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.

Putin and Modi discuss trade, peace in New Delhi summit
Indian air travel crippled as IndiGo's pilot crisis enters fourth day
Lebanon says ceasefire talks aim primarily at halting Israel's hostilities
US to widen travel ban to more than 30 countries, Noem says
Putin visits Delhi as Russia, India seek to increase and diversify trade
