Probationary Employment in the Philippines

A probationary employee is one who, for a given period of time, is being observed and evaluated to determine whether or not he is qualified for permanent employment. A probationary appointment affords the employer an opportunity to observe the skill, competence and attitude of a probationer. The word probationary, as used to describe the period of employment, implies the purpose of the term or period. While the employer observes the fitness, propriety and efficiency of a probationer to ascertain whether he is qualified for permanent employment, the probationer at the same time, seeks to prove to the employer that he has the qualifications to meet the reasonable standards for permanent employment. (Escorpizo vs. University of Baguio Faculty Education Workers Union, G.R. No. 121962 [1999])

Probationary Employment under the Labor Code of the Philippines

GOVERNING LAW

Probationary employment is governed by Article 296 (formerly, Article 281) of the Labor Code, which reads:

  • ART. 296. Probationary Employment. – Probationary employment shall not exceed six (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.

GROUNDS TO TERMINATE A PROBATIONARY EMPLOYEE

Article 296 states that a probationary employee can be legally terminated: (1) for a just cause; or (2) when the employee fails to qualify as a regular employee in accordance with the reasonable standards made known to him by the employer at the start of the employment. The limitations in dismissing a probationary employee are:

  • First, this power must be exercised in accordance with the specific requirements of the contract.
  • Second, the dissatisfaction on the part of the employer must be real and in good faith, not feigned so as to circumvent the contract or the law;
  • Third, there must be no unlawful discrimination in the dismissal.

NEW CASE

In the recent case of Dusit Hotel Nikko vs. Gatbonton (G.R. No. 161654, 5 May 2006), the Supreme Court found that the employer failed to present proof that the employee was evaluated or that his probationary employment was validly extended.

In this case, the employee was hired for a 3-month probationary period (the period provided by law is six months, but this may be shortened or, in appropriate cases, extended by agreement between the employer and the employee). For its defense, the employer claimed that the 3-month probationary employment was extended for another 2 months because the employee was not yet ready for regular employment. The employer presented, as proof, a Personnel Action Form containing the recommendation.

However, the Supreme Court noted that the Personnel Action Form: (1) was prepared on only in the fourth month, well after the 3-month period provided under the contract of employment; (2) the recommended action was actually termination of probationary employment, and not extension of probation period; (3) the action form did not contain the results of the respondent’s evaluation; (4) the action form spoke of an attached memo that allegedly contains the recommendation for extension, but the memo was not presented; (5) the action form did not bear the respondent’s signature.

Therefore, in the absence of any evaluation or valid extension, there is no basis to show if the employee indeed failed to meet the standards of performance previously set.

EFFECT OF VALID TERMINATION OF PROBATIONARY EMPLOYMENT

At the expiration of the probationary period, the status of the employee becomes regular. Since the employee in the Dusit Hotel Nikko case was not dismissed for a just or authorized cause, his dismissal was illegal, and he is entitled to reinstatement without loss of seniority rights, and other privileges as well as to full backwages, inclusive of allowances, and to other benefits or their monetary equivalent computed from the time his compensation was withheld from him up to the time of his actual reinstatement.

EXTENSION OF PROBATIONARY EMPLOYMENT PERIOD

In Mariwasa Manufacturing, Inc. vs. Leogardo (G.R. No 74246, 26 January 1989), the Supreme Court stated that the extension of the probationary period was ex gratia, an act of liberality on the part of the employer affording the employee a second chance to make good after having initially failed to prove his worth as an employee. Such an act cannot unjustly be turned against said employer’s account to compel it to keep on its payroll one who could not perform according to its work standards. By voluntarily agreeing to an extension of the probationary period, the employee in effect waived any benefit attaching to the completion of said period if he still failed to make the grade during the period of extension.

[See also Discussion on Labor Advisory No. 14, re one-month extension of probationary period during the community quarantine.]

Atty.Fred

187 thoughts on “Probationary Employment in the Philippines

  1. rommel

    hingi poh ako ng advise ako poh ay nagwowork ngayon sa isang company sa mandaluyong .5month na poh ako nung aug.6,2016 pero inextend poh ako hanggang aug. 20,2016…dito poh sa company na ito ay pabalik balik n poh ako….Ngayon poh na isinusulong na ni pres.duterte na wala ng contractual may habol poh ba ako na maregular dito sa company….at isa pa poh hindi poh ako binabawasan ng mga benifits like sss,philhealth,pagibig, atbp. ,,nawa ay matulungan nyo ako…
    Godbless poh and morepower to DOLE

