The Supreme Court has upheld a Court of Appeals decision, which states that contract of services or job order (JO) workers hired by the Philippine Amusement and Gaming Corporation are not considered government employees under the Civil Service Commission’s jurisdiction.
The SC’s First Division ruled that about 50 former workers of Pagcor’s hotel business at Goldenfield Complex Bacolod were contract of services (COS) and JOs, and were not government employees covered by Civil Service (CS) law, rules, and regulations.
The petitioners were hired by Pagcor in various positions, such as cook, waiter, purchaser, pantry aide, food attendant, steward, dishwasher, kitchen supervisor, and busboy, among others. They signed a contract with Pagcor for a fixed term and were occasionally renewed.
When Pagcor closed its hotel business at Goldenfield and transferred to L’Fisher Hotel, it did not renew the individual contracts of the petitioners, who then filed an illegal dismissal complaint before the CSC in Western Visayas. They claimed they are regular employees entitled to security of tenure. However, the CSC6 dismissed their complaint for lack of jurisdiction, and found that they were JOs and not government employees based on their contracts.
The CSC later issued an order dismissing the complaint, and this was later affirmed by the CA, which held that the petitioners were not regular employees in the civil service, and thus, are not under CSC’s jurisdiction.
In affirming the CA ruling, the Supreme Court said “there is no employer-employee relationship between the government and job order workers, whose services are not considered government service. Thus, they are not covered by CS law, rules, and regulations.”
“Under CSC Memorandum Circular No. 40-98, workers under contracts of services and job orders exist for a short duration not exceeding six months on a daily basis, and cover lump sum work or services where no employee-employer relationship exist,” the SC Public Information Office said in a statement Oct. 14.
Based on the nature of their functions, their organizational ranking, compensation level, and employment contracts, the petitioners were not regular employees of Pagcor subject to the CSC’s jurisdiction, the SC said.
It, however, reminded Pagcor and all similar agencies that “while their authority to contract services is recognized under civil service rules, such hiring authority should not be used to mistreat or otherwise mismanage contract of service or job order workers.” ||
