Rodrigo Duterte has vetoed a bill that would have ended the practice of hiring workers on short-term contracts.
Salvador Panelo, a spokesperson for the Philippine President, confirmed the decision on Friday.
It means that Duterte has gone back on a major campaign promise that helped him get elected.
Under Philippines law, employers can hire workers through contracts that run five months.
This allows them to to avoid a six-month rule which would then force companies to give their staff permanent job status in addition to benefits like healthcare.

Injuries and arrests as French high school student protests spread
Russia hits power plants, kills four, leaves Kyiv under smoke
US forces exit remaining bases in Iraq
Shark stranded in South Korean canal draws 600,000 visitors as rescue bid fails
Israeli strikes kill five people in Gaza, medics say
