. ' 
SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S. No. 
]705 
Introduced by Senator Miriam Defensor S:;mtiago 
EXPLANATORY NOTE 
-----------
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'13 S[P 17 P 3 :59 
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 proj ect 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. 
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. 
1 


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 
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 claritY once and for all the indicia of project employment, requirements for rehiring of 
project employees, and conditions for their employment and termination.' 
• This bill was originally filed during the Thirteenth Congress, First Regular Session. 
2 


SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
..ifl1ntl' 
(l)H,;. ,,{ t~. ~vr~,t:,,~ 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
J 
'13 
SEP 17 P 3 :59 
, 
SENATE 
S.No. 
1705 
Introduced by Senator Miriam Defensor Santiago 
IH~C!bI\TD LrL_.r 
1 
AN ACT 
2 
AMENDING PRESIDENTIAL DECREE NO. 442, ALSO KNOWN AS THE "LABOR CODE 
3 
OF THE PHILIPPINES," ARTICLE 280, ON PROJECT EMPLOYMENT 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
4 
SECTION 1. Presidential Decree No. 442, also known as the "Labor Code of the 
5 
Philippines," Article 280 is hereby amended to read as follows: 
6 
Art. 280. Regular and Casual Employment. - The provisions of written 
7 
agreement to the contrary notwithstanding and regardless of the oral agreement of 
8 
the parties, an employment shall be deemed to be regular where the einployee has 
9 
been engaged to perform activities which are usually necessary or desirable in the 
10 
usual business or trade of the employer, except where the employment has been 
11 
fixed for a specific project or undertaking the completion or termination of which 
12 
has been determined at the time of the engagement of the employee or where the 
13 
work or service to be performed is seasonal in nature and the employment is for 
14 
the duration of the season. 
15 
An employment shall be deemed to be casual if it is not covered by the 
16 
preceding paragraph: Provided, That any employee who has rendered at least one 
17 
year of service, whether such service is continuous or broken, shall be considered 
18 
a regular employee with respect to the activity in which he is employed and his 
19 
employment shall continue while such activity exists. 
20 
UPON COMPLETION OF THE PROJECT OR PHASE FOR 
21 
WHICH 
THE 
EMPLOYEE 
WAS 
EMPLOYED, 
THE 
PROJECT 
22 
EMPLOYEE MAY BE REHIRED FOR ANOTHER UNDERTAKING: 
1 


" 
{ .. 
1 
PROVIDED, HOWEVER, THAT SUCH REHIRING CONFORMS WITH 
2 
THE 
PROVISIONS 
OF 
LAW 
AND 
THE 
REPORTORIAL 
3 
REQUIREMENTS 
OF 
THE 
DEPARTMENT 
OF 
LABOR 
AND 
4 
EMPLOYMENT WITHIN THIRTY (30) DAYS FROM THE DATE OF 
5 
THE EMPLOYEE'S SEPARATION FROM WORK. IN SUCH CASE, THE 
6 
LAST DAY OF SERVICE WITH THE EMPLOYER IN THE PRECEDING 
7 
PROJECT SHOULD BE 
INDICATED 
IN 
THE EMPLOYMENT 
8 
AGREEMENT. 
9 
PROJECT EMPLOYEES WHOSE AGGREGATE PERIOD OF 
10 
CONTINUOUS EMPLOYMENT IS AT LEAST ONE YEAR SHALL BE 
11 
CONSIDERED REGULAR EMPLOYEES IN THE ABSENCE OF A "DAY 
12 
CERTAIN" 
AGREED 
UPON 
BY 
THE 
PARTIES 
FOR 
THE 
13 
TERMINATION OF THEIR RELATIONSHIP. PROJECT EMPLOYEES 
14 
WHO HAVE BECOME REGULAR EMPLOYEES SHALL ENJOY 
15 
SECURITY OF TENURE IN THEIR EMPLOYMENT AS PROVIDED 
16 
HEREIN. ONLY PROJECT EMPLOYEES WHO HAVE BECOME 
17 
REGULAR SHALL BE ENTITLED TO SEPARATION PAY, UNLESS 
18 
TERMINATED FOR JUST CAUSE. 
19 
SECTION 2. Repealing Clause. - Any law, presidential decree or issuance, executive 
20 
order, letter of instruction, administrative order, rule, or regulation contrary to or inconsistent 
21 
with the provisions of this Act is hereby repealed, modified, or amended accordingly. 
22 
SECTION 3. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
23 
publication in at least two (2) newspapers of general circulation. 
Approved, 
2