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.

Trump says US will not use force to acquire Greenland
Pakistan to join 'Board of Peace' on Gaza
Determined to seize Greenland, Trump faces tough reception in Davos
Spanish train drivers call for strike after deadly derailments
France's Lactalis recalls baby milk batches due to toxin
