PROFESSIONAL ELECTIVE 3 PROBATIONARY PERIOD
LESSON 3 (FINALS)
LABOR CODE - PART 2 GENERAL RULE: shall not exceed six (6) months
from the date the employee started working
KIND OF EMPLOYMENT/EMPLOYEES
a. Regular EXCEPTIONS:
b. Casual 1. Covered by an apprenticeship agreement
c. Probationary stipulating a longer period (LC Art. 296)
d. Project 2. Voluntary agreement of parties (especially when
e. Seasonal nature of work requires a longer period)
f. Fixed-term 3. The employer gives the employee a second
chance to pass the standards set
A. REGULAR 4. When a longer period is required (highly
- has been engaged to perform tasks usually technical skills) and established by the company
necessary or desirable to the usual trade or policy
business of the employer (by nature of work)
D. PROJECT
- the reasonable connection between the - One whose employment has been fixed for a
particular activity performed by the employee to specific project or undertaking, the completion of
the usual trade or business of the employer which has been determined at the time of
engagement of the employee. (LC Art. 295)
- repeated and continuing need for the
performance of the job has been deemed 2 requisites:
sufficient evidence of the necessity, if not a. employee was assigned to carry out a specific
indispensability of the activity to the business project or undertaking
b. duration and scope of which were specified at
WAYS TO BECOME A REGULAR EMPLOYEE the time they were engaged for such project.
1. By nature of work - Labor Code, Art. 295
2. By length of service - casual EE who has Project to regular?
rendered at least 1 year of service 1. There is continuous re-hiring of project
3. Work beyond the probationary employment employee even after the cessation of a project
4. Repeated hiring for the same tasks or nature of tasks and;
2. The tasks performed by the alleged project
B. CASUAL employee are vital, necessary, and
- perform activities which are incidental to the indispensable to the usual business or trade of
business of the employer the employer
- work must be a definite period made known to
both parties at the time of engagement E. SEASONAL
- one whose work is neither regular, project, or - Work or services to be performed is seasonal in
seasonal nature and the employment is for the duration of
the season (LC Art. 295) Example: farmers
C. PROBATIONARY
- where the employee, upon his engagement, is REGULAR SEASONAL
made to undergo a trial period during which the - called to work from time to time
employer determines his fitness to qualify for - Regular employment because of their job, and
regular employment based on the reasonable not because of the length of the time they have
standards made known to him at the time of his worked
engagement (LC Art. 296)
SEASONAL TO REGULAR
- must have been expressly agreed upon. If there 1. Where the reasonable connection between the
is no such agreement, the employment is particular activity performed by the employee in
considered regular relation to the usual trade or business of the
employee; and
- Standards must be made known to employee
, 2. When seasonal workers are engaged Contracting or Subcontracting refers to an
repeatedly to perform the same tasks for more arrangement whereby a principal agrees to farm out
than one season to a contractor the performance or completion of a
specific job or work within a definite or predetermined
F. FIXED-TERM period, regardless of whether such work is to be
- repealed by Labor Code performed or completed within or outside the
- allowed the Civil Code which is a general law premises of the principal. (DO 174- 17, Sec. 3(c)
CONTRACTING AND SUBCONTRACTING LABOR-ONLY CONTRACTING
- An arrangement where the contractor or
Art. 106 Contractor/Subcontractor subcontractor recruits, supplies, or places
workers to perform a job or work for a principal,
Whenever an employer enters into a contract with and the elements hereunder:
another person for the performance of the former's A. The contractor does not have a substantial
work, the employees of the contractor and of the capital or the contractor does not have
latter's subcontractor, if any, shall be paid in investments in the from of tools, equipments,
accordance with the provisions of this Code. machineries; and the sub/contractor's
employees recruited and placed are performing
In the event that the contractor or subcontractor fails activities which are directly related to the main
to pay the wages of his employees in accordance with business of the principal; or
this Code, the employer shall be jointly and severally B. The contractor or subcontractor does not
liable with his contractor or subcontractor to such exercise the right of control over the work of the
employees to the extent of the work performed under employee
the contract, in the same manner and extent that he is
liable to employees directly employed by him. TRILATERAL RELATIONSHIP
The Secretary of Labor may, by appropriate
regulations, restrict or prohibit the contracting out of
labor to protect the rights of workers established
under this Code. In so prohibiting or restricting, he
may make appropriate distinctions between labor-
only contracting and job contracting as well as
differentiations within these types of contracting and
determine who among the parties involved shall be
considered the employer for purposes of this Code, to
prevent any violation or circumvention of any
provision of this Code.
There is "labor-only" contracting where the person Labor-Only Contracting (SC Ruling)
supplying workers to an employer does not have TOTALITY OF THE CIRCUMSTANCES
substantial capital or investment in the form of tools, • The contractor is carrying on an independent
equipment, machineries, work premises, among business
others, and the workers recruited and placed by such • the nature and extent of the work
persons are performing activities which are directly • the skill required
related to the principal business of such employer. In • the term and duration of the relationship
such cases, the person or intermediary shall be • the right to assign the performance of specified
considered merely as an agent of the employer who pieces of work
shall be responsible to the workers in the same • the control and supervision of the workers
manner and extent as if the latter were directly • the power of the employer with respect to the hiring,
employed by him. firing and payment of the workers of the contractor
• the control of the premises
• the duty to supply premises, tools, appliances,
materials and labor
• the mode, manner and terms of payment.
