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How Does ‘ENDO’ Work?

How Does ‘ENDO’ Work?

by Khirol HazwanJanuary 27, 2017

How Does 'ENDO' Work?

Lately, there has been a lot of buzz surrounding the manpower services in the Philippines. A number of them have been put into the spotlight due to the controversy regarding endo.

This issue was brought to light due to the presidential election that happened in the country in 2016. The candidates, including the current president Rodrigo Duterte, have all made promises to the public that they will tackle this issue and help the Filipino workers.

These employees have made their voices heard by protesting about the current practice of some firms and companies that robs them of their proper welfares and benefits. But before going further on this issue, it is essential to discuss the term, “endo.”

What is endo?

Endo is short for “end of contract.” Other people call it the 5-5-5 practice, which allows employers to hire workers that they will fire within their fifth month and rehire once again. They do this in order to avoid paying extra costs that comes with their regularization.

Regularization happens on the employee’s sixth month in the company. This is when they will finally receive certain benefits and welfares provided by the government and/or their company. It is a mandated Philippine law mentioned in the Labor Code, Article 281:

“Probationary employment shall not exceed six (6) months from the date the employee started working, unless it is covered by an apprenticeship agreement stipulating a longer period. The services of an employee who has been engaged on a probationary basis may be terminated for a just cause or when he fails to qualify as a regular employee in accordance with reasonable standards made known by the employer to the employee at the time of his engagement. An employee who is allowed to work after a probationary period shall be considered a regular employee.”

How does it work?

Most of the time endo is not advantageous to Filipino workers, but is highly beneficial to their employers. Here are a few benefits company received by practicing it:

  • It saves companies money and time by allowing them to hire temporary workers.
  • It allows them to work more efficiently and quickly when there are changes to their workload.
  • It helps improve their staff’s performance by hiring temporary workers, who are already highly experienced and skilled.

Unfortunately, this costs employees to lose certain benefits including:

  • PhilHealth
  • SSS
  • Pag-IBIG
  • Home Development and Mutual Fund (HDMF)
  • 13th month pay
  • Paid sick leaves
  • Paid vacation leaves
  • Service incentive leaves
  • Meal and rest periods
  • Housing and housing plans
  • Expense account
  • Company-sponsored vehicle
  • Educational assistance

Is it legal?

Interaksyon reports that the labor code penalizes companies that hire temporary workers only. This would mean that their employees are not receiving any welfares or benefits (examples are listed above).

Certain companies, restaurants, malls, hotels, and other establishments are then allowed to practice endo as long as they also hire workers that they are going to regularized.

Currently, endo remains to be in a gray area despite all that has been done to crack it down.

About the Author:

Laurel SantosLaurel Santos is a 24 year old grown up woman whose kid at heart. She lives in the city and works as a freelance photographer. She also manages a small pet shop inside their village. She loves traveling so much because she believes that one should not just die staying in without exploring the world.  She got a big heart for animals especially those stray dogs. Despite her busy schedule she always finds time to do one thing that she is very passionate about which is writing.

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