PAGCOR COS, JO workers not gov't employees —SC

Contract of service and job order workers of the Philippine Amusement and Gaming Corporation (PAGCOR) are not considered government employees under the jurisdiction of the Civil Service Commission (CSC), according to a Supreme Court ruling.

In an 18-page decision promulgated in June, the SC First Division dismissed the petition filed by a group of PAGCOR workers whose contracts were not renewed. The case stemmed from an illegal dismissal complaint filed by the affected workers with the CSC Regional Office (CSCRO-VI)

The SC cited the CSC-COA-DBM Joint Circular No. 1 that stated that contract of services or job order workers are not covered by Civil Service Laws and rules.

Section 7.4 of the circular states that "[t]he services of the contract of service and job order workers are not covered by Civil Service law and rules thus, not creditable as government service. They do not enjoy the benefits enjoyed by government employees, such as leave, PERA, RATA and thirteenth month pay." 

"We likewise reiterated that there is no employer-employee relationship between the government and job order workers, and that the latter's services are not considered government service,” the SC said.

“For these reasons, job order employees are not covered by Civil Service law, rules, and regulations."

According to the SC, the workers were hired to work as a 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 but they were occasionally renewed. They worked under the agency from one to 17 years.

Their contracts included a provision that stated, “strict observance of Civil Service laws, rules, and regulations.”

However, when PAGCOR closed its hotel business in Bacolod City, it did not renew the individual contracts of the workers. This led the workers to file the complaint before the CSCRO-VI, where they argued that they are regular employees entitled to security of tenure. 

However, the CSCRO-VI dismissed the complaint for lack of jurisdiction.

Both the CSC and the Court of Appeals denied the workers' appeal.

Meanwhile, the SC found that PAGCOR has the power to hire its own employees. It, however, stressed that the workers' humanity must be recognized.

The high court also reminded PAGCOR that its hiring authority should not be used to mistreat contract of service or job order workers.

"We sternly remind PAGCOR and all similar agencies that while their authority to contract services is recognized under applicable civil service rules, such hiring authority should not be used to mistreat or otherwise mismanage contract of service or job order workers," it said. —KBK, GMA Integrated News