Youve finally gotten your first job offer. Congratulations! If you nabbed a good one, better. The
potential downside? The position is contractual. Not to worry though, a contractual job offer isnt
something that should totally discourage you from accepting a position.
Contractual jobs carry some stigma since people often think that there isnt any promise of longterm job security and that these positions dont offer benefits. There are also instances where
loopholes in the Philippine legal system are abused at the expense of their contractual
employees welfare.
But not all companies are like this. Many contractual jobs can lead to permanent positions if the
employee has displayed good work performance. More importantly, contractual jobs should carry
the same benefits and terms of employment as permanent positions. Let us say that again
contractual jobs should carry the same benefits and terms of employment as permanent
positions.
The Philippine government has taken steps to ensure that contractual employees are as
protected by law as permanent employees. In 2011, the Department of Labor and Employment
issued Department Order 18-A, Series of 2011, which lists the rights (Section 8) that contractual
employees are entitled to, as well as the guidelines for the terms of their contracts.
So what are the rights of a contractual employee? Here goes:
1. Safe and healthful working conditions
Whether your position is a desk job or it entails a lot of physical labor, your employer should
ensure that your health isnt compromised at work. Your employer should take steps to safeguard
your health and well-being while on the job.
2. Service incentive leave, rest days, overtime pay, holiday pay, 13th month pay, and separation
pay
Aside from your wage or salary, you should also be given paid time off, as well as additional pay
for any work done beyond your contracts work hours, 13 th month pay and a separation pay if
your employment is terminated early.
3. Retirement benefits under the SSS or retirement plans of the contractor, if there is any
If your employer has a retirement plan for their permanent employees, you should also be
granted the same benefit.
4. Social security and welfare benefits
Your employer must also grant you SSS, PhilHealth, and Pag-Ibig benefits, just like any other
permanent employee.
5. Self-organization, collective bargaining and peaceful concerted action
Contractual employees may also join or form employee unions, collective bargaining
agreements, and join peaceful demonstrations or protests. Your employment shouldnt be in
jeopardy should you decide to join a union.
6. Security of tenure
You should be ensured secure employment for the duration stated on your employment contract,
unless your employer has a defensible reason for early termination (such as your inability to
perform tasks specified in contract) and has terminated you under due process.
https://www.kalibrr.com/advice/2015/06/rights-of-a-contractual-employee-philippines/
Contractual and Regular Employee Benefits in the Philippines An Overview
7:36 AM by PINOY STREETJOB 11 comments
"Knowing your benefits even as a contractual employee will lessen tension and build trust in the
organization you belong in."
The Philippine Labor Code stipulates that an employee may be hired with a probationary period
from one to six months upon date of engagement, and it shall not be continued further than that
unless due to required period of apprenticeship. After the probationary period, an employer may
continue or end an individual's employment based on pre-agreed Key Results Areas (KRA) or
other forms of performance appraisals.
During the probationary period, however, an employer has no right to neither discriminate an
employee nor waive his /her contractual employee benefits. And at the end of this period, hired
Contractual
Employees
Regular
Employees
Sick Leaves
none
yes
Vacation Leaves
none
yes
company
discretion
yes
none
yes
HMO
none
yes
none
yes
Typically none
yes
Many companies in the Philippines now provide company benefits to employees, including rice
allowance, transportation allowance, boarding allowance, and so on. Knowing your benefits even
as a contractual employee will lessen tension and build trust in the organization you belong in.
http://pinoystreetjob.blogspot.com/2010/11/contractual-and-regular-employee.html
Contractual workers not considered regular employees
Dear PAO,
My husband and his cousin were employed as truck drivers of a logistics company. They
deliver milk and other similar products all throughout the Philippines. They had a threeyear contract which started in February 2012 up to February 2015. Sometime in
December 2014, rumors in their company were circulating that the two of them were
involved in stealing some company merchandise. Although their supervisor talked to
them, no formal investigation was made.
Last March of this year, they were no longer allowed to enter the company premises. The
guards said that they have been terminated already. So now my husband and his cousin
are contemplating on filing a labor complaint for illegal dismissal against their company
because they believe that they should be considered regular employees since they have
been with the company for several years now. As such, their company cannot simply
terminate them without proper cause and investigation. We just want to get your advice
if they should pursue the filing of their labor complaint.
Pami
Dear Pami,
Article 280 of Presidential Decree (P.D.) No. 442, as amended, otherwise known as the Labor
Code of the Philippines, defines regular employees as those who are 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.
In the situation that you have presented before us, it may very well be said that the tasks of your
husband and his cousin, being truck drivers, are necessary or desirable in the usual business or
trade of their employer as it is engaged in logistics or actual distribution of products to their
clients. However, they cannot be considered as regular employees, notwithstanding the fact that
they have been rendering services to their company for three years because there exists a
contract between them and their former company which particularly stipulates the period of their
employment, that is, from February 2012 up to February 2015. They are, thus, considered to
belong to the exception to the rule as provided in the definition of regular employees mentioned
above.
Accordingly, it is justified for the security guards of their former company not to allow them to
enter the company premises starting March 2015 as their contract of employment is deemed to
have terminated at the end of February 2015. In view thereof, it is not advisable to pursue a
labor complaint against their former employers as this may result ino an unfavorable outcome
for your husband and his cousin.
We further take note of the ruling of the Supreme Court in the case of Labayog vs. M. Y. San
Biscuits, Inc. (494 SCRA 486, G.R. No. 148102, July 11, 2006):
x x x Where the duties of the employee consist of activities which are necessary or desirable in
the usual business of the employer, the parties are not prohibited from agreeing on the duration
of employment. Article 280 does not proscribe or prohibit an employment contract with a fixed
period provided it is not intended to circumvent the security of tenure.
Two criteria validate a contract of employment with a fixed period: (1) the fixed period of
employment was knowingly and voluntarily agreed upon by the parties without any force, duress
or improper pressure being brought to bear on the employee and without any circumstances
vitiating consent or, (2) it satisfactorily appears that the employer and employee dealt with each
other on more or less equal terms with no moral dominance whatever being exercised by the
former on the latter. x x x
Each contract provided for an expiration date. Petitioners knew from the beginning that the
employment offered to them was not permanent but only for a certain fixed period. They were
free to accept or to refuse the offer. When they expressed their acceptance, they bound
themselves to the contract. x x x
We hope that we were able to answer your queries. Please be reminded that this advice is based
solely on the facts you have narrated and our appreciation of the same. Our opinion may vary
when other facts are changed or elaborated.
Editors note: Dear PAO is a daily column of the Public Attorneys Office. Questions for
Chief Acosta may be sent to dearpao@manilatimes.net
http://www.manilatimes.net/contractual-workers-not-considered-regularemployees/199525/
Are Contractual Employees Entitled to Separation Pay?
http://ndvlaw.com/are-contractual-employees-entitled-to-separation-pay/