The Activities of Project Employees may or may not be Usually Necessary or Desirable in the Usual Business or Trade of the Employer
Fortunato B. Ando, Jr. (Ando) filed a complaint against E. Ganzon, Inc. (EGI) and its President, Eulalio Ganzon, for illegal dismissal and money claims.
Ando alleged that he was a regular employee working as a finishing carpenter in the construction business of EGI. He said that he was repeatedly hired from January 21, 2010 until April 30, 2011 when he was terminated without prior notice and hearing.
EGI countered that, as proven by the three (3) project employment contracts, Ando was engaged as a project worker (Formworker-2) in Bahay Pamulinawen Project in Laoag, Ilocos Norte from June 1, 2010 to September 30, 2010 and from January 3, 2011 to February 28, 2011 as well as in EGI-West Insula Project in Quezon City, Metro Manila from February 22, 2011 to March 31, 2011.
Is Ando a regular or project employee?
The Supreme Court held that the terms regular, project, seasonal and casual employment are taken from Article 280 of the Labor Code, as amended. In addition, Brent School, Inc. vs. Zamora ruled that fixed-term employment contract is not per se illegal or against public policy.
Under Art. 280, project employment is one which “has been fixed for a specific project or undertaking the completion or termination of which has been determined at the time of the engagement of the employee.” To be considered as project-based, the employer has the burden of proof to show that: (a) the employee was assigned to carry out a specific project or undertaking and (b) the duration and scope of which were specified at the time the employee was engaged for such project or undertaking. It must be proved that the particular work/service to be performed as well as its duration are defined in the employment agreement and made clear to the employee who was informed thereof at the time of hiring.
The activities of project employees may or may not be usually necessary or desirable in the usual business or trade of the employer. In ALU-TUCP vs. National Labor Relations Commission, two (2) categories of project employees were distinguished:
In the realm of business and industry, “project” could refer to one or the other of at least two (2) distinguishable types of activities. Firstly, a project could refer to a particular job or undertaking that is within the regular or usual business of the employer company, but which is distinct and separate, and identifiable as such, from the other undertakings of the company. Such job or undertaking begins and ends at determined or determinable times. The typical example of this first type of project is a particular construction job or project of a construction company. Employees who are hired for the carrying out of one of these separate projects, the scope and duration of which has been determined and made known to the employees at the time of employment, are properly treated as “project employees,” and their services may be lawfully terminated at completion of the project.
The term “project” could also refer to, secondly, a particular job or undertaking that is not within the regular business of the corporation. Such a job or undertaking must also be identifiably separate and distinct from the ordinary or regular business operations of the employer. The job or undertaking also begins and ends at determined or determinable times.
As the assigned project or phase begins and ends at determined or determinable times, the services of the project employee may be lawfully terminated at its completion.
The fact that Ando was required to render services necessary or desirable in the operation of EGI’s business for more than a year does not in any way impair the validity of his project employment contracts. The SC held that the length of service through repeated and successive rehiring is not the controlling determinant of the employment tenure of a project employee. The rehiring of construction workers on a project-to-project basis does not confer upon them regular employment status as it is only dictated by the practical consideration that experienced construction workers are more preferred.
(E. Ganzon, Inc. (EGI) vs. Fortunato B. Ando, Jr., G.R. No. 214183, February 20, 2017)
Book of Atty. Villanueva that will show you how to draft a valid Project Employment Contract
Comments (11)
… [Trackback]
[…] Read More Info here on that Topic: lvsbooks.com/activities-project-employees-may-may-not-usually-necessary-desirable-usual-business-trade-employer/ […]
… [Trackback]
[…] Info on that Topic: lvsbooks.com/activities-project-employees-may-may-not-usually-necessary-desirable-usual-business-trade-employer/ […]
… [Trackback]
[…] Information on that Topic: lvsbooks.com/activities-project-employees-may-may-not-usually-necessary-desirable-usual-business-trade-employer/ […]
… [Trackback]
[…] Information to that Topic: lvsbooks.com/activities-project-employees-may-may-not-usually-necessary-desirable-usual-business-trade-employer/ […]
… [Trackback]
[…] Info on that Topic: lvsbooks.com/activities-project-employees-may-may-not-usually-necessary-desirable-usual-business-trade-employer/ […]
… [Trackback]
[…] Find More Info here to that Topic: lvsbooks.com/activities-project-employees-may-may-not-usually-necessary-desirable-usual-business-trade-employer/ […]
… [Trackback]
[…] Find More here on that Topic: lvsbooks.com/activities-project-employees-may-may-not-usually-necessary-desirable-usual-business-trade-employer/ […]
… [Trackback]
[…] Read More Info here on that Topic: lvsbooks.com/activities-project-employees-may-may-not-usually-necessary-desirable-usual-business-trade-employer/ […]
… [Trackback]
[…] Here you can find 54722 additional Info to that Topic: lvsbooks.com/activities-project-employees-may-may-not-usually-necessary-desirable-usual-business-trade-employer/ […]
… [Trackback]
[…] Information on that Topic: lvsbooks.com/activities-project-employees-may-may-not-usually-necessary-desirable-usual-business-trade-employer/ […]
… [Trackback]
[…] Find More on that Topic: lvsbooks.com/activities-project-employees-may-may-not-usually-necessary-desirable-usual-business-trade-employer/ […]
Comments are closed.