I would like to inquire on the implication of contract workers exceeding 5 months on the job. As I have understood from the labor code, if a contractual employee exceeds the contract period but still on the job, he/she should be regularized by the employer. However, even if the employee continues the contractual job after 5 mos, he still has not been regularized. As much as he exceeded the 5 month contract, the job is still on contractual/ per project basis. For the employer, the company is at a loss if it regularizes the employee because there is no steady stream of projects coming in. Only when there are projects that the same contract workers are hired but it has already exceeded the prescribed contractual period of 5 mos. Is the Company then required to regularize all of those contract workers? What could be other options that is both beneficial to the same lot of employees and to the employer? Since it could mean that regularizing the contractual employees may pose a loss to the employer due to unstable projects coming in for the Company.
Thank you very much!