* 6 Months Probationary Period - 180 days, excluding the first day and including the last

day

* Bad Faith - a state of mind affirmatively operating with a furtive design, or with some
motive of self-interest or ill-will for an ulterior purpose; it implies a conscious and
intentional design to do a wrongful act for a dishonest purpose

* CABO - a labor group or group of persons which, in the guise of a labor organization,
supplies the worker to an employer

* Casual Employee - an employee not included in the definition of regular employee

referred to in Art. 280, provided that any employee who has rendered at least 1 year of
service whether continuous or broken shall be considered a regular employee with respect
to the activity in which he is employed, and his employment shall continue while such
activity exists

* Constructive Dismissal - an involuntary resignation resorted to when continued

employment is rendered impossible, unreasonable or unlikely; when there is a demotion
in rank and/or diminution in pay; or when a clear discrimination, insensibility or disdain
by an employer becomes unbearable to an employee

* Contracting or Subcontracting - an arrangement whereby a principal agrees to put out,

farm out with a contractor or subcontractor the performance or completion of specific
job, work or service within a definite or predetermined period regardless of whether such
job, work or service is to be performed or completed within or outside the premises of the
principal

* Contractor or Subcontractor - any person or entity engaged in a legitimate contracting

or subcontracting arrangement

* Contractual Employee - includes one employed by a contractor or subcontractor to

perform or complete a job, work or service pursuant to an arrangement between the latter
and a principal. The term excludes employees of the contractor or subcontractor engaged
to perform a job, work or service not within the scope of the contract between the latter
and the principal

* Demotion - movement from one position to another involving issuance of appointment

with diminution of duties, responsibilities, status or rank which may or may not involve
reduction in pay or salary

* Discrimination - the unequal treatment of employees, when no reasonable distinction

can be found between those favored and those not favored

* Employee - one who works for an employer, a person working for salary or wage; any
person in the service of another under a contract for hire, express or implied, oral or
written; an employee is always a natural person
* Employer - one for whom an employee works in consideration of wages or salaries;
may be either a natural or juridical person

* Independent Contractor - a person hired for a specific job where the person hiring has
no control over the method by which the work is to be done; has the necessary capital and
manpower to do the job he was hired to do; the test is the power of control

* Indirect Employer - any person, partnership, association or corporation which, not

being an employer, contracts with an independent contractor for the performance of any
work, task, job or project

* In-House Agency - a contractor or subcontractor engaged in the supply of a labor which

is owned, managed or controlled by the principal and operates for the principal owning,
managing or controlling it

* Job Contracting - an arrangement whereby a principal agrees to put out or farm out with
a contractor the performance or completion of a specific job, work or service within a
definite or predetermined period, regardless of whether such job, work or service is to be
performed or completed within or outside the premises of the principal

* Labor-Only Contractor - on who, not having substantial capital nor investments in the
form or tools, equipment, machineries and work premises, supplies workers to an
employer and such workers are subject to the control of the latter. Under a labor-only
contract, the contractor is deemed in law as agent of the principal and therefore, the
principal is deemed the true employer of the workers. He is thus responsible to the
workers of the contractor in the same manner and extent as if they were directly
employed by him

* Labor Only Contracting - where person supplying workers to an employer does not
have substantial capital or investment in the form of tools, equipment, machineries, work
premises among others and workers recruited and placed are performing activities
directly related to the principal business of employer

* Management prerogative - acts or rights inherent in the management of a business

enterprise by which one, directing a business is able to control the variables thereof so as
to enhance the chances of making a profit

* Principal - an employer who puts out or farms out a job, service or work to a contractor
or subcontractor, whether or not the arrangement is covered by a written contract

* Probationary Employee - a person hired on a trial basis for a period generally not longer
than 6 months; his continued employment after his probationary period depends on
whether or not he qualifies as regular employee according to the employer's reasonable
standards made know to him at the time he was hired
* Probationary employment - shall not exceed 6 months from the date the employee
started working, unless it is covered by an apprenticeship agreement stipulating a longer
period. The services of an employee who has been engaged on a probationary basis
may be terminated for a just cause or when he fails to qualify as a regular employee in
accordance with reasonable standards made known by the employer to the employee at
the time of his engagement. An employee who is allowed to work after a probationary
period shall be considered a regular employee.

* Project Employee - a person whose employment has been fixed for a specific project or
undertaking, the completion or termination of which has been determined at the time of
the engagement of the employee

* Reassignment - a movement of an employee from one organizational unit to another in

the same department or agency which does not involve a reduction of rank, status, or
salary and does not require issuance of an appointment

* Regular Employee - a person hired by an employer to perform activities usually

necessary or desirable in the usual business or trade of the employer except when he has
been employed for a specific project the duration of which has been determined at the
time of engagement of employment or when he has been employed for a work or service
that is seasonal in nature and only for a particular season
- determined by the NATURE of the activity performed, not by the word and will of the
employer

* Substantial Capital or Investment - the adequacy of resources actually and directly used
by the contractor or subcontractor in the performance or completion of the job, work or
service contracted out. It may refer to capital stocks and subscribed capitalization in the
case of corporations, tools, equipment, implements, machineries, uniforms, protective
gear or safety devices actually used in the performance of the job, work or service
contracted out. It also includes operating costs, administrative costs and such expense as
are necessary to enable contractor or subcontractor to exercise control, supervision or
direction over its employees in all aspects but excludes all capital and investments not
actually and directly used in the conduct of its business or any gratuitous assistance,
financial or otherwise, it may have received from the principal

* Seasonal Employee - those whose work or services are seasonal in nature and their
employment is only for the duration of the season

* Security of Tenure - the worker's right against dismissal without just or authorized
cause and without compliance with the requirements of due process

* Term or Duration of Contractual Employment - shall be coextensive with the term or

duration of the contract between the principal and contractor or subcontractor. But where
contract is divisible into phase, the term or duration may be made co-extensive with each
phase