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Fixed-Term Employees Agreed Period of Employment 29 October 2016

Fixed-Term Employees

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Page 1: Fixed-Term Employees

Fixed-Term EmployeesAgreed Period of Employment

29 October 2016

Page 2: Fixed-Term Employees

Fixed-Term EmployeesThe employer and the employee agrees to a fixed-term or duration of the employment.

Citation: Brent School, Inc., v. Zamora, G.R. No. L-48494, 05 February 1990

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Limitations to Fixed-Term EmploymentTwo-fold criteria for validity: "... where a fixed period of employment was agreed upon knowingly and voluntarily by the parties, without any force, duress or improper pressure being brought to bear upon the employee and absent any other circumstances vitiating his consent, or where it satisfactorily appears that the employer and employee dealt with each other on more or less equal terms with no moral dominance whatever being exercised by the former over the latter…”Important: If the above criteria are not met, the fixed-term employee is deemed a regular employee.

Citation: Brent School, Inc., v. Zamora, G.R. No. L-48494, 05 February 1990

Page 4: Fixed-Term Employees

Case LawBrent School, Inc. v. Alegre (1990):• The employee (athletic director) claimed that he was a regular

employee despite his having signed a 5-year employment contract.

HELD: The complainant was a fixed-term employee.• “… [the Civil Code] has always recognized, and continues to

recognize, the validity and propriety of contracts and obligations with a fixed or definite period, and imposes no restraints on the freedom of the parties to fix the duration of a contract, whatever its object, be it species, goods or services, except the general admonition against stipulations contrary to law, morals, good customs, public order or public policy.”

Citation: Brent School, Inc., v. Zamora, G.R. No. L-48494, 05 February 1990

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Case LawDumpit-Murillo v. Associated Broadcasted Company (2007):• The employee (athletic director) claimed that he was a regular employee despite his having

signed a 5-year employment contract.HELD: The fixed-term employee was deemed a regular.• “… it does not appear that the employer and employee dealt with each other on equal

terms. Understandably, the [employee] could not object to the terms of her employment contract because she did not want to lose the job that she loved and the workplace that she had grown accustomed to, which is exactly what happened when she finally manifested her intention to negotiate.”

• “Being one of the numerous newscasters/broadcasters of ABC and desiring to keep her job as a broadcasting practitioner, [the employee] was left with no choice but to affix her signature of conformity on each renewal of her contract as already prepared by [the employers]; otherwise, [they] would have simply refused to renew her contract. Patently, the [employee] occupied a position of weakness vis-à-vis the employer. Moreover, [the employer’s] practice of repeatedly extending [the employee’s] 3-month contract for four years is a circumvention of the acquisition of regular status. Hence, there was no valid fixed-term employment between [them].”

Citation: Dumpit-Murillo v. Associated Broadcasting Company, G.R. No. 164652, 08 June 2007

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For more information:

Labor Law ComplianceBest Practices for Human Resource

www.laborlaw.ph

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Page 7: Fixed-Term Employees

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JDP Consulting Ltd. Co.Empowering leaders with legal compliance

We focus on Small and Medium Enterprises.www.jdpconsulting.ph

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Page 8: Fixed-Term Employees

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Visit: www.cpdc.phVenue of Seminars & Workshop:BGC Ascott, Taguig City