General information, not legal advice. This answer was written by the PhilippineLaws team from the law it cites and checked for accuracy to the best of our knowledge, last on Sep 21, 2026. It has not been reviewed by a lawyer. Read the cited law yourself, and for your own situation talk to a lawyer or the Public Attorney’s Office (PAO).
My contract keeps getting renewed every five months. Am I already a regular employee?
Quite possibly. Regular status under Article 295 depends on what you actually do — if the work is necessary or desirable to the employer's usual business, you are regular no matter what the contract is titled or how many times it was cut short, unless the arrangement is genuine project, seasonal or fixed-term employment. And a contractor that supplies you without substantial capital or real control makes the principal your employer by law.
Illustrated Legal Brief
Full PlateAsk what the work is, not what the contract is called
Art. 295 applies notwithstanding any written agreement to the contrary.
Caution: Is the work necessary or desirable to the usual business?
If yes, you are regular — however many times the contract was cut short and renewed — unless it is genuine project, seasonal or fixed-term work.
Caution: Or: have you done casual work for at least one year?
Continuous or broken. You become regular as to that activity.
Agency-hired? Then test the contractor
No substantial capital or investment, or no real control over your work, makes it labour-only contracting.
Allowed: Labour-only contracting makes the principal your employer
The contractor is treated as a mere agent, as if the principal had hired you directly.
Regular does not mean undismissable
It means dismissal now needs a just or authorised cause, and the procedure that goes with it.
Genuine exceptions exist — project, seasonal and fixed-term employment. A term used precisely to prevent regularisation is not one of them.
Why
Article 295 of the Labor Code (formerly Art. 280) does not ask what your contract says. It asks what you do. An employee engaged to perform activities usually necessary or desirable in the usual business or trade of the employer is regular, and the provision applies 'the provisions of written agreement to the contrary notwithstanding'. Separately, a casual employee who has rendered at least one year of service — continuous or broken — becomes regular as to the activity they were engaged in.
That is why the five-month contract carousel does not work. Ending an engagement at month five and rehiring you at month six does not reset anything if the work is the same and the work is necessary to the business. The repeated renewals are themselves evidence that the job is not temporary.
There are legitimate exceptions, and it is worth knowing which one your employer is claiming. Project employment is valid where the project is specific and its completion was determined at the time of engagement — and the employer must report each termination to DOLE. Seasonal employment is valid for genuinely seasonal work. Fixed-term employment is valid where the term was knowingly agreed on by parties dealing on more or less equal terms, and not used to defeat security of tenure. A term used precisely to prevent regularisation fails that last test.
If you are on an agency's books, the question becomes labour-only contracting. Under Article 106 and DOLE Department Order No. 174-17, an arrangement is labour-only where the contractor lacks substantial capital or investment in tools, equipment and premises and the workers perform activities directly related to the principal's main business — or where the contractor does not actually exercise the right of control. The consequence is decisive: the contractor is treated as a mere agent, and the principal becomes your employer as if it had hired you directly. DO 174 also bars contracting out to defeat workers' rights, and repeated short-term hiring to avoid regularisation is named as prohibited.
One correction to a common belief: there is no statute that bans 'endo' by that name. The Security of Tenure Bill was vetoed in 2019. What protects you is Article 295 read with Article 106 and DO 174 — which is a slower route than a ban, but a real one, and it is the basis on which DOLE has ordered thousands of workers regularised.
Being regular does not mean you cannot be dismissed. It means you can only be dismissed for a just or authorised cause, with the procedure that goes with it.
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