Labor Law

Extension of Probationary Employment Period

Article 296 [formerly 281] of the Labor Code provides that probationary employment shall not exceed six (6) months from the date the employee started working, unless it is covered by an apprenticeship agreement stipulating a longer period. The services of an employee who has been engaged on a probationary basis may be terminated for a just cause or when he fails to qualify as a regular employee in accordance with reasonable standards made known by the employer to the [...]

Reason the Probationary Employee Should be Rated or Evaluated

Most employers would just go through the motion of six months of the probationary period, then make decision on the eve of six months and one day. By then the employee is already regular. This practice of rating the employee the last minute is risky since the employee may already be of regular status who cannot simply be dismissed for failure to qualify as regular. Probationary employment is one of the forms of employment in the Philippines wherein the employee [...]

Probationary Employment Contract Formulation in the Philippines

Probationary employment is one of the forms of employment in the Philippines wherein the employee undergoes the trial period to determine qualification as regular employee. A probationary appointment affords the employer an opportunity to observe the skill, competence and attitude of a probationer. The word probationary, as used to describe the period of employment, implies the purpose of the term or period (Enchanted Kingdom, Inc. vs. Verzo, G.R. No. 209559, December 09, 2015). While the employer observes the fitness, propriety and [...]

How to Project Employees when there are Multiple Projects

Project employment is an exception to the rule on regular employment if all the requisites are complied with. A project employee under now Article 295 of the Labor Code, as amended, is one whose 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. (Herma Shipyard, Inc. vs. Oliveros, G.R. No. 208936, April 17, 2017) Thus: “Art, 295. Regular and Casual Employment. –The [...]

Sample Project Employment Contract in Filipino / Tagalog

Project employment is one of the exceptions to regular employment under Article 295 of the Labor Code, as amended. As a rule, an employment is 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. However, employment may be made for a particular project or undertaking the duration of which is made known to the employee at the time of engagement. The [...]

Specification of the Project Must Better Seen in Project Employment Contract

Under Article 295 of the Labor Code, as amended, an employment is 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. The “project” for the carrying out of which “project employees” are hired would ordinarily have some relationship to the usual business of the employer. (Toyo Seat Philippines Corporation vs. Velasco, G.R. No. 240774, March 03, 2021) Exceptionally, the “project” undertaking [...]

Mindset in Crafting Project Employment Contract with Partial Sample Template

Employers should be careful in crafting project employment contract as to ensure that there is no ambiguity in the terms agreed upon and the legal requirements are all present. Under Article 295 of the Labor Code, as amended, an employment is 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. There is an exception. One of which is where the employment [...]

Standards to Observe in Alleging Offenses in the Notice to Explain

Issuance of the Notice to Explain (NTE) is one of the steps required in employee dismissal. At least, insofar as avoiding payment of indemnity is concerned for violation of procedural due process. Not observing the proper NTE may also impress upon the tribunal the haphazard nature of the employer in issuing such legal requirement. The last thing that an employer, as respondent in a case, wants is to have a wrong impression in the eyes of the labor tribunal. So, [...]

Diminution in Rank or Diminution of Responsibilities

Diminution is usually associated with benefits. However, in a Supreme Court (SC) decision, the concept of diminution in rank or diminution of responsibilities was established. In the case of Isabela-I Electric Coop, Inc. vs. Del Rosario (July 17, 2019, G.R. No. 226369), the SC discussed diminution in rank of employee whose position was changed from Internal Audit Manager to Area Manager. Although the employee’s position bears the appellation “manager,” the responsibilities he used to discharge as manager in his former [...]

Resignation and Illegal Dismissal

While the rules on resignation is settled, especially under Article 300 of the Labor Code, as amended, in actual situations, resignation is a confused subject matter especially if attended with claim of illegal dismissal. So, what is the legal perspective on this matter? It is good to revisit the 2020 case of Italkarat 18, Inc. vs. Gerasmio, G.R. No. 221411, September 28, 2020. The Supreme Court (SC) held that the fact of dismissal must first be proven, especially considering the [...]

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