of the Philipines
HOUSE OF REPRESENTATIVES

“A; tite
Queeon City
YY

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL No. 8572

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

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

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

igned. 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 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 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 1 April 1993. If certain important provisions of these guidelines were
incorporated into the Labor Code, Article 280, project employees in all kinds of
bus SES 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 for all the indicia of project employment, requirements for rehiring
of project employees, and conditions for their employment and termination.

‘ll A

LUIS RAYMUND “LRAY”/F. VILLAFUERTE, JR.


GS

HOUSE OF REPRESENTATIVES

QRuexer City
EIGHTEENTH CONGRESS

Second Regular Session

HOUSE BILL No. 8572

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

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, ai CONDITIONS
FOR Ti EMPLOYMENT AND TERI

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 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 AT 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. Effectivity Clause. - This Act shall take effect fifteen (15) days af
publication in at least two (2) newspapers of general circulation.

Approved,