Scopes and Deliminations of the Study:

The study aims to determine the positive and negative effects of Contractualization to Far Eastern
College Silang Basic Education Department Teachers for the present school year 2019.

General Purpose : This study aims to spread knowledge, information and awareness about the
dependent effect of unemployment rate to contractualization.

Subject Matter : It tackles about the advantages and disadvantages of contractualization.

Background of the Study :

Contractualization refers to the practice of hiring employees who would render their
services for a finite amount of time, usually, for a few months only. This is a system that has
been practiced and used by many companies, including large corporations . one of the most
controversial labor practices in the Philippines. Since its adoption in 1974, the Labor Code has
been amended and attached with several implementing texts. As of June 2016, there are an
estimated 356,000 probationary workers in the Philippines. (Macaraya and Ofreneo 1988).

In the Philippines, end of contract refers to short term employment practice, usually lasts
them less than six months and it’s either terminating their employment or being regular. They
can’t get benefits such as 13 month pay, Social Security System (SSS) account, PhilHealth,
Pag-ibig and unpaid leaves like regular ones. (Philippine Inquirer).

Evidence from case studies and business surveys suggests dramatic growth in the
outsourcing of functions to contract companies as well (Houseman, 2001). Elements such as
the technologies used in the productive process, the specialization, of the workforce and niches
of development are just examples of the diversity of aspects that have been in constant change
so far.
Short term employment is part of the phenomenon of short time employment, often seen
as a consequence of a major push by governments and employers in industrialized countries to
develop more flexible labour markets and reduce labour costs (Golden and Appelbaum 1992,
cited in Rogers, 2000). An alternative view, however, is that the short term employment industry
itself is actively engaged in promoting its own growth and preventing regulation (Gono 1997,
cited in Rogers, 2000).
Definition of Terms :

- Employer – According to Google Dictionary, a person or organization that employs

people.

- Management -the process of dealing with or controlling things or people.

- It is the art of getting things done through and with people in formally
organize groups (Harold Koontz, 1988)

- Manager -a person responsible for controlling or administering all or part of a company

or similar organization (Merriam Webster Dictionary)

•Employee – According to the internet, a person employed for wages or salary, especially at
nonexecutive level.

-Organization – According to our Organization and Management subject, it is a group of

individuals who are communicating and cooperating with each other with a view to
achieve their common goals and objectives.
- Company – According to Cambridge Dictionary, it is
an organization that sells goods or services in order to make money
- Contractualization – In the Philippines, end of contract refers to short term employment
practice, usually lasts them less than six months and it’s either terminating their employment or
being regular. They can’t get benefits such as 13 month pay, Social Security System (SSS)
account, PhilHealth, Pag-ibig and unpaid leaves like regular ones. (Philippine Inquirer)

Objectives of the study :

Overall purpose :

The objective of the study is to explain further about the Positive and Negative effects of
Contractualization to FEU-C Silang BED Teachers year 2019. Specifically, this study aims :

- if we find out that contractualization is good for the PH then we can share this research to
the government to improve the system here in the Philippines
-Our research can help also the people ( workers ) to know what to do to after the
contractualization end if they will be removed to their work