FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S. No.' 1868 
1 (} 
JLIl.. 22 1\9 :33 
/'0 
I i 
I\E;CI"IV('f) !IV :_.;. v 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
Project employees are frequent victims of unfair labor practices. Project employees are 
those employed in connection with a particular project or phase thereof and whose employment 
• 
is coterminous with each project or phase of the project to which they are assigned. They are 
often associated with the construction industry, but other businesses also employ project 
employees. 
Presidential Decree No. 442, known as the Labor Code, Article 280 defines project 
employment as an exception to the rule on regular employment, thus: 
Art. 280. Regular and Casual Employment. - The provisions of written 
agreement to the contrary notwithstanding and regardless of the oral agreements 
of the parties, an employment shall be deemed to 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 a specific project or undertaking, the completion or termination of 
which has been determined at the time of engagement of the employee or where 
the work or service to be performed is seasonal in nature and the employment is 
for the duration of the season. 
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 one 
year of service, whether such service is continuous or broken, shall be considered 
a regular employee with respect to the activity in which he is employed and his 
employment shall continue while such activity exists. (Emphasis supplied) 
The problem arises when the project employee continues working for the same employer 
even after the completion of the project. The usual defense of the employer is that the employee 
cannot receive the benefits of a regular employee for the reason that the employee was hired only 
as a casual employee. Hence, there is a need to differentiate between regular, casual, and project 
employees. 
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To stabilize and promote harmonious employer-employee relations and in order to ensure 
the protection and welfare of project employees, Department Order No. 19 entitled "Guidelines 
Governing the Employment of Workers in the Construction Industry" was issued on I April 
1993. If certain important provisions of these guidelines were incorporated into the Labor Code, 
Article 280, project employees in all kinds of businesses would be greatly benefited. This would 
also aid labor arbiters in deciding cases involving project employees, considering the difficulty 
of classifying them as either regular or casual when they are made to continue working beyond 
the completion of the undertaking for which they are hired. Inasmuch as the majority of the 
proj ect employees are manual or skilled laborers, these amendments would improve the 
protection of their rights. 
This bill seeks to amend the relevant portions of the Labor Code on project employees, 
and to clarify once and €or all the indicia of project employment, requirements for rehiring of 
project employees, and conditio(ls for their employment and termination.' 
~'-
4~.vt~ :2Y~~ 
MIRIAM DEF 
SOR SANTIA$O 
.¢4" 
, This bill was originally filed dnring the Thirteenth Congress, First Regular Session. 
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FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
,,~ ." 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
10 
JUL 22 A9 :33· 
SJlNilTJ;! 
S. No. 
l.ts68 
Introduced by Senator Miriam Defensor Santiago 
1 
AN ACT 
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AMENDING PRESIDENTIAL DECREE NO. 442, KNOWN AS THE LABOR CODE, 
3 
ARTICLE 280, TO CLARIFY THE INDICIA OF PROJECT EMPLOYMENT, 
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REQUIREMENTS FOR REHIRING OF PROJECT EMPLOYEES, AND CONDITIONS FOR 
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THEIR EMPLOYMENT AND TERMINATION 
Be. it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 1. Presidential Decree No. 442, Article 280 is hereby amended to read as 
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follows: 
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Art. 280. Regular and Casual Employment. - The provisions of written 
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agreement to the contrary notwithstanding and regardless of the oral agreement of 
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the parties, an employment shall be deemed to be regular where the employee has 
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been engaged to perform activities.which are usually necessary or desirable in the 
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usual business or trade of the employer except where the employment has been 
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fixed for a specific project or undertaking, the completion or termination of which 
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has been determined at the time of the engagement of the employee or where the 
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work or service to be performed is seasonal in nature and the employment is for 
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the duration ofthe season. 
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UPON COMPLETION OF THE PROJECT OR PHASE FOR 
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WHICH 
THE 
EMPLOYEE 
WAS 
EMPLOYED, 
THE 
PROJECT 
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EMPLOYEE MAY BE REHIRED FOR ANOTHER UNDERTAKING: 
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PROVIDED, HOWEVER, THAT SUCH REHIRING CONFORMS WITH 
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THE PROVISIONS OF LA'w AND REPORTORIAL REQUIREMENTS 
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OF THE DEPARTMENT OF LABOR AND EMPLOYMENT WITHIN 
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THIRTY (30) DAYS FROM THE DATE OF THE EMPLOYEE'S 
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SEPARATION FROM WORK. IN SUCH CASE, THE LAST DAY OF 
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SERVICE WITH THE EMPLOYER IN THE PRECEDING PROJECT 
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SHOULD BE INDICATED IN THE EMPLOYMENT AGREEMENT. 
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PROJECT EMPLOYEES WHOSE AGGREGATE PERIOD OF 
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CONTINUOUS EMPLOYMENT IS AT LEAST ONE YEAR SHALL BE 
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CONSIDERED REGULAR EMPLOYEES IN THE ABSENCE OF A "DAY 
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CERTAIN" 
AGREED 
UpON 
BY 
THE 
PARTIES 
FOR 
THE 
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TERMINATION OF THEIR RELATIONSHIP. PROJECT EMPLOYEES 
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WHO HAVE BECOME REGULAR SHALL ENJOY SECURITY OF 
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TENURE IN THEIR EMPLOYMENT AS PROVIDED HEREIN. ONLY 
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PROJECT EMPLOYEES WHO HAVE BECOME REGULAR SHALL BE 
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ENTITLE TO SEPARATION PAY, UNLESS TERMINATED FOR JUST 
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CAUSE. 
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SECTION 2. Repealing Clause. - Any law, presidential decree or issuance, executive 
• 
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order, leiter of instruction, administrative order, rule or regulation contrary to, or inconsistent 
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with, the provisions of this Act is hereby repealed, modified or amended accordingly. 
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SECTION 3. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
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publication in at liJast two (2) newspapers of general circulation. 
Approved, 
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