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Labor Law

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midaut:
Another issue which disturbs me is the Philippine labor law. I heard companies lay-off workers within 6 months. Why? Is it because workers become permanent after 6 months? So what if workers become permanent? Is it because it will be difficult or expensive to fire them? I am not familiar with the laws in the Philippines but the Philippines can learn from other countries which made hiring easy by making firing easy. It encouraged investments, and actually increase employment rate.

suzukig1:
6 month probation period for most new hires in most types of jobs.  At the end of the 6 months they can be hired as a regular employee or just let go.

This probation period gets abused by many employers.  Hire for 6 months.  Let go for 3 months or so.  Hire back under another 6 month probation period. 

Regular employees can be fired for cause and you can layoff employees if the business is doing poorly.  It has to be justified to the Department of Labor and Employment (DOLE).

JoeLP:
suzuking has it right.

another popular setup by the phils is contract jobs.  this is huge in government setup.  yearly contracts.  the good is you can just not offer a contract if you do not like the work of the employee.  the bad news is that you're pretty much stuck with the worker for the year.  but, as far as I have seen, this is a setup that means the only pay is monetary.  no benefits.

Lee2:
I believe the 6 months is so they do not have to pay them the 13 month pay bonus at the end of the year, full time employees get that bonus extra months pay at the end of each year.

suzukig1:

--- Quote from: Lee on September 20, 2016, 08:29:54 PM ---I believe the 6 months is so they do not have to pay them the 13 month pay bonus at the end of the year, full time employees get that bonus extra months pay at the end of each year.

--- End quote ---

No.  It's a probation period.  At the end of the 6 months they can let them go for no reason at all; they just don't get hired as a regular employee.  Once they become a regular employee you cannot fire them without cause or have a business reason for laying someone off.

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