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Chapter III Kinds of Employment/Employee Classification

1. Regular, Casual Employment and Probationary Employment, Art.

280 and Article 281.

A. Regular Employment, Art. 280, 75 (d); Omnibus Rules, Book IV,

Rule 1, Secs. 5 (a), (b) and 6 and Art. 281, Sec. 5, Rule 1, Book VI)

A.1 By nature of work an employment is deemed regular when

an employee is engaged to perform activities which are usually
necessary or desirable to the business or trade of an employer
EVEN if there is a written or oral agreement to the contrary.

Hacienda Fatima v. National Federation of Sugarcane Workers Food and

General Trade, 396 SCRA 518

Association of Trade Unions (AU) v. Abella, G.R. No. 100518, Jan. 24,

ABS CBN Broadcasting Corp. v. Nazareno, G.R. No. 164156, Sept. 26,

Brent School, Inc. v. Zamora, G.R. No. 48494, Feb. 5, 1990

Columbus Philippines Bus Corp. v. NLRC, G.R. No. 114858-59, Sept. 7,


Singer Sewing Machine Company v. Drilon, G.R. No. 91307, Jan. 21,

Zonsa v. ABS-CBN Broadcasting Cor., G.R. No. 1380051, June 10, 2004
as against Dumpit Murillo v. C.A., G.R. No. 164652, June 8, 2007

ABS-CBN Broadcasting Corporation v. Marquez, G.R. No. 167638, June

12, 2005

Consolidated Broadcasting System, Inc. v. Oberio, G.R. No. 168424, June

8, 2007

Orazco v. The Fifth Division of the Honorable Court of Appeals, G.R. No.
155207, August 13, 2008

A.2 By period of service an employment is considered regular

when an employee has rendered at least one (1) year, whether
continuous or broken, on such activity in which he is employed
and his employment shall continue while such activity exists.

Audion Electric Co. Inc. v. NLRC, 308 SCRA 340

Universal Robina Corporation v. Catapang, 473 SCRA189

Abesco Construction and Development Corp. v. Ramirez 487 SCRA 9

A.3 By probationary employment, -an employee who is allowed

to work after a probationary period (not to exceed six (6) months
shall be considered regular.

a. Statutory definition of Probationary Employment- Art. 281

b. Nature of probationary employment

Philippine Federation of Credit Cooperatives, Inc. v. NLRC, G.R. 121071,

Dec. 11, 1998

c. Computation of the sixth (6) month probationary period.

Cals Poultry Supply Corp. v. Roco, G.R. No. 150660, July 30, 2002

d. Application of Art. 13 of the Civil Code in the computation

of sixth month probationary period

Mitsubishi Motors Phil. Corp. v. Chrysler Phils. Labor Union, G.R. No.
148738, June 29, 2004

e. Extension of probationary period relaxed by the Supreme


Mariwasa Manufacturing Inc. v. Leogardo, G.R. No. 74246, Jan. 26,


f. Repetitive probationary period

Villanueva vs. NLRC, G.R. No. 127448, Sept. 10, 1998

g. Stipulation in employment contract fixing the period of

probationary period

Innodata Phils., Inc. v. Quejada Lopez, G.R. No. 162839, Oct. 12, 2006.
h. Exception to probationary period exceeding six month

Buiser v. Hon. Leogardo, G.R. No. 63316, July 31, 1984

i. Probationary period for different workers:

1. Probationary period of Apprentices

Sec. 6, (a), Rule 1, Book VI, Implementing Rules as

amended by Art. 5, D.O. No. 10, Series of 1997

Nito Enterprises v. NLRC, G.R. No. 114337, Sept. 29, 1995 effect of
apprenticeship agreement not registered with DOLE

2. Probationary period of Learners

Not to exceed three (3) months, Art. 75

3. Probationary period of Handicapped Learners

Impaired by age or physical and mental deficiency

or injury, Art. 78 & 81

4. Probationary period of Teachers

1992 Manual of Regulations for Private Schools

(Sec. 92), Art. 280, not applicable

5. Requirements for regularization of Private

School Teachers

Chang Kai Shek School v. CA, G.R. No. 58028, April 18, 1989

Espiritu Santo Parochial School v. NLRC, G.R. No. 82325, Sept. 26, 1989

6. The Magna Carta for Public School Teachers

civil service eligibility, Sec. 4, (Probationary Period),
No. II, R.A. No. 4670

7. Probationary period of Part-Time Employees

Completion of the six (6) month period for such
number of hours or days- Acting DOLE Sec. Jose S.

2. Project Employment, Art. 280, 1st par., Sec. 5(a) Rule 1, Book VI,
Implementing Rules and Regulations as amended by Rule IV, as amended by
Art. IV, Department Order No.19, Series of 1993.amendingPolicy Instruction
No. 20 (Guidelines Governing the Workers in the Construction Industry)

2.A Nature of Project Employment an 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.

a. Definition and nature of project employment

Hanjin Heavy Industries & Construction Co. v. Ibaez (2008), nature of

project employment

b. Indicators of project employment, Sec. 2.2 Department Order No.

19, Series of 1993

Cocomangas Hotel Beach Resort v. Visca, G.R. No. 167045, Aug. 29,

c. Employees should be notified of their status as project

employment only.

Abesco Construction and Development Corp., v. Ramirez, G.R. No.

141168, April 20, 2006

d. The employment contract is only signed by the president and

the manager but not the employee concerned.

Raycor v. Aircontrol System, Inc. v. NLRC, G.R. No. 114290, Sept. 9,


e. Consent must be knowingly and voluntarily and without

force, duress or improper pressure.

