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IV. EMPLOYEE CLASSIFICATION - Coggle Diagram

- - - - 3. PROJECT EMPLOYEE
        
        4. FIXED-TERM
        
        5. SEASONAL
        
        6. CASUAL
        
        ● Casual Employment
        ○ Employment given to people who perform work that is not directly related to the
        main business of the employer
        ■ E.g. janitorial, security services, IT and tech.
        ○ No security of tenure HOWEVER employment for a period of one year makes
        them a regular employee by operation of law
        
        CASUAL = NOT REGULAR, PROJECT, SEASONAL
        
        Casual employees ● those who are not regular, project, or seasonal employees.
        
        CANNOT EXCEED 12 MONTHS
        The employment of casual employees should not exceed twelve (12) months.
        
        SE
        ● Seasonal Employment
        ○ Employment for a specific season (typically applied in agricultural industry)
        ○ Employee is deemed employed only for the [duration of] specific season
        ○ Regular Seasonal Employment - a seasonal employee is repeatedly rehired for
        the next seasons, entitling him to security of tenure
        ○ Valid in the retail industry because there is a season in the retail industry
        ○ Season is contemplated annually
        ○ Example:
        ■ Haciendero hiring employee for 10 consecutive seasons; Jan - March
        planting season; continuously hired for 10 years straight
        ■ On 11th year, employer can’t not hire him (deemed regular seasonal
        employer)
        
        REQS FOR SEASONAL WORKER:
        
        SEASONAL WORK FOR
        
        ONE SEASON
        Seasonal employees ● those who work or perform services which are seasonal in nature, and the employment is for the duration of the season; and
        
        REGULARIZED SEASONAL WORKERS
        
        SUCH ACTIVITY
        
        WHILE IT EXISTS
        Hence, the employment is considered regular, but only with respect to such activity, and while such activity exists.
        
        10 CONSECUTIVE SEASONS, CAN'T JUST DISMISS
        If the haciendero hires the farmer 10 consecutive seasons
        ○ Jan-March planting season, he is hired every Jan-March
        ○ Employer can’t not hire him on Jan-March on 11th season
        
        REGULAR WHEN:
        
        CONSECUTIVE SEASONS
        
        BROKEN BUT ACCUMULATED FOR A LONG TIME
        Even though “seasonal workers” if they’re called to work from time to time and only temporarily laid off during the off-season, the law considers them on leave until re-employed NOT separated from the service.
        Hence, when the “seasonal” workers are continuously and repeatedly hired to perform the same tasks or activities for several seasons or even after the cessation of the season, this length of time may likewise serve as badge of regular employment
        
        If the employee has been performing the job for at least a year, even if the performance is not continuous and merely intermittent, the law deems repeated and continuing need for its performance as sufficient evidence of the necessity if not indispensability of that activity to the business.
        
        TERM EMPLOYMENT REQS
        
        TERM EMPLOYMENT CONTRACT
        
        SPECIFIC DURATION
        a. DATE
        
        SAME STANDING
        a. MANAGERIAL EMPLOYEES
        ○ Requisites:
        ■ First, term employment contract
        ■ Second ^ specifically provides the term/duration of said contract
        ● Start & end date is clearly provided
        ● Different from Project Employment, where it is NOT
        REQUIRED that the date is specified
        ○ No assurance when the project will end
        ○ REQUIRES that both parties are at the same standing (employee has strong
        bargaining powers)
        
        INAPPLICABLE TO
        
        R&F
        
        SUPERVISORY
        Term Employment
        ○ A creation by the SC; not found in the Labor Code
        ○ Employment for a fixed term
        ○ Highly frowned upon :(
        ○ Exception: if employee is high-ranking or performs very technical work
        ■ Not applicable to rank and file employees
        ■ Not supervisory employees
        ■ Only managerial employees and above
        
        FIXED-TERM REQS:
        
        TERM EMPLOYMENT CONTRACT
        
        SPECIFIC DURATION
        a. START & END DATE
        
        SAME STANDING
        a. MANAGERIAL EMPLOYEES
        Requisites:
        (1) Term employment contract
        (2) Provides for the term/ duration of the contract
        Both employees need to be in the same standing
        
        INAPPLICABLE TO RANK-AND-FILE
        Not applicable to rank and file employment
        
        VOLUNTARY & SAME STANDING
        
        VALID IF AGREED UPON KNOWINGLY & VOLUNTARILY
        a. EQUAL TERMS, NO MORAL DOMINANCE
        It [prohibition I guess] should have no application to instances where a fixed period of employment was agreed upon knowingly and voluntarily by the parties ○ Without any force, duress or improper pressure being brought to bear upon the employee and absent any other circumstances vitiating his consent, or where 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 over the latter.
        
