Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _____ 
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 
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). 
July 21, 2022
4:21 am
2217


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 
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 


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. 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _____ 
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 
1 
Philippines in Congress assembled:
2 
3 
SECTION 1. Title. This Act shall be known as the “Security of 
4 
Tenure and End of Endo Act” 
5 
6 
SECTION 2. Article 106, Title II, Book III of the Labor Code, as 
7 
amended, is hereby amended to read as follows: 
8 
9 
“ARTICLE 
106. 
[Contractor 
or 
Subcontractor] 
10 
PROHIBITION 
ON 
LABOR-ONLY 
CONTRACTING. 
– 
11 
[Whenever an employer enters into a contract with another 
12 
person for the performance of the former’s work, the employees 
13 
2217


 
of the contractor and of the latter’s subcontractor, if any, shall 
1 
be paid in accordance with the provisions of this Code. 
2 
 
3 
“In the event that the contractor of subcontractor fails to pay 
4 
the wages of his employees in accordance with this Code, the 
5 
employer shall be jointly and severally liable with his contractor 
6 
or subcontractor to such employees to the extent of the work 
7 
performed under the contract, in the same manner and extent 
8 
that he is liable to employees directly employed by him. 
9 
 
10 
“The Secretary of Labor and Employment, may by 
11 
appropriate regulations, restrict or prohibit the contracting-out of 
12 
labor to protect the rights of workers established under this 
13 
Code.  In so prohibiting or restricting, he may make appropriate 
14 
distinctions between labor-only contracting and job contracting 
15 
as well as differentiations within these types of contracting and 
16 
determine who among the parties involved shall be considered 
17 
the employer for the purposes of this Code, to prevent any 
18 
violation or circumvention of this Code.] 
19 
 
20 
“LABOR-ONLY CONTRACTING IS PROHIBITED.  There 
21 
is “labor-only” contracting where the [person supplying workers 
22 
to an employer does not have] JOB CONTRACTOR, 
23 
WHETHER LICENSED OR NOT, MERELY RECRUITS AND 
24 
SUPPLIES OR PLACES WORKERS TO A CONTRACTEE 
25 
REGARDLESS OF WHETHER OR NOT HE/SHE HAS 
26 
substantial capital or investment in the form of tools, equipment, 
27 
machineries, work premises, among others, [and] OR the 
28 
workers recruited and SUPPLIED OR placed by such person 
29 
are performing activities which are directly related to the 
30 
principal business of such CONTRACTEE OR ARE UNDER 
31 
THE CONTROL AND SUPERVISION OF THE CONTRACTEE.  
32 
In 
such 
cases, 
the 
[person 
or 
intermediary] 
JOB 
33 
CONTRACTOR shall be considered merely an agent [of] AND 
34 
the [employer who] CONTRACTEE shall be responsible to the 
35 
workers in the same manner and extent as if the latter were 
36 
directly employed by him/HER. 
37 


 
 
1 
FOR THE PURPOSES OF THIS ARTICLE, THE 
2 
SPECIFIC JOB, WORK OR SERVICE THAT ARE DEEMED 
3 
DIRECTLY RELATED TO THE PRINCIPAL BUSINESS OF A 
4 
CONTRACTEE 
SHALL 
BE 
DETERMINED 
BY 
THE 
5 
APPROPRIATE INDUSTRY TRIPARTITE COUNCIL WHICH 
6 
SHALL BE ISSUED THROUGH REGULATIONS BY THE 
7 
SECRETARY OF LABOR AND EMPLOYMENT. IN THE 
8 
ABSENCE OF A DETERMINATION BY THE APPROPRIATE 
9 
INDUSTRY COUNCIL, THE SECRETARY OF LABOR AND 
10 
EMPLOYMENT 
SHALL 
DETERMINE 
THE 
STANDARD 
11 
CRITERIA AFTER CONSULTATION WITH THE NATIONAL 
12 
TRIPARTITE INDUSTRIAL PEACE COUNCIL. 
13 
 
14 
“IN ALL CASES WHERE LABOR-ONLY CONTRACTING 
15 
IS PRESENT, THE WORKERS SHALL OUTRIGHT BE 
16 
DEEMED REGULAR EMPLOYEES OF THE CONTRACTEE IN 
17 
ACCORDANCE WITH LAW, RETROACTIVE TO THE DATE 
18 
THEY WERE FIRST DEPLOYED TO SAID CONTRACTEE, 
19 
WITHOUT PREJUDICE TO ANY CRIMINAL, CIVIL, OR 
20 
ADMINISTRATIVE CASE AGAINST THE LABOR-ONLY 
21 
CONTRACTOR AND THE CONTRACTEE.  
22 
 
