QuestionsQuestions (DOLE DEPARTMENT ORDER NO. 19)
It applies to all operations/undertakings in the construction industry and its subdivisions (general building, general engineering, special trade construction), companies/entities involved in demolition works, and those falling within the construction industry as determined by the Secretary of Labor and Employment.
Employees are generally categorized as (a) project employees and (b) non-project employees.
A project employee is employed in connection with a particular construction project or phase and whose employment is co-terminous with the project/phase to which assigned.
Examples include: (1) duration of the specific/identified undertaking is reasonably determinable; (2) duration and specific work/service are defined in an employment agreement explained at hiring; (3) work/service is connected with the particular project/undertaking; (4) when not employed, the worker is free to offer services to other employers; (5) termination reported to the DOLE Regional Office within 30 days using the prescribed form; (6) employer undertakes to pay completion bonus to project employees.
Employees are not separated at the same time because some phases end earlier. The completion of a phase is considered the completion of the project for employees employed in that phase.
Yes, rehiring is allowed for another undertaking, provided it conforms with law and the issuance. The last day of service with the employer in the preceding project should be indicated in the employment agreement.
They are: (1) probationary employees—regularize upon completion of the probationary period and must be informed of standards for regularization; (2) regular employees—appointed as such, or completed probation, or fill up regular positions vacated; (3) casual employees—employed for work not related to the main line of business; if employed at least one year (continuous or broken), considered regular with respect to the activity and continues as long as the activity exists unless ended for just/authorized cause or voluntarily by employee.
Project employees are entitled to separation pay if they become regular and their services are terminated for authorized causes under Article 283 (distinguished from just causes under Article 282). The guidelines reference Art. 280 for security of tenure, and separate rules on Art. 282/283 for causes and separation pay.
No. Project employees contemplated by Sec. 2.1 are not entitled to separation pay if terminated due to completion of the project/phase in which employed, or because no more work is needed in that phase.
If aggregate period of continuous employment in the company is at least one year, the project employee is considered regular in the absence of a “day certain” for termination. A “day certain” may exist even if the exact date isn’t known as long as final completion is in fact determinable and expected completion is made known to the employee.
Completion is determined on the date originally agreed upon or indicated in the contract; if extended, completion is determined on the date of termination of the project extension.
The employee is entitled to reinstatement with backwages to the former or substantially equivalent position. If reinstatement is no longer possible, the employee receives salaries for the unexpired portion of the agreement.
An undertaking by the employer to pay completion bonus is an indicator that the employee is a project employee.
They are entitled to a pro-rata completion bonus if there is an undertaking. The pro-rate completion bonus may be based on industry practice and is at least one-half (1/2) month salary for every 12 months of service.
The rate must be not less than the minimum wage applicable in the region where the construction project is located. DOLE Regional Offices may determine minimum wage rates for workers paid by results on initiative or upon request.
It may be imposed only if continued employment poses a serious and imminent threat to life or property of employer/co-workers (subject to Art. 277(b)). It must not exceed 15 days. The employer must reinstate after 15 days or extend the suspension only if it pays wages/benefits during extension and designates a day/time/place for fact-finding investigation with notice so the employee can be heard and assisted by counsel/representative.
They are responsible for workers’ compliance with labor standards: hours of work, wages and wage-related benefits, health, safety, and social welfare benefits, and for required reports (e.g., Work Accident/Illness Report; Monthly Report on Employees’ Terminations/Dismissals/Suspensions). The prime/general contractor must exercise sound judgment in contracting out projects to ensure compliance.