SECURITY OF TENURE

It is the right not to be removed from one's job except for a valid reason
and
through proper procedure
Applies not only to regular employees but also to non-regular employees
(eg: fixedperiod employment, project employment, probationary
employment)
Managerial employees are entitled to security of tenure
An employee unjustly dismissed is entitled to reinstatement and to his
full backwages and other benefits
SECURITY OF TENURE
Security of tenure for non-regular employees means that they may not be
terminated without a valid cause during the period in which they are
hired.
KINDS/CLASSIFICATION OF EMPLOYMENT
 Regular
 Casual
 Seasonal
 Project
 Probationary
 Fixed-Term
GENERAL RULE
EMPLOYMENT IS DEEMED REGULAR
EXCEPTIONS
Probationary, seasonal, fixed-term, casual and project employment
EXCEPTIONS TO THE EXCEPTION
 Probationary employees allowed to work even after probationary period
 Casual workers rendering service for more than one year
 Fixed-Term employee allowed to work after term has expired/ended
 Fixed-Term employee who entered the contract on unequal terms with
the employer
 Project employee allowed to work after project without any contract; or
project
 Project employee allowed to work project after project but no termination
reports.
 Seasonal worker hired repeatedly/from time to time the same task every
season
REGULAR EMPLOYEES
Those who are hired for activities which are necessary and desirable in the usual
trade or business of the employer.

2 Kinds of Regular Employees

1. Those engaged in labor which is necessary and desirable in the usual
trade or business of the employer
2. Those who have rendered at least 1 year of service, whether continuous or
broken, with respect to the activity in which they are employed
REGULAR EMPLOYEES
Standards for determining regular
employment:

1. Reasonable connection between the work performed and the usual

trade or business of the employer

2. Length of service
REGULAR EMPLOYEES
Nelson Begino, et al., vs. ABS-CBN , etc., G.R. No. 199166, 20 April 2015. –
The Court finds that, notwithstanding the nomenclature of their Talent Contracts
and/or Project Assignment Forms and the terms and conditions embodied
therein, petitioners are regular employees of ABS-CBN. As
cameraman/editors and reporters, petitioners were performing functions
necessary and essential to ABSCBN’s business of broadcasting television
and radio content. It matters little that
petitioners’ services were engaged for specified periods for TV Patrol Bicol
and that they were paid according to the budget allocated therefor.
Respondents’ repeated rehiring of petitioners for its long-running news
program positively indicates that the latter were ABS-CBN’s regular
employees.
REGULAR EMPLOYEES
Millares v NLRC –
Seafarers are contractual employees (fixed-term employment) pursuant to
the accepted maritime industry practice and the fact that there was
continuous re-hiring for a very long period does not and cannot make
them regular employees
Price v Innodata –
Applicable test to determine whether an employment is regular or non-regular is
the reasonable connection between the task performed by the employee
with the usual business of the employer
CASUAL EMPLOYMENT
those who are hired to perform work or service which is merely incidental to
the business of the employer. Any casual employee who has rendered at
least one (1) year of service, whether it be continuous or broken, shall
be considered a regular employee with respect to the activity for which
he is employed, and his employment shall continue while such activity
exists.
CASUAL EMPLOYMENT
Notes:
 When employment is neither regular,
seasonal, fixed or for a specific project
 When employment is irregular, sporadic,
occasional, unpredictable and brief in
nature
 When the work performed is NOT in the
usual course of the employer's business
 Legally, the period is only for 1 year
CASUAL EMPLOYMENT
Regularization of Casual Employee:
 Rendered service for at least 1 year,
whether continuous or broken
 The activity for which he is hired still
exists (regularization is only with
respect to such activity)

Casual employees who are dismissed from their employment before the
expiration of the 1-year period CANNOT lawfully claim that their dismissal is
illegal
FIXED-TERM EMPLOYMENT
those who are hired for a specific period, the arrival of the date specified in the
contract of which automatically terminates the employeremployee
relationship. (Brent School vs. NLRC, 181 SCRA 702 [1989], reiterated in
AMA Computer – Paranaque vs. Austria, 538 SCRA 438 [November 2007]).

Standards for Validity

1. Contract was entered into knowingly and voluntarily by the parties
2. Both parties dealt with each other on more or less equal terms

 Must not be used to circumvent the law granting security of tenure

FIXED-TERM EMPLOYMENT
The decisive determinant in term employment should not be the activities
that the employee is called upon to perform, but the day certain agreed
upon by the parties for the commencement and the termination of their
employment relation.

