Types of Employment in the Philippines

Employment in the Philippines Overview

Depending on the company and/or industry, there are various types or categories of employment in the Philippines. This essentially comes down to how the employer wants the employee’s employment to be structured, which should be bound by a contract signed by both the employer and employee.

Project Employment

Where the 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 in the Philippines.

Seasonal Employment

Where the work or services to be performed is seasonal in nature and the employment is for the duration of the season in the Philippines.

Casual Employment

Where the employment is not covered by the foregoing, provided that an employee who has rendered at least one year of service, whether continuous or broken, shall be considered regular with respect to the activity in which he or she is employed and his or her employment shall continue while the activity exists.

Term or Fixed Employment

Another category of employment in the Philippines recognized in jurisprudence is “term” or “fixed-period employment.” This is based on Art. 1193 of the CC, which states that obligations with a resolutory period take effect at once, but terminate upon arrival of the day certain – understood to be a day that must necessarily come. 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 the employment relationship. Stipulations in employment contracts providing for “term employment” or “fixed-period employment” are valid when the period has been agreed upon knowingly and voluntarily by the parties, without force, duress or improper pressure exerted on the employee, and when such stipulations were not designed to circumvent the laws on security of tenure.

Probationary Employment

Probationary employment is not necessarily a category of employment in the Philippines. It pertains to a period of time in which the employee is being observed and evaluated to determine whether or not he is qualified for permanent employment. Under Art. 281 of the LC, probationary employment shall not exceed six months. An employee who is allowed to work after a probationary period shall be considered a regular employee. A probationary employee is, for a given period of time, under observation and evaluation to determine whether or not he or she is qualified for permanent employment. During the probationary period, the employer is given the opportunity to observe the skills, competence, and attitude of the employee while the latter seeks to prove to the employer that he or she has the qualifications to meet the reasonable standards for permanent employment.