23 
“COMPLIANCE 
ORDERS 
AFFIRMED 
BY 
THE 
24 
SECRETARY OF LABOR AND EMPLOYMENT SHALL BE 
25 
IMMEDIATELY EXECUTORY UNLESS RESTRAINED BY AN 
26 
APPROPRIATE COURT. 
27 
 
28 
“IN CASE THE COMPLIANCE ORDER INVOLVES A 
29 
DIRECTIVE 
TO 
REGULARIZE 
WORKERS, 
THE 
30 
EMPLOYMENT 
OF 
THE 
LATTER 
SHALL 
NOT 
BE 
31 
TERMINATED PENDING APPEAL OF SUCH ORDER 
32 
EXCEPT FOR JUST OR AUTHORIZED CAUSE. ANY 
33 
TERMINATION OF WORKERS PENDING APPEAL SHALL 
34 
RENDER THE COMPLIANCE ORDER INVOLVING THE 
35 
REGULARIZATION OF WORKERS EXECUTORY. 
36 
 


 
“ADDITIONALLY, THE SECRETARY OF LABOR AND 
1 
EMPLOYMENT SHALL IMPOSE A FINE OF UP TO FIVE 
2 
MILLION PESOS (PHP5,000,000.00) AGAINST ANY LABOR-
3 
ONLY CONTRACTOR. THE SECRETARY OF LABOR AND 
4 
EMPLOYMENT SHALL ALSO HAVE THE POWER TO 
5 
PREVENTIVELY 
OR 
PERMANENTLY 
CLOSE 
THE 
6 
OPERATIONS OF ANY LABOR-ONLY CONTRACTOR.”  
7 
 
8 
SECTION 3. Article 107, Title II, Book III of the Labor Code, as 
9 
amended, is hereby repealed, and in lieu thereof, a new Article 107 is 
10 
inserted to read as follows:  
11 
 
12 
“ARTICLE 107.  LICENSING OF JOB CONTRACTORS. - 
13 
IT SHALL BE MANDATORY FOR ALL PERSONS OR 
14 
ENTITIES ACTING AS JOB CONTRACTOR TO OBTAIN A 
15 
LICENSE FROM THE DOLE THROUGH ITS REGIONAL 
16 
OFFICES. FOR PURPOSES OF ARTICLES 106-109, “JOB 
17 
CONTRACTOR” REFERS TO A SOLE PROPRIETORSHIP, 
18 
CORPORATION, 
ASSOCIATION, 
COOPERATIVE 
OR 
19 
OTHER ORGANIZATION THAT PERFORMS A SPECIFIC 
20 
WORK, 
JOB 
OR 
SERVICE 
TO 
A 
CONTRACTEE. 
21 
“CONTRACTEE” REFERS TO THE PERSON OR ENTITY, 
22 
WHICH SHALL INCLUDE THE GOVERNMENT, THAT 
23 
CONTRACTED OUT A SPECIFIC WORK, JOB OR SERVICE.  
24 
 
25 
 
“THE LICENSE SHALL BE ISSUED TO QUALIFIED 
26 
JOB CONTRACTORS UPON COMPLIANCE WITH THE 
27 
FOLLOWING REQUIREMENTS:  
28 
 
29 
(A) 
HAVE 
AN 
INDEPENDENT 
BUSINESS, 
30 
SEPARATE AND DISTINCT FROM THE CONTRACTEE; 
31 
 
32 
(B) 
HAVE A PAID-UP CAPITAL OR NET WORTH OF 
33 
AT LEAST FIVE MILLION PESOS (PHP5,000,000.00), WHICH 
34 
MAY 
BE 
INCREASED 
AS 
DEEMED 
APPROPRIATE 
35 
THROUGH TRIPARTITE CONSULTATION; 
36 
 
37 


 
(C) 
BE AN EXPERT OR SPECIALIST IN THE JOB, 
1 
WORK OR SERVICE BEING CONTRACTED THAT SHALL 
2 
NOT BE DIRECTLY RELATED TO THE PRINCIPAL 
3 
BUSINESS OF THE CONTRACTEE. FOR THIS PURPOSE, 
4 
EXPERTISE OR SPECIALIZATION SHALL BE ESTABLISHED 
5 
BY SHOWING, AMONG OTHERS, A CORE OF COMPETENT 
6 
PROFESSIONALS OR SKILLED WORKERS ESPECIALLY 
7 
TRAINED TO CARRY OUT THE JOB, WORK OR SERVICE 
8 
OR TRACK RECORD IN SUCH FIELD OF SPECIALIZATION; 
9 
 
