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    Term or Fixed Employment

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    Bey Villanueva
    Term or fixed employment refers to employment that is determined by a set commencement and termination date in the employment contract. Fixed-term employment must be agreed upon voluntarily by both employer and employee, without force or pressure. A fixed-term or contractual employee is one whose employment is fixed for a certain period of time - when the contract expires without renewal, their employment is automatically terminated. As a general rule, contractual employees are not entitled to separation pay upon termination resulting from contract expiration, as this is not considered a dismissal. However, if a contractual employee is dismissed prior to the end of their contract, they are entitled to separation pay unless the employer can prove the dismissal was due to serious business losses or financial difficulties.

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    Term or Fixed Employment

    Uploaded by

    Bey Villanueva
    95 views2 pages
    Term or fixed employment refers to employment that is determined by a set commencement and termination date in the employment contract. Fixed-term employment must be agreed upon voluntarily by both employer and employee, without force or pressure. A fixed-term or contractual employee is one whose employment is fixed for a certain period of time - when the contract expires without renewal, their employment is automatically terminated. As a general rule, contractual employees are not entitled to separation pay upon termination resulting from contract expiration, as this is not considered a dismissal. However, if a contractual employee is dismissed prior to the end of their contract, they are entitled to separation pay unless the employer can prove the dismissal was due to serious business losses or financial difficulties.

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    Term or fixed employment refers to employment that is determined by a set commencement and termination date in the employment contract. Fixed-term employment must be agreed upon voluntarily by both employer and employee, without force or pressure. A fixed-term or contractual employee is one whose employment is fixed for a certain period of time - when the contract expires without renewal, their employment is automatically terminated. As a general rule, contractual employees are not entitled to separation pay upon termination resulting from contract expiration, as this is not considered a dismissal. However, if a contractual employee is dismissed prior to the end of their contract, they are entitled to separation pay unless the employer can prove the dismissal was due to serious business losses or financial difficulties.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    95 views2 pages

    Term or Fixed Employment

    Uploaded by

    Bey Villanueva
    Term or fixed employment refers to employment that is determined by a set commencement and termination date in the employment contract. Fixed-term employment must be agreed upon voluntarily by both employer and employee, without force or pressure. A fixed-term or contractual employee is one whose employment is fixed for a certain period of time - when the contract expires without renewal, their employment is automatically terminated. As a general rule, contractual employees are not entitled to separation pay upon termination resulting from contract expiration, as this is not considered a dismissal. However, if a contractual employee is dismissed prior to the end of their contract, they are entitled to separation pay unless the employer can prove the dismissal was due to serious business losses or financial difficulties.

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    Term or Fixed Employment

    Term or Fixed-Term Employment is when the employee renders


    service for a definite period of time and the employment contract
    must be terminated after such period expires. This type of
    employment is determined not by the activities that the employee is
    expected to perform but by the commencement and termination of
    the employment relationship.

    Fixed-term employment is highly regulated and is subject to the


    following criteria:

     be voluntarily and knowingly agreed upon by the parties


    without any force, duress or improper pressure being brought
    to bear upon the employee and absent any vices of consent; or

     it satisfactorily appears that the employer and the employee


    dealt with each other on more or less equal terms with no
    dominance exercised by the former over the latter.

    A fixed-term employee or contractual employee is a type of


    employee whose employment is fixed for a certain period of period
    of time. When the contract expires and is not renewed by his or her
    employer, the employment of the contractual employee is deemed to
    have automatically terminated.

    It is of common knowledge that the termination of an employee


    involves the payment by the employer of separation pay. The grant
    of separation pay is in fact a statutory obligation on the part of the
    employer and a demandable right on the part of the employee. Thus,
    the Labor Code mandates the grant of separation pay to an employee
    as an incidence of termination of his or her employment.

    Considering that contractual employees are considered employees


    only for a fixed period of time, are they also entitled to payment of
    separation pay?

    As a general rule, contractual employees not entitled to separation


    pay. The reason for this is simple. If they are terminated as a result
    of expiration of their contract, they are not entitled to termination
    pay or separation pay because there is no dismissal or termination to
    speak of. Separation pay is granted only to employees who are
    dismissed. With regard to contractual employees, when the contract
    with their employer ends, what actually takes place is an expiration
    of term and not a dismissal in legal contemplation. In the absence of
    an actual dismissal, there can be no claim for separation pay.

    The only exception to the above rule is where the contractual


    employee is dismissed prior to the end of his contract. If this
    happens, what takes place is an actual dismissal for which separation
    pay may be claimed by the contractual employee. In fact, a
    contractual employee is considered, for the duration of his or her
    contract, as a regular employee. He or she enjoys a security of tenure
    for the limited period provided under the contract, and cannot be
    removed by the employer without just cause and without following
    the procedure outlined under the Labor Code for the termination of a
    regular employee. Thus, if the contractual employee is removed
    without just cause and without following the procedure outlined
    under the law, the employer not only commits breach of contract
    but also illegal dismissal.

    Thus, in cases of pre-termination of a contractual employee, it


    becomes the obligation of the employer to grant separation pay. As in
    all cases of termination of employment involving other types of
    employees, where the termination is due to serious business losses or
    financial reverses, there are Supreme Court cases to the effect that the
    employer is exempt from payment of separation pay. Therefore, this
    should also hold true with regard to contractual employees.

    However, there must be sufficient proof that the premature


    termination of the contractual employee was actually due to serious
    business losses or financial reverses. If the employer is unable to
    adduce such proof, he is mandated by the Labor Code to pay the
    contractual employee separation pay.

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