TWENTIETH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
25 JUL-7 P12:04
SENATE
S.B. No. ^212
INTRODUCED BY SENATOR RISA HONTIVEROS
AN ACT
AGAINST THE PRACTICE OF "ENDO" AND CONTRACTING, AMENDING FOR 
THIS PURPOSE ARTICLES 106 TO 109, 294 TO 296 OF AND ADDING A NEW 
PROVISION TO PRESIDENTIAL DECREE NO. 442, OTHERWISE KNOWN AS 
THE LABOR CODE OF THE PHILIPPINES, AS AMENDED
EXPLANATORY NOTE
This measure frees our workers from the threat and dangers inherent in non­
regular work arrangements. For so long, workers are forced to suffer poor working 
conditions and unable to exercise their Constitutional right of self-organization, 
collective bargaining and negotiations, and their right to concerted activities including 
the right to strike.
This measure comes at a critical time, given the Philippines' sizable youth 
population that is vulnerable to precarious work and endo practice. A 2020 ILO study 
projected that by 2025, 10.8M Filipino youth will become part of the working-age 
population. 1 A worrisome trend is that individuals aged 15 to 34 account for 70.4% 
of unemployed Filipinos. 2 A key factor for youth unemployment is their dependence 
on short-term or contractual employment, which offer little insecurity and long-term 
prospects.3 Another major challenge for the Filipino youth is the jobs-skills mismatch 
and the limited available jobs for new job-seekers.4 These conditions may increase 
the vulnerability of young people to contractualization and job insecurity which deprive 
them of the full benefits of regular employment that are essential for securing their 
futures.
1 International Labour Organization, 2020, Decent Work and Youth in the Philippines
2 https://psa. gov. ph/statistics/labor-force-su rvey 
3https://ntucphl.org/2019/09/problems-faced-by-young-filipino-workers/; 
https://www.jil.go.jp/english/jli/documents/2017/003-
06.pdf#:~:text=42%20Japan%20Labor%20lssues%2C%20vol,comprises%20of%20young%20people 
%20who 
4 Ibid.
1


This measure stops the abuse of all workers by prohibiting anti-worker practices 
such as contracting arrangements and fixed term employment. With this measure, the 
State upholds its guarantee to promote direct, regular employment for all. This way, 
the life of the individual worker will be improved, the workers' family will be uplifted, 
benefiting in turn the nation's economy.
The present bill has the following features designed to achieve this:
Establishes a prohibition against contracting or subcontracting, except where a 
determination has been made by the National Tripartite Industrial Peace 
Council (NTIPC) that a specific activity may be legitimately contracted or 
subcontracted out;
Imposes solidary liability on the employer for violations committed by the 
contractor or sub-contractor;
Prohibits fixed-term employment contracts;
Requires that all employees, except those under valid written probationary 
contracts, are deemed regular, including project and seasonal employees; 
Imposes penalties in the form of fine and imprisonment for violations
The passage of this bill is earnestly sought.
RISA HONTIVEROS 0
Senator


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
)
)
25 JUL -7 PI2 :G^
SENATE 
S.B. No.
INTRODUCED BY SENATOR RISA HONTIVEROS
AN ACT
AGAINST THE PRACTICE OF "ENDO" AND CONTRACTING, AMENDING FOR 
THIS PURPOSE ARTICLES 106 TO 109, 294 TO 296 OF AND ADDING A NEW 
PROVISION TO PRESIDENTIAL DECREE NO. 442, OTHERWISE KNOWN AS 
THE LABOR CODE OF THE PHILIPPINES, AS AMENDED
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
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SECTION 1. Short Title. - This Act shall be known as the "Anti-ENDO and
2 
Contracting Law".
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SEC. 2. Article 106 is hereby deleted and replaced as follows:
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"ART. 106. Prohibition Against Contracting or Subcontracting
CONTRACTING, WHERE A PERSON OR ENTTTY FARMS OUT THE PERFORMANCE OF 
ITS BUSINESS OR ANY PART THEREOF TO ANOTHER, IS HEREBY STRICTLY 
PROHIBITED EXCEPT AS PROVIDED IN THE FOLLOWING PARAGRAPH.
