Republic of the Philippines
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No. 2604 
Introduced by CIBAC Party-List Representative 
EDUARDO “BRO. EDDIE” C. VILLANUEVA 
EXPLANATORY NOTE 
“STOP ENDO” or “STOP CONTRACTUALIZATION” is the resounding call of 
workers nationwide. Indeed, being caught in the cycle of intermittent ENDO or 
CONTRACTUAL jobs with no prospect of permanency is very oppressive and 
derogates the Constitutionally guaranteed rights of workers to security of tenure, 
humane conditions of work, organize and collectively bargain, engage in peaceful 
concerted activities including strike in accordance with law, receive a living wage, and 
participate in decision-making processes affecting their rights and benefits (Section 3, 
Art. XIII of the 1987 Constitution). 
Among others, this bill seeks to clarify when labor-only contracting exists: 
a)
when the job contractor merely supplies workers to a contractee;
b)
when the workers supplied by the contractor are performing jobs which are
directly related to the principal business of the contractee;
c)
when the job contractor does not control the workers deployed to the
contractee.
The proposal to include the performance of “directly related tasks” as an 
indicator of the existence of labor-only contracting is meant to address a situation 
where all functions or tasks are contracted out to a job contractor, which is clearly a 
circumvention of the Constitutional guarantee on the right to security of tenure. 
This definition was favorably endorsed by the Department of Labor and 
Employment (DOLE), the primary agency in-charge of implementing the Labor Code, 
and who, we assume, knows the loopholes in the law that must be addressed by 
corrective legislation. According to DOLE, the amendment will simplify the 
interpretation, implementation and enforcement of the prohibition on labor-only 
contracting and curb practices that circumvent the prohibition. The Department also 
noted that most of the LOC cases pending on appeal is grounded on the argument 
July 30, 2025
11:10 am


that the contractors are not LOC because it has substantial capitalization citing 
Supreme Court cases. 
This bill allows industry tripartite councils to determine the jobs that are directly 
related to the principal business of a contractee/principal. This is in recognition of the 
fact that what may be directly related to the business of a contractee today, may not 
be directly related tomorrow due to rapidly changing technologies. 
This amendment will give the labor sector the opportunity to voice their 
concerns in the contracting out of certain jobs or services, and at the same time, give 
the employers the opportunity to present the realities of the operations of their 
businesses and give them appropriate flexibility to adjust to changes dictated by their 
businesses, especially in light of rapidly changing technologies. For example, now, we 
can see restaurants having electronic machines where you can place your order and 
make your payment. At toll roads in Metro Manila and surrounding provinces, we see 
an aggressive push for RFIDs or easy strips and less and less toll collectors during 
regular days. In light of similar developments in other industries, what should be 
considered “directly related” to the principal business of a contractee today will likely 
no longer be “directly related” in a year or two. 
This will also provide stability. The listing of tasks or functions that may or may 
not be contracted out removes the wide latitude of discretion of DOLE inspectors and 
contractees on what is directly related or not, including that of the labor sector. 
Currently, the contractee makes a self- determination of what jobs/tasks are directly 
related to its business. Meanwhile, the DOLE inspectors also rely on their own 
judgment or understanding during inspection, on what jobs/tasks being contracted out 
are directly related, while the DOLE directors and the Secretary of Labor and 
Employment also have their own separate determination on whether the jobs/tasks 
contracted out are directly related to the principal business of the contractee. The 
justices of the Court of Appeals and the Supreme Court separately determine the 
relatedness of the task or functions to the principal business of the contractee. 
Having an industry-determined listing will also remove the litigiousness of the 
process and dissatisfaction from the employers and the affected workers. What will be 
checked during inspection is the license and the subject of determination would just 
be the following: 
a)
whether the contracted tasks or functions is included in the industry’s
positive or negative listings; or
b)
whether the job contractor is merely supplying workers; or
1 
c)
whether the job contractor exercises direct control over the workers
deployed to the contractee.
Compliance with substantial capital requirement or possession of tools or 
equipment reasonably necessary to the contracted tasks or functions will already be 
checked at the time of application for a license, being an administrative requirement 
for licensing. The license being an authority given to engage in job contracting, unlike 
registration, is a DOLE guarantee that the licensee has complied with the requirements 


