Photo from Unsplash | Kristina Tripkovic
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.
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:
Project employees entitled to separation pay. —
- ) Project employees whose aggregate period of continuous employment in a construction company 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 be entitled to separation pay.
- ) If the project or the phase of the project the employee is working on has not yet been completed and his services are terminated without just cause or authorized cause and there is no showing that these services are unsatisfactory, the project employee is entitled to reinstatement with backwages to his former position or substantially equivalent position. If the reinstatement is no longer possible, the employee is entitled to his salary for the unexpired portion of the agreement. (Section 3.3, DOLE Department Order No. 19, s. 1993)
If you are a project worker, your situation might differ from regular employees when it comes to separation pay.
In many cases, project workers are not entitled to separation pay when their job ends because the completion of the project or a phase of it is seen as the natural end of their employment.
Project employees are not entitled to separation pay.
The law says:
2.1. xxx Project employees are those employed in connection with a particular construction project or phase thereof and whose employment is co-terminus with each project or phase of the project to which they are assigned.
3.2 Project employees not entitled to separation pay. — The project employees contemplated by paragraph 2.1 hereof are not by law entitled to separation pay if their services are terminated as a result of the completion of the project or any phase thereof in which they are employed. Likewise, project employees whose services are terminated because they have no more to do or their services are no longer needed in the particular phase of the project are not by law entitled to separation pay.
Regular project employees enjoy security of tenure.
However, if a project worker transitions to become a regular employee before the project ends, then they may be entitled to separation pay if they are let go for reasons other than the project finishing up.
The law says:
3.1 Security of tenure. Project employees who have become regular shall enjoy security of tenure in their employment as provided under Article 280 of the Labor Code, as amended. Where their services are terminated for a cause/causes, they are not by law entitled to separation pay. The just causes for terminating employment are enumerated under Article 282 of the Code. Where the services of regular employees are terminated for any of the authorized causes under Article 283, as distinguished from just causes, they are entitled to separation pay.
Project employees that are entitled to separation pay.
Project employees entitled to separation pay are those who have worked continuously for at least a year in a construction company and have become regular employees. However, if there is no specific end date agreed upon for their employment, they might not be considered regular.
When a project or its phase is completed as initially planned or extended, those who have not reached regular status are entitled to reinstatement with back wages if their employment ends without a valid reason and if their performance was satisfactory. If reinstatement is not possible, they should receive payment for the remaining time on their contract.
The law says:
3.3 Project employees entitled to separation pay. —
a) Project employees whose aggregate period of continuous employment in a construction company 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 be entitled to separation pay.
A day as used herein, is understood to be that which must necessarily come, although it may not be known exactly when. This means that where the final completion of a project or phase thereof is in fact determinable and the expected completion is made known to the employee, such project employee may not be considered regular, notwithstanding the one-year duration of two or more employments in the same project or phase of the project.
The completion of the project or any phase thereof is determined on the date originally agreed upon or the date indicated on the contract or, if the same is extended, the date of termination of project extension.
b) If the project or the phase of the project the employee is working on has not yet been completed and his services are terminated without just cause or authorized cause and there is no showing that these services are unsatisfactory, the project employee is entitled to reinstatement with back wages to his former position or substantially equivalent position. If the reinstatement is no longer possible, the employee is entitled to his salary for the unexpired portion of the agreement.
So, in a nutshell, a project employee receives separation pay depending on their employment status and the circumstances surrounding their termination. While project workers typically are not entitled to separation pay when a project ends, there are situations where they may be eligible, especially if they have transitioned to regular employment or if their termination was unjustified.
Related Article/s:
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding taxation and taxpayer’s remedies, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
All rights reserved.