Letter to a Lawyer

Dear Attorney,

I hope this letter finds you well. I am writing to seek your legal advice on a matter concerning the modification of my employment terms after I had already signed a Job Offer. Specifically, my concern is as follows:

I was hired with a Job Offer stating that I would be a permanent employee after completing six months of employment. However, after accepting and signing the Job Offer, and already working for the company for one month, I was presented with a printed employment contract stating that my employment would now be project-based instead. There was no prior communication regarding this change, and the new contract contradicts the initial terms stated in the Job Offer.

I would like to know whether such a unilateral change is legal and enforceable under Philippine law. What legal remedies, if any, are available to me in this situation? I greatly appreciate your guidance on this matter.

Thank you for your assistance.

Sincerely,
A Concerned Employee

Legal Analysis: Employment Contract Modifications Under Philippine Law

Under Philippine labor laws, the terms and conditions of employment are governed by both statutory provisions and the contracts entered into by the employer and employee. The issue raised in this case pertains to the validity and enforceability of changes to an employment contract after it has already been signed, as well as the rights of an employee when the new terms conflict with those initially agreed upon.

1. The Nature of Employment Contracts

An employment contract establishes the terms of the employer-employee relationship. These include compensation, duration, job position, and other employment conditions. In the Philippines, employment contracts are governed by the following key legal principles:

Freedom to Contract: Parties are free to stipulate the terms of their agreement, provided they are not contrary to law, morals, good customs, public order, or public policy (Article 1306, Civil Code).
Mutual Consent: For a contract to be binding, it must have mutual consent. Any modification to the terms of the contract must also be mutually agreed upon.

A signed Job Offer typically constitutes a valid contract if it contains the essential elements of consent, object, and cause. Thus, altering the terms of employment after acceptance generally requires the employee’s consent.

2. Binding Nature of the Job Offer

The Job Offer signed by the employee is a legally binding document if it specifies the essential terms of employment and is duly accepted. It forms part of the employer-employee agreement and establishes the initial terms of employment. Any deviation from these terms, such as changing the status from permanent to project-based, constitutes a material modification and is not enforceable without the employee’s consent.

3. Project-Based Employment and Permanent Employment

Permanent Employment: Employees hired on a permanent basis enjoy continuous employment unless terminated for just or authorized causes under Article 297 (formerly 282) or Article 298 (formerly 283) of the Labor Code.
Project-Based Employment: This is a form of non-regular employment where the duration of the work is determined by the completion of a specific project or undertaking.

Changing an employee’s status from permanent to project-based effectively alters the employee’s security of tenure, a fundamental right protected under Philippine labor laws. Security of tenure means an employee cannot be dismissed without due cause and adherence to due process.

4. Unilateral Modification of Employment Terms

Under Philippine jurisprudence, employers are not allowed to unilaterally modify the terms of employment without the employee’s consent. Such actions may be deemed a breach of contract and an unfair labor practice. The following legal doctrines and rules are relevant:

Doctrine of Mutuality of Contracts: A contract binds both parties and cannot be unilaterally altered without the consent of the other (Article 1308, Civil Code).
Employer Prerogative: While employers have the right to manage their business, this right is not absolute and must be exercised in good faith and in accordance with existing laws and contracts.

5. Legal Remedies for the Employee

An employee faced with a unilateral modification of their employment terms may consider the following legal remedies:

Filing a Complaint with the Department of Labor and Employment (DOLE): The employee can file a complaint for illegal dismissal, if applicable, or unfair labor practice. DOLE can mediate and enforce compliance with labor standards.
Resignation with Just Cause: If the change results in a substantial alteration of the terms and conditions of employment to the employee’s prejudice, this may constitute constructive dismissal, allowing the employee to resign with cause and claim separation pay.
Filing a Case for Damages: If the modification caused harm, the employee may sue for damages under Article 1700 of the Civil Code, which mandates employers to treat workers with justice and fairness.

6. Jurisprudence on Unilateral Changes

The Supreme Court has repeatedly ruled against employers who unilaterally alter the terms of employment contracts. For example:

In San Miguel Corporation v. Semillano (G.R. No. 164257, October 2005), the Court held that changes to employment conditions that adversely affect the employee must be mutually agreed upon.
In Globe-Mackay Cable and Radio Corporation v. NLRC (G.R. No. L-74174, August 1988), the Court emphasized that an employer’s prerogative to modify terms of employment must be exercised within the bounds of good faith.

7. Specific Legal Protections for Employees

Under Presidential Decree No. 442 (Labor Code of the Philippines), employees are protected against arbitrary changes in their employment status:

Article 280 (now Article 295) differentiates between regular and casual employment, emphasizing the importance of permanence in employment relations.
Article 287 provides for security of tenure, ensuring that employees cannot be removed or downgraded in status without just cause.

8. Practical Steps for the Employee

To address the issue effectively, the employee should:

Document the Discrepancy: Gather all documents, including the signed Job Offer, the newly presented contract, and any correspondence with the employer.
Request Clarification: Communicate formally with the employer, seeking an explanation for the change in terms and stating the objection to the new contract.
Consult DOLE or Legal Counsel: Seek assistance from DOLE or consult a labor lawyer to assess the merits of the case and take appropriate legal action.

Conclusion

Employers are bound by the terms of the Job Offer once it has been accepted by the employee. Any material change to the terms of employment, such as altering the employee's status from permanent to project-based, requires the employee’s consent. Unilateral changes may be deemed invalid and constitute a violation of the employee’s rights under Philippine labor laws. Employees faced with such situations have legal remedies, including filing a complaint with DOLE or pursuing legal action in court. It is advisable to consult with a labor lawyer to ensure the protection of one's rights and interests.