BWC (DOLE)

DEPARTMENT
ORDER
NO. 19 s. 1993, April 01, 1993
 GUIDELINES GOVERNING THE
EMPLOYMENT OF WORKERS IN THE
CONSTRUCTION INDUSTRY
In the interest of stabilizing and promoting harmonious
employer-employee relations in the construction
industry and in order to ensure the protection and
welfare of workers employed therein, the following
guidelines are hereby issued for all concerned
SECTION 1.
COVERAGE
 This issuance shall apply to all operations and
undertakings in the construction industry and its
subdivisions, namely: general building
construction, general engineering construction

SECTION 1. and special trade construction, based on the

classification code of the Philippine Construction
COVERAGE Accreditation Board of the Construction Industry
Authority of the Philippines; to companies and
entities involved in demolition works; and to
those falling within the construction industry as
determined by the Secretary of Labor and
Employment.
 SECTION 2.
EMPLOYMENT
STATUS
 2.1 Classification of employees. — The employees
in the construction industry are generally
categorized as a) project employee and b) non-
project employees. Project employees are those
SECTION 2. employed in connection with a particular

EMPLOYMENT
construction project or phase thereof and whose
employment is co-terminus with each project or

STATUS phase of the project to which they are assigned.

Non-project employees, on the other hand, are

those employed without reference to any
particular construction project or phase of a
project.
 SECTION 2. EMPLOYMENT STATUS

2.2 Indicators of project employment. — Either one

or more of the following circumstances, among
others, may be considered as indicators that an
employee is a project employee.
2.2 INDICATORS OF PROJECT EMPLOYMENT.
a. The duration of the b. Such duration, as well as the
specific/identified undertaking specific work/service to be
for which the worker is engaged performed, is defined in an
is reasonably determinable. employment agreement and is
made clear to the employee at
the time of hiring.

c. The work/service performed d. The employee, while not

by the employee is in employed and awaiting
connection with the particular engagement, is free to offer his
project/undertaking for which services to any other employer.
he is engaged.
2.2 INDICATORS OF PROJECT EMPLOYMENT.
e. The termination of his f. An undertaking in the
employment in the particular employment contract by the
project/undertaking is reported employer to pay completion
to the Department of Labor and bonus to the project employee
Employment (DOLE) Regional as practiced by most
Office having jurisdiction over construction companies.
the workplace within 30 days
following the date of his
separation from work, using the
prescribed form on employees'
terminations/dismissals/suspen
sions.
2.3 PROJECT COMPLETION AND REHIRING OF WORKERS

a. The employees of a particular project are not separated from work at the
same time. Some phases of the project are completed ahead of others. For this
reason, the completion of a phase of the project is considered the completion of
the project for an employee employed in such phase. Meanwhile, those
employed in a particular phase of a construction project are also not separated
at the same time. Normally, less and less employees are required as the phase
draws closer to completion.
2.3 PROJECT COMPLETION AND REHIRING OF WORKERS

b. Upon completion of the project or a phase thereof, the project employee may
be rehired for another undertaking provided, however, that such rehiring
conforms with the provisions of law and this issuance. In such case, the last day
of service with the employer in the preceding project should be indicated in the
employment.
 SECTION 2. EMPLOYMENT STATUS

2.4 Types of non-project employees

Generally, there are three (3) types of non-project
employees: first, probationary employees; second,
regular employees; and third, casual employees:
2.4 TYPES OF NON-PROJECT EMPLOYEES
a. Probationary employees are b. Regular employees are those
those who, upon the appointed as such or those who
completion of the probationary have completed the
period, are entitled to probationary period or those
regularization. Upon their appointed to fill up regular
engagement, probationary positions vacated as a result of
employee should be informed death, retirement, resignation
of the reasonable standards or termination of employment
under which they will qualify as of the regular holders thereof.
regular employees.
2.4 TYPES OF NON-PROJECT EMPLOYEES

c. Casual employees are those employed to perform work not related to the
main line of business of the Employer. Casual employees who are
employed for at least one year, whether continuous or broken, shall be
considered regular with respect to the activity in which they are employed
and their employment shall continue for as long as such activity exists,
unless the employment is terminated sooner by the employer for a just or
authorized cause, or voluntarily by the employee.
 The practice of contracting out certain
phases of a construction project is
recognized by law, particularly wage
2.5 CONTRACTING legislations and wage orders, and by
AND industry practices. The Labor Code and its

