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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
Art. 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 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 services 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. (University of Santo Tomas vs. Samahang Manggagawa ng UST, G.R. No. 184262, April 24, 2017)
The law says:
Article 295 of the Labor Code, as amended, distinguishes project employment from regular employment as follows:
Art. 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 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 services 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. (University of Santo Tomas vs. Samahang Manggagawa ng UST, G.R. No. 184262, April 24, 2017)
Casual employees and Project employees in the Philippines are governed by distinct legal frameworks and requirements, with variations in their nature of employment, activities performed, employment duration, and security of tenure.
Employment Nature
Casual employment involves individuals performing tasks that are ancillary or supporting to the regular business operations of the employer. These employees are typically hired on an irregular basis to address immediate needs or fluctuations in workload.
Example: A retail store hires a casual employee to assist during the holiday season rush. The employee’s duties might include stocking shelves, assisting customers at the checkout counter, and helping with general store maintenance. Once the holiday season concludes, the need for additional staff diminishes, and the casual employee’s hours may decrease or their employment may end.
Project employment entails individuals being engaged specifically for a particular project or undertaking. These employees are recruited to contribute their skills and expertise to the completion of a defined task or initiative
Example: A construction company hires project employees to work on building a new office complex. These employees are assigned to various roles such as carpenters, electricians, and plumbers, with each responsible for specific aspects of the construction project. Once the office complex is completed, the project employment for these individuals concludes, and they may be reassigned to other projects or their contracts may end.
Scope of Activities
Casual employees typically perform tasks that are supportive of the employer’s regular business activities. Their responsibilities may vary depending on the immediate needs of the business but are generally related to maintaining day-to-day operations.
Example: In a restaurant, a casual employee may be tasked with duties such as bussing tables, taking orders during peak hours, and assisting the kitchen staff with food preparation. These tasks contribute to the smooth functioning of the restaurant but may not be directly tied to specific projects or initiatives.
Project employees have a broader scope of activities and are often involved in tasks directly related to the completion of a specific project. Their responsibilities are tailored to the requirements and objectives of the project they are assigned to.
Example: A software development company hires project employees to work on the development of a new mobile application. These employees may be involved in various stages of the project, including coding, testing, and debugging the application. Their tasks are directly tied to the project’s goals of creating a functional and user-friendly application within a specified timeframe.
Employment Duration
Casual employment is intended for short-term or temporary arrangements, with a maximum duration of 12 months. Once the specified period ends, the employment relationship may be extended based on the employer’s needs or may come to an end.
Example: A hotel hires casual staff to cater to increased demand during the tourist season. These employees are brought on board for a fixed duration, such as six months, to assist with guest services, housekeeping, and front desk operations. At the end of the tourist season, their employment contracts may be terminated or renewed based on the hotel’s requirements.
Project employment is tied to the duration of a specific project or undertaking. Once the project is completed or reaches its conclusion, the employment relationship for project employees may come to an end, unless they are reassigned to other projects or tasks within the organization.
Example: An advertising agency hires project employees to work on a marketing campaign for a client. The campaign has a defined timeline of three months, during which the project employees are responsible for designing ad creatives, conducting market research, and implementing advertising strategies. Once the campaign is launched and completed, the project employment for these individuals concludes, and they may transition to other projects within the agency or seek employment elsewhere.
Security of Tenure
Casual employees are entitled to security of tenure during their employment period. They can only be terminated for just causes or authorized reasons, following due process. However, once their casual employment period ends, they may be released with advance notice, without necessitating due process.
Similarly, project employees also enjoy security of tenure during their engagement. They can only be terminated for just causes or authorized reasons, following due process. However, once the project is completed, their employment may come to an end without necessitating due process.
Read also: DOES THE CONTINUOUS REHIRING OF A PROJECT EMPLOYEE MAKE HIM A REGULAR EMPLOYEE?
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