Contractualization or fixed term employment has become rampant nowadays. By resorting to this system, employers legally avoid paying employee benefits, specifically retirement pay. Sadly, this is legal and allowed under Articles 106 and 109 of the Labor Code and the DOLE Order No. 18-A.
There is a need to remedy this system suffered by fixed term employees. One of these remedies looked into is to set a separate fixed term employment category. Fixed term employees can have a different standard for minimum wage. Their wage can incorporate the projected retirement pay they would have received if they had been regular employees. Another remedy looked into is for employers to provide fixed term employees with lump sum cash incentive at the expiration of their contracts.
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