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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:
A fixed-term employment has been recognized as a type of employment embodied in a contract specifying that the services of the employee shall be engaged only for a definite period, the termination of which occurs upon the expiration of said period irrespective of the existence of just cause and regardless of the activity the employee is called upon to perform. (Allan Regala vs. Manila Hotel Corporation, G.R. No. 204684, October 5, 2020)
The Labor Code does not have a problem with fixed-term contracts as long as both parties agree to it freely and without any pressure. Even if the tasks the employee will be doing are typical for the employer’s business, a contract with a fixed duration can still be made.
Jurisprudence says:
Article 280 of the Labor Code does not proscribe or prohibit an employment contract with a fixed period provided the same is entered into by the parties, without any force, duress or improper pressure being brought to bear upon the employee and absent any other circumstance vitiating consent. It does not necessarily follow that where the duties of the employee consist of activities usually necessary or desirable in the usual business of the employer, the parties are forbidden from agreeing on a period of time for the performance of such activities. There is thus nothing essentially contradictory between a definite period of employment and the nature of the employee’s duties. (Julian Tungcul Tuppil, Jr. vs. LBP Service Corporation, G.R. No. 228407, June 10, 2020)
Dates in Fixed-Term Employment Matter
The key factor in fixed-term employment is the agreed-upon period between the employer and the employee. It’s not about the specific tasks the employee will be doing but rather the start and end dates of their employment. When these dates are specified, the employment automatically ends on the termination date without needing any further notice.
If a contract claims to be a fixed-term employment contract but doesn’t clearly state the start and end dates, it doesn’t hold up legally as one. Even if it’s called a fixed-term contract, if it lacks these crucial dates, it’s not considered valid under the law.
Sometimes, contracts may use terminology that suggests a fixed-term arrangement, but without the essential dates, they don’t meet the criteria. In such cases, the contract might be categorized differently depending on the circumstances, but it wouldn’t be considered a true fixed-term employment contract.
Jurisprudence says:
It has been held that fixed-term character of employment essentially refers to the period agreed upon between the employer and the employee. Accordingly, “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 their employment relationship. Specification of the date of termination is significant because an employee’s employment shall cease upon termination date without need of notice.
In other words, a fixed-term employment contract which otherwise fails to specify the date of effectivity and the date of expiration of an employee’s engagement cannot, by virtue of jurisprudential pronouncement, be regarded as such despite its nomenclature or classification given by the parties. The employment contract may provide for or describe some other classification or type of employment depending on the circumstances, but it is not, properly speaking, a fixed-term employment contract. (Allan Regala vs. Manila Hotel Corporation, G.R. No. 204684, October 5, 2020)
In essence, contracts of fixed-term employment provide a clear timeline for both employers and employees, specifying the start and end dates of the employment relationship. While the tasks the employee will be doing are important, what really matters is the agreed-upon duration of their employment.
Related Article/s:
Types of employment, and how it affects security of tenure
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