set out in the proposed measure. Hence, any non-compliance determined with finality 
will make the issuing DOLE officer administratively liable for the issuance of the license 
along with the licensee for the fraudulent authority. 
In addition, this bill also requires job contractors to obtain a license from DOLE, 
upon showing proof that it has substantial capital, has an independent business, an 
employer with regular employees, complies with labor laws and payment of social 
security benefits, such as SSS, PhilHealth and Pag-ibig premium payments, among 
others. 
This bill also simplifies the classification of workers to regular and probationary 
employees. Project and seasonal employees are regular employees for the duration 
of the project or season, as the case may be. All other forms of employment are strictly 
prohibited. 
Notably, the full text of this bill was earlier certified by former President Rodrigo 
Duterte in 2018, but was, however, eventually vetoed. Nevertheless, we believe that 
the immediate passage of this bill is still necessary, and even more urgent, as our 
workers and industries recover from the pandemic. 
Thus, the immediate passage of this bill is earnestly sought. 
EDUARDO “BRO. EDDIE” C. VILLANUEVA 
Representative, CIBAC Partylist 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 2604 
Introduced by CIBAC Party-List Representative 
EDUARDO “BRO. EDDIE” C. VILLANUEVA 
AN ACT 
STRENGTHENING WORKERS RIGHT TO SECURITY OF TENURE, 
AMENDING FOR THE PURPOSE ARTICLES 106, 107, 108, AND 109 
OF BOOK III, AND ARTICLES 294 [279], 295 [280], 296 [281], AND 
297 [282] OF BOOK VI OF PRESIDENTIAL DECREE NO. 442, 
OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES, 
AS AMENDED 
 Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title - This Act shall be known as the “Security of Tenure 
1 
and End of Endo Act” 
2 
3 
SEC. 2. Article 106, Title II, Book III of the Labor Code, as amended, is hereby 
4 
amended to read as follows: 
5 
6 
“ARTICLE 106. [Contractor or Subcontractor] PROHIBITION ON 
7 
LABOR-ONLY CONTRACTING. – [Whenever an employer enters into 
8 
a contract with another person for the performance of the former’s work, 
9 
the employees of the contractor and of the latter’s subcontractor, if any, 
10 
shall be paid in accordance with the provisions of this Code. 
11 
12 
“In the event that the contractor of subcontractor fails to pay the 
13 
wages of his employees in accordance with this Code, the employer 
14 
shall be jointly and severally liable with his contractor or subcontractor 
15 
to such employees to the extent of the work performed under the 
16 
contract, in the same manner and extent that he is liable to employees 
17 
directly employed by him. 
18 
19 
“The Secretary of Labor and Employment, may by 
appropriate 
20 
regulations, restrict or prohibit the contracting-out of labor to protect the 
21 
rights of workers established under this Code. In so prohibiting or 
22 


 
restricting, he may make appropriate distinctions between labor-only 
1 
contracting and job contracting as well as differentiations within these 
2 
types of contracting and determine who among the parties involved shall 
3 
be considered the employer for the purposes of this Code, to prevent 
4 
any violation or circumvention of this Code.] 
5 
 
6 
“LABOR-ONLY CONTRACTING IS PROHIBITED. There is 
7 
“labor-only” contracting where the [person supplying workers to an 
8 
employer does not have] JOB CONTRACTOR, WHETHER LICENSED 
9 
OR NOT, MERELY RECRUITS AND SUPPLIES OR PLACES 
10 
WORKERS TO A CONTRACTEE REGARDLESS OF WHETHER OR 
11 
NOT HE/SHE HAS substantial capital or investment in the form of tools, 
12 
equipment, machineries, work premises, among others, [and] OR the 
13 
workers recruited and SUPPLIED OR placed by such person are 
14 
performing activities which are directly related to the principal business 
15 
of such CONTRACTEE OR ARE UNDER THE CONTROL AND 
16 
SUPERVISION OF THE CONTRACTEE. In such cases, the [person or 
17 
intermediary] JOB CONTRACTOR shall be considered merely an agent 
18 
[of] AND the [employer who] CONTRACTEE shall be responsible to the 
19 
workers in the same manner and extent as if the latter were directly 
20 
employed by him/HER. 
21 
  
