Casual Employment Contract Sample

Casual employment pertains to work performed which is not usually necessary and desirable in the usual business or trade of employer. The challenge is knowing its distinction from regular employment when the facts and circumstances are muddled up.

For instance, the employment contract may state Casual Employment Contract in its title but the content may carry references to regular employment.

The post below is based on the book Human Resource Forms, Notices and Contracts Volume 1 by Atty. Elvin B. Villanueva.

The law provides that any written agreement to the contrary notwithstanding and regardless of the oral agreement of the parties, an employment shall be deemed to be regular where the employee has been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer, except where the employment 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 or where the work or service to be performed is seasonal in nature and the employment is for the duration of the season.

An employment shall be deemed to be casual if it is not covered by the preceding paragraph: Provided, That any employee who has rendered at least one year of service, whether such service is continuous or broken, shall be considered a regular employee with respect to the activity in which he is employed and his employment shall continue while such activity exists.

For casual employment to exist, the position occupied by the employee should not be usually necessary or desirable in the usual trade or business of the employer.

What is “usually necessary and desirable?” It is a position without which an employer cannot pursue his operation or business.

For instance, in a software development company that sells applications and development services, a computer programmer position is usually necessary and desirable. Without the programmer, the company cannot come up with the product to sell to the market.

But in an insurance firm, computer programmer may not be necessary since the company can still sell insurance products without the programmer. Hence, the programmer in this case may be hired on project employment basis only.

What is the difference between probationary and casual? Probationary employment pertains to a position that is usually necessary and desirable because after the employee holding the same has reached six months, he becomes a regular employee. While casual employment does not refer to a position that is usually necessary and desirable.

An example of casual employment is a data scanner of documents in a bottling company that wants to setup an electronic filing system. After all the papers have been scanned, there is no need for the document scanner to stay. His position is not necessary and desirable anyway.

When an employee is engaged to perform a job, work or service which is merely incidental to the business of the employer, and such job, work or service is for a definite period made known to the employee at the time of engagement, there is casual employment.

Does a casual employee become regular after the lapse of six months? No. That rule applies only to probationary employees.

But after the casual employee has served for more than one year, whether continuous or broken, he becomes a regular employee.

For example:

Scenario A

X was hired by Ma Casual Company, Inc. as a Data Scanner for one year and six months. After such period, X becomes a regular employee because his employment as casual exceeds one year.

Scenario B

X was hired by Ma Casual Company, Inc. as a Data Scanner for six months. But the company continued to employ him after six months or a total of one year and two months. In that case, X becomes a regular employee.

Scenario C

X was hired by Ma Casual Company, Inc. as a Data Scanner for six months. The company let him go at the end of his term. After a break of three months, the company hired him again for another five months. Then he was out of work afterwards.

After three months, he was hired by the company for the third time for three months. At the end of third month, he was told to go as his term has expired. X filed a case for illegal dismissal arguing that he was already a regular employee.

Ma Casual Company, Inc. argued that he was a mere casual employee as he was hired for only three months. But X said that his total period of employment is fourteen months. The company disagreed stating that X should not count the nine months because there were break in between those periods.

X is correct, because the one year period of employment mentioned in Article 280 is measured whether the work was continuous or broken.

It does not necessarily mean that the only way to terminate the employment of a casual employee is through the termination of the contract. Dismissal may also be made upon lawful cause or authorized cause with observance of due process. Meaning, notices and hearing/conference shall also be observed in this case.

Sample Casual Employment Contract

CONTRACT FOR

CASUAL EMPLOYMENT

KNOW ALL MEN BY THESE PRESENTS:

This CONTRACT FOR CASUAL EMPLOYMENT (Agreement for brevity), is entered into this ____ day of___________ by and between:

XYZ Corporation, a corporation duly organized and existing under and by virtue of the laws of the Republic of the Philippines with principal place of business at 123 Bldg., Ayala Ave., Makati City, Philippines, represented herein by its President, MR. ____________________, hereinafter known as CLIENT, EMPLOYER;

-and-

1. ____________________________________, of legal age, married/single, a with residential address at __________________________, and hereinafter referred to as “CASUAL EMPLOYEE”;

WITNESSETH THAT:

WHEREAS, the EMPLOYER is in need employee of temporary employee who will perform duties not usually necessary and desirable in the usual business or trade of the EMPLOYER;

WHEREAS, the CASUAL EMPLOYEE seeks employment, applied for and expressed willingness to join the EMPLOYER as its temporary or casual worker;

