Dear Atty. Vlad,

I own a small construction company and my employees are project-based. Last September 2023, my project ended. I have 10 project-based employees who worked in that project. After 10 days, I submitted a Termination Report to the Department of Labor and Employment and paid my workers their completion bonus. By December of this year, I will have another project but I will only be requiring six workers since the project is small. All 10 employees are hoping that I can include them in the new project. Will there be any consequence if I only choose six out of those 10 I previously engaged?

Christopher

Dear Christopher,

From the facts that you shared to me, it appears that have submitted a Termination Report to DoLE and paid your workers completion bonus. Hence, even if you only choose six out of the 10 individuals you previously engaged in your last project, the same is still valid.  Project Employment is recognized under Philippine laws and decisions of the Supreme Court.

In the case of Isabelo Violeta, et al. vs. National Labor Relations Commission, et al., (G.R. No. 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.