POST-EMPLOYMENT: KINDS OF EMPLOYMENT

I. Overview
Philippine labor law recognizes various classifications of employment arrangements, each governed by distinct rules on engagement, security of tenure, conditions of service, and modes of termination. The concept of “post-employment” generally pertains to the period and conditions surrounding the cessation or termination of employment and any ensuing legal consequences or entitlements. However, to fully appreciate the post-employment stage, one must understand the types of employment recognized under the Labor Code of the Philippines (Presidential Decree No. 442, as amended) and related jurisprudence. These classifications determine not only the employee’s rights during employment but also the terms under which the employment relationship may be validly terminated and the benefits or liabilities that may arise afterwards.

This discussion focuses on the “kinds of employment” under Philippine labor law and the key principles that apply to each, especially as they relate to termination and post-employment consequences such as separation pay, reinstatement, and other entitlements.

II. Statutory and Doctrinal Sources

1. Labor Code of the Philippines (Book VI on Post-Employment): Primarily deals with termination of employment and the conditions for ending the employer-employee relationship. While the Labor Code itself defines certain categories of employment, jurisprudence and Department of Labor and Employment (DOLE) regulations have refined these definitions.

2. Jurisprudence and DOLE Issuances: Supreme Court decisions and labor agency regulations further clarify the distinctions between employment types and the resulting rights and obligations upon the termination of the employment relationship.

III. General Classifications of Employment
The Labor Code and Philippine jurisprudence generally recognize the following categories of employment:

1. Regular Employment

   • Definition: Regular employees are those who perform activities which are usually necessary or desirable in the usual business or trade of the employer. By default, any employee not otherwise classified by law or contract falls under regular status.
   • Security of Tenure: Regular employees enjoy security of tenure, meaning they cannot be terminated except for just or authorized causes as enumerated under the Labor Code.
   • Post-Employment Implications: Termination of a regular employee without just or authorized cause renders the employer liable for reinstatement and full backwages. If reinstatement is not viable, separation pay may be awarded. Termination for authorized causes (e.g., redundancy, retrenchment) typically necessitates payment of separation pay and compliance with procedural due process requirements.

2. Project Employment

   • Definition: Project employees are engaged for a specific project or undertaking, the completion or termination of which has been determined at the time of their engagement. Their tenure is coterminous with the project’s duration.
   • Indicative Factors: A written contract specifying the project’s scope and duration and the nature of the work as distinct from the employer’s regular operations.
   • Security of Tenure & Termination: Project employees do not become regular by mere length of service if their services are tied to the completion of a project. Once the project ends, their employment ends without the obligation of separation pay (unless stipulated by company policy, contract, or collective bargaining agreement). However, if the employee is continuously re-hired for successive projects and their work becomes integral to the company’s business, they may be deemed regular.
   • Post-Employment Stage: Upon the project’s completion, the employment naturally terminates. No illegal dismissal claim arises if the pre-agreed project duration has been completed and proper notice has been given.

3. Seasonal Employment

   • Definition: Seasonal employees work for an employer whose business, by its nature, is limited to a particular season or period of the year. The employees are hired during the peak season and laid off at season’s end.
   • Status and Tenure: Seasonal employees, if repeatedly and regularly engaged over multiple seasons, become regular seasonal employees. They are considered in “off-season” layoff status without terminating their employment relationship.
   • Post-Employment Implications: During off-seasons, no separation pay is generally due since the employment relationship is not actually severed but merely suspended. Illegal dismissal issues may arise if the employer refuses to re-hire a seasoned seasonal employee without justifiable reason. Separation pay might be considered if the employer no longer re-engages them at season’s start without lawful cause.

4. Casual Employment

   • Definition: Casual employees are engaged to perform work that is neither usually necessary nor desirable to the employer’s main business. By default, they have less security of tenure compared to regular employees.
   • Conversion to Regular Status: If a casual employee has rendered at least one year of service, whether continuous or broken, performing activities necessary or desirable to the employer’s business, they become a regular employee by operation of law.
   • Termination and Post-Employment: Before conversion to regular status, casual employees may be terminated as per their contract or at will, provided termination is made in good faith and not contrary to law. Once converted to regular, the usual rules on just or authorized causes of dismissal apply.

