Introduction

Regularization of employees is at a top priority of this administration to address. Regularization is the

process of making the contractual workers a regular employee once it was hired. A regular employee is a
full time employee who has fulfilled formal or informal probationary requirements and enjoys the
benefits mandated by law. Contractualization of employees are prohibited by law but still companies and
businesses practices it and still hires temporary workers.

In this current administration, the ammendment of regularization of the employees is one of the current
issues the state is facing. It has been the subject of discussion in the congress and among the Filipino
citizens. This arises due to the issues of unemployment and under employment. It is undeniable that
most of the biggest businesses in the country are involve in this situation. During the campaign period,
President Duterte vowed to put an end to contractualization scheme, which he describes as unfair labor
practice and tool of exploitation against the working class. The main purpose of businesses to practice
contractualization is to maximize profit.

The ammendment of regularization of employees will not be easy and will open doors to challenges and
major problems to the business like the following: The business profit will be affected, The business will
set higher qualifications for job seekers, The business will redesign its compensation structure, the
business will need much support services needed and there are tendencies that market prices may go up
to accomodate the man power expense.

The main purpose of this research is to show the present employment situations in the country and to
contribute information as decision making tools for companies whether the ammendment of
regularization of employees would be best decision to improve business operations and productivity.
This is one of the recent issue about about contractual employment has caught the interest of the
researchers. Also, the given course, the group is exposed to business operations and this knowledge
opens the possibilities of us becoming business owners in the future. Combining the knowledge and
interest of the members, the researchers decided to conduct a study that would clarify the effects of the
amendment of regularization or employees to the businesses in Quezon city, District 5.

Statement of the problem

This paper aims to find out the effects of the ammendment of regularization of employees to the
businesses. It aimed to seek answers to the following questions: