CDD regulados: Si

Remarks

The following categories are used to describe different kinds of fixed-term contracts.

See ILO -TED - National Law Profile, updated in June 2006 by Attorney Jonathan P. Sale:
Art. 296 of the LC provides for the following categories of employment:
* Project - where the employment has been fixed for a specific project or undertaking the completion or termination of which has been determined at the time of the engagement of the employee;
* Seasonal - where the work or services to be performed is seasonal in nature and the employment is for the duration of the season; and
* Casual - where the employment is not covered by the foregoing, provided that an employee who has rendered at least one year of service, whether continuous or broken, shall be considered regular with respect to the activity in which he or she is employed and his or her employment shall continue while the activity exists.

* Another category of employment recognized in jurisprudence is or 'fixed-term employment' (art. 1193 of the CC), which states that obligations with a resolutory period take effect at once, but terminate upon arrival of the 'day certain' (understood to be a day that must necessarily come). 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 termination of the employment relationship. Stipulations in employment contracts providing for 'term employment' or 'fixed-period employment' are valid when the period has been agreed upon knowingly and voluntarily by the parties, without force, duress or improper pressure exerted on the employee, and when such stipulations were not designed to circumvent the laws on security of tenure.

Razones de utilización legítima de CDD: sin restricción

Remarks

oArt. 295 of LC: The provisions of written agreement to the contrary notwithstanding and regardless of the oral agreement of the parties, an employment shall be deemed to be regular where the employee has been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer, except where the employment has been fixed for a specific project or undertaking the completion or termination of which has been determined at the time of the engagement of the employee or where the work or service to be performed is seasonal in nature and the employment is for the duration of the season. An employment shall be deemed to be casual if it is not covered by the proceeding paragraph: provided that any employee who has rendered at least one year of service, where such service is continuous or broken, shall be considered a regular employee with respect to the activity in which he is employed and his employment shall continue while such activity exists.

Note Department Order No. 174 Series of 2017 contains rules regarding contracting and subcontracting arrangements which are applicable to all parties in an employer-employee relationship, providing for absolute prohibition against labour-only contracting and other illicit forms of employment arrangements (Rules implementing Articles 106-109 LC).

Número máximo de CDD consecutivos: sin restricción

Remarks

No statutory limitation in the legislation reviewed.

Duración máxima acumulativa de CDD consecutivos: 12meses

Remarks

Art. 295 of LC: An employment shall be deemed to be casual if it is not covered by the preceding paragraph: provided that any employee who has rendered at least one year of service, where such service is continuous or broken, shall be considered a regular employee with respect to the activity in which he is employed and his employment shall continue while such activity exists.

Duración maxima del periodo de prueba (en meses): 6 meses

Remarks

Art. 296 LC

Obligación de motivar el despido: Si

Remarks

Art. 292 b) LC: The employer shall furnish the worker whose employment is sought to be terminated a written notice containing a statement of the causes for termination and shall afford the latter ample opportunity to be heard and to defend himself with the assistance of a representative if he so desires in accordance with company rules and regulations promulgated pursuant to guidelines set by the Department of Labour and Employment.

Motivos autorizados (despido justificado): conducta del trabajador, razones económicas, capacidad del trabajador

Remarks

•Regular employment: the employee has "the right to security of tenure" (art. 13 (3) of the Constitution and art. 294 LC). This means that an employee can only be dismissed for a just cause or an authorized cause and after the observance of the procedure laid down by the law (Omnibus Implementing Rules, Rule XIV, sec. 1)
- Just causes are blameworthy acts on the part of the employee such as serious misconduct, willful disobedience of the lawful orders of his employer or representative in connection with his work, gross and habitual neglect of duties, fraud or willful breach of trust reposed in him by his employer or duly authorized representative, commission of a crime of offense by the employee against the person of this employer or any immediate member of his family or his duly authorized representatives; and other analogous causes (art. 297, LC).
- Authorized causes are of two types: economic reasons and disease (art. 298 and 299 LC).
*Economic reasons cover "installation of labor-saving devices, redundancy, retrenchment to prevent losses or the closing or cessation of operation of the establishment or undertaking".
*Disease cover situation where an "employee has been found to be suffering from any disease and whose continued employment is prohibited by law or is prejudicial to his health as well as to the health of his co-employees".