Pangilinan v General Milling Corp –

Lack of notice of termination for fixed-term employment
is of no consequence since the employment
expires by its own terms at the end of the period
expressly stated in the contract
FIXED-TERM EMPLOYMENT
Purefoods Corp v NLRC –
The failure to prove that the parties entered the contract voluntarily
and on equal terms with each other negates the contention that an
employment contract is a ixed-term employment. In this case, cannery
workers are NEVER on equal terms with their employer.

Pangilinan v General Milling Corp –

Lack of notice of termination for fixed-term employment
is of no consequence since the employment
expires by its own terms at the end of the period
expressly stated in the contract
PROBATIONARY EMPLOYMENT
those who are hired generally for regular positions but are placed on a
probationary status for a period of 6 months (as a general rule). May
become regular once he has qualified as such in accordance with
reasonable standards made known to him at the time of hiring. They are
considered regular if they are allowed to work beyond the probationary
period.

- When employee is on tentative employment during which the employer

determines whether he is qualified for permanent employment
PROBATIONARY EMPLOYMENT
Standards for Validity:

1. Employee is informed of the standards

by which he will qualify as a regular employee

2. Probationary period shall not exceed 6

months (subject to exceptions)
PROBATIONARY EMPLOYMENT
Regularization of probationary employee
 When employee is allowed to work
beyond the probationary period
 When employee is not appraised of
his probationary status
 When employee is not informed of the
standards he needs to comply with to
be a regular employee
PROBATIONARY EMPLOYMENT
Security of Tenure and Termination
 Except for just causes provided by law
or employment contract, a
probationary employee cannot be
terminated
 Valid grounds for termination:
▪ Just cause
▪ Failure to comply with the
reasonable standards made known
to the employee at the time of his
engagement
PROBATIONARY EMPLOYMENT
Abbot Laboratories, Philippines, et al., vs. Pearlie Ann Alcaraz, G.R. No.
192571, 22 April 2014. En Banc. –
If a probationary employee was apprised of the performance standards for
his regularization, his failure to perform the duties and responsibilities
which have been clearly made known to him constitutes a justifiable basis
for a probationary employee’s non-regularization. The determination of
“adequate performance” is not in all cases, measurable by quantitative
specification. It also hinges on the qualitative assessment of the employee’s
work; by its nature, this largely rests on the reasonable exercise of the
employer’s management prerogative.
PROBATIONARY EMPLOYMENT
General Rule: Probationary period cannot
exceed 6 months

Exceptions:
1. 3 years in case of teachers (6 consecutive semesters)
2. When the parties agree to a longer term:
 by virtue of company policy –OR
 when it is required by the nature of the work
PROBATIONARY EMPLOYMENT
Universidad de Sta. Isabel vs. Sambajon, G.R. Nos. 196280 & 196286, 02 April
2014 . –
It is the Manual of Regulations for Private Schools, and not the Labor Code, that
determines whether or not a faculty member in an educational institution has
attained regular or permanent status.
“Thus, while no vested right to a permanent appointment had as yet accrued in
favor of respondent since he had not completed the prerequisite three-year
period (six consecutive semesters) necessary for the acquisition of permanent
status as required by the Manual of Regulations for Private Schools, he enjoys a
limited tenure. During the said probationary period, he cannot be terminated
except for just or authorized causes, or if he fails to qualify in accordance with
reasonable standards prescribed by petitioner for the acquisition of permanent
status of its teaching personnel.”
RULING ON PROBATIONARY EMPLOYMENT ON
FIXED-TERM CONTRACT; EXPIRATION
OF CONTRACT NO LONGER VALID GROUND.
Universidad de Sta. Isabel vs. Sambajon, G.R. Nos. 196280 & 196286, 02 April
2014 ; Colegio del Santissimo Rosario vs. Rojo, G.R. No. 170388, 03 September
2013, reiterating Yolanda Mercado vs. AMA Computer College-Paranaque 618
SCRA 218 [2010].
Facts:
Teacher on probationary status with fixed term contracts who was able to complete three
consecutive years of service. Teacher no longer rehired on the ground that with the
expiration of the contract to teach, the employment contract would no longer be renewed.
Issue:
May the probationary teacher be validly dismissed for expiration of the contract to teach?
RULING ON PROBATIONARY EMPLOYMENT ON
FIXED-TERM CONTRACT; EXPIRATION
OF CONTRACT NO LONGER VALID GROUND.
Ruling:
Cannot be! The termination of a probationary employee must be for his/her
failure to adequately comply with the reasonable standards for regular
employment which must have been made known to the employee at the
time of the engagement, and MUST NOT simply because the probationary
period has expired.
RULING ON PROBATIONARY EMPLOYMENT ON
FIXED-TERM CONTRACT; EXPIRATION
OF CONTRACT NO LONGER VALID GROUND.
SC rationale: Citing Yolanda Mercado vs. AMA Computer Center Paranaque
“In a petition for review for the said Mercado case, the Supreme Court
stated that nothing is illegitimate in defining the school-teacher on fixed
term basis. The school, however, cannot forget that its system of fixed-term
contract is a system that operates during the probationary period and for
this reason is subject to the terms of Article 281 of the Labor Code. Unless
this reconciliation is made, the requirements of this Article on probationary
status would be fully negated as the school may freely choose not to renew
contracts simply because their terms have expired.”
RULING ON PROBATIONARY EMPLOYMENT ON
FIXED-TERM CONTRACT; EXPIRATION
OF CONTRACT NO LONGER VALID GROUND.
Given the clear constitutional and statutory intents, the Supreme Court
concluded that in a situation where the probationary status overlaps with a
fixed-term contract not specifically used for the fixed term it offers, Article
281 should assume primacy and the fixed-period character of the contract
must give way.
CASES ON PROBATIONARY EMPLOYMENT
Aliling v Feliciano –
If a probationary employee has been informed of the standards of his job
but was subsequently transferred to a different department or ordered to do
a job different from what he was informed of, the he is deemed to be
a regular employee

