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What is contractualization?

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Anonymous

∙ 11y ago
Updated: 12/14/2022

contractualization annuity

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∙ 11y ago
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Who will be benifit of the contractualization?

The primary beneficiaries of contractualization are businesses and employers. Contractualization allows businesses to have a more flexible workforce, with the ability to hire workers on a temporary or project basis, reducing labor costs and avoiding statutory benefits and entitlements that permanent employees are entitled to. However, this practice can lead to job insecurity and lack of employment benefits for workers.


What is the meaning of contractualization?

Contractualization is the replacing of regular workers with temporary workers who receive lower wages with no or less benefits. These temporary workers are also known as sometimes called contractuals, trainees, apprentices, helpers, casuals, piece raters, agency-hired, and project employees, among others. They do the work of regular workers for a specified and limited period of time, usually less than six months. The work they do is "desirable and necessary" for the company's survival, but they never become regular employees even if they get rehired repeatedly under new contracts.


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