CLASSES OF

EMPLOYMENT
 Kinds of Employment:
a. Regular
b. Casual
c. Probationary
d. Project
e. Seasonal
f. Fixed-term
g. Security guards

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 Regular Employment
Ways attaining regular employment:

1. Nature of work (engaged to perform tasks usually

necessary or desirable to the usual trade or business of the
employer)
2. Length of service (1 year)
3. Work beyond the probationary employment
4. Repeated Hiring

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 Q: Design Consultants Inc. was engaged by the PNCC to
supervise the construction of the South Expressway
Extension. Design Consultants Inc. hired Omar as a
driver for two (2) years. After his two-year contract
expired, he was extended another contract for nine (9)
months. These contracts were entered into during the
various stages and before the completion of the
extension project. Omar claims that because of these
repeated contracts, he is now a regular employee of
12/27/2023
Design Consultants Inc. Is he correct? Explain briefly. 4
A: YES. The principal test for determining whether a particular
employee is a “project employee” as distinguished from a
“regular employee” is whether or not the “project employee”
was assigned to carry out a “specific project or undertaking,”
the duration and scope of which were specified at the time the
employee was engaged for the projects. In the problem given,
there is no showing that Omar was informed that he was to be
assigned to a “specific project or undertaking.” Neither has it
been established that he was informed of the duration and
scope of such project or undertaking at the time of his 5
 Moreover, the re-hiring of Omar is sufficient evidence of
the necessity or the indispensability of his services to
the company’s business

Hence, Omar is correct in claiming that he is a regular

employee of Design Consultants Inc.

12/27/2023 PRESENTATION TITLE 6

Casual Employment
PROJECT
EMPLOYMEN
T
DOES NOT
NOT A FALL WITHIN
REGULAR THE
EMPLOYEE EXCEPTION IN
ART. 295
SEASONAL
EMPLOYMEN
T
 Q: A Carpenter is employed by
a private university in Manila.
Is the carpenter a regular or a
casual employee? Discuss
fully.

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 A: If the employment of the carpenter is sporadic
and brief in nature or occasional, his
employment is casual especially because the
work he is performing is not in the usual course
of the school’s trade or business. However, if the
carpenter has rendered services for at least one
year, whether continuous or broken, he becomes
a regular employee by operation by law, with
respect to the activity in which he is employed
and his employment shall continue while such
activity exists.
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 Probationary Employment
Not exceeding 6 (six) months

Standards for regularization must be made known to the employee at the time of
engagement

Security of tenure: during probationary period

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 Q: Mr. X was hired by Y Company on probation for six months
as general utility worker. On the expiration of the
probationary period, Mr. X was informed by Y Co. that his
work was unsatisfactory and failed to meet the required
standard. To give him a chance to improve his performance,
Y Co. instead of terminating Mr. X’s services, extended, with
X’s written consent, the probation period for another three
months. This extension notwithstanding, his performance did
not improve, on account of which, Y Co. terminated Mr. X's
services at the end of the extended period. Mr. X filed a case
for illegal dismissal contending that he was already regular
at the time of his dismissal pursuant to Art. 296 of the Labor
Code, the particular portion of which provides: “x x x An
employee who is allowed to work after a probationary period
shall be considered a regular employee.” Therefore, he could
not have been lawfully dismissed for failure to meet company11
12/27/2023
standards as a probationary worker. Decide with reason.
 A: Mr. X could not argue that because his
probationary period was extended beyond six (6)
months he was now a regular employee and thus
could no longer be terminated except for Just cause
or when authorized by law. The fact is that the
probationary period of Mr. X was extended beyond
six (6) months with his consent. It was to give him
an opportunity to improve his performance. Thus, it
was legal for Y Company to terminate Mr. X for his
failure to meet company standard as a probationary
worker. The Labor Code provides that probationary
employment shall not exceed six (6) months. But the
Supreme Court has ruled that said probationary
period could be extended with the consent of the
probationary employee to give him an opportunity to
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 Project Employment
 Specific undertaking