Motivos prohibidos: estado civil, embarazo, licencia de maternidad, presentación de una queja contra el empleador, edad, afiliación sindical y actividades sindicales, discapacidad, estatus VIH

Remarks

Art. 133 LC (sexual discrimination)
Art. 134 LC (stipulation against marriage)
Art. 135 LC (prohibited acts: 1) discharging any woman employed by any employer for the purpose of preventing her from enjoying any of the benefits provided under the LC; 2) discharging such woman on account of her pregnancy or while on leave or in confinement due to her pregnancy; c) discharging or refusing the admission of such woman upon returning to her work for fear that she may again be pregnant )
Art. 157 (same termination of employment protection for night workers): A night worker certified as temporarily unfit for night work shall be given the same protection against dismissal or notice of dismissal as other workers who are prevented from working for reasons of health; Art. 158 (prohibition of dismissal of a woman night worker except for just or authorized causes under the LC that are not connected with pregnancy, childbirth and childcare responsibilities).
Art. 257 and Art. 259a), b) e) f) (anti-union discrimination and unfair labour practices; Art. 259(f) (dismissal, discharge and discrimination against an employee for having given or being about to give testimony under LC)
Art. 118 (retaliatory measures: unlawful discharge of or discrimination against any employee who has filed any complaint or instituted any proceeding or has testified or is about to testify in proceedings)
Art. 147 (unjust termination of termination of services by householders): if the period of household service is fixed, neither the employer nor the house helper may terminate the contract before the expiration of the term.
Sec 5(6) and (7) of the 2016 Anti-age Discrimination in Employment Act and Sec. 4(6) and (7) of its implementing rules and regulations (prohibition of discrimination in employment on account of age: forcible lay off of an employee or worker because of old age or imposition of early retirement on the basis of such employee’s or worker’s age.
Sec. 35 of the Philippine AIDS Prevention and Control Act of 1998 (No. 8504) (termination from work on the sole basis, of actual, perceived or suspected HIV status of an individual is prohibited)

Sec. 32 g) of the Republic Act No. 7277 providing Magna Carta for Disabled Persons (prohibition of dismissal and termination of services of a disabled employee by reason of his disability unless the employer can prove that he impairs the satisfactory performance of the work involved to the prejudice of the business entity: Provided, however, That the employer first sought to provide reasonable accommodations for disabled persons.

Trabajadores que gozan de una protección particular (fuero): mujeres embarazadas o con licencia de maternidad

Remarks

Art. 135 (2) LC: It is prohibited to dismiss a woman while on leave or in confinement due to her pregnancy.

Forma de la notificación del despido al trabajador: escrita

Remarks

Art. 292 b) LC. See aslo Omnibus Implementing Rules, Rule XIV, sec. 6. (in cases of regular employment).

Plazo de preaviso:

Remarks

Employees with regular employment contracts can only be dismissed for a just cause or an authorized cause (art. 13 (3) of the Constitution and art. 294 LC).
The LC establishes a distinction between dismissal for just cause and dismissal for authorized cause.
- Authorized causes are of two types: business reasons and disease (art. 298 and 299 LC).
- Just causes are blameworthy acts on the part of the employee such as serious misconduct, wilful disobedience, gross and habitual neglect of duties, fraud or wilful breach of trust, commission of a crime and other analogous causes (art. 297, LC).
There is no notice period prior to a dismissal for a just cause or for health reasons under LC.
See however, Art. 292 b) LC: The employer shall furnish the worker whose employment is sought to be terminated a written notice containing a statement of the causes for termination and shall afford the latter ample opportunity to be heard and to defend himself with the assistance of a representative if he so desires in accordance with company rules and regulations promulgated pursuant to guidelines set by the Department of Labour and Employment. The written notice containing an explanation should be provided within 5 days [King of Kings Transport vs. Tinga and Velasco, G.R. 166208]
The employer is only required to give a one-month notice to the employee in the event of termination for business reasons (art. 298 LC).

