Employees on contractual employment status
July 2, 2012 8:06pm CST
I wonder if it is common in all other countries as well, It makes me think or it actually bothers me a bit that there are well a lot of companies right now here in the Philippines that employs people on a contractual basis, this being said that people do not get benefits, they have to work for a 5 month terms and they had to renew contract and be re-assigned to another section of the company - this is common to employees with blue collar jobs. Much recently we are aware as well there have been a lot of companies who does follow the same with even office personnel and they are graduates of 4 year courses, but are not regular employees with no health benefits, nothing to enjoy years after their employment. You will be surprised as to how many are working as this status in their own companies. We know that companies do this for the sake of trying to save money for their own operations, etc. But i think it is already becoming a practice and somehow there is a law being broken if our government will look deeper into it. Is this kind of practice common to your country, as well? If so or if not, what prevails as employment status in your place?
3 Jul 12
I also live in the Philippines. You are right that there are other companies that does not give other benefits to their contractual employees. However, in our company or palce I am working, most workers came from agencies. As far as I know, they are also on a contractual basis that keeps on renewing every year. They are also given the necessary benefits like Philhealth, SSS and Pag-Ibig. Contributions were just deducted from their weekly salary.
4 Jul 12
hi there! yes, the agency contracted workers have benefits... from their agency companies. the thing is the agencies get a huge commission from their salary and its like "double whammy" as they are not getting the right amount due to them (as it was deducted by the agency) and then they get to pay their own premiums. Your friend has to check out his or her company though. I have one known person in my previous job that it turned out all these government mandated benefits have been deducted from his salary but it is not being remitted to his/her account.
3 Jul 12
Here is similar at the moment ive noticed. Only difference is some of these 'contractual based employment' opportunities is for as little as 8 weeks at a time. Be awful hard on some people taking a job on thinking at the end of the 8 weeks their doing well and will be able to extend it to find out their 'no longer needed' for them to then see the employer listing positions a few weeks later again. My partner had that issue around Christmas. She was gutted especially since the manager did nothing but give her rave reviews about her work and time keeping compared to the rest of the 'contract based staff'. But I guess companies now are trying to play it as safe as possible and save money when and where they can.
4 Jul 12
wow sparky, that is the shortest employment terms i have heard of. True about what you said that these people who may have worked hard and gave all their best to get past the 8 weeks period may have been utterly fooled as they will not even get the employment afterall. So for some we now know why they are least bit interested in their work - like some who would not want to assist you, some who would be chatting and talking to each other in times of work - no concern for the work and because their company has no concern for them either.
3 Jul 12
hi chiyosan, I also live in the Philippines and it is a known fact that most companies here in our country (even huge corporation) employs people for contractual basis. I am once a contractual worker (6 months contract) in a known financial group in Makati District. I accepted that offer because it was so hard to get a decent work at that time (I think until now) and it was my last resort to get a job easily. Even though I graduated in college, I accepted the minimum wage rate which is usual for a person whose starting his/her career. Then after that I managed to apply for another company where I get a work inline with my education where I become part of the company as regular employee. I think that it is becoming a trend in our nation to have contractual employee. These big corp is getting external personnel (under agencies) to minimize their expenses which will benefit their company more. According to most of them, if they didn't do that they will sacrifice as well as their whole businesses and in the end our economy. I think we (PH)are still not yet capable of providing regular job for all. We still need to strive harder and be the best in our chosen field to be able to get a decent job. Sad but true.
4 Jul 12
yes, danitykane... it is quite common here in the Philippines. Latest we know of is the mining corporation where the people admitted to not being regularized after 3 years of working in the company. to think of the danger they had to be faced with on their daily work inside the quarry sites. I am wondering really about how this gets past our government and they turn a blind eye on the issue!