5. Fixed-Term (Contractual) Employment

   • Definition and Basis: Not explicitly defined in the Labor Code, but recognized in jurisprudence (e.g., Brent School, Inc. v. Zamora), fixed-term employment involves an agreement to engage an employee for a definite period.
   • Validity: Valid only if not intended to circumvent security of tenure laws. Factors considered include the duties to be performed, the nature of the job, and the bona fide intent to fix the term.
   • Termination and Post-Employment: Employment ends by expiration of the term without the need for cause or separation pay (unless otherwise agreed upon). The employer’s good faith and the absence of any scheme to defeat the employee’s security of tenure are crucial. Courts frown upon repeated fixed-term contracts that effectively deny the employee the right to become regular.

6. Probationary Employment

   • Definition: A probationary employee is hired on a trial basis to determine their fitness and qualifications for regular employment. The period shall not exceed six (6) months from the date the employee started working, unless a longer period is required by an apprenticeship agreement or covered by a specific exemption.
   • Standards and Termination: The employer must communicate the reasonable standards to the probationary employee at the start of employment. If the employee fails to meet these standards, the employer may terminate the probationary employment without incurring liability for illegal dismissal, provided procedural requirements are observed.
   • Conversion to Regular Employment: If the employee is allowed to work beyond the probationary period without express notice of termination or extension, they acquire regular status.
   • Post-Employment Issues: If prematurely terminated without valid grounds or proper due process, the probationary employee may seek reinstatement (or payment of the remainder of the probationary period’s contract) or damages.

7. Apprentices, Learners, and Interns

   • Nature of Engagement: Apprentices and learners are engaged under special training arrangements governed by the Labor Code and DOLE regulations. Interns may be engaged under student trainee programs subject to school-industry linkages.
   • Termination: Generally limited to the training period’s duration or completion of the apprenticeship program. Rights and benefits depend on compliance with statutory requirements.
   • Post-Employment: At the end of the apprenticeship or learning period, the employer may hire the apprentice as a regular employee. If the employer unjustly refuses to do so despite the apprentice’s successful completion of training, questions of bad faith and possible liabilities may arise depending on the governing agreements.

IV. Termination of Employment and Post-Employment Rights
While the above classifications dictate the nature and scope of employment, the Labor Code’s provisions on termination (Articles 279-298, now renumbered under the Labor Code as amended) apply at the post-employment stage. For regular employees, lawful termination requires just or authorized cause and adherence to procedural due process:

• Just Causes (Art. 297): Serious misconduct, willful disobedience, gross and habitual neglect of duties, fraud, breach of trust, commission of a crime against the employer or his representatives, and analogous causes.
• Authorized Causes (Art. 298 & 299): Installation of labor-saving devices, redundancy, retrenchment, closure of business, and disease not curable within six months. Termination for authorized causes entitles the employee to separation pay.

For non-regular employees (project, seasonal, casual, probationary), termination follows the logic of their employment arrangement. A key principle is that termination should not be used to circumvent the law on security of tenure. If termination is found unlawful, reinstatement and backwages are generally awarded. Where reinstatement is no longer feasible, separation pay in lieu of reinstatement is granted.

V. Post-Employment Benefits and Obligations

1. Separation Pay:

   • Mandatory for authorized cause terminations of regular employees.
   • Not generally required for expiration of fixed-term contracts or completion of projects, unless provided by contract or company policy.

2. Final Pay and Clearance:

   • All employees, regardless of classification, are entitled to the prompt payment of final wages upon termination, including salary due, proportionate 13th month pay, unused leave credits (if convertible to cash), and other contractually or legally mandated benefits.

3. Retirement Benefits:

   • Governed by the Retirement Pay Law and company policies. Regular employees who reach retirement age as prescribed by law or CBA/company policy may be entitled to retirement benefits, while fixed-term and other non-regular employees may not enjoy the same privileges unless contractually stipulated.

4. Unemployment Insurance or Involuntary Separation Benefits (SSS, ECC):

   • Social Security System (SSS) provides unemployment benefits to covered employees who are involuntarily separated. The rules and procedures for applying depend on SSS policies.
   • This is distinct from severance or separation pay under the Labor Code. It is a form of post-employment financial relief from a social legislation perspective.

VI. Impact of Misclassification
Employers who misclassify employees (e.g., treating them as contractors or project employees when they are actually regular) face liabilities for illegal dismissal when they terminate the engagement without due cause or process. Post-employment litigation often hinges on proving the true nature of the employment relationship.

VII. Conclusion
Understanding the various kinds of employment under Philippine labor law is critical to determining the respective rights, benefits, and liabilities at the post-employment stage. Each classification—regular, project, seasonal, casual, fixed-term, and probationary—carries distinct implications for how employment ends and what the parties owe each other afterwards. Armed with this knowledge, employers can craft compliant contracts and policies, while employees can more effectively assert their rights should disputes arise after termination.