How to Determine the Correct Employment Contract

Employment laws in the Philippines are technical in nature, especially those governing the employment contracts for various nature of services.

Many employers make the mistake of adopting the wrong contract. This is probably due to lack of knowledge of the concept, nature, and scope of each type of employment agreement.

Sadly, the mistake committed can be costly which can even amount to millions of Pesos in backwages, damages, attorney’s fees, etc. Hence, it is a prudent action on the part of the employer to know very well the right employment contract for certain engagement.

Under the Philippine setting, there are different forms of employment: 1) Probationary 2) Regular 3) Project 4) Seasonal 5) Casual 6) Fixed-Term. Each of these forms is governed by specific rules. They cannot be confused, otherwise, technicalities can lead to disastrous labor consequences.

Every form of employment contract has its own rules on termination, acquisition of tenurial security, duration, notice requirements with the Department of Labor and Employment (DOLE), presumption, degree of scrutiny accorded by the courts, etc. They have their own degree of liability on the part of the employer and protection to the employee.

For instance, regular employment accords the highest level of security of tenure to the employee. Being so, it bears upon the heaviest responsibility on the part of the employer.

This is the reason employers have to know the technical differences to avoid confusion. It is a practical endeavor to know the obligation of employer in a certain agreement and the extent of the rights of the employee.

Any ambiguity or doubt in the contract is resolved in favor of employees. This means that if the terms of the agreement agreed upon in a certain contract are vague, then it shall be interpreted in favor of the employee.

If the form of employment contract intended has the least labor obligation but the way the provisions are crafted is doubtful, the employee may be granted regular employment since that is the most favorable situation for the worker. Hence, the employer has to pay bigger labor obligations than he intended simply because he crafted an ambiguous agreement.

This course will help companies, employers, managers, and owners acquire the important knowledge to determine the right contract for certain engagement.

Get this course now by clicking the “Get the Course” button. See you in Classroom!

What you Will Learn

This course will give you the knowledge on how to make your decision to adopt the correct form of employment contract for certain engagement.

This lesson is compact yet contains the essential matters you may need to determine the appropriate agreement for every form of engagement. You have to know the rules governing each of the six (6) forms of employment in the Philippines.

Otherwise, you run the risk of exposing your company to labor liabilities that you did not intend to. Worse, lose a labor dispute where millions of pesos in damages can be adjudged.

In this video you will learn the following:

1. The six (6) forms of employment and when to use each of them
2. The rules applicable for each form of employment as to security of tenure, termination, duration, presumption, burden, rights, and obligations.
3. The rules on probationary employment
a. Nature and scope
b. Standards for regularization
c. “Regular from day one” rule
d. Mutual Extension
e. Termination

4. Rules on Project employment
a. Specific duration
b. Termination
c. Notice to DOLE

5. Rules on Seasonal employment
a. Specific duration
b. Termination
c. Notice to DOLE

6. Rules on Casual Employment
a. Not usually necessary and desirable
b. Directly related

7. Rules on Fixed-Term