22 
FOR THE PURPOSES OF THIS ARTICLE, THE SPECIFIC JOB, 
23 
WORK OR SERVICE THAT ARE DEEMED DIRECTLY RELATED TO 
24 
THE PRINCIPAL BUSINESS OF A CONTRACTEE SHALL BE 
25 
DETERMINED BY THE APPROPRIATE INDUSTRY TRIPARTITE 
26 
COUNCIL WHICH SHALL BE ISSUED THROUGH REGULATIONS BY 
27 
THE SECRETARY OF LABOR AND EMPLOYMENT. IN THE 
28 
ABSENCE OF A DETERMINATION BY THE APPROPRIATE 
29 
INDUSTRY 
COUNCIL, 
THE 
SECRETARY 
OF 
LABOR 
AND 
30 
EMPLOYMENT SHALL DETERMINE THE STANDARD CRITERIA 
31 
AFTER CONSULTATION WITH THE NATIONAL TRIPARTITE 
32 
INDUSTRIAL PEACE COUNCIL. 
33 
 
34 
“IN ALL CASES WHERE LABOR-ONLY CONTRACTING IS 
35 
PRESENT, THE WORKERS SHALL OUTRIGHT BE DEEMED 
36 
REGULAR EMPLOYEES OF THE CONTRACTEE IN ACCORDANCE 
37 
WITH LAW, RETROACTIVE TO THE DATE THEY WERE FIRST 
38 
DEPLOYED TO SAID CONTRACTEE, WITHOUT PREJUDICE TO 
39 
ANY CRIMINAL, CIVIL, OR ADMINISTRATIVE CASE AGAINST 
THE 
40 
LABOR-ONLY CONTRACTOR AND THE CONTRACTEE. 
41 
 
42 
“COMPLIANCE ORDERS AFFIRMED BY THE SECRETARY 
43 
OF LABOR AND EMPLOYMENT SHALL BE IMMEDIATELY 
44 
EXECUTORY UNLESS RESTRAINED BY AN APPROPRIATE 
45 
COURT. 
46 
 
47 
“IN 
CASE 
THE 
COMPLIANCE 
ORDER 
INVOLVES 
A 
48 
DIRECTIVE TO REGULARIZE WORKERS, THE EMPLOYMENT OF 
49 
THE LATTER SHALL NOT BE TERMINATED PENDING APPEAL OF 
50 


 
SUCH ORDER EXCEPT FOR JUST OR AUTHORIZED CAUSE. ANY 
1 
TERMINATION OF WORKERS PENDING APPEAL SHALL RENDER 
2 
THE COMPLIANCE ORDER INVOLVING THE REGULARIZATION OF 
3 
WORKERS EXECUTORY. 
4 
  
5 
“ADDITIONALLY, 
THE 
SECRETARY 
OF 
LABOR 
AND 
6 
EMPLOYMENT SHALL IMPOSE A FINE OF UP TO FIVE MILLION 
7 
PESOS 
(PHP5,000,000.00) 
AGAINST 
ANY 
LABOR-ONLY 
8 
CONTRACTOR. THE SECRETARY OF LABOR AND EMPLOYMENT 
9 
SHALL ALSO HAVE THE POWER TO PREVENTIVELY OR 
10 
PERMANENTLY CLOSE THE OPERATIONS OF ANY LABOR-ONLY 
11 
CONTRACTOR.” 
12 
 
13 
SEC. 3. Article 107, Title II, Book III of the Labor Code, as amended, is hereby 
14 
repealed, and in lieu thereof, a new Article 107 is inserted to read as follows: 
15 
 
