Regular Employment Rules (Part 1 of 3)

Regular Employment Rules (Part 1 of 3)

Regular employment is one of the forms of employment under Article 280 [now Article 295] of the Labor Code, as amended. The rules are discussed below.

Get an updated copy of the re-numbered Labor Code 2017

The Labor Code of the Philippines by Atty. Elvin B. VillanuevaThe discussion is based on the book Guide to Valid Dismissal of Employees Second Edition (pp. 92-94).

The nature of one’s employment does not depend on the will or word of the employer. Nor on the procedure of hiring and the manner of designating the employee, but on the nature of the activities to be performed by the employee, considering the employer’s nature of business and the duration and scope of the work to be done.

Under Article 280, the nature of employment is determined by the factors set by law, regardless of any contract expressing otherwise. The supremacy of the law over contracts is explained by the fact that labor contracts are not ordinary contracts; these are imbued with public interest and therefore, are subject to the police power of the State.

It is interesting to recall Policy Instructions No. 2 of the then Minister of Labor providing that “Presidential Decree 859 has defined the concept of regular and casual employment. What determines regularity or casualness is not the employment contract, written or otherwise, but the nature of the job. If the job is usually necessary or desirable to the main business of the employer, then employment is regular.”

As to whether or not a position is regular is determined by the nature of the company’s business and the relation of activities performed by individuals in such establishment.

In this sense, regular employment has become a relative concept due in part to different industries and companies that create organizational structure which hire workers according to their respective business demands. Hence, a programmer may be a project employee in an insurance company but a regular employee in a software development company.

In an insurance company for example, which needs programmers only to develop a specific system, the programmer may be on a project basis only. Such computer program project may be developed over a particular period of time. After which, the services of the programmer will not be needed anymore.

His employment may not be necessary and desirable to the usual business or trade of an insurance company. As a matter of fact, the insurance company can still sell through their agents even in the absence of their programmers.

While in a software development company, the presence of the programmers is necessary and desirable. Imagine what the company can do without its programmers. Its core business is selling applications, systems or programs. Without the programmers it cannot come up with a product to sell. It cannot do any business. To keep on doing business it must sell programs developed by its programmers.

Learn how to formulate and design legally defensible Regular Employment Agreement based on the book Human Resource Forms, Notices & Contracts Volume 1

Human Resource Forms Contract and Notices by Atty Elvin B VillanuevaThe primary standard to determine regular employment is the reasonable connection between the particular activity performed by the employee in relation to the usual business or trade of the employer. The test is whether the former is usually necessary or desirable in the usual business or trade of the employer.

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