Types of employment
The Labor Code (Articles 295 and 296, in DOLE’s renumbered edition) sets out these types:
- Regular: the work is usually necessary or desirable in the employer’s business, whatever the parties agreed.
- Probationary: a trial period of up to 6 months.
- Project: tied to a specific project whose end was set at hiring.
- Seasonal: for work that comes with a season, for that season.
- Casual: anything else. A casual employee who has worked at least a year becomes regular for that work.
Fixed-term employment comes from Supreme Court decisions: it’s valid when both sides knowingly agreed to it, and not when it’s used to avoid security of tenure.
Probation
Probation can’t exceed 6 months from the start date (Article 296). The employer must make the standards for becoming regular known at hiring; if it doesn’t, the employee is regular from the start.
An employee who keeps working after probation becomes regular. Probationary employees also have security of tenure.
Employment contracts
Philippine law doesn’t require a written contract for ordinary employment: employment status depends on the work, not the paperwork. Signing a written contract at the start is still best practice.
With Remote Employee®, we issue the employment contract and keep the job in line with Philippine labor law. Your hire is actually employed, not a contractor or freelancer.
Working hours and rest days
- Normal hours: up to 8 a day (Article 83).
- Meal break: at least 60 minutes, not counted as work time; shorter paid breaks are allowed in some cases (Article 85).
- Rest day: at least 24 consecutive hours after every 6 consecutive workdays (Article 91).
Overtime and premium pay
| Work | Pay |
|---|---|
| Overtime on a normal day | At least 25% more per hour |
| Overtime on a rest day or holiday | That day’s rate plus at least 30% per hour |
| Night shift, 10 PM to 6 AM | At least 10% more per hour |
| Work on a rest day | At least 30% more |
| Work on a regular holiday | 200% of the daily wage |
| Work on a special non-working day | 130% of the daily wage |
Managerial employees and field personnel are excluded from these rules, and small retail and service businesses have some exemptions.
Security of tenure
A regular employee can only be dismissed for a just cause or an authorized cause, after written notice and a real chance to be heard. An employee dismissed without a valid cause is entitled to reinstatement and full back wages.
See the End of employment guide
Remote work and telecommuting
The Telecommuting Act (Republic Act No. 11165) lets employers offer work from home or another place by agreement, with the terms in writing and the same pay and benefits as comparable on-site staff.
Remote Employee® hires work from our Class-A offices in San Fernando, Pampanga, with a workstation, equipment, and IT support.
How Remote Employee® handles employment
They are ours to run. We handle the employment contract, payroll and tax filing, government registration, and compliance, and you manage your hire’s work.
Sources
We checked the Philippine rules on this page against these official sources. Rates and rules change, so check the latest before you act on them.
- Labor Code of the Philippines, renumbered DOLE edition
- Labor Code, Book III: conditions of employment (DOLE)
- Labor Code, Book VI: post-employment (DOLE)
- Abbott Laboratories v. Alcaraz, G.R. No. 192571 (LawPhil)
- Brent School v. Zamora, G.R. No. L-48494 (LawPhil)
- DOLE Handbook on Workers’ Statutory Monetary Benefits, 2024
- DOLE Labor Advisory No. 18, s. 2026, holiday pay
- Republic Act No. 11165, Telecommuting Act (LawPhil)
