CHAPTER 5 - SECURITY OF TENURE said right as provided under Article 279 of the Labor
Code. However, regular employees are the ones
ARTICLE XIII, Section 3 of the Constitution provides
that "they (employees) shall be entitled to security of
tenure, human conditions of work, and a living wage".
Security of Tenure is commonly defined as the
constitutional right granted to an employee, which
generally prohibits the employer from terminating
his/her services, except for just causes or when
authorized by law.
Article 279 of the Labor Code of the Philippines states
that in cases of regular employment, the employer shall
not terminate the services of an employee except for a
just cause or when authorized by this Title. ; an
employee who is unjustly dismissed from work shall be
entitled to reinstatement without loss of seniority rights
and other privileges and to his full back wages, inclusive
of allowances, and to his other benefits or their
monetary equivalent computed from the times his
compensation was withheld from him up to the time of
his actual reinstatement.
Article III, Section 1 of the same, "He cannot be
deprived of his work, which is property in the
constitutional sense, without a just or authorized cause
and without the benefit of a hearing." ; security of tenure
is also intended to protect workers from unwarranted
transfers, demotion and diminution of benefits.
CASE ANALYSIS: PHIL-SINGAPORE TRANSPORT
SERVICES, INC. VS. NLRC
Article 279 of Labor Code of the Philippines, the
security of tenure has been construed to mean as that
"the employer shall not terminate the services of an
employee except for a just cause or when authorized"
by the code.
The two facets of this legal provision are: (a) the legality
of the act of dismissal; and (b) the legality in the manner
of dismissal.
The illegality of the act of dismissal constitutes
discharge without cause a, while illegality in the manner
of dismissal is dismissal without due process b.
5.1 To whom does the right extend?
- The right to security of tenure knows no
classification. As long as one is an employee, then
he/she shall enjoy the protection being guaranteed by
entitled to full extent of this constitutional right
while the other kinds of employment likewise enjoy
security of tenure, but only to a limited extent.
REGULAR AND CASUAL EMPLOYMENT
Under Article 280 of the Labor Code, a regular
employee is the one who:
(a) has been engaged to perform activities which are
usually necessary or desirable in the usual business or
trade of the employer; his employment not being fixed
for a specific project of undertaking the completion or
termination
(b) has rendered at least one (1) year of service,
whether such service is continuous or broken, with
respect to the activity in which he is employed
note: an employee who is engaged in activities that
are not usually necessary and desirable in the usual
business and trade of the employer is considered
as a casual employee.
CASE ANALYSIS: GMA NETWORK, INC. VS
CARLOS PABRIGA, ET. AL. (2013) pg 146
CASE ANALYSIS: JUDY O. DACUITAL, ET. AL. VS.
L.M. CAMUS ENGINEERING CORPORATION
AND/OR LUIS M. CAMUS (2010) pg 149
5.1b Other forms of Employment
Project Employment is technically within the scope of
regular employment - "usually necessary and desirable
in the usual business or trade of the employer", as
defined in Article 294 of the Labor Code.
The virtue of the nature of their job, which is subject to
the completion of the project, their entitlement to
security of tenure is limited to such duration. They are
not regular employees because of the limited and fixed
duration of the existence of their employment and not
because of the nature of their work.
CASE ANALYSIS: HILARIO RADA VS. NLRC (1992) ;
SANDOVAL SHIPYARDS VS. NLRC (1985) pg 153
CASE ANALYSIS: CARTAGENAS VS. ROMAGO
ELECTRIC COMPANY (1989) pg 155
CASE ANALYSIS: MAGSALIN VS. NOWM pg 156
CASE ANALYSIS: VIOLETA VS. NLRC (1997) pg 157
note: if a project employee is continuously hired
even after the completion of the project, then he/she
may already be considered as a regular employee.
In a nutshell, a project employee or a member of a work
pool may acquire the status of a regular employee when
the following concur:
(a) there is continuous rehiring of project employees
even after cessation of a project; and
(b) the task performed by the alleged "project
employee" are vital, necessary and indispensable to the
usual business of trade of the employer.
CASE ANALYSIS: PHILIPPINE LONG DISTANCE
TELEPHONE COMPANY VS. YLAGAN; ABS-CBN
BROADCASTING CORPORATION VS. NAZARENO
pg 161
note: a project employee is not entitled to
separation pay if they are terminated as a result of
the completion of the project or any phase thereof.
Seasonal Employment are those engaged on services
which are seasonal in nature and the employment is for
the duration of the season.
note: they do not become regular employees
although their services exceed one year, BUT if
their work is not merely for the duration of the
season, and is rehired every working season, then
they can be considered as regular employees.
CASE ANALYSIS: HACIENDA FATIMA VS. NATIONA
LFEDERATION (2003) pg 162
Fixed-Period Employment is also a project
employment. But not all fixed-period employment is
"project or seasonal"
A common example of employees under this category
are sea farers and overseas workers.
CASE ANALYSIS: BRENT SCHOOL, INC VS.
ZAMORA pg 163
CASE ANALYSIS: PUREFOODS CORP. VS. NLRC
(1997) pg 164
Probationary Employment is one who is on trial by an
employer during which the employer determines
whether or not he is qualified for permanent
employment.
Under Article 295 of Labor Code, "Probationary
employment shall not exceed six (6) months from the
date the employee started working, unless it is covered
by an apprenticeship agreement stipulating a longer
period. The services of an employee who has been
engaged on a probationary basis may be terminated for
a just cause or when he fails to qualify as a regular
employee in accordance with reasonable standards
made known the by the employer to the employee at
the time of his engagement. An employee who is
allowed to work after a probationary period shall be
considered a regular employee."
CASE ANALYSIS: ROBINSONS GALLERIA VS. I.R.
SANCHEZ (2011) pg 166
CASE ANALYSIS: CIELO VS. NLRC (1991);
MITSUBISHI MOTORS PHILIPPINES CORPORATION
VS. CHRYSLER PHILIPPINES LABOR UNION AND
NELSON PARAS (2004) pg 169
But can a probationary be dismissed before the
expiration of the probationary period? The answer is, as
a rule, no.
Some of the instances when probationary period can
exceed said period are:
(a) if it is covered by an apprenticeship agreement
stipulating a longer period
(b) when the parties to the employment contract agreed
otherwise
(c) when the same is required by the nature of work to
be performed
(d) for teachers and professors, where permanency has
generally two requirements:
i. must be a full time professor, and
ii. has rendered service for at least 3
consecutive years of satisfactory service
CASE ANALYSIS: LABAJO AND SAN ANDRES
HIGH SCHOOL OF MARAMAG, INCORPORATED
VS. PUREZA VS. ALEJANDRO, ET. AL. (1988) pg
170
CASE ANALYSIS: MARIWASA MANUFACTURING note: personal vendetta on an employee is
VS. HON. LEOGARDO AND JOAQUIN DEQUILA definitely not a valid ground for demoting an
(1989) pg 171 employee.