10 
(D) 
BE 
AN 
EMPLOYER 
WITH 
REGULAR 
11 
EMPLOYEES AND HAVE EQUIPMENT, MACHINERIES OR 
12 
TOOLS NECESSARY TO PERFORM OR COMPLETE THE 
13 
JOB, WORK OR SERVICE CONTRACTED OUT; 
14 
 
15 
 
16 
(E) 
EXERCISE 
CONTROL 
OVER 
THE 
17 
PERFORMANCE AND COMPLETION OF THE JOB, WORK 
18 
OR SERVICE CONTRACTED OUT;  
19 
 
20 
(F) 
CERTIFICATION 
OF 
COMPLIANCE 
WITH 
21 
LABOR AND SOCIAL WELFARE LAWS INCLUDING PROOF 
22 
OF PAYMENT OF SOCIAL SECURITY, PHILIPPINE HEALTH 
23 
INSURANCE CORPORATION, AND HOME DEVELOPMENT 
24 
MUTUAL FUND (PAG-IBIG) CONTRIBUTIONS; AND 
25 
 
26 
(G) 
PAYMENT OF LICENSE FEE, WHICH SHALL 
27 
NOT BE LOWER THAN ONE HUNDRED THOUSAND PESOS 
28 
(PHP100,000.00). 
29 
 
 
 
“THE LICENSE SHALL BE VALID FOR A PERIOD OF 
30 
THREE (3) YEARS AND MAY BE RENEWED UPON 
31 
COMPLIANCE WITH THE REQUIREMENTS PRESCRIBED 
32 
BY THE DOLE. IN ALL CASES, THE JOB CONTRACTOR 
33 
SHALL DEMONSTRATE THAT IT HAS FINANCIAL CAPACITY 
34 
TO CARRY ON ITS BUSINESS BASED ON FACTORS SUCH 
35 


 
AS, BUT NOT LIMITED, TO THE NUMBER OF ITS 
1 
EMPLOYEES AND THE NATURE OF ITS BUSINESS.  
2 
 
3 
“ANY LEGITIMATE LABOR ORGANIZATION SHALL 
4 
HAVE ACCESS TO COPIES OF LICENSES ISSUED TO JOB 
5 
CONTRACTORS AND ANY AND ALL SUBMISSIONS MADE 
6 
IN CONNECTION WITH SUCH LICENSE. 
7 
 
8 
 
“FOR THIS PURPOSE, THE SECRETARY OF LABOR 
9 
AND EMPLOYMENT, IN CONSULTATION WITH THE 
10 
NATIONAL TRIPARTITE INDUSTRIAL PEACE COUNCIL 
11 
(NTIPC), SHALL ISSUE THE APPROPRIATE REGULATIONS 
12 
FOR THE LICENSING, RENEWAL, SUSPENSION, AND 
13 
REVOCATION OF LICENSES OF JOB CONTRACTORS, 
14 
INCLUDING THE ACCOUNTABILITIES OF THE LICENSING 
15 
OFFICER IN CASE THE LICENSE IS ISSUED IN VIOLATION 
16 
OF, OR IN SIMULATION OF ANY OF THE REQUIREMENT 
17 
FOR LICENSING UNDER PARAGRAPHS (A) TO (G) ABOVE, 
18 
OR UPON FINDING OF LABOR-ONLY CONTRACTING 
19 
COMMITTED BY A DULY-LICENSED JOB CONTRACTOR. 
20 
 
21 
“IN NO CASE SHALL PRIVATE RECRUITMENT AND 
22 
PLACEMENT 
AGENCIES 
(PRPA) 
OR 
PRIVATE 
23 
EMPLOYMENT AGENCIES (PEA) UNDER ARTICLE 25 OF 
24 
THE LABOR CODE, AS AMENDED, BE ALLOWED TO 
25 
ENGAGE IN JOB CONTRACTING AND/OR THE PROHIBITED 
26 
LABOR-ONLY CONTRACTING.” 
27 
 
28 
SECTION 4. A new Article 107-A, Title II, Book III of the Labor Code, 
29 
as amended, is hereby provided to read as follows:  
30 
 
