Lucy was one of approximately 500 call center agents at Hambergis, Inc. She was hired as a contractual employee four years ago. Her contracts would be for a duration of five (5) months at a time, usually after a onemonth interval. Her re-hiring was contingent on her performance for the immediately preceding contract. Six (6) months after the expiration of her last contract, Lucy went to Hambergis personnel department to inquire why she was not yet being recalled to work. She was told that her performance during her last contract was “below average.” Lucy seeks your legal advice about her chances of getting her job back. What will your advice be? (4%)
Suggested answer only. Not an official answer and not legal advice.
I will advise Lucy that she can file a complaint for illegal dismissal to get her job back.
Under Article 295 of the Labor Code and jurisprudence, repeated rehiring under short-term contracts for activities necessary or desirable in the employer's usual business circumvents security of tenure, conferring regular status.
Here, Lucy worked for four years as a call center agent—a position vital to Hambergis' usual business—under repeated five-month contracts. Thus, she attained regular status, and her non-recall under the guise of poor performance without due process constitutes illegal dismissal.
Therefore, Lucy should file an illegal dismissal case seeking reinstatement with full backwages.
This is not an official scoring system and carries no weight with the Supreme Court or any bar review provider. It measures how much of the suggested answer's wording your response covers, not whether your reasoning is correct. For practice only.
Quick check
Under what condition is a fixed-term employment contract valid under Philippine labor law?
Fixed-term contracts are valid only if agreed upon knowingly and voluntarily without force or improper pressure.
What is the legal effect of repeatedly rehiring an employee under consecutive five-month contracts for four years to perform core call center duties?
Repeated rehiring under short-term contracts for essential business functions confers regular employment status.
What statutory right protects regular employees from being terminated without just or authorized cause and procedural due process?
The Constitution guarantees security of tenure, protecting regular employees from arbitrary dismissal.
What procedural requirement must an employer satisfy before dismissing a regular employee for unsatisfactory performance?
Procedural due process requires serving two written notices and affording a reasonable opportunity to explain.
What remedies are available to a regular employee who has been illegally dismissed from employment?
An illegally dismissed regular employee is entitled to reinstatement without loss of seniority and full backwages.
Learn more about these topics
1. Fixed-Term Contract Validity
Under Philippine labor jurisprudence, fixed-term employment contracts are valid only if the period was agreed upon knowingly and voluntarily without any force, duress, or improper pressure, and where the employer and employee dealt on more or less equal terms. When fixed-term contracts are repeatedly renewed for years to perform activities necessary or desirable in the usual business of the employer, the contractual arrangement is rendered void for being a scheme to circumvent security of tenure. In such cases, the fixed period is disregarded, and the worker is recognized as a regular employee by operation of law.
2. Security of Tenure
Security of tenure is a constitutionally guaranteed right ensuring that regular employees cannot be dismissed from service except for just or authorized causes established by law and after compliance with procedural due process. An employer cannot evade security of tenure by continuously subjecting workers to consecutive short-term contracts for the same essential position. Refusing to recall or rehire a regular worker upon the expiration of a short-term contract, under the pretext of contract expiration or unverified poor performance, constitutes illegal dismissal entitling the employee to reinstatement and full backwages.
3. Procedural Due Process
Before an employee can be validly dismissed for poor performance or inefficiency, the employer must strictly observe procedural due process requirements. The employer is required to issue a first written notice specifying the ground for potential termination and providing a reasonable opportunity to explain, followed by a formal hearing or investigation, and a second written notice of termination. Failure to afford these statutory notices renders the dismissal illegal. Arbitrarily dropping a regular worker from employment without written notice and a formal opportunity to be heard violates fundamental labor standards.