SUBCONTRACTING Implementing Regulations allow

contracting out of jobs under certain
the

conditions. Where such job contracting is

permissible, the construction workers are
generally considered as employees of the
contractor or sub-contractor, as the case
may be, subject Art. 109 of the Labor Code,
as amended.
 SECTION 3.
CONDITIONS OF
EMPLOYMENT
 Project employees who have become
regular shall enjoy security of tenure in
their employment as provided under

3.1 SECURITY OF Article 280 of the Labor Code, as amended.

Where their services are terminated for a
TENURE cause/causes, they are not by law entitled
to separation pay. The just causes for
terminating employment are enumerated
under Article 282 of the Code. Where the
services of regular employees are
terminated for any of the authorized
causes under Article 283, as distinguished
from just causes, they are entitled to
separation pay.
 The project employees contemplated by
3.2 PROJECT paragraph 2.1 hereof are not by law entitled
EMPLOYEES to separation pay if their services are

NOT terminated as a result of the completion of

the project or any phase thereof in which
ENTITLED TO they are employed. Likewise, project
SEPARATION employees whose services are terminated

PAY because they have no more to do or their

services are no longer needed in the
particular phase of the project are not by
law entitled to separation pay.
3.3 PROJECT EMPLOYEES ENTITLED TO
SEPARATION PAY

A) Project employees who have become

regular shall be entitled to separation pay.

B) If the reinstatement is no longer

possible, the employee is entitled to his
salaries for the unexpired portion of the
agreement.
 3.4 COMPLETION OF THE PROJECT

Project employees who are separated from

work as a result of the completion of the
project or an phase thereof in which they
are employed are entitled to the pro-rata
completion bonus if there is an
undertaking for the grant of such bonus.
 3.5 STATUTORY BENEFITS

During the period of their employment,

the construction employees whether
project or non-project shall enjoy all the
benefits due to them under the law, both
monetary and non-monetary.
 3.6 PAYMENT BY RESULTS

Where the payment for work or services

rendered is by results, e.g., piece rate or
"pakiao", the rate shall be determined on
the basis of not less than the minimum
wage applicable in the region where the
construction project is located.
 SECTION 4.
PREVENTIVE SUSPENSION

Subject to Article 277 (b) of the Code,

project and non-project employees may be
preventively suspended if their continued
employment poses a serious and imminent
threat to the life or property of the
employer or of their co-workers.
 SECTION 5.
SELF-ORGANIZATION AND COLLECTIVE
BARGAINING

In recognition of the right of employees to

self-organization and collective bargaining,
this Department hereby encourages the
formation of "trade" unions in the
construction industry, provided that the
formation or activities of a recognized
trade unions will not prejudice existing
bargaining units, subject to existing laws.
 SECTION 6.
LIABILITIES/RESPONSIBILITIES OF THE
EMPLOYER AND THE WORKERS

6.1 Requirements of labor and social

legislations.

The prime/general contractor shall

exercise sound judgment and discretion in
contracting out projects to ensure
compliance with labor standards.
 SECTION 6.
LIABILITIES/RESPONSIBILITIES OF THE
EMPLOYER AND THE WORKERS

(b) Project and non-project employees

shall observe the requirements of labor
and social legislations and reasonable
company rules and regulations on matters
pertaining to their obligations.
6.2 IMPLEMENTATION OF SAFETY AND
HEALTH STANDARDS

The Department through the Regional

Offices shall strictly enforce the
Occupational Safety and Health Standards,
as amended, particularly Rule 1005 on
Duties of Employers, Workers and Other
Persons and Rule 1410 on Construction
Safety.
 6.3 WAGE INCREASES

As regards wage increases, whether

mandated or agreed upon by the parties,
the prescribed increase in the wage rates
of the workers in construction projects
shall be borne by the principals or clients
of the construction contractors and the
contracts shall be deemed amended
accordingly.
 SECTION 7.
EFFECT ON EXISTING ISSUANCES AND
AGREEMENTS

These issuances shall serve as guides for

this Department and its agencies in the
administration and enforcement of
applicable labor and social legislations
and their implementing regulations.
Reference
BWC (DOLE) DEPARTMENT ORDER NO. 19 s. 1993 -
GUIDELINES GOVERNING THE EMPLOYMENT OF WORKERS
IN THE CONSTRUCTION INDUSTRY - Supreme Court E-Library.
(2019). Judiciary.gov.ph.
https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/25/52
129?
fbclid=IwAR0en_rYxkLHn98hC0IjkBjylDLoAPfA8_w2Q9iC2rl
mRRZ72YphvN8fssc#:~:text=This%20means%20that%20whe
re%20the,or%20phase%20of%20the%20project