The Supreme Court (SC) has ruled that contract of services and job order (JO) workers hired by the Philippine Amusement and Gaming Corporation (PAGCOR) are not considered government employees under the jurisdiction of the Civil Service Commission (CSC).

In a decision penned by Associate Justice Ramon Paul L. Hernando, dated 19 June, 2024, the Supreme Court’s First Division affirmed that a group of workers employed by PAGCOR in its hotel and restaurant business were not covered by Civil Service laws, rules, and regulations.

PAGCOR, a government-owned or -controlled corporation (GOCC) under Presidential Decree No. 1869, as amended by Republic Act No. 9487, hired the workers in various roles, including cook, waiter, and kitchen supervisor. Despite signing fixed-term contracts that were occasionally renewed, the workers served for periods ranging from one to 17 years.

When PAGCOR closed its hotel business in Bacolod City, it did not renew the workers' contracts. The workers filed an illegal dismissal complaint with the CSC Regional Office VI, arguing they were regular employees entitled to security of tenure. However, the complaint was dismissed for lack of jurisdiction, as the CSC found the workers were not government employees.

The CSC’s decision was upheld by the Court of Appeals (CA), which was later affirmed by the SC. The Court ruled that there is no employer-employee relationship between the government and job order workers, and their services are not considered government service covered by Civil Service law.