Tag - employment contract

Employment Contract as Contract of Adhesion and the Dangers of Default Interpretations in Favor of Employees

A contract of adhesion, wherein one party imposes a ready-made form of contract on the other, is not strictly against the law. A contract of adhesion is as binding as ordinary contracts, the reason being that the party who adheres to the contract is free to reject it entirely. (Cabanting vs. BPI Family Savings Bank, Inc., February 17, 2016, G.R. No. 201927) Further, in labor context, a contract of adhesion is defined as one in which one of the [...]

Effects of a Fixed Term Contract that is Vague or Ambiguous

The employment status of a person is defined and prescribed by law and not by what the parties say it should be. In this regard, 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 category); and (b) those who have rendered at least one year of service, whether continuous or [...]

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 [...]

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 [...]

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 [...]

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 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 [...]

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 [...]

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 [...]

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