16 
“ARTICLE 107. LICENSING OF JOB CONTRACTORS. – IT 
17 
SHALL BE MANDATORY FOR ALL PERSONS OR ENTITIES ACTING 
18 
AS JOB CONTRACTOR TO OBTAIN A LICENSE FROM THE DOLE 
19 
THROUGH ITS REGIONAL OFFICES. FOR PURPOSES OF 
20 
ARTICLES 106-109, “JOB CONTRACTOR” REFERS TO A SOLE 
21 
PROPRIETORSHIP, CORPORATION, ASSOCIATION, 
22 
COOPERATIVE OR OTHER ORGANIZATION THAT PERFORMS A 
23 
SPECIFIC WORK, JOB OR SERVICE TO A CONTRACTEE. 
24 
“CONTRACTEE” REFERS TO THE PERSON OR ENTITY, WHICH 
25 
SHALL INCLUDE THE GOVERNMENT, THAT CONTRACTED OUT A 
26 
SPECIFIC WORK, JOB OR SERVICE. 
27 
 
28 
“THE LICENSE SHALL BE ISSUED TO QUALIFIED JOB 
29 
CONTRACTORS UPON COMPLIANCE WITH THE FOLLOWING 
30 
REQUIREMENTS: 
31 
 
32 
(A) HAVE 
AN 
INDEPENDENT 
BUSINESS, 
SEPARATE 
AND 
33 
DISTINCT FROM THE CONTRACTEE; 
34 
 
35 
(B) HAVE A PAID-UP CAPITAL OR NET WORTH OF AT LEAST FIVE 
36 
MILLION 
PESOS 
(PHP5,000,000.00), 
WHICH 
MAY 
BE 
37 
INCREASED 
AS 
DEEMED 
APPROPRIATE 
THROUGH 
38 
TRIPARTITE CONSULTATION; 
39 
 
40 
(C) BE AN EXPERT OR SPECIALIST IN THE JOB, WORK OR 
41 
SERVICE BEING CONTRACTED THAT SHALL NOT BE 
42 
DIRECTLY RELATED TO THE PRINCIPAL BUSINESS OF THE 
43 
CONTRACTEE. 
FOR 
THIS 
PURPOSE, 
EXPERTISE 
OR 
44 
SPECIALIZATION SHALL BE ESTABLISHED BY SHOWING, 
45 
AMONG OTHERS, A CORE OF COMPETENT PROFESSIONALS 
46 
OR SKILLED WORKERS ESPECIALLY TRAINED TO CARRY 
47 
OUT THE JOB, WORK OR SERVICE OR TRACK RECORD IN 
48 
SUCH FIELD OF SPECIALIZATION; 
49 
 
50 


 
(D) BE AN EMPLOYER WITH REGULAR EMPLOYEES AND HAVE 
1 
EQUIPMENT, MACHINERIES OR TOOLS NECESSARY TO 
2 
PERFORM OR COMPLETE THE JOB, WORK OR SERVICE 
3 
CONTRACTED OUT; 
4 
 
5 
(E) EXERCISE CONTROL OVER THE PERFORMANCE AND 
6 
COMPLETION 
OF 
THE 
JOB, 
WORK 
OR 
SERVICE 
7 
CONTRACTED OUT; 
8 
 
9 
(F) CERTIFICATION OF COMPLIANCE WITH LABOR AND SOCIAL 
10 
WELFARE LAWS INCLUDING PROOF OF PAYMENT OF SOCIAL 
11 
SECURITY, PHILIPPINE HEALTH INSURANCE CORPORATION, 
12 
AND HOME DEVELOPMENT MUTUAL FUND (PAG-IBIG) 
13 
CONTRIBUTIONS; AND 
14 
 
