In Philippines, the regulating legislation between employment relationship is called the Labour Code of Philippines (Labour Code). It also applies to foreign nationals working in the country. Being a country that adopts pro-labour policies with guaranteed security of tenure, employers must understand the Labour Code for the dos and dont’s to prevent getting into unwanted trouble with the law. The law distinguishes between different categories of workers with entitlements to statutory requirements, duration of engagement and other benefits.
Regular or permanent employees in Philippines are those whose work are necessary or desirable in the usual business or trade of the employer. The primary standard to determine regular employment is the reasonable connection between the job performed by the employee in relation to the business or trade of employer. It is important to identify if the activities carried out by employees are necessary or desirable. Regular employees typically would have rendered at least one year of service. They cannot be terminated without just and authorized causes determined by law. It is common to be put under probationary terms before transiting into regular or permanent employment in the company.
A project employee in Philippines is on employment for a specific project or undertaking. The duration of project will be set and determined, where employees will complete or terminate engagement once it ends. In the Labour Code of Philippines, it is important to specify the project one is employed on. Additionally, there must also be a clear agreement on the completion or terminated of the project at the time of employment. Predetermining the duration of project employment is important in determining if employee is a project employee or not. They may acquire the status of a regular employee when they are continuously rehired after the completion of a project or undertaking. Else, they will automatically be terminated.
Employees on seasonal employment in Philippines will only work for the duration of the season. Some work is seasonal in nature and is only performed during a specific time of the year. One example is during Christmas where a group of workers will usually be engaged for the duration of the promotional event. They are mostly part-time or temporary workers that help with increased work demands for that period. These workers will be temporarily laid off during off season but re-employed when their services are needed. The employee relationship is never severed but only suspended.
Casual employment in Philippines is defined where an employee is engaged to perform a job insignificant to the core business of the employer. The work must be a definite period made known to both parties at the time of engagement. A casual employee is one whose work is neither regular, project or seasonal. Once they have worked for at least a year, whether continuously or not, they transition into a regular employee with respect to the employed position. A casual employee is entitled to all rights and privileges granted by law to regular employees during the period of actual employment. Similarly, all duties and obligations must be abided by between both parties.
Fixed term employees in Philippines are also known as contractual employees where they are engaged to perform a job, work or service for a pre-determined date of completion, or where the employment has a specific date of termination. The term of contract will be mutually agreed by both parties and employees will be automatically terminated once the contract ends. During this term, fixed term employees cannot be terminated without due processes and cause under the Labour Code of Philippines.
Probationary employees in Philippines are those made to go on a stipulated trial period before transiting to a regular employee. They enjoy security of tenure during this period and may not be dismissed except for just or authorised case or when they fail to qualify as regular employees. During this crucial period, employees on probation are scrutinised and assessed on their ability to perform on the job. This not only allows the employer to judge if new hires can carry out the job well, it also allows employees to understand their own suitability to the job. Good performing candidates will be allowed to successfully transit into a regular employee while non-performers will normally be asked to leave. This probationary period typically lasts not more than 6 months. Similarly, being deemed as a regular employee means they cannot be terminated without cause and due process and it protected under the Labour Code of Philippines.
There is more than it meets the eye for hiring in Philippines especially when the process of profiling, screening, interviewing, and on-boarding takes much effort and time. On top of that, companies unfamiliar with Labour laws in Philippines will have to be up to date to prevent going against the country’s legislation. Employment companies can be consulted before any major decisions should be made. Additionally, most employment companies will be able to help with full recruitment, contract staffing and payroll outsourcing processes to aid in a smooth business process. In Philippines, EPS Group (Philippines) is a major outstanding player with more than 25 years of experience in the recruitment landscape. Over the years, their expertise in working with MNCs and government organisations allowed EPS to build a reputable image with resounding testimonials.
EPS Staffing Service Group Inc. is a trusted HR partner in the Philippines and a part of EPS Group that has been operating recruitment and contract staffing services over decades in SEA.