Seasonal Employment in the Philippines – A Comprehensive Legal Guide (updated 30 April 2025)
1. Concept and Statutory Basis
- Article 295 (formerly Art. 280) of the Labor Code lists “seasonal employment” as a distinct category beside regular, project, and casual work. A worker is seasonal when (a) the activity is seasonal in nature and (b) the engagement is only for the duration of the season. ([PDF] ~upreme QCourt - LawPhil)
- Article 294 (security of tenure) applies by reference: seasonal employees cannot be dismissed during the season except for a just or authorized cause and with due process.
2. How Seasonal Status Is Determined
| Element | Key Tests | Illustrative Cases |
|---|---|---|
| Nature of work | The task recurs predictably with the natural or business cycle (e.g., milling, planting, harvesting, hotel operations during summer, retail Christmas rush). | Hacienda Fatima (sugar milling) ([PDF] ~upreme QCourt - LawPhil) |
| Duration | Employment ends automatically when the season closes, if the parties agreed at hiring. | Mercado v. NLRC (banana sorting) (G.R. No. 151827 - LawPhil) |
| Re-engagement | Re-hiring for two or more successive seasons for the same work converts the worker into a regular-seasonal employee; she becomes “regular in-season.” | Hacienda San Isidro/Silos Farms v. Villaruel (2023) (G.R. No. 220087 - LawPhil) |
Presumption – Ambiguities are resolved in favor of regularity; the employer bears the burden of proving the seasonal nature of the job. ([PDF] Guide to Philippine Employment Laws for the Private Sector)
3. Regular-Seasonal Employees
Once regular-seasonal status attaches, the worker:
- Is entitled to be re-called every season (failure to re-hire without valid reason amounts to illegal dismissal). (SC: Seasonal workers can be deemed regular employees)
- Enjoys all labor standards benefits while at work (minimum wage, overtime, SIL, 13ᵗʰ-month pay). The duty to grant 13ᵗʰ-month pay is reiterated yearly in Labor Advisories 28-2023 & 13-2024. (Non-Payment of 13th Month Pay - Respicio & Co. Law Firm)
- Remains covered by SSS, PhilHealth and Pag-IBIG during periods of actual service. Contributions may be voluntary in the off-season. (Seasonal Employees | POST-EMPLOYMENT: KINDS OF ...)
- May unionize with other seasonal or regular employees under the Labor Code.
4. Distinguishing Seasonal From Other Non-Regular Forms
| Item | Seasonal | Project | Casual | Fixed-Term |
|---|---|---|---|---|
| Basis of termination | End of season | Completion of project phase | May convert to regular after 1 year if necessary to the business | Arrival of agreed date |
| Typical industries | Sugar, fishing, tourism peaks, agribusiness | Construction, shipbuilding, IT projects | Extra retail staff, messengerial work | Academic visiting professor |
| Conversion to regularity | Yes (regular-seasonal) after repeated seasons | Yes, if continuously rehired beyond project scopes | Yes, after 12 months | Rare (allowed only where Bona fide) |
5. Rights and Monetary Benefits
- Wages & Wage Orders – Seasonal workers are covered by the regional minimum wage applicable on the actual workplace/site.
- 13ᵗʰ-Month Pay – Mandated under P.D. 851; Labor Advisory 28-2023 bars exemptions or deferments. (Non-Payment of 13th Month Pay - Respicio & Co. Law Firm)
- Service Incentive Leave (SIL) – A regular-seasonal worker who has rendered 12 months aggregate service earns 5 days SIL per year, convertible to cash if unused before the next season.
- Retirement Pay – Eligible if (a) ≥60 years old and (b) at least 5 years aggregate service, even if spread over seasons.
- Separation Pay – Not due at normal expiration of the season, but required when dismissal is for authorized causes (e.g., redundancy) or found illegal.
6. Termination Issues and Jurisprudence
- Illegal Dismissal Mid-Season – Cutting the employment before the season ends without cause violates Art. 299.
- Non-Rehire of Regular-Seasonal Employees – Held illegal in Villaruel (2023) where the hacienda skipped the next milling season without notice. (G.R. No. 220087 - LawPhil)
- Quitclaims & Compromise – The Supreme Court (Nov 2024) annulled low-ball compromises; genuine consideration and voluntariness are required. (SC Invalidates Compromise Agreement Offering Unfairly Low ...)
- Freedom to Work Elsewhere – Gapayao v. Fulo clarified that moonlighting between seasons does not negate regular-seasonal status. ([PDF] ~upreme QCourt - LawPhil)
7. Employer Compliance Checklist
| Step | Legal Source |
|---|---|
| Draft written seasonal contracts specifying (a) nature of season, (b) start & end dates, (c) clear re-hire policy. | DOLE Handbook (2023) ([PDF] handbook on workers' statutory monetary benefits) |
| Pay all statutory benefits no later than DOLE deadlines (e.g., 13ᵗʰ-month on or before 24 Dec). | Labor Advisories 28-2023 / 13-2024 (Non-Payment of 13th Month Pay - Respicio & Co. Law Firm) |
| Report accidents & maintain OSH standards even for short-term crews (RA 11058 + DO 198-18). | – |
| Register contractors if manpower is outsourced (DO 174-17). Seasonal classification cannot justify labor-only contracting. | – |
| Keep service records for each season to compute tenure-based benefits (retirement, SIL). | – |
8. Frequently Asked Questions
| Question | Short Answer |
|---|---|
| Is “endo” the same as seasonal? | No. “Endo” is an illegal practice of repeatedly hiring on 5-month contracts to avoid regularization. Seasonal hiring is lawful only when the work is genuinely tied to a season. |
| Can a seasonal worker claim unemployment insurance? | Not under the SSS unemployment benefit, because job separation at season’s end is not involuntary. |
| Must employers pay wages during the off-season? | No, unless the CBA or company policy promises retainer pay. |
9. Policy Trends (2023-2025)
- Stricter enforcement – DOLE inspection blitzes in sugar, fisheries and tourism sectors to curb disguised contractualization.
- Digital reporting – Starting 2024, seasonal rosters must be uploaded to the DOLE Establishment Report System within 30 days after hiring.
- Social Security Continuity – Pending Senate Bill 2068 seeks to credit off-season months toward SSS contributions if the worker opts-in.
10. Practical Take-Aways
- For employers – Use seasonal arrangements only when the production cycle truly demands it; otherwise, expect regularization rulings plus backwages.
- For workers – Keep copies of pay slips and multiple season contracts; they are vital evidence when asserting regular-seasonal status.
- For practitioners – When litigating, focus on repetition and necessity to the business; the Supreme Court is consistent in converting long-term seasonal hires to regular-seasonal employees.
(This article consolidates the latest legislation, DOLE issuances, and Supreme Court rulings up to 30 April 2025. It is for educational purposes and is not a substitute for formal legal advice.)