Art. 148 LC (house helpers): If the duration of the household service is not determined either in stipulation or by the nature of the service, the employer or the house helper may give notice to put an end to the relationships five days before the intended termination of the service.

duración de servicio ≥ 6 meses:

  • Todos: 1 meses.

duración de servicio ≥ 9 meses:

  • Todos: 1 meses.

duración de servicio ≥ 2 años:

  • Todos: 1 meses.

duración de servicio ≥ 4 años:

  • Todos: 1 meses.

duración de servicio ≥ 5 años:

  • Todos: 1 meses.

duración de servicio ≥ 10 años:

  • Todos: 1 meses.

duración de servicio ≥ 20 años:

  • Todos: 1 meses.

Indemnización sustitutiva de preaviso: No

Notificación a la administración: No

Remarks

No general obligation to notify the administration.
- No notification required in the event of a dismissal for a just cause.
Note: for a dismissal based on the grounds of disease, there is no mandatory notification at the time of dismissal. However, before the employer can terminate on the ground of disease, he must obtain from a competent public health authority a certification that the employee's disease is of such a nature and at such a stage that it can no longer be cured within a period of six months even with medical attention (art. 299 LC; sec. 8 of Implementing Rules of Book VI, LC)).

Notificación a los representantes de los trabajadores: No

Remarks

Art. 298 LC (former art. 283 LC):: Notice shall be served to the workers and the administration. No mention of worker's representatives.

However, "YES" for parties to a collective bargaining agreement (CBA). Although there is no provision in LC requiring notification to workers' representatives, mandatory grievance machinery is applicable to parties to a collective agreement. This means that, as a first step, handling disputes must involve union shop stewards/unions.
Art. 273 of LC (grievance machinery and voluntary arbitration) : It is mandatory for the parties to a collective bargaining agreement to establish a machinery for the adjustment and resolution of grievances arising from the intepretation or implementation of their collective agreement and those arising from the intepretation or enforcement of company personnel policies.
Art. 267 of LC : Without undermining union's exclusive bargaining representation of the employees for the purpose of collective bargaining, and individual employee or group of employees shall have the right at any time to present grievances to the employer [...] Workers shall have the right to participate in policy and decision-making processes of the establishment where they are employed insofar as said processes will directly affect teir rights, benefits and welfare. For these purposes, workers may form labour-management councils (LMC) provided that the representatives of the workers insofar as said processes will directly affect their rights, beneftis and welfare.

Aprobación de la administración publica o de organismos judiciales: No

Acuerdo de los representantes de los trabajadores: No

Definición de despido colectivo (número de empleados afectados): No statutory definition of collective dismissal.
Specific legal requirements apply to the dismissal of any employee for economic reasons (installation of labour-saving devices, redundancy, retrenchment to prevent losses or the closing or cessation of operation of the establishment).

Remarks

Art. 298 LC

Consultación previa con los sindicatos (representantes de los trabajadores): No

Remarks

However, "YES" for parties to a collective bargaining agreement (CBA).

Notificación a la administración: Si

Remarks

Art. 298 LC: notification to the Ministry of Labor and Employment at least one month before the intended date.

Art. 273 of LC (grievance machinery and voluntary arbitration) : It is mandatory for the parties to a collective bargaining agreement to establish a machinery for the adjustment and resolution of grievances arising from the intepretation or implementation of their CBA and those arising from the intepretation or enforcement of company personnel policies.

Notificación a los representantes de los trabajadores: No

Remarks

However, "YES" for parties to a collective bargaining agreement (see above).

Aprobación de la administración publica o de organismos judiciales: No

Acuerdo de los representantes de los trabajadores: No

Reglas de prioridad para los despidos colectivos (consideraciones sociales, edad, años de servicio): No

Obligación del empleador de considerar solucionés alternativas al despido (transferencia, formación...): No

Reglas de prioridad para la re-contratación: No

Indemnización por despido:

Remarks

No severance pay following termination for a just cause.

- Dismissal for an authorized cause:

1) Disease (employee who has been found to be suffering from any disease and whose continued employment is prohibited by law or is prejudicial to his health as well as to the health of his co-employees) Art. 299 LC.
Severance pay shall amount to at least one month's salary or to one-half month's salary for every year of service, whichever is greater, a fraction of at least six months being considered as one whole year.

2) Economic reasons: redundancy payment differs according to the situation: art. 298 LC.
* It amounts to at least one month's salary or to one-half month's salary for every year of service, whichever is greater in case of retrenchment to prevent losses and in cases of closures or cessation of operations of establishment or undertaking not due to serious business losses or financial reverses.