THE SECRETARY OF LABOR AND EMPLOYMENT MAY, UPON THE UNANIMOUS 
RECOMMENDATION OF THE NATIONAL TRIPARTITE INDUSTRIAL PEACE COUNCIL 
(NTIPC) UNDER ART. 290 (C) OF THE LABOR CODE, AS AMENDED, DETERMINE BY 
APPROPRIATE REGULATIONS SPECIFIC ACTIVITIES WHICH MAY BE CONTRACTED 
OUT.
NATURAL OR JURIDICAL PERSONS ENGAGED IN ANY ARRANGEMENT ACTING AS 
PRINCIPALS IN VIOLATION OF THE PROHIBITION AGAINST CONTRACTING OR 
SUBCONTRACTING SHALL AUTOMATICALLY BE CONSIDERED THE WORKER'S 
DIRECT EMPLOYER AND THE LATTER SHALL BE DEEMED AS DIRECT EMPLOYEES 
FOR ALL PURPOSES INCLUDING MEMBERSHIP IN THE APPROPRIATE BARGAINING 
UNIT. NATURAL OR JURIDICAL PERSONS ACTING AS CONTRACTORS IN VIOLATION 
OF THE PROHIBITION AGAINST CONTRACTING OR SUBCONTRACTING SHALL BE 
CONSIDERED MERELY AS AN AGENT OF THE EMPLOYER."
SEC. 3. Article 108 of the Labor Code is hereby deleted and replaced to read as


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follows:
"ART. 107. CONDITIONS ON CONTRACTING. - CONTRACTING ALLOWED 
UNDER THE PRECEDING ARTICLE SHALL BE DONE ONLY IF THE NATURAL OR 
JURIDICAL PERSON ACTING AS CONTRACTOR OBTAINS A LICENSE FROM THE 
DEPARTMENT OF LABOR AND EMPLOYMENT AND ONLY IF IT PERFORMS A JOB, 
WORK OR SERVICE IDENTIFIED BY THE SECRETARY OF LABOR AND EMPLOYMENT 
UPON THE UNANIMOUS RECOMMENDATION OF THE NATIONAL TRIPARTITE 
INDUSTRIAL PEACE COUNCIL (NTIPC) UNDER ART. 290 (C) OF THE LABOR CODE.
SUCH LICENSE SHALL BE ISSUED AND MAINTAINED ONLY IF THE APPLICANT 
FULFILLS ALL OF THE FOLLOWING:
(A) HAS A PAID-UP CAPITAL OR NET WORTH OF AT LEAST FIFTY MILLION 
PESOS (P50,000,000.00), WHICH MAY BE INCREASED BY THE SECRETARY OF LABOR 
AND EMPLOYMENT AS DEEMED APPROPRIATE THROUGH TRIPARTITE 
CONSULTATION;
(B) HAS A CORE OF REGULAR EMPLOYEES CONSISTING OF COMPETENT 
PROFESSIONALS OR SKILLED WORKERS ESPECIALLY TRAINED TO PERFORM THE 
JOB, WORK OR SERVICE TO BE CONTRACTED OUT;
(C) HAS INVESTMENT IN THE FORM OF EQUIPMENT, MACHINERIES OR TOOLS 
WHICH ARE REASONABLY NECESSARY TO PERFORM OR COMPLETE THE JOB, WORK, 
OR SERVICE TO BE CONTRACTED OUT;
(D) 
EXERCISES EXCLUSIVE CONTROL OVER THE PERFORMANCE AND 
COMPLETION OF THE JOB, WORK, OR SERVICE CONTRACTED OUT;
(E) OBTAINS CERTIFICATION OF COMPLIANCE WITH LABOR AND SOCIAL 
WELFARE LAWS INCLUDING PROOF OF PAYMENT OF SOCIAL SECURITY, PHILIPPINE 
HEALTH INSURANCE CORPORATION, AND HOME DEVELOPMENT MUTUAL FUND 
(PAG-IBIG) CONTRIBUTIONS; AND
(F) PAYS A LICENSE FEE, WHICH SHALL NOT BE LOWER THAN FIVE HUNDRED 
THOUSAND PESOS (P500,000.00).