15 
(G) PAYMENT OF LICENSE FEE, WHICH SHALL NOT BE LOWER 
16 
THAN ONE HUNDRED THOUSAND PESOS (PHP100,000.00). 
17 
 
18 
“THE LICENSE SHALL BE VALID FOR A PERIOD OF THREE (3) 
19 
YEARS AND MAY BE RENEWED UPON COMPLIANCE WITH THE 
20 
REQUIREMENTS PRESCRIBED BY THE DOLE. IN ALL CASES, THE 
21 
JOB CONTRACTOR SHALL DEMONSTRATE THAT IT HAS 
22 
FINANCIAL CAPACITY TO CARRY ON ITS BUSINESS BASED ON 
23 
FACTORS SUCH AS, BUT NOT LIMITED, TO THE NUMBER OF ITS 
24 
EMPLOYEES AND THE NATURE OF ITS BUSINESS. 
25 
 
26 
“ANY LEGITIMATE LABOR ORGANIZATION SHALL HAVE 
27 
ACCESS 
TO 
COPIES 
OF 
LICENSES 
ISSUED 
TO 
JOB 
28 
CONTRACTORS AND ANY AND ALL SUBMISSIONS MADE IN 
29 
CONNECTION WITH SUCH LICENSE. 
30 
 
31 
“FOR THIS PURPOSE, THE SECRETARY OF LABOR AND 
32 
EMPLOYMENT, 
IN 
CONSULTATION 
WITH 
THE 
NATIONAL 
33 
TRIPARTITE INDUSTRIAL PEACE COUNCIL (NTIPC), SHALL ISSUE 
34 
THE 
APPROPRIATE 
REGULATIONS 
FOR 
THE 
LICENSING, 
35 
RENEWAL, SUSPENSION, AND REVOCATION OF LICENSES OF 
36 
JOB CONTRACTORS, INCLUDING THE ACCOUNTABILITIES OF 
37 
THE LICENSING OFFICER IN CASE THE LICENSE IS ISSUED IN 
38 
VIOLATION 
OF, 
OR 
IN 
SIMULATION 
OF 
ANY 
OF 
THE 
39 
REQUIREMENT FOR LICENSING UNDER PARAGRAPHS (A) TO (G) 
40 
ABOVE, OR UPON FINDING 
OF 
LABOR-ONLY 
CONTRACTING 
41 
COMMITTED BY A DULY-LICENSED JOB CONTRACTOR. 
42 
 
43 
“IN 
NO 
CASE 
SHALL 
PRIVATE 
RECRUITMENT 
AND 
44 
PLACEMENT AGENCIES (PRPA) 
OR 
PRIVATE 
EMPLOYMENT 
45 
AGENCIES (PEA) UNDER ARTICLE 25 OF THE LABOR CODE, AS 
46 
AMENDED, BE ALLOWED TO ENGAGE IN JOB CONTRACTING 
47 
AND/OR THE PROHIBITED LABOR-ONLY CONTRACTING.” 
48 
 
49 


 
SEC. 4. A new Article 107-A, Title II, Book III of the Labor Code, as amended, 
1 
is hereby provided to read as follows: 
2 
 
3 
“ARTICLE 
107-A. 
RIGHTS 
OF 
EMPLOYEES 
OF 
JOB 
4 
CONTRACTORS. 
THE 
TERMS 
AND 
CONDITIONS 
OF 
5 
EMPLOYMENT OF THE EMPLOYEES OF JOB CONTRACTORS 
6 
SHALL NOT BE LOWER THAN THE MINIMUM STANDARDS SET BY 
7 
LAW AND REGULATIONS.” 
8 
 
9 
SEC. 5. Article 108, Title II, Book III of the Labor Code, as amended, is hereby 
10 
amended to read as follows: 
11 
 
12 
“ARTICLE 108. Posting of Bond. – [An employer or indirect 
13 
employer] THE CONTRACTEE may require the contractor to furnish a 
14 
bond equal to the cost of labor under contract, on condition that the bond 
15 
will answer for the wages due the employees should the contractor fail 
16 
to the pay the same.” 
17 
 
18 
SECTION 6. A new Article 108-A, Title II, Book III of the Labor Code, as 
19 
amended, is hereby provided to read as follows: 
20 
 