31 
“ARTICLE 107-A. RIGHTS OF EMPLOYEES OF JOB 
32 
CONTRACTORS. THE TERMS AND CONDITIONS OF 
33 
EMPLOYMENT 
OF 
THE 
EMPLOYEES 
OF 
JOB 
34 
CONTRACTORS SHALL NOT BE LOWER THAN THE 
35 
MINIMUM STANDARDS SET BY LAW AND REGULATIONS.”  
36 
 
37 


 
SECTION 5. Article 108, Title II, Book III of the Labor Code, as 
1 
amended, is hereby amended to read as follows:  
2 
 
3 
“ARTICLE 108. Posting of Bond. – [An employer or 
4 
indirect employer] THE CONTRACTEE may require the 
5 
contractor to furnish a bond equal to the cost of labor under 
6 
contract, on condition that the bond will answer for the wages 
7 
due the employees should the contractor fail to the pay the 
8 
same.” 
9 
 
10 
SECTION 6. A new Article 108-A, Title II, Book III of the Labor 
11 
Code, as amended, is hereby provided to read as follows:  
12 
 
13 
“ARTICLE 108-A. TRANSITION SUPPORT PROGRAM 
14 
(TSP) – A TRANSITION SUPPORT PROGRAM FOR JOB 
15 
CONTRACTING SHALL BE ESTABLISHED BY THE DOLE 
16 
WHICH: 
17 
 
18 
(A) 
SHALL PROVIDE A THREE-MONTH FINANCIAL 
19 
SUPPORT FOR EMPLOYEES IN BETWEEN JOB PERIODS 
20 
AND IS CONDITIONED ON UNDERGOING SKILLS TRAINING 
21 
OR UPGRADING UNDER TESDA OR TESDA ACCREDITED 
22 
TRAINING 
INSTITUTION 
DURING 
THE 
PERIOD 
OF 
23 
UNEMPLOYMENT, PROVIDED THAT THE FREQUENCY OF 
24 
AVAILMENT SHALL NOT BE MORE THAN ONCE A YEAR;  
25 
 
26 
(B) 
THE AMOUNT OF FINANCIAL SUPPORT SHALL 
27 
NOT BE LOWER THAN THE APPROPRIATE MINIMUM 
28 
WAGE AND SHALL BE RELEASED AT THE END OF EVERY 
29 
MONTH; AND 
30 
 
31 
(C) 
SHALL BE MANAGED BY THE APPROPRIATE 
32 
BUREAU 
OF 
THE 
DEPARMENT 
OF 
LABOR 
AND 
33 
EMPLOYMENT, WHICH SHALL REPORT TO THE NATIONAL 
34 
TRIPARTITE INDUSTRIAL PEACE COUNCIL. 
35 
 
36 


 
 
“THE FUNDS FOR THE IMPLEMENTATION OF THE 
1 
PROGRAM SHALL BE SOURCED FROM THE FOLLOWING:  
2 
 
3 
(A) 
ONE HUNDRED PERCENT (100%) OF THE 
4 
REGISTRATION/ 
RENEWAL 
FEES 
PAID 
BY 
5 
CONTRACTORS; 
6 
 
7 
(B) 
ALL FINES COLLECTED UNDER ARTICLE 106 
8 
OF THIS CODE; AND  
9 
 
10 
(C) 
FUNDS FROM THE ADJUSTMENT MEASURE 
11 
PROGRAM OF THE DEPARTMENT OF LABOR AND 
12 
EMPLOYMENT.” 
13 
 
14 
SECTION 7. Article 109, Title II, Book III of the Labor Code, as 
15 
amended, is hereby amended to read as follows:  
16 
 
17 
“ARTICLE 109. Solidary Liability. – The provisions of 
18 
existing laws to the contrary notwithstanding, every [employer 
19 
or indirect employer] CONTRACTEE shall be held [responsible] 
20 
SOLIDARILY LIABLE with [his] THE JOB contractor [or 
21 
subcontractor] for any violation of any provision of this Code. 
22 
For purposes of determining the extent of their civil liability under 
23 
this Chapter, they shall be considered as direct employers.” 
24 
 
25 
SECTION 8. Article 294 [279], Title I, Book VI of the Labor Code, as 
26 
amended, is hereby further amended to read as follows:  
27 
 