THE LICENSE SHALL BE VALID FOR A PERIOD OF ONE (1) YEAR AND MAY BE 
RENEWED UPON COMPLIANCE WITH THE REQUIREMENTS PRESCRIBED ABOVE AND 
OTHER REQUIREMENTS AS MAY BE DETERMINED BY THE DEPARTMENT OF LABOR 
AND EMPLOYMENT, PROVIDED THAT THE JOB, WORK, OR SERVICE TO BE 
PERFORMED CONTINUES TO BE DETERMINED BY THE SECRETARY OF LABOR AND 
EMPLOYMENT AS VALID FOR CONTRACTING BASED ON THE UNANIMOUS 
RECOMMENDATION OF THE NATIONAL TRIPARTITE INDUSTRIAL PEACE COUNCIL 
(NTIPC).
IN ALL CASES, THE JOB CONTRACTOR SHALL DEMONSTRATE THAT IT HAS


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FINANCIAL CAPACITY TO CARRY ON ITS BUSINESS BASED ON FACTORS SUCH AS, 
BUT NOT LIMITED, TO THE NUMBER OF ITS EMPLOYEES AND THE NATURE OF ITS 
BUSINESS.
ANY LEGITIMATE LABOR ORGANIZATION SHALL BE ENTITLED TO OBTAIN COPIES 
OF LICENSES ISSUED TO JOB CONTRACTORS AND ANY AND ALL SUBMISSIONS 
MADE IN CONNECTION WITH SUCH LICENSE.
FOR THIS PURPOSE, THE SECRETARY OF LABOR AND EMPLOYMENT, IN 
CONSULTATION WITH THE NATIONAL TRIPARTITE INDUSTRIAL PEACE COUNCIL 
(NTIPC), SHALL ISSUE THE APPROPRIATE REGULATIONS FOR THE LICENSING, 
RENEWAL, SUSPENSION, AND REVOCATION OF LICENSES OF CONTRACTORS.
IN NO CASE SHALL PRIVATE RECRUITMENT AND PLACEMENT AGENCIES (PRPA) OR 
PRIVATE EMPLOYMENT AGENCIES (PEA) UNDER ARTICLE 25 OF THE LABOR CODE, 
AS AMENDED, BE ALLOWED TO ENGAGE IN CONTRACTING."
SEC. 5. Article 294 of the Labor Code is hereby amended as foliows:
"ART. 294. Security of Tenure. - [In case or regular employment, the employer 
shall not terminate] [t]The services of an employee, IRRESPECTIVE OF EMPLOYMENT 
STATUS OR POSITION, SHALL NOT BE TERMINATED except for a just cause or when 
authorized by this Title. An employee who is unjustly dismissed from work shall be 
entitled to reinstatement without loss of seniority rights and other privileges and to 
his/HER full backwages, inclusive of allowances, and to his/HER other benefits or their 
monetary equivalent computed from the time his/HER compensation was withheld 
from him/HER up to the time of his/HER actual reinstatement.
IN ALL CASES WHERE EMPLOYMENT IS TERMINATED, THE EMPLOYER SHALL HAVE 
THE BURDEN OF PROVING THAT THE TERMINATION LEGAL, THAT IS, SUPPORTED 
BY LEGAL CAUSE AND THAT PROCEDURAL DUE PROCESS WAS OBSERVED."
SEC. 6. Article 295 is hereby deleted and replaced to read as follows:
"ARTICLE 295. STATUS OF EMPLOYMENT. - "AN EMPLOYER-EMPLOYEE 
RELATIONSHIP EXISTS WHEN A WORKER IS ENGAGED TO RENDER WORK OR 
SERVICE UNDER THE CONTROL OR SUPERVISION OF THE EMPLOYER, NOT ONLY AS 
TO THE END TO BE ACHIEVED, BUT ALSO THE MANNER, MEANS AND METHODS IN 
REACHING THE END.
