Tag - project employment

Supremacy of the Labor Laws over the Nomenclatures in Employment Contracts

The supremacy of the law over the nomenclature of the contract and the stipulations contained therein is to bring to life the policy enshrined in the Constitution to afford full protection to labor.  Labor contracts, being imbued with public interest, are placed on a higher plane than ordinary contracts and are subject to the police power of the State. (GMA Network, Inc. vs. Pabriga, .R. No. 176419. November 27, 2013) Thus, in a claim of complainants that they are regular [...]

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 [...]

How to Handle the Contracts of 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 provisions [...]

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 “project” [...]

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 might [...]

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 has [...]

Project Employment Does Not Arise Where the Employee Performed Work that is Necessary and Indispensable to Usual Trade or Business of Employer

Project employment exists 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. (See page 276, citing Art. 295, Labor Code of the Philippines, Atty. Elvin B. Villanueva) The principal test for determining whether particular employees are properly characterized as “project[-based] employees” as distinguished from “regular employees,” is whether or not the employees were assigned to carry out a “specific [...]

Project Employment Requires that the Employee is Informed at the Time of Engagement that he is to carry out a Particular Project

Project employment exists when 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. (See page 276, The Labor Code of the Philippines by Atty. Elvin B. Villanueva citing Art. 295) Where the employee is not informed of project employment at the time of engagement the presumption that he is a regular employee arises. (See Bajaro vs. Metro Stonerich Corp., G.R. [...]

Sample Contract for Project Employment in Filipino or Tagalog

Sample contract is provided here as guide for companies that would like to draft their project employment contract for project employees who are not conversant of the English language or who better understand only Filipino or Tagalog. As basic reminder in project employment contract, the following must be shown: 1. Parties 2. Duration of the project or phase thereof (must be made known at the time of engagement) 3. Expected completion date 4. Provision on possible extension 5. Description of the project 6. Completion bonus (not [...]

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