The Pros & Cons of Contractualization

Contractualization has been a point of debate for employers and employees ever since its conception. This is a practice done by companies who outsource their employment operations and sign employees to short-term contracts. This is usually done but not limited to retail stores, hotels, and restaurants. Companies have generally been for contractualization while the work force sees it as a practice that puts too much power on the employers. Like most things there are advantages and disadvantages and it comes down to your perception and whether the pros outweigh the cons.


Skill Development

For an employee, engaging in these short-term jobs makes them exposed to different roles and activities. These jobs may have limited training in comparison to those on regular shifts but exposing yourself to the working environment, you will surely pick up a trick or two. This is also read well in your resume, knowing that you are exposed to many jobs in many industries shows that you have knowledge in those industries and you become more employable because you have the skills to be integrated easier.


Increased Job Opportunities

Contractualzation creates opportunities for the unemployed work force. The number of companies that look to outsource their unemployment look to hire a larger number of people for a short time. This means that as an employee you have numerous opportunities and a variety of jobs to choose from. The knowledge that companies do practice contractualization will give you the peace of mind that there will always be a job around the corner.

Recognition of Talent

Though originally employees that are employed through contractualizationare only supposed to stay for 5 months, companies take this opportunity to look through the employees’ performance and can extend them to a regular contract. The beauty of contractualization is this is abonus for the employers because they are not obliged to do this but if they were looking to fill their regular spots, employing internally is the best choice.


Job Security

The most common point brought about the work force is that contractualization is a band aid solution to the unemployment problem. Given that you will only be employed for 5 months maximum and that the company has a high chance of just letting you go unless you stand out will cause some form of stress. This may also hamper your efforts on building a career in an industry.

Lack of Benefits

Contractualization also keeps the employer from the trouble of providing these employees with certain benefits. Benefits like PhilHealth, SSS, and Pag-IBIG is meant for regular contracted employees. Being contractualized means that you don’t have the right to ask and receive these benefits. Other benefits like bonuses and leaves are also not given to temporary employees.


Work Stress

Being contractualized means that the company will provide you little to no training and expect you to learn everything on the job. They do not want to invest training budget into employees that will not even last half the year. It will put some stress on the worker and cause tension. There is also added stress in knowing that if you want a chance to stand out and be regularized, if not you know that you must go through the whole process again.

Contractualization will continue to be a point of debate between two parties, but as long as both parties are participating in this practice there will be no change. If both parties are still enjoying some benefits from this then maybe a negotiation or a change of procedures and regulations is what is needed and not a complete take away of the practice.

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