        DAY CERTAIN AGREED UPON DETERMINES FIXED-TERM EMPLOYEE
        
        COMMENCEMENT
        
        TERMINATION
        The determining factor of such contracts is not the duty of the employee but the day certain agreed upon by the parties for the commencement and termination of the employment relationship. ● This is so since the non-renewal of their contracts by A.C. Sicat is a management prerogative, and failure of respondents to prove that such was done in bad faith militates against their contention that they were illegally dismissed.
        
        PE vs FT
        
        TERM EE = DETERMINED BY DAY CERTAIN AGREED FOR START & END
        
        PROJECT EE = DETERMINED BY PROJECT
        [Project Employment v. Fixed-Term Employment] ● The decisive determinant in fixed-term employment is the day certain agreed upon by the parties for the commencement and termination of the employment relationship. ● The decisive determinant in project employment is the activity that the employee is called upon to perform.
        
        PE
        ● Project Employment
        ○ Project - can be for main business of employer/totally separate undertaking
        ○ Requirements:
        ■ First, a project employment contract
        ■ Second, that the project is clearly defined in the ^
        ○ Pseudo-requirement:
        ■ Third, the employee is only employed for the duration of the project
        ○ Added cause for termination -> completion of project
        ○ Note: project can be subdivided to sub-projects or specialized categories
        ■ Commonly in construction industry
        ● Operates on a per-project basis
        ● Different employees have different skill-sets, and require several
        phases requiring different skill-sets
        ■ Employee can only be employed for that said portion
        ○ Exact date not required:
        ■ A mere estimate on when it will start/end is sufficient
        
        REQS (SIR)
        
        PEC
        There exists a project employment contract
        
        SPECIFIC PROJECT IN PEC
        The project is defined in the project employment contract
        
        DURATION OF PROJECT ONLY
        Employee is only employed during the duration of the project
        Project employees ● those whose 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;
        
        PROJECT EMPLOYEE REQS:
        
        SPECIFIC PROJECT OR UNDERTAKING
        
        DURATION
        a. SPECIFIED AT ENGAGEMENT
        
        SCOPE
        a. SPECIFIED AT ENGAGEMENT
        Determining if employee is a project employee (Integrated Contractor and Plumbing Works, Inc. v. Court of Appeals, 466 SCRA 544 (2005))
        The principal test in determining whether an employee is a "project employee" or "regular employee," is, whether he is assigned to carry out a "specific project or undertaking," the duration (and scope) of which are specified at the time the employee is engaged in the project.
        
        "Project" ● "Project" refers to a particular job or undertaking that is within the regular or usual business of the employer, ○ but which is distinct and separate and identifiable from the undertakings of the company. ○ Such job or undertaking begins and ends at determined or determinable times ● May be directly related to the industry or separate ● Projects can be subdivided into sub-projects ○ Employees can be employed only during the duration of the sub-project
        
        CO-TERMINOUS WITH PROJECT
        By entering into such a contract, an employee is deemed to understand that his employment is coterminous with the project. He may no longer be employed after the completion of the project for which he was hired. (Innodata Knowledge Services, Inc. v. Socorro D’Marie T. Inting, et al.)
        
        ER HAS BURDEN TO PROVE
        In order to safeguard the rights of workers against the arbitrary use of the word "project" which prevents them from attaining regular status, employers claiming that their workers are project employees have the burden of showing that: (a) the duration and scope of the employment was specified at the time they were engaged; and (b) there was indeed a project.
        (Innodata Knowledge Services, Inc. v. Socorro D’Marie T. Inting, et al. )
      - PROBATIONARY EMPLOYMENT REQS
        
        PROBATIONARY EMPLOYMENT CONTRACT
        
        LESS THAN 6-MONTHS
        
        METRICS OF EVALUATION
        
        Requirements:
        ■ (1) Probationary employment contract, providing for a probationary period of not more than 6 months
        ■ (2) Contract includes the metrics by which the employee will be evaluated
        ● Metrics -> categories/characteristics by which you are evaluated
        ○ Adaptability, performance, capability to work with other members, etc.
        
