DEPARTMENT ORDER NO.

19
Guidelines Governing the Employment of
Workers In the Construction Industry
Regular and project employee; distinguished

Article 295 of the Labor Code defines a regular employee as

a. one that has been engaged to perform tasks usually necessary or desirable in the
employer's usual business or trade — without falling within the category of either a fixed,
a project, or a seasonal employee; Or
b. one that has been engaged for a least a year, with respect to the activity he or she is
engaged, and the work of the employee remains while such activity exists.
On the other hand, a project employee is one whose employment has been fixed for a
specified project or undertaking, the completion or termination of which is made known
at the time of the engagement of the employee.
In Dacuital vs. L.M. Camus Engineering Corp., the Court stressed that a project
employee is assigned to a project that starts and ends at a determined or determinable
time. The Court elucidated therein that the principal test to determine if an employee is
a project employee is - whether he or she is assigned to carry out a particular project
or undertaking, which duration or scope was specified at the time of engagement.
Section 1. Coverage

• All operations and undertaking in the construction industry and

its subdivisions
Section 2. Employment Status

Classification of employees:
a. Project employees;
b. Non-project employees
Project employees are those employed in connection with a
particular construction project or phase thereof and whose
employment is co-terminous with each project or phase of the
project to which they are assigned.
Non-project employees are those employed without reference
to any particular construction project or phase of a project.
2.2. Indicators of project employment

a. The duration of the specific/identified undertaking for which the worker is engaged is
reasonably determinable
b. Such duration, as well as the specific work/service to be performed, is defined in an
employment agreement and is made clear to the employee at the time of hiring
c. The work/service performed by the employee is in connection with the particular
project/undertaking for which he is engaged
d. The employee, while not employed and awaiting engagement, is free to offer his
services to any other employer
e. The termination of his employment in particular project is reported to the DOLE RO
having jurisdiction over the workplace following the date of his separation from work
using the prescribed form on employees terminations/dismissal/suspension.
f. An undertaking in the employment contract by the employer to pay completion bonus
to the project employee as practiced by most cobstruction companies
Section 3. Conditions of Employment

3.1. Security of Tenure shall be enjoyed by project employees

who have become regular.
3.2. Project employees not entitled to separation pay-if their
services are terminated as a result of the completion of the
project or any phase thereof in which they are employed, or no
more work to do or their services are no longer needed in the
particular phase of the project.
3.3. Project employees entitled to separation pay

a. PE whose aggregate period of continuous employment in a

construction company is at least 1 year shall be considered
regular employees in the absence of a “day certain” agreed
upon by the parties for the termination of relationship. PE who
have become regular are entitled to separation pay.
b. If project not yet completed and his services are terminated
without just cause or authorized cause and there is no
showing that his services are unsatisfactory, the PE is entitled
for reinstatement with back wages. If not possible, pay
salaries for unexpired portion of the agreement.
3.4. Completion of the project

PE who are separated from work as a result of the completion of

the project are entitled to pro-rata completion bonus if there is
an undertaking for the grant of such bonus.

Completion bonus shall be an indicator that he is a PE,

otherwise he may be considered a non-project employee.

Pro-rata completion bonus based on industry practice is at least

½ month salary for every 12 months service.
3.5 Statutory Benefits

During the period of their employment , the construction

employees whether project or non-project shall enjoy all the
benefits due to them under the law, both monetary and non-
monetary.