Question & AnswerQ&A (DOLE DEPARTMENT ORDER NO. 19)
This order applies to all operations and undertakings in the construction industry and its subdivisions, including general building construction, general engineering construction, special trade construction, demolition works, and those determined by the Secretary of Labor and Employment to fall within the construction industry.
Employees are classified as project employees, who are employed in connection with a particular construction project or phase thereof and whose employment is co-terminus with the project or phase, and non-project employees, who are employed without reference to any particular project or phase.
Indicators include a reasonably determinable duration of the project, defined specific work/service in the employment agreement, work in connection with a particular project, freedom to offer services to other employers when not engaged, mandatory reporting of termination to DOLE, and an employer's undertaking to pay completion bonus.
Probationary employees (who may become regular), regular employees (appointed or completed probation), and casual employees (employed for work not related to the main business) are recognized.
No, project employees terminated due to project or phase completion, or because their services are no longer needed, are not entitled to separation pay by law.
Project employees with at least one year of continuous employment without a 'day certain' for termination are considered regular employees and thus entitled to separation pay.
They are entitled to all benefits due under law, both monetary and non-monetary, including minimum wage, wage-related benefits, health, safety, and social welfare benefits.
Preventive suspension may be imposed if employment poses a serious and imminent threat to life or property, lasting no longer than 15 days. The employer must hold a fact-finding investigation within this period to determine the employee's guilt or innocence.
Employers must comply with labor laws on hours, wages, benefits, and social welfare, report employee terminations, and ensure occupational safety and health standards are enforced.
Wage increases, whether mandated or agreed upon, shall be borne by the principals or clients of construction contractors and the contracts amended accordingly. Rates depend on skills level but shall not be lower than prescribed minimum wages.