Fixed-Term Employment Contract

Summary

⦁ A fixed-term employment contract is an employment arrangement between an employer and a fixed-term employee wherein the latter will perform work for a term or a certain period of time.

⦁ Fixed term employees should have willfully and voluntarily entered into the fixed term employment contract.

⦁ Fixed term employees should have bargained on equal footing on the terms and conditions of employment.

⦁ Non-compliance of the requirements may result in the employee being reclassified as a regular employee.

⦁ Burden of proof is on the employer when a non-regular employment is challenged.

1. Legal basis

Not in the labor Code, but in Case Law

Interestingly, the Labor Code does not mention another employment arrangement – contractual or fixed term employment (or employment for a term) – which, if not for the fixed term, should fall under the category of regular employment in view of the nature of the employee’s engagement, which is to perform an activity usually necessary or desirable in the employer’s business. (Universal Robina Sugar Milling Corporation v. Acibo, G.R. No. 186439, 15 January 2019, Per Brion, J.)

In Brent School, Inc. v. Zamora, the Court, for the first time, recognized and resolved the anomaly created by a narrow and literal interpretation of Article 280 of the Labor Code that appears to restrict the employee’s right to freely stipulate with his employer on the duration of his engagement. In this case, the Court upheld the validit...

 



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