LESSON 3 (FINALS)
LABOR CODE - PART 2 GENERAL RULE: shall not exceed six (6) months
from the date the employee started working
KIND OF EMPLOYMENT/EMPLOYEES
a. Regular EXCEPTIONS:
b. Casual 1. Covered by an apprenticeship agreement
c. Probationary stipulating a longer period (LC Art. 296)
d. Project 2. Voluntary agreement of parties (especially when
e. Seasonal nature of work requires a longer period)
f. Fixed-term 3. The employer gives the employee a second
chance to pass the standards set
A. REGULAR 4. When a longer period is required (highly
- has been engaged to perform tasks usually technical skills) and established by the company
necessary or desirable to the usual trade or policy
business of the employer (by nature of work)
D. PROJECT
- the reasonable connection between the - One whose employment has been fixed for a
particular activity performed by the employee to specific project or undertaking, the completion of
the usual trade or business of the employer which has been determined at the time of
engagement of the employee. (LC Art. 295)
- repeated and continuing need for the
performance of the job has been deemed 2 requisites:
sufficient evidence of the necessity, if not a. employee was assigned to carry out a specific
indispensability of the activity to the business project or undertaking
b. duration and scope of which were specified at
WAYS TO BECOME A REGULAR EMPLOYEE the time they were engaged for such project.
1. By nature of work - Labor Code, Art. 295
2. By length of service - casual EE who has Project to regular?
rendered at least 1 year of service 1. There is continuous re-hiring of project
3. Work beyond the probationary employment employee even after the cessation of a project
4. Repeated hiring for the same tasks or nature of tasks and;
2. The tasks performed by the alleged project
B. CASUAL employee are vital, necessary, and
- perform activities which are incidental to the indispensable to the usual business or trade of
business of the employer the employer
- work must be a definite period made known to
both parties at the time of engagement E. SEASONAL
- one whose work is neither regular, project, or - Work or services to be performed is seasonal in
seasonal nature and the employment is for the duration of
the season (LC Art. 295) Example: farmers
C. PROBATIONARY
- where the employee, upon his engagement, is REGULAR SEASONAL
made to undergo a trial period during which the - called to work from time to time
employer determines his fitness to qualify for - Regular employment because of their job, and
regular employment based on the reasonable not because of the length of the time they have
standards made known to him at the time of his worked
engagement (LC Art. 296)
SEASONAL TO REGULAR
- must have been expressly agreed upon. If there 1. Where the reasonable connection between the
is no such agreement, the employment is particular activity performed by the employee in
considered regular relation to the usual trade or business of the
employee; and
- Standards must be made known to employee
, 2. When seasonal workers are engaged Contracting or Subcontracting refers to an
repeatedly to perform the same tasks for more arrangement whereby a principal agrees to farm out
than one season to a contractor the performance or completion of a
specific job or work within a definite or predetermined
F. FIXED-TERM period, regardless of whether such work is to be
- repealed by Labor Code performed or completed within or outside the
- allowed the Civil Code which is a general law premises of the principal. (DO 174- 17, Sec. 3(c)
CONTRACTING AND SUBCONTRACTING LABOR-ONLY CONTRACTING
- An arrangement where the contractor or
Art. 106 Contractor/Subcontractor subcontractor recruits, supplies, or places
workers to perform a job or work for a principal,
Whenever an employer enters into a contract with and the elements hereunder:
another person for the performance of the former's A. The contractor does not have a substantial
work, the employees of the contractor and of the capital or the contractor does not have
latter's subcontractor, if any, shall be paid in investments in the from of tools, equipments,
accordance with the provisions of this Code. machineries; and the sub/contractor's
employees recruited and placed are performing
In the event that the contractor or subcontractor fails activities which are directly related to the main
to pay the wages of his employees in accordance with business of the principal; or
this Code, the employer shall be jointly and severally B. The contractor or subcontractor does not
liable with his contractor or subcontractor to such exercise the right of control over the work of the
employees to the extent of the work performed under employee
the contract, in the same manner and extent that he is
liable to employees directly employed by him. TRILATERAL RELATIONSHIP
The Secretary of Labor may, by appropriate
regulations, restrict or prohibit the contracting out of
labor to protect the rights of workers established
under this Code. In so prohibiting or restricting, he
may make appropriate distinctions between labor-
only contracting and job contracting as well as
differentiations within these types of contracting and
determine who among the parties involved shall be
considered the employer for purposes of this Code, to
prevent any violation or circumvention of any
provision of this Code.
There is "labor-only" contracting where the person Labor-Only Contracting (SC Ruling)
supplying workers to an employer does not have TOTALITY OF THE CIRCUMSTANCES
substantial capital or investment in the form of tools, • The contractor is carrying on an independent
equipment, machineries, work premises, among business
others, and the workers recruited and placed by such • the nature and extent of the work
persons are performing activities which are directly • the skill required
related to the principal business of such employer. In • the term and duration of the relationship
such cases, the person or intermediary shall be • the right to assign the performance of specified
considered merely as an agent of the employer who pieces of work
shall be responsible to the workers in the same • the control and supervision of the workers
manner and extent as if the latter were directly • the power of the employer with respect to the hiring,
employed by him. firing and payment of the workers of the contractor
• the control of the premises
• the duty to supply premises, tools, appliances,
materials and labor
• the mode, manner and terms of payment.
