Workers hired by the Philippine Amusement and Gaming Corporation (PAGCOR) are not considered government employees under the Civil Service Commission’s (CSC) jurisdiction, the Supreme Court (SC) said.
In a decision promulgated in June 2024, the SC ruled that the group of workers hired by PAGCOR in its hotel and restaurant business is considered as a contract of services and job order workers in the government. However, the Court stressed that they are not covered by Civil Service law, rules, and regulations; Despite PAGCOR being a government-owned or -controlled corporation governed by the PACGOR Charter.
Where PAGCOR workers stand
Based on the decision written by Associate Justice Ramon Paul Hernando, former PAGCOR employees Mark Abadilla and others, worked in various positions such as food attendant, cook, waiter, purchaser, etc.
According to the SC, the employees’ contract included a provision that said, “ strict observance of civil service laws, rules, and regulations.”
Their contracts lasted for a fixed term but were occasionally renewed. However, when the PAGCOR hotel business closed and transferred to another location, it did not renew the individual contracts of the said employees.
Due to this, the employees filed an illegal dismissal complaint before the CSC Regional Office, stating that they were regular employees. The regional office dismissed their complaint for lack of jurisdiction, concluding that they were not government employees based on their contracts.
The SC Ruling
The CSC Memorandum Circular No. 40-98 indicates that “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 exists. While covered by the Commission on Audit (COA), these workers do not enjoy the benefits given to government employees.”
Therefore, the Court ruled that not all employees hired by PAGCOR are considered government employees. Stating that others are contract of services or job order workers.
“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.” the Court reminded PAGCOR and all similar agencies.