28 
“ARTICLE 294 [279]. Security of Tenure. – [In case or 
29 
regular employment, the employer shall not terminate] [t]The 
30 
services of an employee, IRRESPECTIVE OF EMPLOYMENT 
31 
STATUS OR POSITION, SHALL NOT BE TERMINATED 
32 
except for a just cause or when authorized by this Title.  An 
33 
employee who is unjustly dismissed from work shall be entitled 
34 
to reinstatement without loss of seniority rights and other 
35 
privileges and to his/HER full backwages, inclusive of 
36 
allowances, and to his/HER other benefits or their monetary 
37 


 
equivalent computed from the time his/HER compensation was 
1 
withheld from him/HER up to the time of his/HER actual 
2 
reinstatement.  
3 
 
4 
“THE EMPLOYER SHALL HAVE THE BURDEN OF 
5 
PROVING THAT THE TERMINATION IS WITH CAUSE AND 
6 
DUE PROCESS.” 
7 
 
8 
SECTION 9. Article 295 [280] Title I, Book VI of the Labor Code, as 
9 
amended, is hereby repealed, and in lieu thereof, a new Article 295 is 
10 
provided to read as follows:  
11 
 
12 
“ARTICLE 295. STATUS OF EMPLOYMENT. - ALL 
13 
EMPLOYEES, EXCEPT THOSE UNDER PROBATIONARY 
14 
EMPLOYMENT, ARE DEEMED REGULAR, INCLUDING 
15 
PROJECT AND SEASONAL EMPLOYEES.   
16 
 
17 
“PROJECT 
AND 
SEASONAL 
EMPLOYEES 
ARE 
18 
REGULAR FOR THE DURATION OF THE PROJECT OR 
19 
SEASON, AS THE CASE MAY BE. FOR THIS PURPOSE, 
20 
PROJECT 
EMPLOYMENT 
IS 
EMPLOYMENT 
IN 
AN 
21 
EXISTING PROJECT OR UNDERTAKING THE COMPLETION 
22 
OR TERMINATION OF WHICH HAS BEEN DETERMINED 
23 
AND MADE KNOWN TO THE EMPLOYEE AT THE TIME OF 
24 
THE 
ENGAGEMENT 
WHILE 
SEASONAL 
IS 
AN 
25 
EMPLOYMENT BASED ON THE EXISTENCE OF A SEASON 
26 
IN AGRICULTURAL WORK OR ESTABLISHED PERIODS OF 
27 
INCREASED 
WORK 
DEMANDS 
AND/OR 
INHERENT 
28 
INDUSTRY FLUCTUATIONS.  IN PROJECT AND SEASONAL 
29 
EMPLOYMENT, WORKERS ARE CALLED TO WORK FROM 
30 
TIME TO TIME AND TEMPORARILY LAID-OFF DURING THE 
31 
COMPLETION OF THE PROJECT OR OFF-SEASON BUT 
32 
ARE IN THE WORK POOL ON LEAVE WITH OR WITHOUT 
33 
PAY STATUS IN BETWEEN PROJECTS OR SEASONS.  
34 
 
35 
“ALL 
OTHER 
FORMS 
OF 
EMPLOYMENT 
ARE 
36 
PROHIBITED 
AND 
WORKERS 
UNDER 
SUCH 
37 


 
ARRANGEMENTS ARE DEEMED REGULAR EMPLOYEES 
1 
RECKONED FROM THE FIRST DAY OF EMPLOYMENT. 
2 
 
3 
“FOR THE AVOIDANCE OF DOUBT, AN EMPLOYER-
4 
EMPLOYEE RELATIONSHIP EXISTS WHEN THE WORKER 
5 
IS ENGAGED TO RENDER WORK OR SERVICE UNDER THE 
6 
CONTROL OF THE EMPLOYER, NOT ONLY AS TO THE END 
7 
TO BE ACHIEVED, BUT ALSO THE MANNER, MEANS AND 
8 
METHOD IN REACHING THE END.” 
9 
 
10 
SECTION 10. Article 296 [281], Title I, Book VI of the Labor Code, as 
11 
amended, is hereby amended to read as follows:  
12 
 
13 
“ARTICLE 296 [281]. Probationary Employment. – 
14 
Probationary employment shall not exceed six (6) months from 
15 
the [date the employee started working, unless it is covered by 
16 
an apprenticeship agreement stipulating by a longer period.] 
17 
FIRST DAY OF SERVICE REGARDLESS OF THE NATURE 
18 
OF WORK TO BE PERFORMED. THE JOB DESCRIPTION 
19 
AND QUALIFICATION STANDARDS TO QUALIFY FOR 
20 
REGULAR EMPLOYMENT SHALL BE MADE KNOWN BY THE 
21 
EMPLOYER TO THE EMPLOYEE AT THE TIME OF HIS/HER 
22 
ENGAGEMENT.  
23 
 
