Employment Status and Classification
- Employees are categorized as project employees and non-project employees.
- Project employees are tied to specific projects or phases, with employment co-terminus with project duration.
- Non-project employees are employed without reference to a specific construction project.
- Indicators of project employment include definable duration, clear employment agreement, connection to specific project, freedom of the employee to work elsewhere during non-engagement, required DOLE notification upon termination, and employer’s commitment to completion bonus.
- Project completion phases are recognized distinctly for employment termination and rehiring purposes.
- Non-project employees include probationary, regular, and casual employees with specific definitions and entitlements.
- Contracting and subcontracting practices are recognized, subject to compliance with labor laws, with workers considered employees of the contracting entity.
Conditions of Employment
- Regular project employees enjoy security of tenure under the Labor Code.
- Termination requires just or authorized causes, with separation pay applicable where mandated.
- Project employees terminated due to project or phase completion are not entitled to separation pay.
- Project employees with continuous employment of at least one year may be treated as regular employees unless a "day certain" for project completion exists.
- Unjust termination entitles the employee to reinstatement or payment for unexpired contract portion.
- Pro-rata completion bonuses are due if promised, typically amounting to at least half a month’s salary for every 12 months served.
- All employees are entitled to statutory monetary and non-monetary benefits during employment.
- Payment by results must meet or exceed minimum wage standards, with DOLE authorized to determine rates.
Preventive Suspension
- Both project and non-project employees may be preventively suspended if their employment poses serious and imminent threats.
- Suspension cannot exceed fifteen (15) days without wage payment.
- Employers must conduct timely fact-finding investigations during suspension with employee participation.
- Termination following suspension must comply with due process and does not preclude employee rights to contest.
Self-Organization and Collective Bargaining
- Employees have the right to form trade unions within the construction industry.
- Such formation must not prejudice existing bargaining units and must comply with existing laws.
- Trade unions are defined as combinations of workers in the same or allied trades to collectively secure favorable employment conditions.
Liabilities and Responsibilities of Employers and Workers
- Employers (construction companies, general contractors, subcontractors) are responsible for compliance with labor and social laws regarding wages, working hours, benefits, health, safety, and reportorial requirements.
- Prime contractors bear discretion to ensure subcontractors comply with labor standards.
- Workers must adhere to labor laws and company regulations.
- DOLE will enforce Occupational Safety and Health Standards, particularly those related to construction safety, and may issue specific codes of practice.
- Wage increases mandated or agreed upon are borne by principals or clients and contracts are deemed adjusted accordingly.
- Wage rates depend on skill levels in accordance with agreed trade standards but shall not fall below prescribed minimum wage orders.
Effectivity and Relationship to Existing Issuances
- These guidelines serve as a framework for DOLE and its agencies in enforcing labor and social laws.
- The guidelines do not permit reduction of benefits employees enjoyed before issuance.
- The issuance supersedes Policy Instructions No. 20 of 1977 and takes effect immediately upon adoption.