5.2 Management Prerogatives 5.2e Right to Grant Bonuses

Equally protected by the law are management
prerogatives. Except as limited by special laws, an
employer is free to regulate, according to his own
discretion and judgment, all aspects of employment,
including hiring, work assignments, working methods,
time, place and manner of work, tools to be used,
processes to be followed, supervision of workers,
working regulations, transfer of employees, work
supervision, lay-off of workers and the discipline,
dismissal and recall of work.
Management Rights that an employer enjoys and is
legally entitled to are:
5.2a Right to Transfer
A transfer means a movement (1) from one position to
another of equivalent rank, level or salary, without a
break in the service; or (2) from one office to another
within the same business establishment. In other words,
it involves lateral movement.
"A bonus is not demandable and enforceable obligation,
except when it is made part of the wage, salary, or
compensation of the employee. But the employer
cannot be forced to distribute bonuses when it can no
longer afford to pay. To hold otherwise would be to
penalize employer for his past generosity.
However, this becomes an obligation on the part of the
employer if:
(a) it is stipulated in an employment contract of CBA
(b) it is a company police or practice
(c) it is agreed as an additional compensation which the
employer agreed to give without any condition

5.2b Right to Discipline

Common sense would dictate that instilling discipline

upon erring employees, as long as it is within the bound
of reasonableness, is well within the inherent rights and
prerogatives that an employer may exercise.

5.2c Right to Promote

Promotion is the advancement from one position to

another involving increase in duties and responsibilities
as authorized by law, and increase in compensation
and benefits.

note: an employee has the right to refuse

promotion.

5.2d Right to Demote

There is demotion where there is reduction in position,

rank or salary as a result of transfer.

Demotion must, nevertheless, be based on reasonable

justifications and not on some whimsical and capricious
exercise of prerogative by the employer - as demotion is
closely related to, and oftentimes used as a form or
mode of punishment to erring employees.