rOUSE OF REPRESENTATIVES

“RECEIVED
pare 7 JUL 2nie

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

* House Bill No. 1563

Introduced by Hon. Aniceto R. Bertiz III

EXPLANATORY NOTE
The right to security of tenure of all workers is enshrined in our
Constitution (Sec. 3, Art. XIN}, It is secured in our Labor Code which provides for
Security of Tenure (Art 279) and Regular and Casual Employment (Art. 280). Time
and again, our Supreme Court has declared that employment is deemed 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.

Nevertheless, there are employment contracts which are limited to 6 months or

less involvi

mployees who are engaged to perform activities which are usually
necessary’ or desirable in the usual business or trade of the employer; which are not
for specific project or undertaking the completion or termination of which has been

determined at the time of the e

gement of the employee, nor for work or service

which are seasonal in nature and the employment is for the duration of the season;
The practice of using these contracts is now commonly referred to as job
contractualization or contractualization of employment (Cielo v. NLRC etal, GR

78693, 28 January 1991, 193 SCRA 410).

This continued even after January 1991 when the Supreme Court declared as
null and void employment contracts stipulating a fixed term after finding that the
purpose behind these individual contracts is to avoid the application of our labor
laws (Cielo v. NLRC etal., G.R. 78693, 28 January 1991, 193 SCRA 410; PT&T Co.
vs NLRC, et al., GR. No. 118978, 23 May 1997; Paguio vs NLRC. et al., G.R. No.
147816, 9 Ma}

2003; and Poseidon Fishing et al., vs NLRC et al., G.R. No. 169052


20 February 2006)

Several employers eng

vaged in job contractualization succeed in robbing the

employees of their

t to security of tenure, with false satisfaction that at least they

were given opportunity to earn even for a short period of time. Meanwhile, many
OFWs who proudly display the diploma of their children or sibilings or relatives as
the fruit of their labor overseas. suffer frustration over this state of employment to

which their graduates are exposed or subjected to.

This practice of job contractualization or contractualization of employment,

therefore, has to stop by the immediate passage of this bill



HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session’

vo, 1863

House

Introduced by Hon. Aniceto R. Bertiz III

AN ACT PREVENTING THE CIRCUMVENTION OF THE
EMPLOYEES’ RIGHT TO SECURITY OF TENURE, THEREBY
AMENDING ARTICLE 280 OF THE LABOR CODE ON REGULAR AND

CASUAL EMPLOYMENT.

Section 1.- This Act shall be called “Prevention of Contractualization”
Section 2.- Article 280 of the Labor Code is hereby amended to read as follows:

‘Art, 280, Regular and Casual Employment, - The provisions of written agreement to
the contrary notwithstanding and regardless of the oral agreement of the parties, an
employment shall 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 except where the employment has been fixed for specific project or

undertaking the completion or termination of which has been determined at the time
of the engagement of the employee or where the work or services to be performed is

seasonal in nature and the employment is for the duration of the season,

IT IS HEREBY DECLARED UNLAWFUL FOR ANY EMPLOYER TO
ENTER INTO ANY AGREEMENT WHICH PRECLUDES ACQUISITION
OF TENURIAL SECURITY BY ITS EMPLOYEE.

THE EMPLOYER WHO CAUSES THE USE OF THIS VOID
AGREEMENT SHALL BE LIABLE TO THE EMPLOYEE CONCERNED
FOR THE INJURY THAT THE EMPLOYEE MAY SUFFER DUE TO THIS
ACT, AND TO BOTH MORAL AND EXEMPLARY DAMAGES BY


REASON OF CIRCUMVENTION OF THE LAW ON SECURITY OF
TENURE, WHICH IS FRAUDULENT AND IN BAD FAITH. THIS IS
WITHOUT PREJUDICE TO ANY OTHER LIABILITIES THE EMPLOYER
MAY INCUR FOR THE RESULTING VIOLATION OF OTHER LABOR
RIGHTS OF THE EMPLOYEE,

An employment shall be deemed to be casual if it is not covered by the
preceding paragraph; Provided, That, any employee who has rendered at least

all be

one year of service, whether such service is continuous or broken, s
considered a regular employee with respect to the activity in which he is

employed and his employment shall continue while such activity exist

TION 3. Implementing rules and Regulations. The departments and agencies
charged with carrying out the provisions of this Act shall, within ninety (90) days
after the effectivity of this Act, formulate the necessary rules and regulations for its
effective implementation,

SECTION 4. Separability Clause. - If any portion or provision of this Act is
declared void or unconstitutional, the remaining portions or provisions hereof shall
not be affected by such declaration.

SECTION 5. Repealing Clause. - All laws, decrees, orders, rules and regulations,
other issuances, or parts thereof inconsistent with the provisions of this Act are hereby
repealed or modified accordingly

ION 6. Effectivity Clause.- This Act shall take effect fifteen (15) days after its
complete publication in at least two (2) national newspapers of general circulation.

Approved,