* However, in case of termination due to the installation of labor-saving devices or redundancy, redundancy payment is higher: it amounts to at least his one (1) month's pay or to at least one (1) month's pay for every year of service, whichever is higher.

duración de servicio ≥ 6 meses: 1 meses

duración de servicio ≥ 9 meses: 1 meses

duración de servicio ≥ 1 año: 1 meses

duración de servicio ≥ 4 años: 2 meses

duración de servicio ≥ 5 años: 2.5 meses

duración de servicio ≥ 10 años: 5 meses

duración de servicio ≥ 20 años: 10 meses

Indemnización por despido por razones económicas:

Remarks

1) If the termination is due to the installation of labour-saving devices or redundancy, the separation pay is one month's pay for every year of service or one month pay, whichever is higher.
2) If the termination is due to retrenchment to prevent losses, or closure or cessation of operation of the establishment not due to serious business losses, the separation pay is one-half month's pay for every year of service or one month pay, whichever is higher.

duración de servicio ≥ 6 meses: 1 meses

duración de servicio ≥ 9 meses: 1 meses

duración de servicio ≥ 1 año: 1 meses

duración de servicio ≥ 2 años: 2 meses

duración de servicio ≥ 4 años: 4 meses

duración de servicio ≥ 5 años: 5 meses

duración de servicio ≥ 10 años: 10 meses

duración de servicio ≥ 20 años: 20 meses

Notas / Comentarios

Notas

1) Termination for a just cause: no severance pay
2) Termination for an authorized cause:
- disease: severance pay;
- retrenchment to prevent losses and in cases of closures or cessation of operations of establishment or undertaking not due to serious business losses or financial reverses: severance pay;
- termination due to the installation of labor-saving devices or redundancy: redundancy payment.

Compensación por despido injustificado - libre determinación de la Corte: No

Compensación por despido injustificado - límites legales (techo calculado en meses o método de calculo): Dismissal without an authorized or just cause: Compensation in lieu of reinstatement is not a statutory remedy. However, according to case law (Golden Ace Builders, et.al vs. Jose Talde, May 5, 2010, GR No. 187200), an employee may be given separation pay of one month pay for every year of service in lieu of reinstatement The employee shall be entitled to reinstatement without loss of seniority rights and other privileges and full back wages, inclusive of allowances, and other benefits or their monetary equivalent computed from the time the compensation was not paid up to the time of actual reinstatement (art. 294 LC). In addition, an employee who is dismissed without just cause may also be entitled to damages if the dismissal was done in bad faith (Aurora Land Project Corp. vs NLRC, 266 SCRA 48).

Remarks

Dismissal without a just or authorized cause (unfair dismissal): reinstatement. Compensation in lieu of reinstatement may be granted to an illegally dismissed employee in lieu of reinstatement (case law, see above).

Note that if a dismissal is for a just or authorized cause but the employer failed to comply with the procedural requirement, the dismissal should be upheld. The National Labour Relations Commission has held that while the procedural infirmity cannot be cured, it should not invalidate the dismissal. However, the employer should be held liable for nominal damages for non-compliance with the procedural requirements of due process. (Agabon et al. v. National Labour Relations Commission et al., G.R. No. 158693, November 17, 2004)

Posibilidad de readmisión: Si

Remarks

Art. 294 LC: "An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges and to his full backwages inclusive of allowance, and to his other benefits or their monetary equivalent computed from the time his compensation was withheld from him up to the time of his actual reinstatement".