21 
“ARTICLE 108-A. TRANSITION SUPPORT PROGRAM (TSP) – A 
22 
TRANSITION SUPPORT PROGRAM FOR JOB CONTRACTING 
23 
SHALL BE ESTABLISHED BY THE DOLE WHICH: 
24 
 
25 
(A) SHALL PROVIDE A THREE-MONTH FINANCIAL SUPPORT FOR 
26 
EMPLOYEES 
IN 
BETWEEN 
JOB 
PERIODS 
AND 
IS 
27 
CONDITIONED ON UNDERGOING SKILLS TRAINING OR 
28 
UPGRADING 
UNDER 
TESDA 
OR 
TESDA 
ACCREDITED 
29 
TRAINING 
INSTITUTION 
DURING 
THE 
PERIOD 
OF 
30 
UNEMPLOYMENT, PROVIDED THAT THE FREQUENCY OF 
31 
AVAILMENT SHALL NOT BE MORE THAN ONCE A YEAR; 
32 
 
33 
(B) THE AMOUNT OF FINANCIAL SUPPORT SHALL NOT BE LOWER 
34 
THAN THE APPROPRIATE MINIMUM WAGE AND SHALL BE 
35 
RELEASED AT THE END OF EVERY MONTH; AND 
36 
 
37 
(C) SHALL BE MANAGED BY THE APPROPRIATE BUREAU OF THE 
38 
DEPARMENT OF LABOR AND EMPLOYMENT, WHICH SHALL 
39 
REPORT TO THE NATIONAL TRIPARTITE INDUSTRIAL PEACE 
40 
COUNCIL. 
41 
  
42 
“THE FUNDS FOR THE IMPLEMENTATION OF THE 
43 
PROGRAM SHALL BE SOURCED FROM THE FOLLOWING: 
44 
 
45 
(A) ONE HUNDRED PERCENT (100%) OF THE REGISTRATION/
46 
 RENEWAL FEES PAID BY CONTRACTORS; 
47 
 
48 
(B) ALL FINES COLLECTED UNDER ARTICLE 106 OF THIS CODE; 
49 
AND 
50 


 
(C) FUNDS FROM THE ADJUSTMENT MEASURE PROGRAM OF 
1 
THE DEPARTMENT OF LABOR AND EMPLOYMENT.” 
2 
 
3 
SECTION 7. Article 109, Title II, Book III of the Labor Code, as amended, is 
4 
hereby amended to read as follows: 
5 
 
6 
“ARTICLE 109. Solidary Liability. – The provisions of existing laws 
7 
to the contrary notwithstanding, every [employer or indirect employer] 
8 
CONTRACTEE shall be held [responsible] SOLIDARILY LIABLEwith 
9 
[his] THE JOB contractor [or subcontractor] for any violation of any 
10 
provision of this Code. For purposes of determining the extent of their 
11 
civil liability under this Chapter, they shall be considered as direct 
12 
employers.” 
13 
 
14 
SECTION 8. Article 294 [279], Title I, Book VI of the Labor Code, as 
15 
amended, is hereby further amended to read as follows: 
16 
 
17 
“ARTICLE 294 [279]. Security of Tenure. – [In case or regular 
18 
employment, the employer shall not terminate] [t]The services of an 
19 
employee, 
IRRESPECTIVE 
OF 
EMPLOYMENT 
STATUS 
OR 
20 
POSITION, SHALL NOT BE TERMINATED except for a just cause or 
21 
when authorized by this Title. An employee who is unjustly dismissed 
22 
from work shall be entitled to reinstatement without loss of seniority 
23 
rights and other privileges and to his/HER full backwages, inclusive of 
24 
allowances, and to his/HER other benefits or their monetary equivalent 
25 
computed from the time his/HER compensation was withheld from 
26 
him/HER up to the time of his/HER actual reinstatement. 
27 
 
