, particular at the local government level, so that or youth can transition from their basic education to their actual employment, and in the process acquire the necessary skills,” said Esguerra.
One incentive for employers is that the law gives them the opportunity to pay less compensation to these trainees, he added.
Missed opportunities?
According to research published in 2015 by the country’s central bank – the Bangko Sentral ng Pilipinas (BSP) – a “demographic window of opportunity is closing fast for the country”. The window marks a time when a large percentage of Filipinos are part of the labour force.
Some 66.8% of the country's projected population of 141.7 million will be part of the 16-64 age bracket by the year 2040, figures from the National Statistical Coordination Board showed.
“It should be emphasized though that demographic dividend is not automatic. The demographic transition simply creates a demographic window of opportunity that should be given the right kind of policy environment to produce a sustained period of economic growth,” said Dennis Mapa, BSP Sterling Professor of Government and Official Statistics.
“Without government aggressive efforts to reduce the country’s total fertility rate and policies geared towards creating more jobs, the window of opportunity from the demographic transition will close quickly without us even noticing it,” he added.
