What is ‘project employment’?




“A project employee is one whose “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.” Before an employee hired on a per project basis can be dismissed, a report must be made to the nearest employment office of the termination of the services of the workers every time it completed a project, pursuant to Policy Instruction No. 20.”

Hermonias L. Liganza VS. RBL Shipyard Corp., G.R. No. 159862, October 17, 2006


“Surely, length of time is not the controlling test for project employment.  Nevertheless, it is vital in determining if the employee was hired for a specific undertaking or tasked to perform functions vital, necessary and indispensable to the usual business or trade of the employer.[29]  Here, respondent had been a project employee several times over.  His employment ceased to be coterminous with specific projects when he was repeatedly re-hired due to the demands of petitioner’s business. Where from the circumstances it is apparent that periods have been imposed to preclude the acquisition of tenurial security by the employee, they should be struck down as contrary to public policy, morals, good customs or public order.”

Hermonias L. Liganza VS. RBL Shipyard Corp., G.R. No. 159862, October 17, 2006


“While the appropriate evidence to show that a person is a project employee is the employment contract specifying the project and the duration of such project, the existence of such contract is not always conclusive of the nature of one’s employment. xxx”

Hermonias L. Liganza VS. RBL Shipyard Corp., G.R. No. 159862, October 17, 2006


“From the foregoing discussion it is apparent that Kiamco was correctly labeled by the NLRC as a project employee. The basis for this conclusion is indeed well-founded. The three (3) Contracts of Employment entered into by Kiamco clearly established that he was a project employee because (a) he was specifically assigned to work for a particular project, which was the Geothermal Agro-Industrial Demonstration Plant Project of private respondents, and (b) the termination and the completion of the project or undertaking was determined and stipulated in the contract at the time of his employment.”

Cisell A. Kiamco VS. NLRC, G.R. No. 129449, June 29, 1999


“At this time, we wish to allay any fears that this decision unduly burdens an employer by imposing a duty to re-hire a project employee even after completion of the project for which he was hired. The import of this decision is not to impose a positive and sweeping obligation upon the employer to re-hire project employees. What this decision merely accomplishes is a judicial recognition of the employment status of a project or work pool employee in accordance with what is fait accompli, i.e., the continuous re-hiring by the employer of project or work pool employees who perform tasks necessary or desirable to the employer’s usual business or trade”

—Maraguinot, Jr. vs. National Labor Relations Commission

Topics in this post:

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104 thoughts on “What is ‘project employment’?

  1. Anu po ba talaga uyung project employee? Sa pinapasokan namin medyo gini gipit kami….. 2yrs na kami dito d parin kami regular… ang na basa ko dto I kung ikaw I isang project employe pag my proyecto kang gnawa … destribution company ang pina pasokan ko!!!advice naman po …. kung ma wawalan ba kami ng trabaho wla ba kaming ma ku kuha

  2. for a case, hired as a project employee as internal auditor staff without a debriefing or conference with us we are transfer to the area as a farm labor. it is legal or not? we are demoted in rank as we knew it.which of the Philippine labor law stating this move is legal and how we could fight it?

  3. papano ninyo po macategorize ang auntie ko na isang mananahi sa isang boutique… per project lang po sila kaso five years na siya nag wowork ng ganoon set up may makukuha po ba siya benepsiyo? o

    • Kung may ebidensya sya katulad ng (payslip, company ID, memo at iba pa) na magpapatunay na 5 years na syang nagwowork eh may makukuha sya ng benepisyo.

  4. Is it legal to appoint a project employee to a head office position as contractual employee? What about a contractual employee (from head office) to project employment (project-based? Are there legal implecations? Will they automatically become regular employees? Nature of business in in construction. Please advise. Thank you.

    • It depends to the contract you signed if there is any. However project hire employee even the contract is every (3months, 6months or a year or more) you are considered regular employee. Please read Article 280 of the Labor Code of the Philippines.

  5. may i ask if a person hired for a short term project employment abroad (e.g. 4 months) is covered by the 6 days per week, 8 hours per day work week?
    can they claim as OT or compensatory time off all day 7 that they have worked? are they covered by philippine labor standard?

    thanks for your reply.

  6. Project base employee po ako valid til december 31 2013. hindi pa po nila ako nabibigyan ng contract renewal pero continous pa rin po yung working schedule ko. Legal po ba to? Kung sakali pong makakuha ako ng bagong work kailangan pa po ba akong magbigay ng 30days notice kahit na tapos na contract ko as project base employee? Salamat po

  7. I want to ask that if you work on straight time, you are exempted from punch out and punch in in between 8 hours straight time rules.