EXCEPT THOSE UNDER VALID WRITTEN PROBATIONARY CONTRACTS, ALL 
EMPLOYEES ARE DEEMED REGULAR INCLUDING PROJECT AND SEASONAL 
EMPLOYEES, AND SHALL, IN CASE OF RANK-AND-FILE OR SUPERVISORS, BE 
TREATED AS PART OF THE APPROPRIATE BARGAINING UNIT FOR PURPOSES OF THE 
EXERCISE OF THE CONSTITUTIONAL RIGHT TO SELF-ORGANISATION AND


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COLLECTIVE BARGAINING, AND SHALL BE ENTITLED TO ALL THE BENEFITS UNDER 
A COLLECTIVE BARGAINING AGREEMENT (CBA), IF ANY.
PROJECT AND SEASONAL EMPLOYEES ARE REGULAR FOR THE DURATION OF THE 
PROJECT OR SEASON, AS THE CASE MAY BE. FOR THIS PURPOSE, PROJECT 
EMPLOYMENT REFERS TO EMPLOYMENT IN AN EXISTING PROJECT OR 
UNDERTAKING THE COMPLEHON OR TERMINATION OF WHICH HAS BEEN 
DETERMINED AND MADE KNOWN TO THE EMPLOYEE AT THE TIME OF 
ENGAGEMENT. SEASONAL EMPLOYMENT REFERS TO EMPLOYMENT BASED ON THE 
EXISTENCE OF A SEASON IN AGRICULTURAL WORK AS DETERMINED BY THE 
DEPARTMENT OF LABOR AND EMPLOYMENT UPON THE UNANIMOUS 
RECOMMENDATION OF THE NATIONAL TRIPARTITE INDUSTRIAL PEACE COUNCIL 
(NTIPC). WORKERS UNDER PROJECT AND SEASONAL EMPLOYMENT ARE ENTITLED 
TO THE RIGHT OF FIRST REFUSAL TO THE TASK, WORK, OR PROJECT IN WHICH 
THEY ARE EMPLOYED.
ALL OTHER FORMS OF NON-REGULAR EMPLOYMENT ARE PROHIBITED. PROVISIONS 
IN EMPLOYMENT CONTRACTS PROVIDING FOR A FIXED TERM OR DEFINITE PERIOD 
OF EMPLOYMENT ARE VOID FOR BEING CONTRARY TO PUBLIC POLICY. WORKERS 
UNDER SUCH ARRANGEMENTS ARE DEEMED REGULAR EMPLOYEES RECKONED 
FROM THE FIRST DAY OF EMPLOYMENT AND SHALL, IN CASE OF RANK-AND-FILE 
OR SUPERVISORS, BE TREATED AS PART OF THE APPROPRIATE BARGAINING UNIT 
FOR PURPOSES OF THE EXERCISE OF THE CONSTITUTIONAL RIGHT TO SELF­
ORGANISATION AND COLLECTIVE BARGAINING, AND SHALL BE ENTITLED TO ALL 
THE BENEFITS UNDER A COLLECTIVE BARGAINING AGREEMENT (CBA), IF ANY."
SEC. 7. Article 296 is hereby amended to read as follows:
"Art. 296. Probationary employment - 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.] FIRST DAY OF SERVICE REGARDLESS OF 
THE NATURE OF WORK TO BE PERFORMED PROVIDED THAT, THE PROBATIONARY 
PERIOD OF SCHOOL TEACHING PERSONNEL IN PRIMARY AND SECONDARY 
EDUCATION SHALL NOT EXCEED ONE (1) ACADEMIC YEAR AND THE 
PROBATIONARY PERIOD OF SCHOOL TEACHING PERSONNEL IN HIGHER 
EDUCATION SHALL NOT EXCEED ONE (1) SEMESTER.
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 WHICH SHALL BE made known by the 
employer to the employee IN WRITING at the time of his engagement. An employee 
who is allowed to work after a probationary period shall be considered a regular 
employee.


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EXCEPT WHEN THE TERMINATION IS FOR JUST CAUSE, A PROBATIONARY 
EMPLOYEE WHO HAS RENDERED AT LEAST ONE (1) MONTH OF SERVICE IS 
ENTITLED TO A TERMINATION PAY OF ONE (1) MONTH SALARY."