AM Oreta v NLRC –
Probationary employees should be informed of their probationary status
AND the standards or qualifications to be a regular employee. Absent such
requisites, the employee is deemed to be a regular employee
CASES ON PROBATIONARY EMPLOYMENT
Buiser v Leogardo –
When the nature of the job requires a longer period for the employer to
evaluate the employee's performance, the probationary period may be longer
than 6 months.

Holiday Inn v NLRC –

A period of on-the-jobtraining in addition to a six-month probationary
period should be considered as 1 probationary period only (thus it may not
exceed a total of 6 months) since a system of double probation clearly
circumvents the plain mandate of the law
CASES ON PROBATIONARY EMPLOYMENT
Mariwasa Mfg v Leogardo –
The probationary period may be extended beyond 6 months when
it is an act of liberality on the part of the employer affording the employee a
second chance to make good after having initially failed to prove his worth
as an employee

Mylene Carvajal v Luzon Bank –

If the ground for terminating a probationary employee is the failure to qualify
in accordance with the standards prescribed by the employer, notice
and hearing of termination is NOT required
CASES ON PROBATIONARY EMPLOYMENT
PDI v Magtibay –
Due process for the second ground of termination (failure to comply with the
prescribed standards) consists of making the reasonable standards known to
the employee at the time of his probationary employment. Hearing and notice of
termination is not required for the second ground.

Pine City v NLRC –

Where a probationary employee is dismissed for failure to comply with
standards, and they were NOT informed of such standards and qualifications,
they must be given ample opportunity to refute the allegations that they failed to
meet such standards
PROJECT EMPLOYMENT
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.

Standards for validity:

1. The employees were assigned to carry
out a specific project or undertaking.
2. The duration and scope of which were specified at the time the
employees were engaged in said project (employees were duly informed)
PROJECT EMPLOYMENT
The length of service or the re-hiring of construction workers on a project-to
project basis does not confer upon them regular employment status,
since their re-hiring is only a natural consequence of the fact that
experienced construction workers are preferred. Wilfredo Aro, Ronilo
Tirol, et al. vs. NLRC, Fourth Division, et al., G.R. No. 174792, 07 March
2012
PROJECT EMPLOYMENT
Indicators of Project Employment is found in Section 2.2(e) and (f) of DOLE
Department Order No. 19, Series of 1993, entitled Guidelines Governing
the Employment of Workers in the Construction Industry, to wit:

“2.2 Indicators of project employment. - Either one or more of the

following circumstances, among others, may be considered as
indicators that an employee is a project employee.

(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 ofhiring.
PROJECT EMPLOYMENT
(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 awaiting engagement, is

free to offer his services to any other employer.

(e) The termination of his employment in the particular

project/undertaking is reported to the Department of Labor
and Employment (DOLE) Regional Office having jurisdiction
over the workplace within 30 days following the date of his
separation from work, using the prescribed form on employees'
terminations/dismissals/suspensions.

