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Regular Employees or Project-Based Employees

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1 Regular Employees or Project-Based Employees on Fri Apr 15, 2011 9:43 am

nietzsche


Arresto Menor
I am currently working in an NGO. Just like any other NGO, we are dependent on the funding agencies' support.

I was hired by this NGO as Program Manager of a 3-year project because their proposal was appproved by an international funding agency. They were contracted by the funding agency to implement activities for 3 years, so I was also contracted by the NGO to manage and monitor this for 3 years. I am required to go to the office and work everyday (Monday-Fri and sometimes Sat)just like any other employees. In case the funding agency extends the project, my contract to this NGO will also be extended.

Am I considered a Project-based employee or I'm a regular employee co-terminus to the project funded?

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nietzsche


Arresto Menor
I am currently working in an NGO. Just like any other NGO, we are dependent on the funding agencies' support.

I was hired by this NGO as Program Manager of a 3-year project because their proposal was appproved by an international funding agency. They were contracted by the funding agency to implement activities for 3 years, so I was also contracted by the NGO to manage and monitor this for 3 years. I am required to go to the office and work everyday (Monday-Fri and sometimes Sat)just like any other employees. In case the funding agency extends the project, my contract to this NGO will also be extended.

Am I considered a Project-based employee or I'm a regular employee co-terminus to the project funded?

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attyLLL


moderator
it depends on what it says on your contract. if you are co-terminous with the project, then you are a project employee.


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rogiesm


Arresto Menor
Question din po...

Ako rin ay nagtatrabaho sa isang NGO. Pang-5 taon ko na dahil na-renew ang kontrata ko dahil nag-extend po ang support ng funding agency. I work din Mon-Fri. Project-based din po ang term nila sa team namin. Dahil dito, ang SSS, Pag-ibig at Philhealth po namin ay inilalabas sa sweldo namin at kami po ang nagbabayad. So voluntary/self-employed po ang status namin. Nung nagpa-file kami ng loan, medyo nalito po kami dahil ayaw kami pirmahan ng accounting office namin dahil self-employed nga po kami.

Paano po ba ito? Sana ay may makasagot.

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nietzsche


Arresto Menor
Isn't that tricky? Of course, the company/NGO I am working right now will always state in our contract that we are project-based to get away with some benefits. Does that mean if the funding agency extends for 9 years, I'll be 9 years "project-based" employee? That means I'll be spending 9 years without having any other mandatory benefits?

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attyLLL


moderator
rogiesm, a project employee is still an employee of the ngo. in sss etc, you should not be considered self-employed because you are not an independent contractor.


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attyLLL


moderator
nietzche, the main issue with project employment is security of tenure. as long as the project exists or has not entered into a new phase where you are no longer needed, you will have security of tenure. this means you cannot be removed from your position unless there is a just or authorized cause under the labor code.

remuneration, benefits, are all dependent on your contract, and performance appraisals. you can also negotiate with your employer for better terms.


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nietzsche


Arresto Menor
Also, with this NGO I am working right now, its composition is there are other teams/units, we call it "programs", that are also dependent on certain funding agencies. But their "programs" are already existing 9 years and 15 years. With the "program" I manage, we are just on our way to our 3rd year. And we are currently writing proposal for its second cycle which means there's a possibility that we will be extended to another 3 years (total of 6 years).

Other "program" employees are now treated as somewhat regular employees (but still dependent on the funding agency) because they are already given benefits. But with the program I am under, there is a different packaging and that's what they call the project-based package. When I ask about it, they said they are revising their policy now about "project-based" or "funding-based" employees, so we can't really ask for the same package with the other programs.

Is this fair? I just need clarification...I hope you can help me...

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rogiesm


Arresto Menor
Ohhh...ganun po pala.
Salamat po sa pagbibigay klaro...