SEC. 8. Insert a new Article 303-A to read as follows:
"ARTICLE 303-A. PENALTIES. - (A) THE DEPARTMENT OF LABOR AND 
EMPLOYMENT SHALL IMPOSE THE FOLLOWING PENALTIES:
1. FOR EVERY PERSON OR ENTITY ENGAGED IN ANY ACTIVITY IN VIOLATION 
OF THE PROHIBITION AGAINST CONTRACTING OR SUBCONTRACTING, A 
FINE OF AT LEAST FIFTY THOUSAND PESOS (PHP 50,000.00) ASSESSED PER 
EMPLOYEE ENGAGED UNDER A PROHIBITED CONTRACTING ARRANGEMENT.
2. FOR EVERY PERSON WHO OR ENTITY WHICH MISCLASSIFIES AN EMPLOYEE'S 
STATUS OF EMPLOYMENT IN DEROGATION OF THE EMPLOYEE'S SECURITY 
OF TENURE, A FINE OF AT LEAST FIFTY THOUSAND PESOS (PHP 50,000.00) 
ASSESSED PER MISCLASSIFIED EMPLOYEE.
3. FOR EVERY PERSON OR ENTITY ENGAGED IN ANY ACTIVITY IN VIOLATION 
OF THE PROHIBITION AGAINST FIXED TERM EMPLOYMENT, A FINE OF AT 
LEAST ONE HUNDRED THOUSAND PESOS (PHP 100,000.00) ASSESSED PER 
EMPLOYEE ENGAGED UNDER SUCH PROHIBITED ARRANGEMENTS.
4. FOR EVERY PERSON OR ENTITY ENGAGED IN ANY ACTIVITY IN VIOLATION 
OF THE PROVISION ON PROBATIONARY EMPLOYMENT, A FINE OF AT LEAST 
ONE HUNDRED THOUSAND PESOS (PHP 100,000.00) ASSESSED PER 
EMPLOYEE ENGAGED UNDER SUCH PROHIBITED ARRANGEMENTS.
THESE PENALTIES SHALL BE IMPOSED WITHOUT PREJUDICE TO OTHER DAMAGES 
AND PENALTIES THAT MAY BE IMPOSED UNDER THIS CODE AND OTHER LAWS AND 
REGULATIONS.
(B) IMPRISONMENT OF NOT LESS THAN TWELVE (12) YEARS AND ONE (1) DAY BUT 
NOT MORE THAN TWENTY (20) YEARS SHALL BE IMPOSED UPON ANY PERSON 
FOUND GUILTY OF COMMITTING ANY OF THE FOLLOWING:
1. ENGAGING IN ANY ACTIVITY IN VIOLATION OF THE 
PROHIBITION AGAINST CONTRACTING OR SUBCONTRACTING;
2. MISCLASSIFYING AN EMPLOYEE'S STATUS OF EMPLOYMENT IN 
DEROGATION OF THE EMPLOYEE'S SECURITY OF TENURE;
3. VIOLATING THE PROVISION ON PROBATIONARY 
EMPLOYMENT; OR
4. OTHER THAN THOSE ALLOWED IN ARTICLE 295 OF THIS 
CODE, USING FIXED TERM EMPLOYMENT IN ENGAGING 
WORKERS.


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IN ANY OF THE FOREGOING CASES IN PARAGRAPH (B), THE PENALTY OF LIFE 
IMPRISONMENT SHALL BE IMPOSED IF THE ACT COMMITTED PERTAINS TO AT 
LEAST THREE (3) WORKERS.
SEC. 9. Separability Clause. - If any provision or part hereof is heid invaiid or 
unconstitutionai, the remainder of the iaw or the provision not otherwise affected shali 
remain vaiid.
SEC. 10. Repealing Clause. - Ali acts, executive orders, administrative orders, 
proclamations, rules and regulations or parts thereof inconsistent with any of the 
provisions of this Act are hereby repealed or modified accordingly.
SEC. 11. Effectivity. - This Act shall take effect fifteen (15) days after 
publication in the Official Gazette or two (2) newspapers of general circulation. 
Approved,