  8. Ask ko lang po. I am employed as project based employee 3x na po narew contract ko 1 yr lagi ang contract. My current contract will be finished on Sept pa. Recently, I found an employer offering me a regular position i would like to resign as project based sa current employer ko but they are charging me with pretermination fee and will not give me the clearances kasi di daw valid ang resignation because i breached the contract. Is this valid? Kailangan ko po ba talaga bayaran yun? Nakasulat sa po sa contract na as preterm clause

    Whenever applicable, the employer provided training for the improvement of employee, and in case the employee wishes to terminate the employment prior to completion of the project. The employee should pay the employer of the preterm fee on Annex A.

    • Kung malaki gastos nila, di ka talaga pwede magresign at lumipat sa ibang empployer at babayaran mo yung gastos sa training. O kaya just paid away nalang at dont resign. Dont let them know your next employer.

  9. I signed a contract as a project based.
    Pumasok po ako ng 3 days Lang then nag file ako ng resignation? Did the employeer sue me for a breach of contract? Naka state po sa contract na 1 month upon notice ang last day.. Thanks

  10. advice lng po isa po ko s project base employee ntapos n po contract ko nung july 23,2013…pero hanggang ngaun po ngwowork pa rin ako s company kaso wala n po kong pinipirmahang contract malapit n pong mg july uli ano po magandang gawin ko???salamat po

    • Continous ka lang mag work at wag ka makulit na hanapin ung kontrata. May payslip ka ba? Magtabi ka ng mga ebidensya (company ID, memo at iba pa). Huwag ka mag reresign at pipirma ng quit claim and release. Hayaan mo silang tanggalin ka at kung may termination letter tanggapin, tapos contact us immediately.

  11. Ive signed a contract for 1 year with a company, kung may pinapagawa po sila sakin na hindi naman stipulated under our contract pwede po ba kami mag file ng conplaint? Medyo hindi ko po magents kung bakit yung naka stipulate sa contract e yung ginagawa namin ngayon is more than dun sa stated sa contract.. And we were requested to do overtime work, walang written agreement but kung cocomputin, 13 days straight kami ngwork nung may hinahabol na quota, is that legal?

    • It’s become legal if you are doing what they want, magulang ang employer mo, you can file breach of contract or unfair labor practice before the NLRC Arbitration branch before your contract ends.

  12. Project based pinirmahan Kong contract as company driver/helper Oct. 3, 2013 AQ n hired 400 LNG gun sahod increase nil a AQ ng 440 last Feb, 2014. Ng resign n poh AQ nun march 31, 2014 effective PEO march 22ng last day n q. Tanung q LNG wala b mkukuha n back pay khit ntapos q n contract q. Salamat mid help

    • six month contract ba pinirmahan, why did u resign? You can file money claims before the NLR CArbitration Branch, kaya lang maliit lang yan at matagal. Next time don’t resign let them terminate you.

    • pwede ka pa ring madfile ng moneyclaims kaya lang maliit lang yan at matagal pang labanan yan bago mo makuha yan, maganda sana kung may illegal dismissal malaki makukuha bakit ka kasi nag resigned agad?

  13. Ask ko lang po, 1 year din po ako nagwork as Sales Supervisor sa isang food company na without signing any contract at with monthly salary of 16T per month.Wala po kami Vacation leave or sick leave at every Sunday ang off we are more or less 100 employees. But during xmas season no day off po kami at walang bayad ang na add’l pay kahit restday.
    I was force to resigned kasi hindi po ako pumasok ng 2days, kapag hindi daw po ako nag resigned i-AWOL nila ako.Pwede ko pa po ba sila i reklamo sa Labor sa mga violation nila.They paid me 29T po. Sana po mapaliwanagan ninyo ako.

    Salamat po.
    Jon Tiu

    • when did you resign? its better to be charged of AWOL than to resign, however, you can file a labor case before the NLRC Arbitration Branch if you want.

    • sana hindi ka nag resigned, let them charge you of AWOL then file illegal dismissal, for money claims for one year work ay maliit lang yan, tapos aabutin ng one year kaso mo bago mo makuha yang pera na yan, mas maganda kung may illegal dismissal case.

  14. this Feb 3-5, 2014 po ako hindi pumasok, the next day Feb. 6, ayaw na po ako papasukin at ginawa ako floating n nasa ofc lang, sabi ng Operations Manager forced resigned or AWOL. Tapos po hindi na ako pumasok at binayaran nila ako ng 29t last Feb. 20, 2014. May kasama din po ako 15 years nman sya una salesman tpos ginawa merchandiser then ginawang floating na din sya hanggang sya na ang umalis, same din po no contract, sa kanya wala po binayad. Ano po ba pwede ko i file na case sa NLRC.Salamat po ulit.

    • kasi diba po pag project based contract is ang location ng work muh is depend kung san ka nila iaassigned na project ng company? magkaiba po ba ang “project based” employment sa “per project”employment?

      pwede ka po ba maging project based employment kahit sa office ka nakaassign instead sa site / projects ng company

      • may pagkakaiba ang project based contract sa per project employment, isa yan sa mga pandaraya ng kumpanya para maisahan ka nila, parehas lang kung saan ka e assign nila, kung sa opisina o sa field.

  15. Hello, ask ko lang po if needed ba ng notice letter ang mga project based employee na matatapos na ang kanilang contract next month. Is there a specific period or days notice na dapat ibigay yung notice letter?


  16. Inquire q lang po, pag po ba project based employees, kailangan pa mag notice prior sa termination ng services? required po ba mag bigay ng separation pay ung company? please help me. thanks

    • yes, however, employers are very clever on issuing notices but they are required to report to any DOLE office the termination of contract of every project based employees, regarding separation, separation pay is only given to those employees filed a case and found illegally dismissed and in lieu of reinstatement separation is given, however, there are employers giving separation pay as pay of gratitude to them but not all give separation pay especially unchristian employers.

  17. Hi, tanong ko lang po kung magkano po ang binabawas na tax for Project Employee. 43K basic 2K allowance S-3. Anong difference nya sa isang Consultant. Thanks in advance!

  18. Sir, ask ko lang po regarding this thread. Ang nature of employment ko po ay nasa BPO & a project based employment contract din. Ang nka sulat po sa kontarta ko regarding the “Nature & Duration of Employment” ay “The employee shall commence his employment in the Philippines from (December 1,2013 – December 19,2014) or until such time the project/account with (Client’s Company name) will be terminated by the client, whichever is earlier”. Ang problema po sir ay yung’ employer wants me to transfer to another account but I decided not to continue with them. And as far as i know the contact is already NULL & VOID since the project/account is already been terminated by the client but the company instead tag me as an AWOL employee. Ang masakit po dito sir ay may CASH BOND po na 50,000 & may SHAME CAMPAIGN (they will publish your face on the newspaper as an AWOL employee) if they will tag you as an AWOL employee. The good thing that I did before I decided to leave the company po sir ay nag secure po ako ng offcial papers from the company & signed by the Manager which is address to me on June 17, 2014: stating that “Our client for (Client’s Company name) decided to close the account last June 15, 2014.” Which I believe po sir is a solid evidence that the contract is NULL & VOID since June 15, 2014. ANO PO BA ANG PROPER LEGAL REMEDIES REGARDING THE ISSUE?

    • file a labor complain with the National Labor Relations Commission as early as possible to stop that kind of treatment to others. in case you decided to file labor case we can refer you to our paralegal assign in labor cases for free.

  19. Sir tama ba ito paragraph sa contract ko

    1.The PROJECT EMPLOYEE further understands that as field
    personnel, he is exempted from overtime payment following the provisions in Article 82 of the
    Labor Code of the Philippines. (Project employee daw ako as an desktop it support sa isang client ng employer ko.Pero project based ang Job Order ko hindi ko maintindihan na bakit inemhasized nila yung project emplyee daw ako .help naman sa diference ng Proj. Employee at Project Based Employee.tapos Considered ba kaming Field personel since pagkakaintindi ko sa art. 82 wala OT ang mga field engr. kasi un-determine ang oras nila. not like samin na aware sila na we follow the working hours ng client at pag pinag OT kami need namin mag extend kaya bakit wala kami OT. eto pa isa pag project employee walang holiday at night diferrential.kung may contact numbers po kayo pahingi po para tawag ako sa inyo

  20. Pa advice lang po ako. I am employed as Project Based Employee starting december 1,2011 until now. so 5x na po na renew contract ko din 2 years and 6 months na po ako ngayon. My current contract will be finished on June 30,2014. My Question po is my possibility po ba akung ma Regular sa Position ko ngayon. Salamat po God Bless!