24 
“The services of [an] A PROBATIONARY employee [who 
25 
has been engaged on a probationary basis] may be terminated 
26 
for [a] just OR AUTHORIZED causeS UNDER ARTICLES 297 
27 
[282] AND 298 [283] OF THE LABOR CODE, AS AMENDED, 
28 
or when he/SHE fails to qualify as a regular employee [in 
29 
accordance with reasonable standards made known by the 
30 
employer at the time of his engagement. An employee who is 
31 
allowed to work after a probationary period shall be considered 
32 
a regular employee].” 
33 
 
34 
SECTION 11.  Article 297 [282], Title I, Book VI of the Labor Code, 
35 
as amended, is hereby amended to read as follows:   
36 
 
37 


 
“ARTICLE 297 [282]. JUST CAUSES OF Termination [by 
1 
employer]. - An employer may terminate an employment for 
2 
any of the following causes: 
3 
 
4 
(a) 
Serious misconduct or willful disobedience by the 
5 
employee of the lawful orders of his/HER employer or 
6 
representative in connection with his/HER work; 
7 
 
8 
(b) 
Gross and habitual neglect by the employee of 
9 
his/HER duties; 
10 
(c) 
Fraud or willful breach by the employee of the trust 
11 
reposed in him/HER by his/HER employer or duly authorized 
12 
representative; 
13 
 
14 
(d) 
Commission of a crime or offense by the employee 
15 
against the person of his/HER employer or any immediate 
16 
member of his/HER family or his/HER duly authorized 
17 
representatives; and 
18 
 
19 
(e) 
[Other causes] ACT OR OMISSION analogous to 
20 
the foregoing, EXPRESSLY SPECIFIED AS GROUND FOR 
21 
DISMISSAL IN THE COMPANY RULES AND REGULATIONS 
22 
FORMULATED IN OBSERVANCE OF WORKERS RIGHT TO 
23 
PARTICIPATE 
IN 
POLICY 
AND 
DECISION-MAKING 
24 
PROCESSES AFFECTING THEIR RIGHTS AND BENEFITS, 
25 
OR 
AS 
PROVIDED 
IN 
THE 
DULY 
REGISTERED 
26 
COLLECTIVE BARGAINING AGREEMENT.” 
27 
 
28 
SECTION 12. A new Article 298-A, Title I, Book VI of the Labor Code, 
29 
as amended, is hereby provided to read as follows: 
30 
 
31 
“ARTICLE 298-A. PROOF OF AUTHORIZED CAUSE 
32 
AND PAYMENT OF SEPARATION PAY. – WITHIN THE 
33 
PRESCRIBED ONE (1) MONTH PERIOD REQUIRED UNDER 
34 
ARTICLE 298, THE EMPLOYER SHALL SUBMIT TO THE 
35 
DOLE FOR VALIDATION PROOF AND UNDERTAKING ON 
36 
THE EXISTENCE OF THE AUTHORIZED CAUSE IN 
37 


 
ACCORDANCE WITH THE RULES AND REGULATIONS AS 
1 
MAY BE SET BY THE SECRETARY OF LABOR AND 
2 
EMPLOYMENT. 
3 
 
4 
SECTION 13. Implementing Rules and Regulations. - The 
5 
Secretary of Labor and Employment   shall   promulgate  the  necessary  
6 
implementing  rules  and  regulations  within  one  hundred  and  twenty   
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(120)   days  from   the effectivity of this Act. 
8 
 
9 
SECTION 14. Separability Clause. - If any provision of this law or 
10 
the application thereof to any person or circumstance, is held invalid, the 
11 
remainder of this law, or the application of such provision or part to other 
12 
persons of circumstances, shall not be affected thereby. 
13 
 
14 
SECTION 15. Repealing Clause. - All laws, decrees, rules, and 
15 
regulations or parts thereof, which are contrary to or inconsistent with this 
16 
Act are hereby repealed or modified accordingly. 
17 
 
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SECTION 16. Effectivity Clause. - This Act shall take effect fifteen 
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(15) days after its publication in the Official Gazette or in at least two (2) 
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newspapers of general circulation. 
21 
 
22 
Approved, 
23