MANILA - The government should continue to allow the hiring of short-term labor for some industries even as it cracks down on "endo" or end of contract, the head of the European Chamber of Commerce of the Philippines said Wednesday. 

Some firms may relocate to other countries if the Philippines bans the hiring of workers on a short-term basis, ECCP president Guenter Taus said.

"It's just that certain employers take advantage of loopholes. Fill those gaps and i think we should be doing fine," Taus told ANC'S Market Edge with Cathy Yang. 

Some companies, especially those in manufacturing, sometimes hire extra workers from manpower agencies on a short-term basis because they can't afford to give permanent positions to everyone, Taus said.

"I think the outsourcing of labor should be something that should be maintained because it is essential to keep certain businesses running," he said. 

Many European firms are also concerned over the possible removal of certain incentives under second package of tax reforms, he said.,

Taking away incentives may be seen as a breach of the "sanctity of contract" and push companies to look elsewhere in the region especially with the looming integration of ASEAN economies, Taus said. 

European firms employ around 500,000 to 600,000 workers in the Philippines, he said.

This article was originally published in ABS-CBN News Online on April 18, 2018»