  21. Ask ko lang po, Employment Project Contract po ang sakin and 1 month contract lang po ang napirmahan ko and up to now, nagwowork po ako and nagsasahod. Salary ko for 1 month is Php 13,0000 and yung based sa contract that this includes payment for worked and unworked holidays and rest days. That means po ba, pag pumasok ako ng regular holiday, di po ako mababayad ng double pay, pag pumasok ako ng special non-working holiday, walang additional 30 % sa daily rate? di po ba unfair iyon?

    • ilang araw ba pasok mo sa isang linggo at ano ang work mo, at tama un wala ka ng double pay dahil sobra sa minimum ang bigay sayo pero mali yan, kaya lang ang mga employer hanggang di ka nagrereklamo di nila iyon ibibigay sayo yan.

  22. Hello po,

    Meron po ba tayong tinitignang TENURE OF SERVICE pag project-based ang employee na due din for SEPARATION PAY?

    Thank you.

  23. Sir, i just want to know kung legal po ba ang project based employee sa office position? Accounting/Billing Staff po kasi ako sa current company ko at project based employee. Nag rerenew po ako every 3mos. Pag nag resign po ba ako na hindi pa tapos ang contract ko kelangan ko ba mag render ng 30days. Please advice.

    • Required po b sa isang company ang magpapirma ng contract?13 years na po sa company pero now lang po nagpapapirma ng contract.nakastipulate po dun yun present salary,retroactive po b yun?this year po ang date ng contract pero ang hire date ko 2001..thanks in advance..

      • You are already a regular employee since 2001 after working six months, even you sign a new and first contract on 2014 you are already a regular employee.

      • do not sign any new contract because u are already a regular employee, if they dismiss you for not signing then let us hear from you and we will help you to file illegal dismissal case before the NLRC arbitration office, if you sign the new contract ur 13th years will be considered nothing and your working years will start on the day of the contract.

    • tyaga ka lang after six months e-mail ka uli, ipunin mo lang mga pay slips mo, mga memo na involve ka, I.D., daily time records, at most important may copy ka ng contract. okey

  24. What is the tax bracket for a project based employee? We are being farmed out to another company via an outsource company. Is it 32% or 10%? What is the liability of our employer if our contract is pre terminated and we’ve already worked for more than 6mos. Initial contract is 1yr. Thank you!

    • A minimum worker earner is exempted in taxes (P466.00) but more than minimum wage a person is charged of 32% of tax and even you finished six months working but your contract is for one year as project based you are not considered regular employee.

    • the tax bracket in our country being implemented by the BIR is 32% for those employees earning more than P466.00 a day, if you are a minimum wage earner you are not subjected to pay taxes and if your contract is one year and you only worked for six months, your employer should pay the remaining six months.

  25. hi. i was hired in this company as a curriculum department. i was under a probationary contract from july 14 for 3 months. during this time, the department was dissolved since they said the department would be based in China. They offered a job as a curriculum department in China. i accepted. However, they were having a hard time to secure a working visa for me. A few days ago, my probation ended. Technically, i think i am now a regular since I am allowed to continue working, doing my same responsibilities. Now, the company wants me to sign a new contract – a project-based one for 6 months. I think it violates my security of tenure. am i right? I think from being a regular employee to a project-based one is some sort of a demotion. please enlightened me. Thank you very much.

    • There is no word in the Labor Code that a probationary employee for three months will be considered a regular employee, your company is just playing with your security of tenure position, be careful.

  26. Another question: a co-worker finished her probation contract for three months. then she was transferred to another department. they want her to sign a new probation contract. is there a legal basis to it?

    • A probation contract is always has a duration of six months only and three months probation is not a true probationary period agreement, your company is just fooling you.

    • yes, the employer has the prerogative to put you in a three months-three months probation contract, but you have also the right to question that through labor battle.