    Reply
  2. Ehlz

    Hi Atty.
    I need an advice from you. I dont know if may laban kc sa dati nameng employer. Sa pinirmahan nameng job offer nakalagay dun na e evaluate kme ng 6 mos for regularization. And it depends kung ma meet nmen ung assessment nila. To make the story short. 8 po kmeng trainees na terminate biglaan po, wala po clang notice na binigay as in pinapasok po nila kame ng maaga just to inform us na wala na kmeng aasahan, na terminate na daw po kme. Ang reason po nila hindi po namen na meet ung quiz or assessment nila na 90%. Nag file po kme ng case kc for us parang illegal dismissal ang nangyari kc one month (1 month) pa lng po kame. Paano nman po kme ma assess ng basta basta and hindi pa tapos yung training and ung assessment na binigay nila na computation quiz is para lang daw ma determine nila kung paano kame mag analize ng scenario, at isa pa hindi po yun ung cnsabi nila na 200 items na need nameng maipasa..
    After po nung pagkatanggal namen, pinatawag kme ulit para sa backpay. Hindi po nila binigay ung backpay hanggat d kme magsign ng quitclaim and release. Sabi namen pirma kame basta ang ilagay nila for release. Hindi daw po pde. Nagopen po kme sa knila, nagbigay po kme ng letter for reconsideration pero ang sagot nila gawin daw namen kung ano ang mas makakabuti samen kaya nagfile po kame. Nagmeet na po kme sa arbiter pero yung arbiter parang kampi na po sa kabilang partido, ang sabi wala kameng laban dahil hindi kame regular para magdemand. Ang sagot po kc nmen paano.po kame na assess e wala pa po kme sa actual na performance and hindi pa nman tapos ung training nila ang sagot lang po nila wala clang magagawa sa part na yun. After po ng pag terminate samen ung mga naiwan po. Na demote po ung sahod nila, from 30k ginawa pong 20k. Ung mga umalma tinerminate din. Ano po ba dapat nemng gawin. Wala po kmeng pambayad sa abogado e. Sana po matulungan nio po kme. Ano pong maipapayo nio? May laban po ba kame?

    Reply
  3. sancy

    hello mam/sir
    i have question sa company namin march 11 po ako start ng ojt ko, tapos ngstart po sila datehired sa id ko is march 20,2016 so ang magiging duedate hired ko is september 20, september 21 na po ako pinatawag ng hr namin
    para review ang evaluation ko, at agad niya sinabi sa akin na Recontract po ako wala po akong late,bolilyaso sa deployment kahit isa at 1 day absence ako at legal advice naman po yon,for 6 months,parang hirap tanggapin na hindi ako mareregular,
    okey naman ako makisama sa mga kawork ko,
    tama po ba mag expect na maregular ako at dapat ko ipaglaban na lumagpas ako sa 6 months duedate hired ko,
    i need your advice mam /sir
    thank u so much

    Reply
  4. jerry

    Hello sir’

    I just wanna ask ‘ the day i supposed to sign or renew my cotract but i would rather not sign it’ am i have the rights to get separation pay and my 13th month pay especially i work contractual employee for almost 2years

    Reply
  5. boogie

    Can an employee be terminated during his/her probationary period even though there was no feedback or performance evaluation done during the entire period? 1 week before regularization, the Manager of the said employee called to have the latter write and send a letter with the intention to extend probation. The employee has not complied with this request since this will essentially waive all his/her rights against possible illegal dismissal? am I correct? Some facts to consider:

    1. This is for a branch head position with sales targets
    2. Annual targets were not fully met yet
    3. NO Sales officer was provided or hired by the Company to help work on targets (branch requires a sales officer post but was not filled)
    4. Employee is 8 months pregnant and will be out for 3months – paid leave if regularized
    5. No performance evaluation was done with the employee and is no signed document to signify Management was not pleased with her performance
    6. 1 week before regularization the Manager of employee called to say that her probi period will be extended

    Question is, is this even legal? Does this constitute illegal dismissal if the employee is terminated?

    Reply
  6. Diane

    Hihingi po ako ng advise or tulong sa sitwasyon ko.
    Ako po ay isang janitor. Regular employee po ako simula pa po noong August 2014.
    Kinausap po ako nung isang Boss ng kumpanyang pinag tatrabahuhan ko.
    Ang sabi po sa akin ay, “Usap na, mag resign ka na, madami ng ang galit sa iyo”
    Ako po ay nabigla sa kanyang sinabi. Na-blanko po ang utak ko.
    September 16, 2016 po nung kinausap ako, morning shift po ako noong araw na iyon, 6AM to 2PM ang aking schedule.
    Nung sinabi po sa akin na mag resign na ako, ako po ay umuwi na ng maaga bandang 9AM.
    Kinabukasan po ay wala na ako sa schedule.
    Ang supervisor ko naman po ay hindi din ako kinakausap ng ayos, at ako nga daw po ay tanggal na sa trabaho.
    Sinubukan ko po magpunta sa HR office nung kumpanya. At idinulog ko po ang nangyari sa akin.
    Ang sabi po ng HR ay madami na daw po ang nag rereklamo sa akin. May mga complaint letter daw sila na natatangap.
    Yung mga complaint letter naman po na iyon ay hindi nakakarating sa akin. Kaya wala po akong kaalam alam. Hindi din po hinihingi sa akin ang aking paliwanag tungkol sa mga reklamo sa akin.
    nag pumilit po ako na humingi ng kopya nung mga sinasabing reklamo, binigyan naman po ako ng HR pero hindi pa din nila ako hinihingan ng explanation.
    Ang sabi din po ng HR sa akin ay pumirma ka na lang sa resignation mo.
    Hindi po ako pumirma sa sinasabi nila na resignation. Pag pumirma po kasi ako dun, ibig sabihin ay bukal sa loob ko ang pag reresign.
    Pagkalipas po ng ilang araw ay bumalik po ako sa HR para itanong ang aking status ng employment.
    Ipinipilit pa din po nila na pumirma ako sa resignation.
    Ang sabi pa po ng HR ay AWOL na daw po ako.
    Paano po ako magiging AWOL ay sila naman po ang hindi nag bibigay sa akin ng schedule.
    illegal po ba ang pagkakatangal sa akin?
    Ano po ang maganda ko gawin ?
    Salamat po.

    Reply

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