Concern:
Good morning. I am an employee who has been working for over a year, but I have not yet been regularized. Instead, I am being asked to sign a new contract.

∇ Legal Contemplator

Foundational Observations

Let’s begin with the basics. In the Philippines, employment practices are guided by the Labor Code and other labor-related laws. Regularization, probationary periods, and employment contracts are tightly regulated to ensure the protection of workers. The law generally requires that employees be regularized after six months unless their employment is explicitly probationary and conditions for regularization are unmet.

Observation 1: You’ve been employed for over a year. This exceeds the standard six-month probationary period prescribed under Article 281 of the Labor Code. This suggests that by default, you may already have the rights of a regular employee unless there is valid justification otherwise.

Observation 2: You are being asked to sign a new contract. This raises questions about the nature of your current employment status and the employer’s intent. Does this new contract attempt to reset the probationary period, or does it redefine your role?

Observation 3: The absence of regularization, despite your continued employment beyond six months, suggests potential non-compliance with labor standards. Employers are obligated to regularize employees unless there are valid reasons for non-regularization, such as failure to meet performance metrics clearly communicated in the probationary contract.

Exploring Legal Implications

1. Is the probationary period extended by law?

The Labor Code does not allow extensions to the probationary period without legal basis. After six months, if the employer does not terminate the employee for justifiable reasons or expressly regularize them, the employee is automatically considered regular.
However, the employer may claim justifiable grounds for non-regularization. Let’s examine possible scenarios:
- Was there a formal probationary agreement specifying that regularization depended on performance metrics or behavioral criteria?
- Were these criteria objectively measurable and communicated to you at the start of employment?
- If not, this weakens any claim that your non-regularization is legally valid.

2. What does signing a new contract signify?

A new contract may be an attempt to circumvent labor laws. Let’s break this down:
- Possibility 1: The new contract is a fixed-term agreement. Fixed-term contracts are generally discouraged unless there is a legitimate reason (e.g., project-based work).
- Possibility 2: The employer is using successive contracts to avoid granting regular status. This practice is known as labor-only contracting or endo (short for end-of-contract), which is explicitly prohibited under Department Order No. 174 and relevant laws.
By signing the new contract, you might unintentionally waive your rights as a regular employee. But would this waiver even be valid under Philippine labor law? Generally, waivers against labor rights are null and void because such rights are protected by law.

3. Could this be constructive dismissal?

Asking you to sign a new contract might be a tactic to pressure you into an agreement unfavorable to your interests. If refusal leads to termination, this could be construed as constructive dismissal, which occurs when an employer creates intolerable working conditions to force an employee to resign or accept changes in terms of employment.

Uncertainties and Doubts

Am I overlooking nuances in fixed-term contracts?

Philippine law permits fixed-term contracts, but only under strict conditions. This isn’t inherently illegal, but the context matters. For example:
- Was the nature of your work inherently temporary?
- Did the employer present legitimate business reasons for offering a fixed-term contract?

What if the employer claims performance issues?

Employers may argue that an employee didn’t meet performance standards. Here, the burden of proof lies with the employer.
- Did the employer provide documented evaluations or warnings during the probationary period?
- Was there an opportunity to improve?

Could I have implicitly agreed to successive probationary terms?

If you continued working under a new contract without contesting it, could this imply consent to reset probationary terms? While this is doubtful given the law’s protective stance, it raises questions about procedural nuances.

Revisiting Initial Assumptions

Assumption 1: After six months, employees automatically become regular.

Mostly true. However, valid reasons for non-regularization (e.g., unmet performance standards) complicate this.

Assumption 2: Signing a new contract forfeits your claim to regularization.

Not necessarily. Any agreement waiving labor rights is generally void. However, it may complicate claims if the contract is misconstrued as voluntary.

Practical Steps and Recommendations

Request clarity from your employer. Politely ask for written clarification regarding your employment status and the reasons for non-regularization.
Review the new contract carefully. Pay close attention to terms that reset your probationary status or waive your rights.
Document everything. Keep records of your employment history, communications, and performance evaluations.
Seek assistance from DOLE or a labor lawyer.
- The Department of Labor and Employment (DOLE) can mediate and investigate labor disputes.
- A labor lawyer can provide legal advice tailored to your specific situation.

Final Answer

Based on the information provided, it appears that your continued employment beyond one year entitles you to regularization under Philippine labor law, unless your employer can provide valid reasons otherwise. Signing a new contract might undermine this entitlement, so proceed cautiously. Seek immediate legal guidance to assert your rights and avoid signing agreements that could be prejudicial to your employment status.