Article 280 of the labor code and the jurisprudence of the Philippines contemplates 5 types of employment. Project based employment is one of them.

  • Project Based Employment
  • Regularization of Project Employees
  • Project Based Employment Benefits
  • Termination of Project Employees

Project Based Employment

Project based employment is a type of employment when employees are employed for a specific project. Therefore, the employee may be terminated at a predetermined time or upon the completion of the project.

However, the nature of employment is not dictated by the type of employment contract but rather by the definition of law. In order to determine that it is a project based employment, the employer must prove that the employee was assigned to carry out a specific project or undertaking. Besides that, the duration of the employment and the scope of responsibilities were specified to the employee at the time of engagement.

Regularization of Project Employees

Project based employment shall not be a means to circumvent the employee’s right to security of tenure. Therefore, when a project employee is continuously rehired to perform activities necessary to the business, the employee shall be deemed as a regular employee as seen in the case of Alejandro Maraguinot, Jr, el at. vs. NLRC.

Project Based Employment Benefits

Project employees also enjoy statutory benefits such as service incentive leave, holiday pay, and 13th month pay. Besides that, the project employees are also entitled to overtime pay and night shift differential, whenever applicable. The nature of employment is not a requirement to qualify for these benefits or additional compensation.

Termination of Project Employees

Project employees’ employment is coterminous with each project or phase of the project to which they are assigned. This means that project employees may be validly dismissed upon the completion of the project or phase of the project which they are assigned. When the project¬†based employment is terminated due to the completion of the project or phase thereof, the employer is not required to provide prior notice. A project employee shall not be terminated without a just or authorized cause before the expiration of the term of his or her project employment.