MANILA: The Supreme Court has declared that workers on contract of services (COS) or job order (JO) basis at the Philippine Amusement and Gaming Corporation (PAGCOR) are not considered government employees, thus not under the jurisdiction of the Civil Service Commission (CSC).
According to Philippines News Agency, the decision was made by the Supreme Court’s First Division in a ruling dated June 19, 2024, and later published online. The ruling stated that a group of workers employed by PAGCOR in its hotel and restaurant operations are COS and JO workers, and therefore not covered by CSC laws, rules, and regulations. These workers, employed in roles ranging from cooks to busboys, had their contracts occasionally renewed over periods ranging from one to 17 years.
The controversy began when PAGCOR did not renew the contracts of these workers following the closure of its hotel business in Goldenfield Complex and its transfer to L”Fisher Hotel, both located in Bacolod City. The workers filed an illegal dismissal
complaint with the CSC Regional Office (CSCRO-VI), claiming they were regular employees entitled to security of tenure.
However, the CSCRO-VI dismissed their complaint due to lack of jurisdiction, establishing that they were contractual workers. The case was later elevated to the CSC and, following its dismissal there, was taken to the Court of Appeals which also affirmed the decision, stating that the workers were not regular employees within the civil service.
The Supreme Court’s affirmation clarified that there is no employer-employee relationship between the government and JO workers, whose services are not considered government service. The ruling emphasized that although the workers’ contracts required them to adhere to “civil service laws, rules, and regulations,” this did not establish them as government employees.
The decision also referenced CSC Memorandum Circular No. 40-98 and CSC-COA-Department of Budget and Management Joint Circular No. 1, both of which specify that COS or JO workers are not
covered by civil service laws and rules. The Supreme Court reiterated PAGCOR’s authority to hire personnel, noting that not all personnel are considered government employees, and highlighted the importance of not misusing this authority to mistreat or mismanage contract workers.