Dear Atty. Vlad,

I own a construction company and started to hire project-based employees depending on the needs of clients. I hired 30 employees last year and their contracts expired in December 2021. This June 2022, a new project was awarded to me but I will only need 15 project-based employees. Will there be any consequence if I only choose 15 out of those 30 I previously engaged?

Mark

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Dear Mark,

Your question can be answered by citing the decision of the Supreme Court. In the case of Isabelo Violeta, et al. vs National Labor Relations Commission, et al., (G.R. 119523, 10 October 1997), the Court ruled:

"The principal test for determining whether particular employees are properly characterized as 'project employees,' as distinguished from 'regular employees,' is whether or not the 'project employees' were assigned to carry out a 'specific project or undertaking,' the duration (and scope) of which were specified at the time the employees were engaged for that project. As defined, project employees are those workers hired (1) for a specific project or undertaking, and (2) the completion or termination of such project or undertaking has been determined at the time of engagement of the employee."

Further, either one or more of the following circumstances, among others, may be indicators that an employee is a project employee (Section 2.2, D.O. 19-93):

(a) The duration of the specific/identified undertaking for which the worker is engaged is reasonably determinable.

(b) Such duration, as well as the specific work/service to be performed, is defined in an employment agreement and is made clear to the employee at the time of hiring.

(c) The work/service performed by the employee is in connection with the particular project/undertaking for which he is engaged.

(d) The employee, while not employed and waiting for engagement, is free to offer his services to any other employer.