28 
“THE EMPLOYER SHALL HAVE THE BURDEN OF PROVING 
29 
THAT THE TERMINATION IS WITH CAUSE AND DUE PROCESS.” 
30 
 
31 
SECTION 9. Article 295 [280] Title I, Book VI of the Labor Code, as amended, 
32 
is hereby repealed, and in lieu thereof, a new Article 295 is provided to read as follows: 
33 
 
34 
“ARTICLE 
295. 
STATUS 
OF 
EMPLOYMENT. 
- 
ALL 
35 
EMPLOYEES, 
EXCEPT 
THOSE 
UNDER 
PROBATIONARY 
36 
EMPLOYMENT, ARE DEEMED  REGULAR, INCLUDING PROJECT 
37 
AND SEASONAL EMPLOYEES. 
38 
 
39 
“PROJECT AND SEASONAL EMPLOYEES ARE REGULAR 
40 
FOR THE DURATION OF THE PROJECT OR SEASON, AS THE CASE 
41 
MAY BE. FOR THIS PURPOSE, PROJECT EMPLOYMENT IS 
42 
EMPLOYMENT IN AN EXISTING PROJECT OR UNDERTAKING THE 
43 
COMPLETION 
OR 
TERMINATION 
OF 
WHICH 
HAS 
BEEN 
44 
DETERMINED AND MADE KNOWN TO THE EMPLOYEE AT THE 
45 
TIME 
OF 
THE 
ENGAGEMENT 
WHILE 
SEASONAL 
IS 
AN 
46 
EMPLOYMENT BASED ON THE EXISTENCE OF A SEASON IN 
47 
AGRICULTURAL 
WORK 
OR 
ESTABLISHED 
PERIODS 
OF 
48 
INCREASED WORK DEMANDS AND/OR INHERENT INDUSTRY 
49 
FLUCTUATIONS. IN PROJECT AND SEASONAL EMPLOYMENT, 
50 


 
WORKERS ARE CALLED TO WORK FROM TIME TO TIME AND 
1 
TEMPORARILY LAID-OFF DURING THE COMPLETION OF THE 
2 
PROJECT OR OFF-SEASON BUT ARE IN THE WORK POOL ON 
3 
LEAVE WITH OR WITHOUT PAY STATUS IN BETWEEN PROJECTS 
4 
OR SEASONS. 
5 
 
6 
“ALL OTHER FORMS OF EMPLOYMENT ARE PROHIBITED 
7 
AND WORKERS UNDER SUCH ARRANGEMENTS ARE DEEMED 
8 
REGULAR EMPLOYEES RECKONED FROM THE FIRST DAY OF 
9 
EMPLOYMENT. 
10 
 
11 
“FOR THE AVOIDANCE OF DOUBT, AN EMPLOYER-
12 
EMPLOYEE RELATIONSHIP EXISTS WHEN THE WORKER IS 
13 
ENGAGED TO RENDER WORK OR SERVICE UNDER THE 
14 
CONTROL OF THE EMPLOYER, NOT ONLY AS TO THE END TO BE 
15 
ACHIEVED, BUT ALSO THE MANNER, MEANS AND METHOD IN 
16 
REACHING THE END.” 
17 
 
18 
SECTION 10. Article 296 [281], Title I, Book VI of the Labor Code, as amended, 
19 
is hereby amended to read as follows: 
20 
 
21 
“ARTICLE 
296 
[281]. 
Probationary 
Employment. 
– 
22 
Probationary employment shall not exceed six (6) months from the [date 
23 
the employee started working, unless it is covered by an apprenticeship 
24 
agreement stipulating by a longer period.] FIRST DAY OF SERVICE 
25 
REGARDLESS OF THE NATURE OF WORK TO BE PERFORMED. 
26 
THE JOB DESCRIPTION AND QUALIFICATION STANDARDS TO 
27 
QUALIFY FOR REGULAR EMPLOYMENT SHALL BE MADE KNOWN 
28 
BY THE EMPLOYER TO THE EMPLOYEE AT THE TIME OF HIS/HER 
29 
ENGAGEMENT. 
30 
 
