FOURTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
7 
Alihin , 
, 
First Regular Session 
1 
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 constnictioii industry, but other businesses also cmploy project 
employees. 
Presidential Decree No. 442, known as the Labor Code, Article 280 defines project 
employment as an exception to the rule on %gular employment, thus: 
Art. 280. Regular and Cusuul 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, the need to differentiate between regular, casual, and project 
employees. 


‘To stabilize and proinotc 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 1 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 
project 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 conditions for their employment and termination.* 
&2+f&w “z? 
DEF 
SORSANTIA 0 
’ This bill was originally filed during the Thirteenth Congress, First Regular Session. 


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FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
7 
AUf; 1.1 :';! ' )  j 
First Regular Session 
) 
&"-- 
SENATE 
S. B. No. 
~~~~~~~~~ 
BV :.-- 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
AMENDING PRESIDENTIAL DECREE NO. 442, KNOWN AS THE LABOR CODE, 
ARTICLE 280, TO CLARIFY THE INDICIA OF PROJECT EMPLOYMENT, 
REQUIREMENTS FOR REHIRING OF PROJECT EMPLOYEES, AND CONDITIONS FOR 
THEIR EMPLOYMENT AND TERMINATION 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Presidential Decree No. 442, Article 280 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 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 the 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. 
UPON COMPLETION OF THE PROJECT OR PHASE FOR WHICH 
THE EMPLOYEE WAS EMPLOYED, THE PROJECT EMPLOYEE MAY BE 
REHIRED FOR ANOTHER UNDERTAKING: PROVIDED, HOWEVER, 
THAT SUCH REHIRING CONFORMS WITH THE PROVISIONS OF LAW 
AND REPORTORIAL REQUIREMENTS OF THE DEPARTMENT OF 
LABOR AND EMPLOYMENT WITHIN THIRTY (30) DAYS FROM THE 
DATE OF THE EMPLOYEE'S SEPARATION FROM WORK. IN SUCH 
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CASE, THE LAST DAY OF SERVICE WITH THE EMPLOYER IN THE 
PRECEDING PROJECT SHOULD BE INDICATED IN THE EMPLOYMENT 
AGREEMENT. 
PROJECT EMPLOYEES WHOSE AGGREGATE PERIOD OF 
CONTINUOUS EMPLOYMENT IS Ar LEAST ONE YEAR SHALL BE 
CONSIDERED REGULAR EMPLOYEES IN THE ABSENCE OF A “DAY 
CERTAIN” AGREED UPON BY THE PARTIES FOR THE TERMINATION 
OF THEIR RELATIONSHIP. 
PROJECT EMPLOYEES WHO HAVE 
BECOME REGULAR SHALL ENJOY SECURITY OF TENURE IN THEIR 
EMPLOYMENT AS PROVIDED HEREIN. ONLY PROJECT EMPLOYEES 
WHO HAVE BECOME REGULAR SHALL BE ENTITLE TO SEPARATION 
PAY, UNLESS TERMINATED FOR JUST CAUSE. 
SECTION 2. Repealing Clause. - Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rule or regulation contrary to, or inconsistent 
with, the provisions of this Act is hereby repealed, modified or amended accordingly. 
SECTION 3. ESfectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
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Approved, 
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