        TERMINABLE WHEN
        
        JUST CAUSE
        
        AUTHORIZED BY LAW
        
        FAILURE TO QUALIFY AS REGULAR
        a. REASONABLE STANDARDS
        b. MADE KNOWN BY ER TO EE
        ● The services of an employee who has been engaged on probationary basis may be terminated only
        ○ for a just cause or
        ○ when authorized by existing laws, or
        ○ when he fails to qualify as a regular employee in accordance with reasonable standards prescribed by the employer.
        ■ In all cases involving employees engaged on probationary basis, the employer shall make known to the employee the standards under which he will qualify as a regular employee at the time of his engagement.
        
        PROBATIONARY EMPLOYMENT SHALL NOT EXCEED 6 MONTHS
        ART. 296. Probationary Employment. GEN: shall not exceed six (6) months from the date the employee started working,
        
        EXCEPT IF APPRENTICESHIP FOR LONGER PERIOD
        EXC: Unless it is covered by an apprenticeship agreement stipulating a longer period.
        
        LEARNABLE/APPRETICEABLE:
        EMPLOYMENT PERIOD OF EE LIMITED TO AUTHORIZED LEARNERSHIP/APPRE
        SECTION 6. Probationary employment. —
        (a) Where the work for which an employee has been engaged is learnable or apprenticeable, the probationary employment period of the employee shall be limited to the authorized learnership or apprenticeship period, whichever is applicable.
        
        IF NOT LEARNABLE/APPRENTICEABLE, SHALL NOT EXCEED 6 MONTHS FROM START OF WORK
        (b) Where the work is neither learnable nor apprenticeable, the probationary employment period shall not exceed six (6) months reckoned from the date the employee actually started working.
        
        1 more item...
        
        FREEDOM OF CONTRACTS
        ARTICLE 1306. The contracting parties may establish such stipulations, clauses, terms and conditions as they may deem convenient, provided they are not contrary to law, morals, good customs, public order, or public policy.
        
        TERMINATION (JUST CAUSE) REQS:
        
        FAILS TO QUALIFY AS REGULAR
        
        REASONABLE STANDARDS
        
        MADE KNOWN BY ER TO EE
        a. AT TIME OF ENGAGEMENT
        The services of an employee who has been engaged on a probationary basis may be terminated for a just cause or when he fails to qualify as a regular employee in accordance with reasonable standards made known by the employer to the employee at the time of his engagement.
        
        AFTER PROBATIONARY PERIOD = REGULAR EMPLOYEE
        An employee who is allowed to work after a probationary period shall be considered a regular employee.
        (Book VI, Rule 1, Sec. 5)
        
        VALID EXTENSION MUST BE PROVEN BY EMPLOYER
        Since extension of the period is the exception, rather than the rule, the employer has the burden of proof to show that the extension is warranted and not simply a stratagem to preclude the worker’s attainment of regular status. Without a valid ground, any extension of the probationary period shall be taken against the employer especially since it thwarts the attainment of a fundamental right, that is, security of tenure.
        (Umali v. Hobbying Solutions, Inc.)
        
        REQS FOR TERMINATION
        Power of employer to terminate probationary employee is based on the ff conditions
        
        METRICS COMPLIED WITH
        ○ (1) exercised in accordance with the specific requirements of the contract
        
        DISSATISFACTION
        a. REAL & IN GOOD FAITH
        b. NOT PREJUDICIAL TO CONTRACT/LAW
        ○ (2) the dissatisfaction on the part of the employer must be real and in good faith, not prejudicial so as to violate the contract or the law;
        
        NO UNLAWFUL DISCRIMINATION
        ○ (3) there must be no unlawful discrimination in the dismissal.
        
        TERMINABLE ANYTIME BEFORE EXPIRATION OF 6 MONTHS
        A probationary employee enjoys only a temporary employment status, not a permanent status-- in general terms, he is terminable anytime as long as such termination is made before the expiration of the six month probationary period.
        (Cathay Pacific Airways, LImited v. marin)
        
        CHRONIC TARDINESS = FAILURE TO MEET REASONABLE STANDARDS
        (Mylene Carvajal v. Luzon Development Bank and/or Ramirez)
      - ILL-ADVISED EXTENSION:
        
        AGREED UPON
        
        NATURE OF WORK REQUIRES MORE THAN 6 MONTH PROBATION
        ■ For practical purposes, do not encourage your client to extend the probationary period
        ○ Probationary period can be extended provided that:
        ■ Requested by employee or both parties mutually agree
        ■ The nature of the work requires that the probationary period be more than 6 months
        