 Duration of employment: fixed term or day certain

 Duration must be made known to employee at the time of engagement

 Termination notice to employee NOT needed

 Submit reports to DOLE

Exceptions (requisites):
 Repeated re-hiring
 Tasks are vital, necessary, indispensable

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 Q: Diosdado, a carpenter, was hired by
Building Industries Corporation (BIC), and
assigned to build a small house in
Alabang. His contract of employment
specifically referred to him as a “project
employee,” although it did not provide any
particular date of completion of the
project. Is the completion of the house a
valid cause for the termination of
Diosdado’s employment? If so, what are
the due process requirements that the BIC
must satisfy? If not, why not?
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 A: The completion of the house should be valid
cause for termination of Diosdado’s employment.
Although the employment contract may not state a
particular date, but if it did specify that the
termination of the parties employment relationship
was to be on a “day certain” – the day when the
phase of work would be completed – the employee
cannot be considered to have been a regular
employee.

To satisfy due process requirement, under DOLE

Department Order No. 19, series of 1993, the
employer is required to report to the relevant DOLE
Regional Office the fact of termination of project
employees as a result of the completion of the
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 “ Seasonal Employment
 Hired for one (1) season only

 Termination at the end of the season

Exception: Regular Seasonal Employment

”
 Reasonable connection between work
and business
 Engaged for more than one (1) season

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 Q: Define, explain or distinguish the following terms:
(a) Seasonal and (b) project employees:

A: Seasonal employees are those who are called to

work from time to time according to the occurrence of
varying need during a season, and the employment is
only for the duration of said season. They are laid off
after completion of the required phase of work for the
season.
Project employees are those who are assigned to carry
out a specific project or undertaking, the duration and
scope of which were specified at the time the
employees were engaged for the project, hence, the
services of the project employees are coterminous
with the project for which they were hired.
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 Fixed-term Employment

Period is voluntarily agreed upon without force, duress, or pressure

Employee and employer dealt with each other on more or less equal terms,
with no moral dominance exerted.

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Q: Lucy was one of approximately 500 call center agents at
Hambergis, Inc. She was hired as a contractual employee
four years ago. Her contracts would be for a duration of five
(5) months at a time, usually after a one-month interval. Her
re-hiring was contingent on her performance for the
immediately preceding contract. Six (6) months after the
expiration of her last contract, Lucy went to Hambergis
personnel department to inquire why she was not yet being
recalled to work. She was told that her performance during
her last contract was “below average.” Lucy seeks your legal
advice about her chances of getting her job back. What will 19
 SUGGESTED ANSWER:

Lucy cannot get her job back. She is a fixed-

term employee and as such, her employment
terminates upon the expiration of her contract.

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 Teachers / Professors

PERMANENCY
Requirements:
Probationary period:
1. Full-time status
Three (3) years 2. Completion of 3-year
probationary period
3. Satisfactory service
 Security Guards

The Security Service Contractor (SSC) or Private Security Agency (PSA) is

the employer of its security guards and other private security personnel on
duty detail to a principal or client under a Service Agreement.

12/27/2023 PRESENTATION TITLE 22

Probationary Employment

Probationary period of newly-hired security guard and

other private security personnel in the private security
industry shall not exceed six (6) months. While on
probationary status, their services may be terminated for
failure to meet reasonable standards or criteria made
known by the SSC/PSA at the time of their engagement or
for any just case contained in the probationary contract.
(Sec. 3.2, DO 150-16) 23
Regular Employment

Any security guard or other private security personnel

who is allowed to work after the probationary period or
in the absence of a valid

probationary contract shall be considered a regular

employee. Security guards affected by repeated hiring-
firing-rehiring scheme for short

periods of time, the aggregate duration of which is at

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Reserved Status

A security guard and other private security personnel may be

placed in a work pool or on reserved status due to lack of
service assignment after the expiration or termination of the
Service Agreement with the principal where he/she is
assigned, or due to the temporary suspension of security
service operations, or due to valid relief from the current
place of work and there is no work assignment available.
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