Pero paano po iyon ngayon? Ang term po kasi na ginagamit ng HR namin ay project employee nga daw po kami. Sa regular employees lang daw po sila nagpa-process ng SSS, pag-ibig at philhealth. At kaya nga daw po nila inilalabas sa sweldo namin, at kami ang nagbabayad ng sarili naming SSS, philhealth at pag-ibig, ay dahil project employees lang kami.

Ano po ang pwede ko kaya sabihin para malinawan sila?

May nakapagsabi din po sa akin na dahil dito sa sistema sa amin, na lumalabas ang SSS, pag-ibig at philhealth as parang kasama sa sweldo namin, hnd po namin mai-file ng tax iyon.

Sana po ay makapagbigay po ulit kayo ng suhestson.

salamat po...

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teaclass


Arresto Menor
hello po

ako naman po, ang concern ko ay tungkol sa release ng sweldo. May kaugnayan rin po sa project employees at regular employees. Ang lahat po ng regular employees sa kumpanyang pinapasukan ko ay tuwing 13th at 28th of the month. Sa mga project employees naman po, 15th at 30th naman daw po kami...ang rason lang talaga ay dahil project employees daw po kami. Pero sa policy/handbook ng kumpanya, talagang 13th at 28th po ang pa-sweldo. Naramdaman ko lang po ang diskriminasyon sa project employees. Para tuloy kaming tinitingnan na naiiba bilang empleyado.

Tama po ba ito?

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11 Re: Regular Employees or Project-Based Employees on Sat Apr 16, 2011 11:09 am

jea


Arresto Menor
Some clarifications at questions lang po:

Nagkakalituhan po kasi talaga sa regular employees benefits at project employees benefits. If I am reading it right, from mr nietszche's case, hindi naman po nya intention na maging regular permanent employee sya dahil alam nya na co-terminous ang employment nya sa funding agency. Mas ang hinihingi yata nya ay yung the usual benefits (maybe mandatory benefits) na nakukuha ng regular employees, it's just that his employment is co-terminous sa funding. Of course, maybe, except for separation pay kapag wala ng extension.

At sa kaso nga rin nya, at nung sa iba pa na sumulat, nagiging lusot kasi talaga ng kumpanya o NGO na wag sila bigyan ng benefits dahil sa pagkakaalam ng HR nila, these benefits are only for regular employees.

So paano nga ba yun? Para talagang 2nd class employees ang project employees versus the regular employees.

Sa kontrata naman, how would we know if the company is giving us the right benefits? especially kung project based nga? Lalo na yung mga long term na project employees like 3 years or 5 years.

Ano ba ang basic benefits na meron dapat ang project employees as against regular employees, lalo nga sa case ng long term (3 or 5 years) project employees? Magko-consult ba kami parati sa lawyer to check the contract that the company is offering? What if we negotiate and the company doesn't want it?

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12 Re: Regular Employees or Project-Based Employees on Sat Apr 16, 2011 11:50 am

attyLLL


moderator
teaclass, if the only difference is date of salary, i don't see anything wrong. you have security of tenure as long as the project is subsisting. if you are discriminated, that is due to the ignorance of other people.

rogie, review your contract. then ask your HR that you believe they should treat you as an employee as to SSS and philhealth coverage. if they do not respond, then it will be up to you if you will elevate further by complaining to the SSS


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13 Re: Regular Employees or Project-Based Employees on Sat Apr 16, 2011 11:57 am

attyLLL


moderator
nietzche and jea, awarding of benefits is based on management discretion. different ones can be granted to project and regular employees. unfair is not necessarily unlawful as long as what you were promised in the employment contract is fulfilled and no law is violated.


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nietzsche


Arresto Menor
As project employee, am I allowed to have mandatory benefits provided by law? Or that's just for regular employees? Mandatory benefits are SSS, Pag-ibig, Philhealth, right? Are there any other mandatory benefits?

Also, should all project employees in one company/NGO have the same benefits? Of course, it will vary on the project. But as what I've said earlier, with regard to my co-workers, with same position and same line of work, but in a different project, should we have same benefits/package?

I'm not sure if my questions are irritating. But I hope you can still answer some of it.

