Question & AnswerQ&A (BWC DEPARTMENT ORDER NO. 19 s. 1993)
It applies to all operations and undertakings in the construction industry and its subdivisions, namely: general building construction, general engineering construction, and special trade construction, including companies involved in demolition work and those determined by the Secretary of Labor and Employment to be part of the construction industry.
Employees are generally categorized as project employees and non-project employees. Project employees are employed in connection with a particular construction project or phase thereof and are co-terminus with the project. Non-project employees are employed without reference to any particular construction project or phase.
Indicators include the duration of the specific undertaking being reasonably determinable and defined in an employment agreement, the work being related to a particular project, the employee being free to offer services to other employers when not engaged, employer’s report of termination to DOLE within 30 days, and an undertaking to pay a completion bonus.
There are three types: probationary employees (entitled to regularization upon completion of probation), regular employees (who have completed probation or appointed to fill regular positions), and casual employees (employed to perform work not related to the main business and considered regular if employed for at least one year).
Yes, project employees may be rehired for another undertaking, provided the rehiring conforms with the law and this issuance, and the last day of service in the prior project is indicated in the employment.
No, project employees separated due to project or phase completion, or because their services are no longer needed in that particular phase, are not entitled to separation pay by law.
Project employees with at least one year of continuous employment without an agreed 'day certain' for termination are considered regular and entitled to separation pay. Also, if terminated without just or authorized cause before project completion, they are entitled to reinstatement or salaries for the unexpired portion of the agreement.
Both project and non-project construction employees are entitled to all benefits under the law, including monetary and non-monetary benefits during their employment period.
Yes, workers can be paid by results such as piece rates or 'pakiao'. The rates must not be less than the minimum wage applicable in the region where the project is located, which may be determined by the DOLE Regional Office.
Project and non-project employees may be preventively suspended for serious and imminent threats to life or property, but suspension cannot exceed 15 days without payment of wages. Employers must conduct a fact-finding investigation with notice and opportunity to be heard before termination.
Employers, including contractors and subcontractors, are responsible for compliance with laws on hours of work, wages, benefits, safety, and social welfare. They must also submit required reports to DOLE and ensure compliance with labor standards in contracted jobs.
Wage increases, whether mandated or agreed, are borne by the principals or clients of the contractors and contracts are deemed amended accordingly. Wage rates are tied to skill levels and cannot be lower than prescribed minimum wages as per wage orders and regulations.
The Department encourages the formation of trade unions composed of workers of the same or allied trades to secure favorable conditions, provided such unions do not prejudice existing bargaining units and comply with existing laws.