Sunday, November 10, 2024
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PAGCOR contractual workers not government employees, Supreme Court rules

Contract of service (COS) and job order (JO) workers employed by the Philippine Amusement and Gaming Corporation (PAGCOR) are not considered government employees under the Civil Service Commission’s (CSC) jurisdiction, the country’s Supreme Court (SC) has ruled.

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

The SC cited CSC-COA-DBM Joint Circular No. 1, which clearly states that COS and JO workers are not covered by Civil Service laws and regulations. Section 7.4 of the circular specifies that these workers do not receive the same benefits as regular government employees, such as leave credits, Personal Economic Relief Allowance (PERA), Representation and Transportation Allowance (RATA), or 13th-month pay.

“We reiterated that there is no employer-employee relationship between the government and job order workers, and that their services are not considered government service,” the SC noted. “For these reasons, job order employees are not covered by Civil Service law, rules, and regulations.”

The ruling clarified that the PAGCOR workers in question, employed as cooks, waiters, pantry aides, stewards, dishwashers, kitchen supervisors, and busboys, among other roles, had signed fixed-term contracts with the agency. Some had worked under these contracts for periods ranging from one to 17 years, with occasional renewals.

The workers argued that their repeated contract renewals and length of service effectively made them regular employees entitled to security of tenure, and they brought the matter to the CSCRO-VI. However, the CSCRO-VI dismissed their complaint, citing lack of jurisdiction, a decision that was upheld by both the CSC and the Court of Appeals.

The SC emphasized that, while PAGCOR holds the authority to hire its own workers, including those under contract of service or job order arrangements, this power should not be misused. The court reminded PAGCOR and similar agencies that COS and JO workers should not be mistreated or mismanaged, despite not enjoying the full benefits of regular government employees.

“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,” the court said.

Frank Schuengel
Frank Schuengel
Frank Schuengel is an online gambling industry veteran with over twenty years of experience in Europe and Asia. Equally at home in the Isle of Man and the Philippines, he started his career as a sports trader before setting up and running whole operations, and more recently focusing on the regulatory and licensing side of things in the worlds of fiat and crypto eGaming. When he is not writing about gambling topics, he can be found cycling around Manila and advocating sustainable transport solutions for a Philippines based mobility magazine.

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