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Negative Effects Of Contractualization

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LITERATURE REVIEW Contractualization has adverse impacts on different aspects of workers such as psychological effect and levels of productivity. It also affects the stability of the company. With these being said, unemployment increases and so it contributes to the economic status. In this study, the effects of contractualization to workers and company will be analayzed and further reviewed. Contractualizaton or End of Contract (ENDO) Contractualization is a process of hiring a worker for not more than five months. Under the law, workers are given a period of six months which is a probationary period. This means that if a worker meets the standard of a certain company, they will be a regular employee. But what happens most of the time is that the company will fire the employees after five months. According to research, the practice of hiring a worker as irregular is to avoid giving them the benefits they are legally mandated to receive, which allows capitalist to have a higher profit, hire more workers and contribute to the economic growth. Seeking for a job is a very difficult task; the companies out there nowadays are being too picky in their employees. According to Thomas Carlyle (2010), “A man willing to work, and unable to find work, is perhaps the saddest sight that fortune’s inequality exhibits under the sun.” This is a proof on how unfair life is, in order to have a stable job, one must be well and highly educated – that will always be the standard. Harry Truman

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