Dear Atty. Vlad,

 I own a construction company and started to hire project-based employees depending on the need of the client for every project. I hired 25 employees last year whose contracts expired this December 2022. By January 2023, I will be starting a new project. However, since the project is a smaller one, I will only need 10 project-based employees. Will there be any consequence if I only choose 10 out of those 25 I have previously employed on a project basis? I hope you can help me.

Zandro

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Dear Zandro,

Under Philippine laws and decisions of the Supreme Court, project employment has been recognized.

The Supreme Court in the case of Isabelo Violeta, et al. vs National Labor Relations Commission, et al., (G.R. 119523, 10 October 1997) stated, as follows:

"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."

In addition, 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.