Employment in the Philippines Overview
Depending on the company and/or industry, there are various types or
categories of employment in the Philippines. This essentially comes down
to how the employer wants the employee’s employment to be structured,
which should be bound by a contract signed by both the employer and
employee.
Project Employment
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 in the Philippines.
Seasonal Employment
Where the work or services to be performed is seasonal in nature and
the employment is for the duration of the season in the Philippines.
Casual Employment
Where the employment is not covered by the foregoing, provided that
an employee who has rendered at least one year of service, whether
continuous or broken, shall be considered regular with respect to the
activity in which he or she is employed and his or her employment shall
continue while the activity exists.
Term or Fixed Employment
Another category of employment in the Philippines recognized in
jurisprudence is “term” or “fixed-period employment.” This is based on
Art. 1193 of the CC, which states that obligations with a resolutory
period take effect at once, but terminate upon arrival of the day
certain – understood to be a day that must necessarily come. The
decisive determinant in “term employment” should not be the activities
that the employee is called upon to perform, but the day certain agreed
upon by the parties for the commencement and termination of the
employment relationship. Stipulations in employment contracts providing
for “term employment” or “fixed-period employment” are valid when the
period has been agreed upon knowingly and voluntarily by the parties,
without force, duress or improper pressure exerted on the employee, and
when such stipulations were not designed to circumvent the laws on
security of tenure.
Probationary Employment
Probationary employment is not necessarily a category of employment
in the Philippines. It pertains to a period of time in which the
employee is being observed and evaluated to determine whether or not he
is qualified for permanent employment. Under Art. 281 of the LC,
probationary employment shall not exceed six months. An employee who is
allowed to work after a probationary period shall be considered a
regular employee. A probationary employee is, for a given period of
time, under observation and evaluation to determine whether or not he or
she is qualified for permanent employment. During the probationary
period, the employer is given the opportunity to observe the skills,
competence, and attitude of the employee while the latter seeks to prove
to the employer that he or she has the qualifications to meet the
reasonable standards for permanent employment.