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jea


Arresto Menor
Ang issue lang po ba sa project employees and regular employees ay security of tenure? Paano nga kung gingagawang lusot ng kumpanya ang pagiging project employees para hindi sila magbigay ng benefits? Katulad nga ng mandatory benefits?

Sa pagbabasa ko ng ilang blogs dito sa internet, may mga na-encounter po ako. Baka naman po pwedo nyo maliwanagan kung applicable ito sa tanong ko.

1. In fine, a employee can be considered a regular employee if he (1) performs activities necessary and desirable in the usual trade or business of the employer or (2) has cumulatively rendered at least 1 year of service with respect to an activity and for so long as this activity exists, even if not necessary or desirable to the usual trade or business of the employer.

2. Thus, under Article 280 of the Labor Code, an employment is deemed regular when the activities performed by the employee are usually necessary or desirable in the usual business or trade of the employer even if the parties enter into an agreement stating otherwise. But considered not regular under said Article are (1) the so-called “project employment” the termination of which is more or less determinable at the time of employment, such as those connected with a particular construction project; and (2) seasonal employment, which by its nature is only for one season of the year and the employment is limited for the duration of that season, such as the Christmas holiday season. Nevertheless, an exception to this exception is made: any employee who has rendered at least one (1) year of service, whether continuous or intermittent, with respect to the activity he performed and while such activity actually exists, must be deemed regular.

Following Article 280, whether one is employed as a project employee or not would depend on whether he was hired to carry out a “specific project or undertaking”, the duration and scope of which were specified at the time his services were engaged for that particular project.[11] Another factor that may be considered is the reasonable connection between the particular activity undertaken by the employee in relation to the usual trade or business of the employer; if without specifying the duration and scope, the work to be undertaken is usually necessary or desirable in the usual business or trade of the employer, then it is regular employment and not just “project” much less “casual” employment.

Thus, the nature of one’s employment does not depend on the will or word of the employer. Nor on the procedure of hiring and the manner of designating the employee, but on the nature of the activities to be performed by the employee, considering the employer’s nature of business[12] and the duration and scope of the work to be done.


Sa pagkakataong ito, hindi po ba applicable din ito sa pinaguusapan natin? Security of tenure lang po ba applicable ito? What about benefits po na mandatory by law?

Hindi po ba ito applicable sa case ni Mr. nietzsche? Naintindihan ko po kasi na parang ang tagal naman ng 3 taon na project employee ka lang na walang benefits.


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attyLLL


moderator
nietzche, you should be given mandatory benefits. if you are being made to pay them yourself like teaclass, that is wrong.

jea, the complete case is http://sc.judiciary.gov.ph/jurisprudence/1998/oct1998/125606.htm. note that the finding in the case is that the employee was a project employee, and in that case, he did not have a written agreement.

but more importantly, the case outlined the kinds of project employees:


“In the realm of business and industry, we note that project could refer to one or the other of at least two (2) distinguishable types of activities. Firstly, a project could refer to a particular job or undertaking that is within the regular or usual business of the employer company, but which is distinct and separate, and identifiable as such, from the other undertakings of the company. Such job or undertaking begins and ends at determined or determinable times. xxx

The term project could also refer to, secondly, a particular job or undertaking that is not within the regular business of the corporation. Such a job or undertaking must also be identifiably separate and distinct from the ordinary or regular business operations of the employer. The job or undertaking also begins and ends at determined or determinable times. x x x”

in my opinion, nietzche belongs in the first kind, and it does not matter how long he has been working as a project employee because it will not ripen into regular employment unless he is made to work on other projects or is continuously re-hired.


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billy


Arresto Menor
Hello po,

I have a question na somehow related sa topic. Our project is ending very soon after five years. Part of our final pay is the "project completion pay" where we get a certain amount based on our latest salary and number of years. From the beginning, we are aware that the project is for five years only. Should our "project completion pay" be taxable? Many thanks po!

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attyLLL


moderator
to my mind, you knew it before so it is considered expected income; therefore taxable.


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