31 
“The services of [an] A PROBATIONARY employee [who has 
32 
been engaged on a probationary basis] may be terminated for [a] just 
33 
OR AUTHORIZED causes UNDER ARTICLES 297 [282] AND 298 [283] 
34 
OF THE LABOR CODE, AS AMENDED, or when he/SHE fails to qualify 
35 
as a regular employee [in accordance with reasonable standards made 
36 
known by the employer at the time of his engagement. An employee who 
37 
is allowed to work after a probationary period shall be considered a 
38 
regular employee].” 
39 
 
40 
SECTION 11. Article 297 [282], Title I, Book VI of the Labor Code, as amended, 
41 
is hereby amended to read as follows: 
42 
  
43 
“ARTICLE 297 [282]. JUST CAUSES OF Termination [by 
44 
employer]. - An employer may terminate an employment for any of the 
45 
following causes: 
46 
 
47 
(a) Serious misconduct or willful disobedience by the employee of the 
48 
lawful orders of his/HER employer or representative in connection 
49 
with his/HER work; 
50 


 
 
1 
(b) Gross and habitual neglect by the employee of his/HER duties; 
2 
 
3 
(c) Fraud or willful breach by the employee of the trust reposed in 
4 
him/HER by his/HER employer or duly authorized representative; 
5 
 
6 
(d) Commission of a crime or offense by the employee against the 
7 
person of his/HER employer or any immediate member of his/HER 
8 
family or his/HER duly authorized representatives; and 
9 
 
10 
(e) [Other causes] ACT OR OMISSION analogous to the foregoing, 
11 
EXPRESSLY SPECIFIED AS GROUND FOR DISMISSAL IN THE 
12 
COMPANY RULES AND REGULATIONS FORMULATED IN 
13 
OBSERVANCE OF WORKERS RIGHT TO PARTICIPATE IN 
14 
POLICY AND DECISION-MAKING PROCESSES AFFECTING 
15 
THEIR RIGHTS AND BENEFITS, OR AS PROVIDED IN THE 
16 
DULY REGISTERED COLLECTIVE BARGAINING AGREEMENT.” 
17 
 
18 
SECTION 12. A new Article 298-A, Title I, Book VI of the Labor Code, as 
19 
amended, is hereby provided to read as follows: 
20 
 
21 
“ARTICLE 298-A. PROOF OF AUTHORIZED CAUSE AND 
22 
PAYMENT OF SEPARATION PAY. – WITHIN THE PRESCRIBED 
23 
ONE (1) MONTH PERIOD REQUIRED UNDER ARTICLE 298, THE 
24 
EMPLOYER SHALL SUBMIT TO THE DOLE FOR VALIDATION 
25 
PROOF AND UNDERTAKING ON THE EXISTENCE OF THE 
26 
AUTHORIZED CAUSE IN ACCORDANCE WITH THE RULES AND 
27 
REGULATIONS AS MAY BE SET BY THE SECRETARY OF LABOR 
28 
AND EMPLOYMENT. 
29 
 
30 
SECTION 13. Implementing Rules and Regulations.  The Secretary of Labor 
31 
and Employment shall promulgate the necessary implementing rules and regulations 
32 
within one hundred and twenty (120) days from the effectivity of this Act. 
33 
 
34 
SECTION 14. Separability Clause. - If any provision of this law or the 
35 
application thereof to any person or circumstance, is held invalid, the remainder of this 
36 
law, or the application of such provision or part to other persons of circumstances, 
37 
shall not be affected thereby. 
38 
 
39 
SECTION 15. Repealing Clause. - All laws, decrees, rules, and regulations or 
40 
parts thereof, which are contrary to or inconsistent with this Act are hereby repealed 
41 
or modified accordingly. 
42 
 
43 
SECTION 16. Effectivity Clause. - This Act shall take effect fifteen (15) days 
44 
after its publication in the Official Gazette or in at least two (2) newspapers of general 
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circulation. 
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Approved,   
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