WHEREAS, the agreement shall be for a period of only five (5) months or until after the unrelated job for which the CASUAL EMPLOYEE was hired has ceased;

THEREFORE, the parties hereby covenant:

COMMENCEMENT OF CASUAL EMPLOYMENT

1. The CASUAL EMPLOYEE shall have duties and responsibilities set forth hereunder;
2. The CASUAL EMPLOYEE shall report for work on or before 8:00 a.m. and leave not earlier than 5:00 p.m., Monday to Saturday. Any entry later than 8:00 a.m. shall be reckoned as tardy and any end of shift earlier than 5:00 p.m. shall be considered undertime, both of which shall be subject to corresponding salary deduction and disciplinary action;
3. The hiring date of the CASUAL EMPLOYEE, which is the commencement of this agreement shall be on __________;
4. The temporary employment of CASUAL EMPLOYEE shall expire on _________________;

JUST AND AUTHORIZED CAUSES FOR DISMISSAL OR TERMINATION

5. In addition to the date of expiration of employment, the CASUAL EMPLOYEE may be dismissed from service for just causes found under Article 282 [now Art. 297 per RA 10151] of the Labor Code, as amended and other applicable provisions of the law;
6. Further, the employment may be terminated in the event of violation by the CASUAL EMPLOYEE of the provisions of the Code of Conduct hereto attached as Annex “A”. The CASUAL EMPLOYEE undertakes that she has read and understood the provisions therein and were fully explained to her in language and/or dialect that she understands and agrees to abide thereto;
7. The employment may likewise be terminated for authorized cause under Articles 298 and Article 299 of the Labor Code, as amended or any other relevant provisions;
8. Employment may likewise be validly terminated if the business operation, section of operation or phase of operation has ceased on account of a law, rules or regulations ordering the cessation of the company;
9. The employment may likewise be suspended due to causes arising from lack of raw materials, lack of customer order, declining sales, among others as determined by the management;

PLACE OF POSTING

10. The initial place of posting of the CASUAL EMPLOYEE shall be in the principal office of the EMPLOYER. However, the CASUAL EMPLOYEE agrees to be assigned anywhere in the Philippines when the exigencies of business require or when required by the project secured by the EMPLOYER;
11. The place of work may change when the EMPLOYER moves to another principal place of business and in such case, the CASUAL EMPLOYEE agrees to relocate;

DUTIES AND RESPONSIBILITIES

12. The CASUAL EMPLOYEE shall perform duties and responsibilities hereto attached as Annex “B,” and such other responsibilities that may be assigned relevant thereto;
13. In addition, the CASUAL EMPLOYEE shall observe the law, rules and regulations, standards of fairness, justice, good customs and fair play in the discharge of her duties;

COMPENSATION AND BENEFITS

14. The CASUAL EMPLOYEE shall receive a salary of ________________________ PESOS (PHP______.00) per day which will be paid every 15^th and 30^th or 31^st, as the case may be, of each month subject to the following payroll cut-off period;
15. For the payroll period of 15^th of the month, attendance cut-off shall be until the 5^th of said month. While for the payroll period of 30^th of the month, the cut-off shall be from the 6^th of the month until 20^th thereof;
16. The salary of the CASUAL EMPLOYEE shall be deducted an amount representing her contribution to social legislation benefits such as SSS, Pag-Ibig and Philhealth. He is likewise entitled to 13^th month pay provided she has served at least one (1) month of service;
17. The CASUAL EMPLOYEE undertakes to treat with strict confidentiality her compensation and benefits information and all other employment records. She shall refrain from discussing with anyone whether connected with the EMPLOYER or not. Violation of this prohibition shall be considered as ground for disciplinary action and shall affect the behavior rating stated above;

