Dear Atty. Gab,

Musta Atty! I’m writing to you because I’m really confused about my employment situation. I’ve been working for a construction company, BuildWell Corp. in Bulacan, for almost five years as a general laborer. Initially, there was no specific contract, and I understood I was a regular employee. However, recently, the company presented me with a new contract stating I am now a “project employee” tied to the completion of a specific building project in Meycauayan.

They said it’s just a formality, but I’m worried. What happens after this project is done? Can they just let me go? Several of my colleagues were supposedly let go when their projects were finished, but they had been with the company much longer. What are my rights in this situation? I never signed any other contracts except this one. I am concerned about losing my job and benefits, and would greatly appreciate any advice you can give. It’s been hard to sleep lately wondering whether or not my family and I can survive.

Thank you so much for your time and expertise.

Sincerely,
Alfredo Fernandez

Dear Alfredo,

Magandang araw, Alfredo! I understand your concern regarding the reclassification of your employment status. It’s crucial to determine whether your initial employment established you as a regular employee, and what the implications are of signing a new contract designating you as a project employee.

The key issue here is whether your work is integral to the company’s regular business operations. If so, and if no fixed-term contract existed at the start, you may indeed have grounds to claim regular employee status, regardless of subsequent contracts.

Understanding Job Security in the Construction Industry

Determining employment status is critical in the Philippines, as it dictates the scope of an employee’s rights and protection under the law. The classification between regular and project employees hinges on the nature of the work performed and the existence of a fixed-term contract. Let’s discuss some important factors in determining employment status, so we can better understand your rights:

If you were hired to perform tasks vital to BuildWell Corp’s core business without a contract specifying a definite period or project, you likely gained regular employee status. This means you are entitled to security of tenure and cannot be terminated without just cause and due process.

“To show otherwise, respondent should have presented his employment contract for the alleged specific project and the successive employment contracts for the different projects or phases for which he was hired. In the absence of such document, he could not be considered such an employee because his work was necessary and desirable to the respondent’s usual business and that he was not required to sign any employment contract fixing a definite period or duration of his engagement. Thus, Martos already attained the status of a regular employee.”

This excerpt discusses the importance of a written employment contract specifying the project and duration of employment for an employee to be considered a project employee. If no contract of this kind existed at the beginning, you may have rights under the law as a regular employee.

Conversely, project employees are hired for a specific undertaking, with employment tied to the project’s completion. The termination of their employment upon the project’s end is not considered illegal dismissal, provided certain conditions are met. The employer must prove you were hired for a specific project.

“Private respondents claim that petitioner hired them as regular employees, continuously and without interruption, until their dismissal on February 28, 2002.”

In your case, the fact that you were asked to sign a new contract after five years of employment raises a red flag. It suggests BuildWell Corp. may be attempting to circumvent labor laws by retroactively changing your employment status. It is important that employers adhere to the rules when reclassifying a role.

The law recognizes that an employer should report the termination of a project employee to the Department of Labor and Employment (DOLE). If your termination was not reported, it may be seen as unlawful.

“Moreover, the CA noted that respondent did not report the termination of Martos’ supposed project employment to the Department of Labor and Employment (DOLE), as required under Department Order No. 19.”

The fact that you were asked to sign a new employment contract raises the possibility of constructive dismissal. Being asked to sign an updated contract that changes the terms of your job can be considered a form of termination.

“Being a regular employee, the CA concluded that he was constructively dismissed when he was asked to sign a new appointment paper indicating therein that he was a project employee and that his appointment would be co-terminus with the project.”

This passage highlights that requiring a regular employee to sign a new contract changing their status to project employee can be seen as constructive dismissal. Thus, any termination that follows may be illegal.

Practical Advice for Your Situation

• Do not sign the new contract immediately: Take time to review the contract carefully and seek legal advice before signing it.
• Gather evidence of your employment: Collect all documents related to your employment, such as payslips, company IDs, and any written communication from BuildWell Corp.
• Consult with a labor lawyer: A labor lawyer can assess your situation, advise you on your rights, and represent you in negotiations with your employer or in legal proceedings if necessary.
• Document your job responsibilities: Keep a record of your daily tasks and responsibilities to demonstrate that your work is essential to BuildWell Corp.’s regular business operations.
• Consider filing a complaint with DOLE: If you believe your employer is violating labor laws, you can file a complaint with the Department of Labor and Employment (DOLE).
• Negotiate with your employer: Attempt to negotiate with BuildWell Corp. to maintain your status as a regular employee or to receive fair compensation if they insist on terminating your employment.
• Be prepared to take legal action: If negotiations fail, be prepared to file a case for illegal dismissal with the National Labor Relations Commission (NLRC).

Hope this helps!

Sincerely,
Atty. Gabriel Ablola

For more specific legal assistance related to your situation, please contact me through gaboogle.com or via email at connect@gaboogle.com.

Disclaimer: This correspondence is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please schedule a formal consultation.