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-regular employees are those who have been engaged to perform activities which are usually necessary
or desirable in the usual business or trade of the employer. (Article 280 of the Labor Code of PH)
-A regular employee enjoys the benefit of security of tenure as guaranteed by the Constitution. This
means that the employee cannot simply be terminated.

- A contractor, also called an independent contractor, often erroneously referred to as a contract
employee, is someone who works for a business on a project or finite basis. The contract can be
for a one-time project or an agreement that allows the business to hire the designer frequently
without writing a new contract each time.


- Employee with an employment that is coterminous with the project. A project employee may not
expect to be employed continuously beyond the completion of the project. As emphasized in the
case of ALU-TUCP vs. NLRC and NSC, the principal test for determining as a project employee is
whether or not the employees were assigned to carry out

(1) a specific project or undertaking,

(2) the duration and
(3) scope of which were
(4) specified at the time the employees were engaged for that project.

- the employment has been fixed for a specific project or undertaking whose completion or
termination has been determined at the time of the engagement of the employee. (Article 280,
Labor Code of the Philippines)

- Since the employees services are coterminous with the project, the services of the project
employees are legally and automatically terminated upon the end or completion of the project.


- where the work or service to be performed is seasonal in nature and the employment is for the
duration of the season. (Article 280, Labor Code of the Philippines)

- Where the work or services to be performed is seasonal in nature and the employment is for the
duration of the season in the Philippines.


- Temporary employees are hired to assist employers to meet business demands yet allow the
employer to avoid the cost of hiring a regular employee. Sometimes, it is the expectation of the
employer that if the temporary employee is successful, the employer will hire the temporary

- Temporary employees who are pursuing a career as a freelance writer or developing their own
product with the intent to start a company are good prospects as temporary employees.

- Temporary employees are hired directly by the company or they are obtained from a temporary
staffing agency. If an agency provides the temporary employee, the employer pays a fee over and
above the compensation collected by the employee.


Compensation: Compensation is payment to an employee in return for their contribution to the organization, that is,
for doing their job. The most common forms of compensation are wages, salaries and tips.

Benefits: Benefits are forms of value, other than payment, that are provided to the employee in return for their
contribution to the organization, that is, for doing their job. Some benefits, such as unemployment and worker's
compensation, are federally required. (Worker's compensation is really a worker's right, rather than a benefit.)

A bonus is the decision to pay one, a group or all employees, based on criteria decided by management to reward
past achievements, such as reaching a specific profit or target, or some important milestones for the organization.
Incentive pay is the payment that is tied to the achievement of specific objectives that have been pre-determined
and communicated to the employees that are on the plan. The bonus is granted to a person after a particular task or
project has been completed by the person, an incentive is offered at the onset. Incentives will be mentioned to the
employee before he started working.
A bonus is usually given as a surprise. Incentives have no surprise factor. Incentives are provided as a motivation to
the workforce to complete more tasks and build loyalty to the organization. An incentive is guaranteed to the
employees if they complete the task. The bonus is provided at random or on the spot that the management of a firm
decides to give a bonus to their employees for accomplishing the task.