Are consultants entitled to the 13th-month pay?

Last Updated on 04/28/2020 by FilipiKnow

Generally, consultants are not entitled to the 13th-month pay as they are not considered rank-and-file employees.

In consulting services1, consultants are hired for their technical and professional expertise to render technical services or special studies, such as advisory and review services, pre-investment or feasibility studies, design, etc.

However, in one case2, a consultant was awarded benefits including 13th-month pay because he was considered a regular employee of the company. Although he was hired as a consultant and was designated as Consultant-Engineer, the description of his duties is that of an ordinary technical staff employee.

The Supreme Court ruled that “[t]he term ‘consultant’ is merely more of nomenclature as he is required under the contract to observe regular office hours. It, therefore, precludes the hiring of a mere ‘consultant’ who is supposed to render part-time service to the principal employer.”

Go back to the main article: How to Compute 13th Month Pay in the Philippines: An Ultimate Guide

 

References.

  1. Republic Act No. 9184, An Act Providing for the Modernization, Standardization, and Regulation of the Procurement Activities of the Government and for Other Purposes, Sec. 5 (f) (2002)
  2. Ferrochrome Phils., Inc. vs NLRC, G.R. No. 105538 (Supreme Court of the Philippines 1994).