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Presumption of Regular Employment and Acceptability of Fixed Term Engagement

The employment status of a person is defined and prescribed by law and not by what the parties say it should be. (Regala vs. Manila Hotel Corporation, G.R. No. 204684, October 05, 2020) In this regard, the Supreme Court (SC) heldin Regala that, Article 295 of the Labor Code provides for two types of regular employees, namely: (a) those who are engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer (first [...]

Regular Employment and Necessity to be Covered by Employment Contract

Most business owners, HR practitioners, and managers know that when an employee is of regular status he does not need a written contract to be entitled to the benefits. This brings the issue of whether it still makes sense to execute a written agreement that such an employee is already of regular status. It is my view that there is still a need to execute the Regular Employment Contract with employee who is able to attain the regular status. The reason [...]

Admission by Silence in Labor Case

Admission by silence can be taken against the one who slept on the right to speak against the declaration. Thus, when an illegal dismissal case is filed against the company, but the company denies having dismissed the employee, should the company first prove that there was no illegal dismissal in this case? The rule is that “in illegal dismissal cases, the burden of proof is on the employer in proving the validity of dismissal. However, the fact of dismissal, if disputed, [...]

Casual Employment and the Importance of Having a Good Contract

An employment shall be deemed to be casual if the employee has not been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer, regular, project, or seasonal employee. It is one of the exceptions to the rule on regular employment under Article 295 which states that the provisions of written agreement to the contrary notwithstanding and regardless of the oral agreement of the parties, an employment shall be deemed to [...]

Sample Notice of Preventive Suspension

Placing an employee under preventive suspension is allowed under Section 8, Rule XXIII, Book V of the Omnibus Rules Implementing the Labor Code, as amended. The employer may place the worker concerned under preventive suspension only if his continued employment poses a serious and imminent threat to the life or property of the employer or of his co-workers. Preventive suspension is not a penalty but a disciplinary measure to protect life or property of the employer or the co-workers pending investigation [...]

Risk in Poorly Crafted Project Employment Contract

When the employer claims that an employee is on project employment basis, it has the burden of proving the validity of such arrangement. Failure to do so shall render the employment regular. For instance, in the case of Inocentes vs. R. Syjuco Construction, Inc., (July 29, 2019, G.R. No. 237020) where  the employer failed to discharge the burden to prove that the employees were project employees, the NLRC properly found them to be regular employees. It thus follows that as regular [...]

Regular Employment and its Exceptions under the Law

According to the Supreme Court (SC) in the case of Universal Robina Sugar Milling Corporation vs. Acibo (G.R. No. 186439, January 15, 2014) Article 295 of the Labor Code provides for three kinds of employment arrangements, namely: regular, project/seasonal and casual. Regular employment refers to that arrangement whereby the employee has been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer. Under the definition, the primary standard that determines regular [...]

Burden of Proving the Fact of Dismissal in Illegal Dismissal Cases

It is axiomatic that in illegal dismissal cases, the employer bears the burden of proving that the termination was for a valid or authorized cause. (Atienza vs. Saluta, G.R. No. 233413, June 17, 2019.) However, there are cases wherein the facts and the evidence do not establish prima facie that the employee was dismissed from employment. Before the employer is obliged to prove that the dismissal was legal, the employee must first establish by substantial evidence the fact of his [...]

Probationary Employee who is Regular by Operation of Law

A probationary employee may be terminated on any of three (3) grounds. These are failure to qualify, just cause, and authorized cause. A probationary employee is one who is placed on trial by an employer, during which the latter determines whether or not the former is qualified for permanent employment. [See Canadian Opportunities Unlimited, Inc. v. Dalangin, Jr., 681 Phil. 21, 33 (2012), citing International Catholic Migration Commission v. NLRC, 251 Phil. 560 (1989)] By virtue of a probationary employment, an [...]

Termination of Probationary Employee

A probationary employee may be terminated on any of three (3) grounds. These are failure to qualify, just cause, and authorized cause. As a background, a probationary employee is one who is placed on trial by an employer, during which the latter determines whether or not the former is qualified for permanent employment. [See Canadian Opportunities Unlimited, Inc. v. Dalangin, Jr., 681 Phil. 21, 33 (2012), citing International Catholic Migration Commission v. NLRC, 251 Phil. 560 (1989)] By virtue of a [...]

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