Are contracts of employment for a fixed period unlawful? | 6 September 2024

Fixed term employment is not illegal per se or against public policy. (Claret School of Quezon City v. Madelyn Sinday, G.R. No. 226358, October 09, 2019)

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Alburo Law
September 06, 2024

Fixed term employment is not illegal per se or against public policy. (Claret School of Quezon City v. Madelyn Sinday, G.R. No. 226358, October 09, 2019)

Article 280 of the Labor Code does not proscribe or prohibit an employment contract with a fixed period provided the same is entered into by the parties, without any force, duress or improper pressure being brought to bear upon the employee and absent any other circumstance vitiating consent. (Julian Tungcul Tuppil, Jr., et al. v. LBP Services Corporation, G.R. No. 228407, June 10, 2020)

The case revolves around the legality of benefits granted by the Philippine Health Insurance Corporation (PHIC) under Notices of Disallowance (NDs). The central issue is whether PHIC had the authority to grant these benefits, which include productivity bonuses and allowances, beyond its standard compensation.

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