Hiring a project-based employee: Your starter guide
With the local career landscape evolving constantly, several organizations have implemented project-based employment in the Philippines. With the flexibility that project-based employment gives to both the employer and candidate, it may be the ideal scenario for selected projects or tasks in your company.
Many talented freelancers accept work on a per-project basis. The Philippines’ new normal of working during this pandemic states that candidates will now seek stability through positions that offer work-from-home, freelance, or part-time opportunities.
According to data insights from JobStreet, there was an 88% increase in searching for work-from-home jobs, a 79% increase in searching for home-based jobs, and a 94% increase in searching for freelance jobs since the beginning of the Enhanced Community Quarantine.
Project-based employment may be beneficial to your organization, but before seeking out talents, it is best to go through the basics.
There must be a clear understanding of the job offer; to be observed by both parties. Before hiring, review what you need to know to avoid any misunderstandings or miscommunication. Review what the law says about hiring project-based employment, and carefully think about the role of the candidate.
What is the difference between project-based employment and regular employment?
| Regular Employee | Project-based Employee | |
| Definition | Based on Article 280 of the Philippine Labor Code, “An employment shall be deemed to be regular where the employee has been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer.” | A project-based employee, as the name says, is given a specific project or undertaking with an agreed timeframe. |
| Kind of Work | Essential and always necessary to the business or employer | Work that is outside of the usual tasks that are necessary for the business or employer and only needed for a specific project or timeframe |
| Compensation | Salary, benefits, and bonuses | There is an agreed fee between the employee and employer |
| Benefits given to the employee | Healthcare, 13th-month pay, and leaves | None, unless terms are agreed upon with the employer, such as reimbursement for expenses incurred during the project |
| Termination | Must have just cause for termination, entitled to a 30-day notice of termination of employment | Based on the timeframe agreed upon by the employee and employer. Project-based employees are also entitled to a 30-day termination notice. |
Depending on the terms of the project, project-based employees have the option to be output-driven. Meaning, it does not matter how many hours they clock into work, for as long as they finish the project within the agreed timeframe.
Why Choose Project employment over Regular employment
Hiring a project-based employee is usually recommended for jobs that require a specific skill set for a fixed amount of time, such as seasonal peaks wherein the workload is too heavy for your current employees to handle. The retail industry, as well as advertising or marketing firms, hire project-based employees when the load gets heavier.
Project-based employees will only work until the project is done. For example, your organization may need to create a new website, and you would need a website developer, graphic artist, programmer, and writer. The contract ends with the completion of the project.
If, for any reason, the project-based employee works on something other than the original project and is always rehired by the employer to do daily tasks and responsibilities in the organization, they are seen as regular employees, according to Philippine Labor Laws.
Compensation
Once a project-based employee has agreed to take on the project, it is necessary to communicate, perhaps in writing, the terms of payment. State the amount and when to expect their fee. Ask for other requirements, such as their complete name, Tax Identification Number, and bank details, if needed. It is best to talk to your accounting department about taxation of the compensation of the project-based employee.
A contract for Project-Based Employee Hires
Craft a project-based contract explaining duties, responsibilities, deliverables, duration of services, and compensation. Your legal department will be of assistance in this matter.
A usual point of contention is the compensation of the project-based employee. Be specific about their professional fees, meaning whether or not it is all-inclusive of any expenses they will incur due to the project if it is inclusive of Value Added Tax (VAT) or not, and the like.
Finding the right project-based candidate
Ideally, you want to find the best candidates in the least amount of time. JobStreet is here to help.
JobStreet has the biggest talent pool in the Philippines, with over 50 million views per month. Use Talent search to access the largest talent database in Southeast Asia and find the best candidate for the job. You can also visit the Jobs and Resources hub for more expert advice on how to use the recruitment process. Work with JobStreet to help candidates build fulfilling careers while meeting your own hiring needs.
At JobStreet, we believe in bringing you #JobsThatMatter. As a Career Partner, we are committed to helping all jobseekers find passion and purpose in every career choice. And as the number 1 Talent Partner in Asia, we connect employers with the right candidates who truly make a positive and lasting impact on the organization.
Discover Jobs That Matter. Visit JobStreet today.
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