CONFIDENTIALITY

18. The CASUAL EMPLOYEE recognizes and acknowledges that the systems that the EMPLOYER owns, holds in trust, develops, plans whether for its own use or by its clients are confidential in nature and are property of the EMPLOYER. She further acknowledges that to enable the EMPLOYER to perform services for clients, the latter may have furnished the EMPLOYER confidential information concerning their business affairs, property transactions under consideration (including identities of their companies that are or may be parties to such transactions), methods of operation or other data that the goodwill afforded to EMPLOYER depends upon, among other things;
19. Thus, the CASUAL EMPLOYEE agrees that, except as directed by the EMPLOYER in writing, she will not at any time, whether during or after employment, disclose to any person or use any confidential information, or permit any person to examine and/or make copies of any documents which contain or are derived from any confidential information whether prepared by the EMPLOYER or coming into the possession of the CASUAL EMPLOYEE directly or which may be unintentionally furnished by the EMPLOYER;
20. The term “confidential information” shall include all information, whether written or oral, that is not known by, or not generally available to, the public at large and that concerns the business, activities, financial affairs, trade secrets, technology of the EMPLOYER or otherwise relates to the EMPLOYER, in any manner whatsoever, its customers, their clients, suppliers and other businesses or entities, with whom the EMPLOYER does business which may come to the possession of the CASUAL EMPLOYEE during the tenure of EMPLOYER in whatever manner or reason;
21. The CASUAL EMPLOYEE undertakes not to make copies or duplicates of any confidential information or other sensitive property or materials mentioned, including but not limited to keys, access cards, diskettes, flash drives, electronic files programs, databases regardless of storage location, photographs or such other proprietary information relating to the EMPLOYER’s business;
22. Failure of the CASUAL EMPLOYEE to submit, turnover, or return the company property falling under confidential information, as demanded in writing, within five (5) days therefrom, shall be deemed as violation of the confidentiality clause;
23. In case of violation, the CASUAL EMPLOYEE agrees to compensate the EMPLOYER the amount equivalent to his three (3) months salary but in no case less than TEN THOUSAND PESOS (PHP10,000.00) by way of liquidated damages;
24. The CASUAL EMPLOYEE authorizes the EMPLOYER to apply whatever salary earned or accruing to her as compensation for the violation and to withhold any amount pending actual application;

NON-COMPETE CLAUSE

25. The CASUAL EMPLOYEE agrees and covenants within a period of two (2) years after the termination of this agreement, engage, seek employment or be employed, whether full or part-time, directly or indirectly or through any corporations or associations, in any business, enterprise or employment which directly competes with the business of the EMPLOYER or any of its customers;
26. The CASUAL EMPLOYEE shall not, during the same period directly or indirectly solicit to provide or provide, without the prior written consent of the EMPLOYER, any professional services for anyone who is a client or supplier of the EMPLOYER;
27. If the CASUAL EMPLOYEE would in the future be directed by any governmental agency or judicial forum or court or asked to testify in any proceeding concerning any matter learned in the course of services provided to or on behalf of the EMPLOYER, she shall notify the latter before making any disclosure at least ten (10) days prior the date of testimony, hearing or disclosure;
28. In the event of any breach of the non-compete clause, the CASUAL EMPLOYEE shall compensate the EMPLOYER the amount of at least TWENTY THOUSAND (PHP20,000.00) by way liquidated damages or a higher amount as may be proven by the EMPLOYER at the latter’s option;
29. Payment of liquidated damages shall in no way affect the other rights which the EMPLOYER may have against the CASUAL EMPLOYEE, especially the right to obtain injunctive relief against her;

RESIGNATION

30. If the CASUAL EMPLOYEE would resign from service, he shall give at least thirty (30)-day prior notice to the EMPLOYER. If the CASUAL EMPLOYEE resigns without observing the 30-day prior notice she shall reimburse the EMPLOYER the total amount equivalent to his three (3) months salary or at least TWENTY THOUSAND PESOS (PHP20,000.00) as liquidated damages. To effect the payment, the CASUAL EMPLOYEE authorizes the EMPLOYER to withhold whatever salary and/or benefits earned and apply the same against the liability;
31. This written contract and its annexes constitute the entire agreement between the parties binding between them and their assigns, heirs and successors-in-interest.

IN WITNESS WHEREOF, the parties have hereby affixed their respective signature this ____ day of _______, 2018, in the City of ____________.

For the EMPLOYER:

_______________________                              ________________________
President                                                                         CASUAL EMPLOYEE

Signed in the presence of:

__________________________                                   _________________________

ACKNOWLEDGMENT

Republic of the Philippines     )
City of _______________ ) S.S.

BEFORE ME, a notary public for and in the City of ______________, the parties appeared and presented their respective identification cards as competent proof of identity and are known to me and to me known to be the same persons who executed the foregoing Contract for Casual Employment consisting of three (3) pages, including this page where the Acknowledgment is written and affirmed to me that the same is their own, free, voluntary act and deed.

WITNESS MY HAND AND SEAL, this _____ day of __________, 2018.

Doc. No.: _________;
Page No.: _________;
Book No.: _________;
Series of 2018