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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:
Submission of termination reports is considered as an indicator of project employment. However, the submission of this report, by and of itself, is not conclusive to confirm the status of the terminated employees as project employees.
(Toyo Seat Philippines Corporation v. Annabelle C. Velasco, G.R. No. 240774, March 03, 2021)
Article 295 of the Labor Code provides that project employees are those hired for a specific project or undertaking and/or when the completion or termination of which has been determined at the time of engagement of the employee.
Project employment is regulated by DOLE Department Order No. 19, series of 1993 (DOLE DO 19-1993) which provides for the indicators of project employment, to wit:
“Either one or more of the following circumstances, among others, may be considered as indicators that an employee is a project employee.
(a) The duration of the specific/identified undertaking for which the worker is engaged is reasonably determinable.
(b) Such duration, as well as the specific work/service to be performed, is defined in an employment agreement and is made clear to the employee at the time of hiring.
(c) The work/service performed by the employee is in connection with the particular project/undertaking for which he is engaged.
(d) The employee, while not employed and awaiting engagement, is free to offer his services to any other employer.
(e) The termination of his employment in the particular project/undertaking is reported to the Department of Labor and Employment (DOLE) Regional Office having jurisdiction over the workplace within 30 days following the date of his separation from work, using the prescribed form on employees’ terminations/dismissals/suspensions.
(f) An undertaking in the employment contract by the employer to pay completion bonus to the project employee as practiced by most construction companies.” (Section 2.2, DOLE DO 19-1993)
In the case of Toyo Seat Philippines Corporation v. Annabelle C. Velasco (G.R. No. 240774, March 03, 2021), the Supreme Court ruled that submission of termination reports should now be considered as an indicator of project employment not only in the construction industry, but also in similarly situated industries where works are conducted on a project basis and which hire project employees as a matter of common practice.
Further, the Supreme Court added that submission is only one of several indicators of project employment. Jurisprudence says:
“Based on Section 2.2 of DO 19-1993, it is clear that the submission of the termination report to the DOLE may be considered only as an indicator of project employment. By the provision’s tenor, the submission of this report, by and of itself, is therefore not conclusive to confirm the status of the terminated employees as project employees, especially in this case where there is a glaring absence of evidence to prove that petitioners were assigned to carry out a specific project of undertaking, and that they were informed of the duration and scope of their supposed project engagement, which are, in fact, attendant to the first two (2) indicators of project employment in the same DOLE issuance above-cited.”
Related Article/s:
Knowing the Difference Between Probationary Employment and Project Employment
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