Caramol v. NLRC, G.R. No. 102973, 225 SCRA 582

f. Exception to Art. 280, a fixed period employment, a day
certain; requisites

Brent School Inc. v. Zamora, G.R. No.48494, Feb. 5, 1990

g. Absence of a provision in the contract of employment of

specific project or undertaking.

Price v. Innodata Phils.,/Innodata Corp., G.R. No. 178505, Sept. 30,


h. No notice that employees were appraised of the nature of

employment, the specific projects or any phase thereof.

Chua v. Court of Appeals, G.R. No. 125837, Oct. 6, 2004

i. elements before a project employee attains the status of a

regular employment.

Maraguianot Jr v. NLRC, G.R. No. 120969, Jan. 22, 1998.

2.B Work Pool Employment, Policy Instruction No. 20

a. Classification of Work Pool

1. Non project employees
2. Project employees
3. Regular project employees,

Tomas Lao Construction v. NLRC, G.R. No.116781, Sept. 5, 1997

b. Work-pool in industry other than in construction


c. Application of work pool in the business of data


Imbuido v. NLRC, G.R. No. 114734, March 31, 2000

2.C Two (2) types of Project Employment

1. Project that is within the regular trade or business

of the employer

Magcalas v. NLRC, G.R. No. 100333, March 13, 1997

2. Project not within the regular trade or business of
the employer

Villa v. NLRC, G.R. No. 117043, Jan. 14, 1998

d. Definition of specific project or undertaking

Tucor Industries, Inc. v. NLRC, G.R. No. 96608, May 20, 1991

e. the absence of a definite duration for the projects leads

to no other conclusion the that the employment is regular.

PNOC-Energy Development Corp. v. NLRC, G.R. No. 169353, April 13,


f. Lack of evidence to prove that employment is project

Olangapo Maintenance Services, Inc. v. Chantengco, G.R. No. 156146,

June 21,2007

g. Worker hired on a phase project can be dismissed on

completion of such phase project and not coterminous
with the completion of the whole project; termination of
phase of a project

Saberola v. Suarez, G.R. No. 151227, July 14, 2008

h. project to project basis of employment

Sandoval Shipyard Inc. v. NLRC, G.R. No. L-65689 and 66119, May 31

i. Engaged in contracting electrical services depending on

the availability of projects or works

Cartagenas v. Romago Electric Co. Inc., G.R. No. 82973, Sept. 15, 1989

j. Repeated rehiring of project to project employment. (44


Samson v. NLRC, G.R. No. 113166, Feb. 1, 1996

k. The length of service of project employees is not the

controlling factor.
D.M. Consunji, Inc. v. NLRC, G.R. No. 116572, Dec. 18, 2000

l. Rehiring of the employees on a project to project basis

does not ipso facto make their employment regular

Cioco v. C.E Construction Corp., G.R. No. 156748, Sept. 8, 2004

m. Employees were rehired on interval basis.

Caseres v. Universal Robina Sugar Milling Corp., G.R. No. 159343, Sept.
28, 2007

n. Repeated extension of employment contracts make the

employment regular

Tomas Lao Construction v. NLRC, G.R. No. 116781

3. Seasonal Employment, Art. 280, LCP, Sec. 5, Rule 1, Book VI,

Implementing Rules

a. Seasonal workers do not become regular employees

even after one (1) year of service

Mercado v. NLRC, G.R. No. 79869, Sept. 5, 1991

b. Seasonal workers become regular employees after one

(1) year of service

Tacloban Sagkahan Rice and Corn Mills, Co. v. NLRC, G.R. No. 73806,
March 21, 1990

c. Requisites in order that seasonal employment may be

regular employment

Hacienda Fatima v. National Federation of Sugarcane Workers-Food and

General Trade, Jan. 28, 2003

Abasolo v. NLRC, G.R. No. 118475, Nov. 29, 2000

4. Casual Employment, Art. 280, Sec. 5(b), Rule 1, Book VI, (amended by
Art, IV, D.O. No. 10, Series of 1997

a. Casual employee needs no appointment paper to be a

regular employee after one (1) year of service
Kimberly Clark (Phils.) v. Secretary of Labor, G.R.No. 156668, Nov. 23,

b. Repeated rehiring of casual employees makes him are

regular employee.

Tan v. Lagrama, G.R. No. 151228, Aug. 15, 2002

5. Fixed term employment

Brent School Inc. v. Zamora and Alegre, G.R. No. 48494, Feb. 5, 199

a. Requisites for a valid fixed term contract of employment

PNOC v. NLRC, G.R. No. 97747, March 31, 199

b. Duties (need not) are usually necessarily or desirable in

the employers usual business or trade

AMA Computer College Paranaque v. Austria, G.R. No. 164078, Nov. 25,
Pantranco North Express Inc. v. NLRC, G.R. No. 106654, Dec. 16, 1994

c. Fixed term employment for less than six (6) months

same with probationary employment

Caparoso v. NLRC, G.R. No. 155505, 02.15.200

d. Employees employment contract on a five (5) month


Pure Foods Corp. v. NLRC, G.R. No. 122653, Dec. 12, 1997
Universal Robina Corp. v. Catapang, G.R. No. 164736, Oct. 14, 2005

e. Employees allowed to work after the fixed period of

employment becomes regular.
Viernes v. NLRC, G.R. No. 108405, April 4, 2003

f. Employees allowed to work for more than one (1) year

becomes regular.

Megascope General Services v. NLRC, G.R. No. 109224, June 19, 1997
Agusan del Norte Electric Coop, Inc. v. Cagampang and Garzon, G.R. No.
167627, Oct. 10, 2008

g. Successive renewals of fixed period employment

contract becomes regular.

Philips Semiconductors v. Fadriquela, G.R. No. 141717, 04.14, 2004

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