Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Sixteenth Congress
Second Regular Session

Housé BILL No._ 9806

INTRODUCED BY: REP. KARLO ALEXEI B. NOGRALES
AND REP. DEOGRACIAS B. RAMOS, JR.

EXPLANATORY NOTE

To address the issue on blurring of employer-employee relationship and issues
on circumvention of the law on security of tenure to numerous employment engagement
such as probationary, project, fixed term, casual, seasonal, temporary, extra, among
others, and resort to 5-5-5 work arrangements, this bill is being proposed to secure
compliance with Constitutional and statutory guarantee on the right to security of tenure

The bill proposes the following: 1) reiterating the right to security of tenure to the
effect that all employees shall not be dismissed without cause and due process; 2)
defining the criteria for the existence of employer-employee relationship; 3) classifying
all employees as regular except those under probationary employment, or those under
industry-specific work arrangement as may be determined by the Secretary of Labor
and Employment through tripartite consultation; and 4) providing for probationary
employment which shall not exceed six months.

The bill provides that repeated engagement of the same employee after the
expiration of probationary employment or contract of employment in industry-specific
work arrangement would render the employment regular.

Thus, the passage of this bill is earnestly sought.

HON. KARLO A. B. NOGRALES HON. DFOGI “RAMOS, JR.
Representative Representative
1" District, Davao City 2 Distkict, Sorsogon


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Sixteenth Congress
Second Regular Session

House BILL No, 5806

INTRODUCED BY: REP. KARLO ALEXEI B, NOGRALES
AND REP. DEOGRACIAS B. RAMOS, JR,

An Act
Defining and Classifying Employment Relationship Amending for this Purpose
Articles 279, 280 and 281 of Presidential Degree No. 442, Otherwise known as the
Labor Code of the Philippines, as amended

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Article 279 of the Labor Code, as amended, is hereby amended to read as
follows:

“ARTICLE 279 [293]. SECURITY OF TENURE. — ALL EMPLOYEES
IRRESPECTIVE OF EMPLOYMENT STATUS OR POSITION SHALL NOT BE
DISMISSED WITHOUT CAUSE AND DUE PROCESS.

AN ILLEGALLY DISMISSED EMPLOYEE WHO IS DISMISSED WITHOUT
CAUSE AND DUE PROCESS SHALL BE ENTITLED TO REINSTATEMENT
WITHOUT LOSS OF SENIORITY RIGHTS AND BENEFITS, AND FULL
BACKWAGES, ALLOWANCES, COMMISSION INCLUDING sss,
PHILHEALTH, PAG-IBIG AND ALL OTHER BENEFITS AND
REMUNERATIONS PROVIDED BY LAW, COMPANY POLICY AND
COLLECTIVE BARGAINING AGREEMENT, COMPUTED FROM THE TIME
COMPENSATION WAS WITHHELD UP TO THE TIME OF ACTUAL
REINSTATEMENT.

THE EMPLOYER SHALL HAVE THE BURDEN OF PROVING THAT THE
TERMINATION IS WITH CAUSE AND DUE PROCESS.”

SECTION 2. Article 280 [294] of the Labor Code, as amended, is hereby amended to
read as follows:

ARTICLE 280 [294]. EMPLOYER-EMPLOYEE RELATIONSHIP. - THERE
EXISTS AN EMPLOYER-EMPLOYEE RELATIONSHIP WHEN THE WORKER
IS ENGAGED TO RENDER WORK OR SERVICE UNDER THE CONTROL OR
SUPERVISION OF THE EMPLOYER, NOT ONLY AS TO THE END TO BE
ACHIEVED, BUT ALSO THE MANNER AND MEANS IN REACHING THE END.


PAYMENT OF REMUNERATION TO THE WORKER ALSO INDICATES THE
EXISTENCE OF EMPLOYER-EMPLOYEE RELATIONSHIP.

SECTION 3. Article 280 [294] of the Labor Code, as amended, is hereby amended to
read as follows:

ARTICLE 280-A. STATUS OF EMPLOYMENT. - ALL EMPLOYEES ARE
DEEMED REGULAR EXCEPT:

4. THOSE UNDER PROBATIONARY EMPLOYMENT WHICH SHALL NOT
EXCEED SIX (6) MONTHS AND AS DEFINED IN ARTICLE 281 OF THIS
ACT; OR

2. THOSE UNDER INDUSTRY-SPECIFIC WORK ARRANGEMENT AS
MAY BE DETERMINED BY THE SECRETARY OF LABOR AND
EMPLOYMENT THROUGH TRIPARTITE APPROVAL PROVIDED THAT
THERE SHALL BE WRITTEN CONTRACT OF EMPLOYMENT WHICH
MUST NOT BE LESS THAN SIX MONTHS BUT NOT MORE THAN ONE
YEAR SPECIFYING THE RIGHTS, TERMS AND CONDITIONS OF
EMPLOYMENT NOT LOWER THAN THE MINIMUM STANDARDS SET
BY LAWS OR REGULATIONS.

ENGAGEMENT OF THE SAME EMPLOYEE AFTER THE EXPIRATION OF
THE PROBATIONARY EMPLOYMENT OR CONTRACT OF EMPLOYMENT IN
INDUSTRY-SPECIFIC WORK ARRANGEMENT WOULD RENDER THE
EMPLOYMENT REGULAR

SECTION 4, Article 281 of the Labor Code, as amended, is hereby amended to read as
follows:

ARTICLE 281 {295}. PROBATIONARY EMPLOYMENT.— PROBATIONARY
EMPLOYMENT SHALL NOT EXCEED SIX (6) MONTHS FROM THE FIRST
DAY OF SERVICE REGARDLESS OF THE NATURE OF WORK TO BE
PERFORMED.

THE RIGHTS, TERMS AND CONDITIONS OF EMPLOYMENT OF
PROBATIONARY EMPLOYEE WHICH SHALL NOT BE LOWER THAN THE
MINIMUM STANDARDS SET BY LAWS OR REGULATIONS, THE JOB
DESCRIPTION AND QUALIFICATION STANDARDS TO QUALIFY FOR
REGULAR EMPLOYMENT SHALL BE IN A WRITTEN CONTRACT AND MADE
KNOWN BY THE EMPLOYER TO THE EMPLOYEE AT THE TIME OF HIS/HER
ENGAGEMENT

THE SERVICES OF A PROBATIONARY EMPLOYEE MAY BE TERMINATED
FOR JUST AND AUTHORIZED CAUSE UNDER ARTICLES 282 AND 283 OF
THE LABOR CODE, AS AMENDED, OR WHEN HE/SHE FAILS TO QUALIFY
AS A REGULAR EMPLOYEE.

THE PROBATIONARY EMPLOYEE SHALL AUTOMATICALLY BECOME A
REGULAR EMPLOYEE AFTER MEETING THE STANDARDS STIPULATED IN
THE WRITTEN CONTRACT OF PROBATIONARY EMPLOYMENT.


SECTION 5. Rules and Regulations. - The Secretary of Labor and Employment shall
promulgate the necessary implementing rules and regulations within one hundred
and twenty (120) days from. the effectivity of this Act.

SECTION 6. Repealing Clause. - All laws, decrees, rules, and regulations or parts
thereof, which are contrary to or inconsistent with this Act are hereby repealed or
modified accordingly.

SECTION 7. Separability Provisions. If any provision of this law or the application
thereof to any person or circumstance, is held invalid, the remainder of this law, or the
application of such provision or part to other persons of circumstances, shall not be
affected thereby

SECTION 8. Effectivity. This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in at least two (2) newspapers of general circulation: