(Philippine context)
General information only; not a substitute for advice from a Philippine lawyer or DOLE/POEA/DMW officer handling your specific case.
I. Introduction
In the Philippines, it’s common for an employer to give a start date in an employment contract or offer letter:
“You shall commence employment on 01 August 2025…”
Problems arise when the start date keeps getting moved, or the company suddenly says, “We’re freezing hiring” after you already resigned from a previous job, turned down other offers, or incurred expenses in reliance on that start date.
The key questions are:
- Is there already an employment contract even before Day 1 at work?
- What if the employer delays or cancels the start date?
- Are there legal remedies for the employee in the Philippines?
This article explains the basic legal framework and typical remedies available.
II. Legal Nature of an Employment Contract (Philippines)
A. When is the Employment Contract “Perfected”?
Under general principles in the Civil Code:
A contract is perfected when there is a meeting of the minds on:
- The object (the job, position, nature of work); and
- The cause/consideration (salary/wages and benefits).
Once both sides agree (even by email or signed offer letter), a binding contract can already exist, even if the employee has not yet reported for work, provided:
- The parties intended to be bound (not just “for discussion” or “subject to approval”);
- Any conditions precedent (e.g., passing medical exam) are satisfied.
B. Written Offer vs. Formal Contract
In practice:
- Many employers first issue a Job Offer or Offer Letter (sometimes subject to conditions), then later a more formal Employment Contract or Appointment Letter.
- If the offer is unconditional and you accept, the contract is generally already perfected.
- If the offer is expressly “subject to” a clear condition (e.g., “subject to background check and medical clearance”), the contract may only be considered perfected once the condition is fulfilled.
C. Forms of Employment
Start date issues can apply to:
- Regular employment (after probation)
- Probationary employment
- Fixed-term contract (e.g., 6-month or 1-year contract)
- Project-based employment
The main difference is the scope and duration of protection, but the start date promise can be relevant in all.
III. The Start Date as Part of the Contract
A. Start Date = Contractual Commitment
The start date is usually part of the contract’s terms:
“Your employment shall commence on [date].”
This has legal implications:
- The employer promises to accept your services from that date (subject to conditions);
- You promise to present yourself for work from that date.
If one side fails to honor that date without lawful justification, it can amount to:
- Breach of contract (under the Civil Code); and
- In some circumstances, a form of illegal termination or constructive dismissal, especially if the relationship is deemed to have started.
B. Conditions That May Affect the Start Date
Common conditions that can justify delaying or not proceeding with employment:
- Failure to pass pre-employment medical exam;
- Negative background or reference check;
- Discovery of fraud in credentials;
- The employee fails to submit mandatory documents (e.g., NBI clearance, SSS/PhilHealth numbers, tax info);
- Lawful business closure or retrenchment before start, though this must still comply with labor law requirements.
If these conditions are clearly stated and reasonably applied, an employer may have a valid basis to cancel or delay employment. If not, the employee can invoke breach and seek remedies.
IV. Common Scenarios of Start Date Delays
1. Simple Administrative Delay
Example: HR says, “We’re still completing your onboarding papers, can you start two weeks later?” You agree.
Usually not a legal problem if:
- The delay is reasonable;
- The employee consents;
- No serious prejudice is caused.
2. Multiple, Indefinite Postponements
Example: Start date gets moved again and again (“Next month… in another month… we’ll let you know”) without clear reason, and you’re left hanging.
This may be treated as:
- Breach of employer’s obligation;
- A form of bad faith under Civil Code provisions on abuse of rights.
3. Employer “Freezes” Hiring After Acceptance
Example: You signed a contract to start on 1 October. Two weeks before, HR says the company has a “hiring freeze” and cancels your start date “until further notice.”
If there was already a perfected contract and you complied with pre-employment conditions, this can amount to:
- Unjustified cancellation of employment before Day 1;
- A potential case of illegal dismissal or breach of contract, depending on the facts.
4. Employer Withdraws Offer After You Resign from Old Job
Example: You resign from your current job in reliance on a signed offer and fixed start date. After you serve your notice, the new employer cancels or delays the start and leaves you unemployed.
Courts may look at:
- Whether a binding contract already existed;
- Whether the employer acted in bad faith;
- Whether the employee incurred foreseeable losses (lost income, reliance) because of the employer’s actions.
This can support claims for damages, even if the employee technically hasn't started working yet.
5. Start Date Moved Due to Employee’s Own Delay
Example: You can’t finish your clearance, or you delay submission of medical exam results. Employer postpones start until you comply.
- Typically justified, so long as the employer is reasonable and transparent.
V. Are You Already an “Employee” Before the Start Date?
This question matters because labor law remedies (e.g., illegal dismissal) usually apply to employees, not ordinary job applicants.
A. Indicators That the Employment Relationship Already Exists
Courts and labor tribunals look at:
- Signed contract or offer letter with a clear start date;
- Completion of pre-employment requirements under employer’s control;
- Company having full discretion over your deployment (e.g., you’ve already been processed, oriented, or given company resources);
- The absence of any remaining major conditions precedent.
If the relationship is considered already formed, then cancelling or indefinitely delaying the start date without lawful cause may be treated as:
- Illegal dismissal; and/or
- Basis for money claims (backwages from the date you should have started, in some situations).
B. If You Are Still an Applicant
If the contract was clearly stated to be “subject to” certain conditions (e.g., board approval, medical clearance, etc.) and those conditions did not occur, the employer might argue that:
- No employer-employee relationship existed yet;
- At most, they’re liable for breach of promise or pre-contractual bad faith (Civil Code), but not illegal dismissal.
In that case, the remedy may lean more toward civil damages rather than full labor-law remedies.
VI. Wages and Benefits: Do They Start on the Original Date?
A. General Rule
Under Philippine labor standards:
Wages are owed for work actually rendered.
But if the employer wrongfully prevents you from working on the agreed start date, a tribunal or court may award backwages or damages from that date, based on:
- Illegal dismissal theory; or
- Civil damages for breach of contract.
B. If Delay is Mutually Agreed Upon
If both parties mutually agree to a new start date:
- Wages usually start on the revised date, unless the employer contractually undertakes to pay you from the original date (which is rare but possible).
VII. Legal Remedies for the Employee
A. Internal / Negotiated Remedies
Clarify in Writing
Ask HR to clearly state:
- The new start date,
- The reason for delay, and
- Whether the contract remains in force.
Negotiate Compensation for Delays
In some setups, employees negotiate:
- Relocation allowance,
- Compensation for early resignation, or
- Some form of assurance (e.g., a bond or retention bonus later).
Document Everything
- Keep emails, texts, and notes from meetings. They may become crucial evidence.
B. DOLE and Single-Entry Approach (SEnA)
You can file a request for assistance with the Department of Labor and Employment (DOLE) under the Single-Entry Approach (SEnA) mechanism:
- A neutral DOLE officer will mediate between you and the employer;
- The aim is to settle the dispute (e.g., company reaffirms start date, pays some compensation, or issues a formal rescission with settlement).
This is informal but often effective.
C. Labor Case: Money Claims and Illegal Dismissal
If there is a good basis to claim that:
- You were already an employee (contract perfected, conditions met); and
- The employer unjustifiably cancelled or permanently delayed the start date;
you may file a case (typically with the NLRC or other bodies if the law has changed at the time) for:
- Illegal dismissal;
- Backwages from the intended start date (or from the date of dismissal);
- Separation pay in lieu of reinstatement (if reinstatement is no longer practical);
- Moral and exemplary damages, if bad faith is shown;
- Attorney’s fees, in proper cases.
The strength of this approach depends heavily on facts and evidence, including:
- The exact wording of the contract;
- Whether you complied with all pre-employment requirements;
- The employer’s reasons and consistency of behavior.
D. Civil Case: Breach of Contract and Damages
Even if labor tribunals decide that no employer-employee relationship had fully crystallized, you may still have a civil case under the Civil Code for:
- Breach of contract (if a perfected contract existed);
- Abuse of rights (Art. 19);
- Willful acts contrary to good customs (Art. 21).
You may claim:
- Actual damages – e.g., income lost from resigning your previous job, expenses for relocation or medical exams;
- Moral damages – for anguish, serious anxiety, humiliation;
- Exemplary damages – if the employer’s conduct is wanton or oppressive;
- Attorney’s fees.
This route is more formal and can be slower/more technical, but it provides a remedy even if labor law does not squarely apply.
E. Special Situations
Job Offers from Government Agencies or GOCCs
- Public sector hiring is governed by civil service and budget rules, so remedies might involve the Civil Service Commission, the Ombudsman, or specific administrative rules.
Overseas Employment Offers
- If the start date is part of an overseas employment contract processed by government (e.g., sea-based or land-based OFW), there may be DMW/POEA and Philippine Overseas Labor Office (POLO) remedies akin to those for illegal recruitment, breach of deployment obligations, or contract substitution.
VIII. Practical Tips for Employees
Read the Fine Print Before Resigning from Current Job
- Is the offer unconditional, or is it “subject to” board approval, medical result, etc.?
- If highly conditional, consider not resigning until conditions are met.
Try to Secure Written Confirmation
Before making major life changes (resigning, relocating), ask for:
- Signed contract/appointment;
- Clear start date;
- Confirmation that conditions have been satisfied.
Don’t Burn Bridges Prematurely
- If you’re leaving a secure job, manage your exit timing to reduce risk.
Act Quickly When Start Date Issues Arise
- Seek clarification in writing;
- Use SEnA or legal consultation early if the company becomes evasive or repeatedly postpones.
Weigh Litigation vs. Practical Outcomes
- A lawsuit can be long and stressful; sometimes a negotiated settlement (e.g., modest financial compensation) may be more practical.
- But in serious or high-value cases, or where principle is important, legal action may be justified.
IX. Practical Reminders for Employers
For employers, to avoid legal exposure:
Make it clear when an offer is conditional, and specify the conditions precisely.
Avoid issuing formal start dates unless you intend to honor them.
If circumstances truly change (project cancelled, budget cuts):
- Inform the candidate promptly and honestly;
- Consider offering reasonable compensation if they relied on your offer to their detriment.
Maintain good documentation and treat candidates with good faith—courts and tribunals look closely at signs of bad faith in start-date disputes.
X. Conclusion
In Philippine law, an employment contract is not just a promise “when you actually start”; it can be binding once there’s a meeting of minds, including on the start date, especially if the employee has complied with pre-employment requirements.
When an employer unjustifiably delays or cancels a start date, the affected worker may have:
- Labor remedies (e.g., illegal dismissal, money claims), if already considered an employee;
- Civil remedies for breach of contract and damages;
- Practical remedies through DOLE mediation and negotiation.
Because outcomes depend heavily on the specific facts and wording of the documents involved, anyone facing a real problem of start date delays or cancellations should strongly consider consulting a Philippine labor lawyer or DOLE/DMW office, bringing copies of all offers, contracts, and communications for proper evaluation.