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Unlimited and Limited Contract: The Difference
Akie Tabora, Apr 25, 2014
Some Filipinos working overseas think that a contract, whether unlimited or limited in nature are similar. Well, they are not.
A limited contract specifies that a worker must fulfill a job in a particular period of time. In cases of Filipinos working abroad, this is often in a span of two years.
The contractual period of two years entitles an OFW to end-of-service benefits.
If an employee decides to leave the job without fulfilling the duration stated in the contract, the employee will have to pay remuneration (may be a half or whole worth of a month salary) to the employer.
On the other hand, an unlimited contract, as the name suggests, provides that an employee will continue his or her service unless he or the employer decides to terminate the contract.
Employees in an unlimited contract are entitled to end of service benefits or gratuity if they have exceeded more than 5 years in service but will not be entitled to any gratuity if they left the job on their own accord.