(f) An undertaking in the employment contract by the employer to

pay completion bonus to the project employee as practiced by
most construction companies.
PROJECT EMPLOYMENT
Employees from Labor Pool
o Those employed (eg: construction
company) without reference to any
particular project in which they are
hired
o Considered as regular or probationary
employees – NOT project employees
o Employee is thus obligated to be
always available on call of the
employer – employee may not offer
his services to other employers
PROJECT EMPLOYMENT
Report of termination of project employers compulsory. – Failure to file
termination reports, particularly on the cessation of petitioner’s
employment, was an indication that the petitioner was not a project
employee but a regular employee. Goma vs. Pamplona Plantation, Inc.,
557 SCRA 124 (2007)

Ma. Charito C. Gadia, et al. vs. Sykes Asia, Inc. et al., G.R. No. 209499, 28
January 2015. - Requisites for an employee to be considered project-
based BPO employee: (a) the employee was assigned to carry out a
specific project or undertaking; and (b) the duration and scope of which
were specified at the time they were engaged for such project.
PROJECT EMPLOYMENT
Unlike regular employees who may only be dismissed for just and/or authorized causes
under the Labor Code, the services of employees who are hired as “project
employees” may be lawfully terminated at the completion of the project. (GMA
Network, Inc. v. Pabriga, G.R. No. 176419, November 27, 2013, 710 SCRA
690,703).
General Rule: Length of employment is NOT the controlling determinant of the
employment tenure of a project employee
Exception: When the project or work is done for a very long period (DMCI v Jamin)

DMCI v Jamin –
The continuous re-hiring of the employee for a very long period (8 years) to perform
tasks necessary or desirable in the employer's business made the worker a regular
employee despite the specification of the project in the employment contract and
the submission of termination reports to the DOLE
PROJECT EMPLOYMENT
When project employee is presumed to be a regular employee:
 When employee is not duly informed of their status as such or the
specific project or undertaking to be done
 When employee, while not engaged in a project, is not free to offer his
services to another employer
 When employment is extended after the supposed project is
completed
 When there is a continuous rehiring even after the cessation of a
project AND the tasks performed is necessary and indispensable to
the usual trade or business of the employer
 Failure to report the termination to the DOLE
SEASONAL EMPLOYMENT
those hired for work or services which is seasonal in
nature, and the employment is for the duration of the
season.

Employment is from time to time according to the

occurrence of varying need during a season
SEASONAL EMPLOYMENT
Where the seasonal employees had been hired repeatedly and
continuously to perform the same tasks or activities for several
seasons or even after the cessation of the season, this length
of time may likewise serve as badge of regular employment. In
fact, even though denominated as “seasonal workers,” if these
workers are called to work from time to time and are only
temporarily laid off during the offseason, the law does not
consider them separated from the service during the off-
season period. The law simply considers these seasonal
workers on leave until re-employed.
SEASONAL EMPLOYMENT
Gapayao vs. Fulo and SSS, G.R. No. 193493, 13 June 2013 (Sereno,
C.J.) –
Farm workers generally fall under the definition of seasonal
employees. We have consistently held that seasonal employees
may be considered as regular employees. Regular seasonal
employees are those called to work from time to time. The nature
of their relationship with the employer is such that during the off
season, they are temporarily laid off; but reemployed during the
summer season or when their services may be needed. They are
in regular employment because of the nature of their job, and not
because of the length of time they have worked.
SEASONAL EMPLOYMENT
Gapayao vs. Fulo and SSS, G.R. No. 193493, 13 June 2013 (Sereno,
C.J.) –
Farm workers generally fall under the definition of seasonal
employees. We have consistently held that seasonal employees
may be considered as regular employees. Regular seasonal
employees are those called to work from time to time. The nature
of their relationship with the employer is such that during the off
season, they are temporarily laid off; but reemployed during the
summer season or when their services may be needed. They are
in regular employment because of the nature of their job, and not
because of the length of time they have worked.
SEASONAL EMPLOYMENT
Some Notes:
 The worker is seasonal if the duration
of the employment is for one season
only
 When the workers are not hired
regularly for the same phases of the
work, but only for a single phase
thereof, worker is considered seasonal.
SEASONAL EMPLOYMENT
Regularization of seasonal employee
 Continuous rehiring of workers for the
same tasks for several years or for more than one
season
- EE-ER relationship is not terminated but merely
suspended
SEASONAL EMPLOYMENT
Hacienda Fatima v NFSW –
To be classified as seasonal workers, is not enough that they
perform work that are seasonal in nature. They must have
also been employed only for the duration of 1 season. The fact
that the workers have been hired to perform the same tasks
every season for several years makes them regular
employees.