Conciliación previa obligatoria: Si

Remarks

Speedy alternative dispute resolution processes and preferential use of voluntary modes in settling labour disputes are key policies enshrined in the Constitution (art. III, sec.16)
Art. 227 of LC (principle of prior resort to amicable settlement): "the Labour Arbiter shall exert all efforts towards the amicable settlement of a labour dispute within his jurisdiction on or before the first hearing. The same rule shall apply to the Commission in the exercise of its original jurisdiction".
Except termination disputes arising from the implementation or interpretation of CBAs which are subject to internal grievance procedures: SEnA (Single-Entry Approach) is also applicable to termination or suspension of employment issues, unfair labour practices, closures, retrenchments, redundancies, temporary lay-offs, overseas Filipino Workers cases. Single Entry Assistance Desks in DoLE offices and attached agencies provide 30-day mandatory conciliation-mediation services (sec. 2 of Department Order No. 107-10).
Art. 234(a) of LC and sec. 1 of Republic Act No. 10396: Except as provided in Title VII-A, Book V of this Code, or as may be excepted by the Secretary of Labour and Employment, all issues arising from labour and employment shall be subject to mandatory conciliation-mediation. The labour arbiter or the appropriate DoLE agency or office that has jurisdiction over the disputes shall entertain only endorsed or referred cases by the duly authorized officer (except disputes subject to internal mandatory grievance procedures and voluntary arbitration (Title VII-A, Book V of LC) applicable for parties to a CBA). Art. 234(b) of LC: Any or both parties involved in the dispute may pre-terminate the conciliation-mediation proceedings and request referral or endorsement to the appropriate DoLE agency or office which has jurisdiction over the dispute, or if both parties so agree, refer the unresolved issues to voluntary arbitration.
In-court mediation is also possible when labour disputes are brought to the Court of Appeals for judicial action or review (SC AM No. 04-3-15-SC, 2004).

Corte o Tribunal competente: jurisdicción ordinaria

Remarks

Regarding parties to a collective bargaining agreement, all grievances submitted to internal grievance machinery which are not settled within seven days from the date of its submission shall automatically referred to voluntary arbitration prescribed in the CBA (Art. 273). For this purpose, parties to a CBA shall name and designate in advance a voluntary arbitrator or panel of voluntary arbitrators or include in the CBA a procedure for the selection of such voluntary arbitrator or panel of voluntary arbitrators, preferably from the listing of qualified voluntary arbitrators duly accredited by the National Conciliation and Mediation Board. See also Art. 275: upon agreement of the parties, the designated voluntary arbitrator or panel of voluntary arbitrators shall also hear and decide all other labour disputes including unfair labour practices. Voluntary arbitration awards, decisions or orders are subject to judicial review upon petition for review filed with the Court of Appeals within 15 calendar days from receipt of such awards, decisions or orders (Rule 43 of the Rules of Civil Procedure)
The Labour Arbiters of the National Labour Relations Commission have original and exclusive jurisdiction over termination disputes (Art. 224 of LC). The National Labour Relations Commission has exclusive appellate jurisdiction over all cases decided by Labour Arbiters (Art. 224(b) of LC). Cases arising from the interpretation or implementation of CBAs and those arising from the interpretation or enforcement of company personnel policies shall be disposed of by the labour arbiter by referring the same to the grievance machinery and voluntary arbitration as may be provided in the said agreements (Art. 224(c)). According to Sale (2015), mostly non-unionized workers resort to compulsory arbitration by labour arbiters.
The DoLE Secretary and Regional Offices (enforcement offices/inspectorates) are charged with monitoring compliance with or enforcement of labour standards, including termination of employment requirements (Art. 128 of LC, sec. 1 of Rule IV of DO No. 131-B, Series of 2016. When deficiencies detected by labour law compliance officers are not corrected, the hearing officer shall conduct mandatory marathon conferences during which parties may reach voluntary settlement, before the issuance of compliance orders (Rules XII and XIII of DO No. 131-B). Cases related to termination of employment requirements include those arising from discrimination [Sale (2015)]
Regarding termination disputes in the public sector whether they arise from grievances, unfair labour practices, the Public Sector Labour Management Council takes appropriate action and has original and exclusive jurisdiction (sec. 16 of Executive Order No. 180).

Arbitraje: Si

Remarks

See above on competent courts/administrative bodies for more details.
Voluntary arbitration for disputes arising from the parties to CBAs (Art.273).
Administrative arbitration by labour arbiters (Art. 224)

Duración del procedimiento: 20du00eda(s) (statutory)

Remarks

Voluntary arbitration applicable to the parties to a CBA: Unless the parties agree otherwise, it shall be mandatory for the voluntary arbitrator or panel of voluntary arbitrators to render an award or decision within 20 calendar days from the date of submission of the dispute to voluntary arbitration (Art. 276).
Administrative labour arbitration: Omnibus Implementing Rules, Rule XIV, sec. 8: Cases involving the dismissal of a worker shall be decided by the Labour Arbiter within 20 working days from the date of submission of such cases for decision.