  27. i work as a project based since 2005.one time lng po ako nkpira ng contract sa knila.. i work on field as per piece or per interview.=wala kming log in or log out.. pero p nearby provinces kmi my log in kmi sa dtr and log out too.we are paying naman as per hour..my time na malaki ang kita namimn pero my time din namahina.. ang sweldo nmin nk base kung ilan ang nagawa namin for the day..
    9 1\2 yrs nako sa company..walang increase ang rate namin.. binigyyan kmi ng P30 na subsidy allowance everytime na magrereport kmi sa office.
    no work no pay.. tama po ba un? hindi rin ba kami entitled sa sick leave and vacation leave? 2 lng po kming nagwowork on field.

    di na po maganda ang relasyon namin ng superior ko. ano po ba ang rigths ko sa company as proj base?
    my certificate of employment po ako issued last july 2014

    this is t certify that_—–is an employee of —- since june 2005 as temporary service provider of the company. in 2013 she recieved an annual compesation of PHP1189,486.49 while her year to date income for 2014 is PHP53,517.35.
    anopo ba ibig sabihin ng temporary service provider? direct hire po ako sa company at bihira lng po kami mawalan ng gawa. thank you

    • You are already considered a regular employee, but your employer is very wise that’s why your security of tenure isor case in trouble and the only remedy or solution is to file a labor case.

  28. hi po.. project based employee po kami with the rest of my 27 workmates. halos 5 years na po kami ngtatrabaho sa project host company namin. nung una 3 years ung pinirmahan naming contract, tapus naging every year na siya dahil din sa utos ng main company namin nung ma external audit kami. Under DOH po talaga kami, pero may itinalaga na host ang DOH para mag finance ng project na gagawin ng DOH. Bali may apat na CENTERS po na kagaya namin sa buong pilipinas. Lahat po sila ay may tinatanggap na iba pang benefits bukod sa mga mandatory benefits under labor code. hababng kami po ay wala dahil daw under kami sa private owned company, pero ang sahod namin ay naka ayon sa SSL tranche 4 katulad ng ibang CENTERS dahil na din sa utos ng DOH. pero sa unang tatlong taong nagtatrabaho po kami ay kulang po ang binigay nilang sahod kung hindi pa nakialam ang ibang CENTERS at DOH ay hindi kami sasahod ng SSL tranche 4. Sinabihan pa po ang private company na ito na i retro ang mga sahod na hindi ibinigay na tatlong taon sa amin pero hindi din ito sumunod.Nagpadala din po ng memo ang DOH na dapat lahat ng mga empleyado sa mga CENTERS na ito ay parepareho ang nakukuhang benepisyo, pero hangga ngayon ay hindi sumusunod ang company namin. LAst September 2014 ay nagpirma kami ng bagong contract, itinanong namin kung makukuha na namin ang ibang benepisyo na katulad sa ibang centers tulad ng hazard pay, subsistence allow, peraa, rice subsidy at iba pa. ang sagot sa amin ay hindi daw kami under sa government at hind din kami under sa kanila (private owned compny), taliwas sa sinabi nila na under kami sa private owned company nung una. nagyon ay wala kami kahit anong distinction. sa totoo lang po, may mag benepisyo ang ibang empleyado nila na wala din sa amin. ano po kaya ang dapat gawin>?

    • File kayo ng kaso sa National Labor Relations Commission na matatagpuan sa Quezon Avenue corner Banawe ng money claims at ang idemanda ninyo ay ung project host company, main company, at DOH para mabayaran kayo ng three (3) years backward backwages sa money claims para lumabas ang tunay na may kasalanan at para matigil na yang pandaraya sa inyo. Sana may lakas kayo ng loob at matibay na paninindigan sa inyong mga sarili dahil kung wala ay lolokohin lang kayo nila sa mga darating pang panahon. God bless you.

  29. Hello po, ako po ay hired for 3 months as project based pero walang nakalagay sa contract na specific project, legal po ba yun? and pwede po na di na ako mag bigay ng notice kasi wala po akong plano i extend or magtagal sa company..Thanks in advance.

  30. I am working under employment agency right now under contract of 12 months. My employer wants to terminate my contract at 8months due to project termination. is this legal? should I be entitled to any separation pay?

  31. Ask ko Lang po. Project based ako sa govtm, makakatanggap ba akme ng bonuses? At Sabi.kase.walang employer to employee relationship. Ano.po ba ibig Sabhn nun. Thanks!!

    • hindi ka kasama sa bonus kasi hindi ka regular employee ng government, project based ka nga, ibig sabihin kontrata lang ang trabaho mo at walang katiyakan

  32. Ask ko lang po kung ang Consultants ay considered na Project hire employees. Professional Fees lang ba talaga ang compensation?

  33. Sir;

    I just want to ask po kung may makukuha ba ang isang project employee who work only for 2 mos. because his contract is terminated due to just caused he is using the company time for his own benefit.the said employee is issued a termination letter directly.
    please i need your insights with regards on this. thank you and GOD BLESS

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