In the Philippines, the following are the recognized types of employment: (1) regular; (2) casual; (3) project; (4) seasonal; (5) fixed-term; and (6) probationary.
Regular and Casual Employment
Pursuant to Article 280 of the Labor Code of the Philippines (“Labor Code”), the primary standard that determines regular employment is the reasonable connection between the particular activity performed by the employee and the usual business or trade of the employer; the emphasis is on the necessity or desirability of the employee’s activity. Thus, when the employee performs activities considered necessary and desirable to the overall business scheme of the employer, the law regards the employee as regular.
In addition, the Labor Code also considers as regular employment a casual arrangement when the casual employee’s engagement has lasted for at least one year, regardless of the engagement’s continuity. The controlling test in this arrangement is the length of time during which the employee is engaged. (See Universal Robina v. Acibo, G.R. No. 186439, 15 January 2014)
Project Employment
Project employment contemplates an arrangement whereby “the employment has been fixed for a specific project or undertaking whose completion or termination has been determined at the time of the engagement of the employee.” (Article 280, Labor Code of the Philippines)
Since the employee’s services are coterminous with the project, the services of the project employees are legally and automatically terminated upon the end or completion of the project.
Seasonal Employment
Seasonal employment applies “where the work or service to be performed is seasonal in nature and the employment is for the duration of the season.” (Article 280, Labor Code of the Philippines)
Season employees may also be considered regular employees, thus: “[f]arm 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.” (Gapayao v. Fulo, et al., G.R. No. 193493, 13 June 2013)
Fixed-Term Employment
Fixed-term employment is valid when: (a) the fixed period of employment was knowingly and voluntarily agreed upon by the employer and employee without any force, duress, or improper pressure being brought to bear upon the employee and absent any other circumstances vitiating his consent; or (b) it satisfactorily appears that the employer and the employee dealt with each other on more or less equal terms with no moral dominance exercised by the former or the latter. (See Caparoso, et al. v. Court of Appeals, G.R. No. 155505, 15 February 2007)
Probationary Employment
Probationary employment exists when the employee, upon his engagement is made to undergo a trial period where the employee determines his fitness to qualify for regular employment, based on reasonable standards made known to him at the time of engagement. The employer shall make known to the employee the standards under which he will qualify as a regular employee at the time of his engagement. Where no standards are made known to the employee at that time, he shall be deemed a regular employee. (See Section 6(d), Implementing Rules of Book VI, Rule VII-A of the Labor Code)
Generally, probationary employment shall not exceed six (6) months from the date the employee started working. (See Article 281, Labor Code)