Dear Attorney,

I recently signed an employment contract with a company, but they have been continuously delaying my start date. Is this legal? What are my options if they don’t give me a definite date to start work?

Sincerely,
Concerned Employee

Insights

An employment contract is a legally binding agreement between an employer and an employee, detailing the terms and conditions of employment. Once signed, both parties are expected to fulfill their respective obligations as outlined in the contract. In the Philippines, the delay in commencement of employment after the signing of a contract may raise legal concerns under labor laws.

The main legal concept involved here is the “obligation to commence employment” as provided for under Philippine labor laws. When an employee signs a contract, the employer is expected to honor the agreement, including the date of commencement of employment. If the start date is repeatedly postponed without valid reasons, the employer may be in breach of contract.

Obligations of the Employer

Under Article 1159 of the Civil Code of the Philippines, obligations arising from contracts have the force of law between the contracting parties. This principle applies to employment contracts. Employers who fail to honor the start date specified in a contract may be liable for breach of contract, which could entitle the employee to damages or remedies under civil law.

In labor matters, delays in the commencement of employment may also be construed as a violation of an employee's right to work, as protected by the Constitution and the Labor Code of the Philippines. If an employer does not provide a specific or valid reason for the delays, employees have the right to inquire and potentially seek legal remedies.

Possible Legal Actions

If the employer continuously delays the start date without a valid reason, the employee has several options:

Communication: The employee should first communicate with the employer, preferably in writing, to request a clear explanation for the delay and a definite start date.
Filing a Complaint: If the employer fails to provide satisfactory answers or continues to delay the start date, the employee may file a complaint with the Department of Labor and Employment (DOLE) for violation of labor rights. DOLE may intervene to resolve the issue or impose sanctions on the employer.
Breach of Contract: The employee may pursue a breach of contract claim, which could include compensation for lost wages or other damages, especially if the delay caused financial or professional harm.
Resignation and Separation Pay: If the employer is found in breach of contract, the employee may have grounds to resign with just cause, as provided under Article 285 of the Labor Code. In such cases, the employee may be entitled to separation pay or other compensation, depending on the circumstances.

Employer's Defense

The employer may defend the delay in the commencement of employment if valid reasons exist. These may include:

Business Necessity: Delays due to business restructuring, economic conditions, or other valid operational concerns could be considered acceptable, provided that they are reasonable and communicated properly to the employee.
Mutual Agreement: If the employer and employee mutually agree to adjust the start date, the delay may not be considered a breach of contract.

However, if the delay is excessive or unexplained, the employer may still be liable.

In summary, delays in the start date after signing an employment contract are generally considered a violation of the employment agreement, unless there are valid reasons for the delay. Employees have the right to seek redress under Philippine labor laws, including filing complaints with DOLE or pursuing a breach of contract claim in court.