        FAILURE TO MEET STANDARDS = TERMINATE
        Exceptions:
        ● Probationary Employment: Additional mode of termination (after evaluation) = failure to meet the standards of regularization
        ○ Employee placed under probation
        ○ Apprenticeship is not the same as probationary period
        ○ Probationary period can be less than 6 months
        ■ Need not be for a fixed period of 6 months
        
        ■ Rationale:
        ● The employee has a right to know how he will be evaluated
        ● Prevent employers to have unscrupulous basis for evaluation
        ○ There is no need to wait for the end of the probationary period to wait for evaluation
        ■ Can be terminated / turned regular agad
        ○ Must be performed in good faith
        ○ Failure of evaluation -> failure to meet standards of regularization
        
        TRIAL RUN
        
        CONDUCTED WITHIN 6-MONTH PERIOD
        
        PROMOTE/TERMINATE
        ○ Probation: trial run/test run
        ■ Evaluated to see w/n he is fit to perform the work as regular employee
        ■ MUST be conducted w/in 6 month probationary period
        ○ He must either be promoted or terminated
        
        ○ Termination: Only by conducting evaluation prior to expiration of probationary period.
        ■ If you are not terminated then you automatically become a regular employee
    - - SEASONAL WORKERS MAY BE REGULARIZED IF WORKING FOR MORE THAN ONE SEASON
        For respondents to be excluded from those classified as regular employees, it is not enough that they perform work or services that are seasonal in nature. They must have also been employed only for the duration of one season.
        The respondents repeatedly worked as sugarcane workers for petitioners for several years. Therefore, the general rule of regular employment is applicable. Seasonal workers who are called to work from time to time and are temporarily laid off during off-season are not separated from service in said period, but merely considered on leave until re-employed.
        
        STAFFHOUSE-HELPER
        
        HOUSEHELPERS IN STAFFHOUSES = REGULAR EMPLOYEES
        a. ENTITLED TO SEPARATION PAY
        
        HOUSEHELPERS IN HOME = DOMESTIC SERVANT
        b. NOT ENTITLED TO SEPARATION PAY
        The Court held that the house helper in the staff houses of an industrial company is a regular employee of the said firm, not a domestic employee.
        
        “Househelper” refers to any person, whether male or female, who renders services in and about the employer’s home and which services are usually necessary or desirable for the maintenance and enjoyment thereof, and ministers exclusively to the personal comfort and enjoyment of the employer’s family.
        This definition contemplates such house-helper or domestic servant who is employed in the employer’s home to minister exclusively to the personal comfort and enjoyment of the employer’s family.
        
        The definition cannot be interpreted to include househelp or laundrywomen working in staffhouses of a company. While it may be true that the nature of the work of a househelper, domestic servant or laundrywoman in a home or in a company staffhouse may be similar in nature, the difference in their circumstances is that in the former instance they are actually serving the family while in the latter case, service is being rendered in the staffhouses or within the premises of the business of the employer.
        They are employees of the company or employer in the business concerned entitled to the privileges of a regular employee. Thus, as a regular employee, she is entitled to separation pay.
        
        HOUSEHELPER INCLUDES:
        
        DRIVERS
        
        DOMESTIC SERVANTS
        
        LAUNDRY WOMEN
        
        YAYAS
        
        GARDENERS
        
        HOUSEBOYS
        
        SIMILAR HOUSEHELPS
        Such definition covers family drivers, domestic servants, laundry women, yayas, gardeners, houseboys and other similar househelps.||| (Apex Mining Co., Inc. v. National Labor Relations Commission, G.R. No. 94951, [April 22, 1991], 273 PHIL 477-482)
      - ○ EXCEPTION
        PROJECT
        SEASONAL
        ■ 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.
  - - - REGULAR EMPLOYEE IF
        
        PERFORMS ACTS USUALLY NECESSARY/DESIRABLE in
        
        USUAL BUSINESS/TRADE OF EMPLOYER
        ARTICLE 295. [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 IF:
        
        SPECIFIC PROJECT OR UNDERTAKING
        a. COMPLETION DETERMINED AT TIME OF ENGAGEMENT OF EMPLOYEE
        
        SEASONAL
        a. DURATION OF SEASON
        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.
        
        CASUAL
        An employment shall be deemed to be casual if it is not covered by the preceding paragraph:
        
        1 YEAR OF SERVICE,
        CONTINUOUS OR BROKEN = REGULAR
        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.
        
        SEASONAL 2. PROJECT One year duration on the job is pertinent in deciding whether a casual employee has become regular or not, but it is not pertinent to a seasonal or project employee. (BlueNotes)