For those seeking employment for the first time or transitioning from one job to another, the term “probationary period” is something that you’ll encounter as you enter your new workplace. Employers commonly place new hires on probationary status to assess whether they possess the skills, competence, attitude, and overall fitness required for the position. On the other hand, probationary employees likewise seek to demonstrate that they have the qualifications to meet the reasonable standards for permanent employment. After evaluating the employee’s performance, if the employee meets those standards, they get regularized.
This employment practice is backed by the provisions of the Labor Code. The law also laid out the limitations of probationary employment as well as the indispensable rights of a probationary employee, which will be discussed in this article.
Nature of Probationary Employment
Article 296 of the Labor Code of the Philippines provides that probationary employment shall not exceed six months from the date the employee started working, unless it is covered by an apprenticeship agreement or when a longer probationary period is validly agreed upon for positions where the nature of the work reasonably requires it, as recognized in jurisprudence. Furthermore, it can only be terminated for just cause or when the employee fails to qualify as a regular employee in accordance with the company’s reasonable standards. Meaning, you cannot be arbitrarily terminated while you are on a probationary period for a maximum period of six months.
The probationary period may, in limited circumstances recognized by jurisprudence, be validly extended when the employee voluntarily agrees to the extension, and the arrangement is not intended to defeat the employee’s right to regularization. Without the agreement, the extension is considered invalid, and the employee is considered a regular employee after the lapse of the original probationary period. However, the probationary period cannot be indefinite. If the employee is allowed to work even for a day after the probationary period, they are considered a regular employee.
When are Probationary Employees Considered Regular
As previously mentioned, unless there is an agreed extension, a probationary employee is considered regular as soon as the first day they are allowed to work after the probationary period. Furthermore, if there is no stipulation of the probationary period in the contract, the employee is considered regular. Although the Labor Code does not generally require employment contracts to be in writing, employers who rely on probationary employment must be able to prove that the employee was informed of the probationary status and the reasonable standards for regularization at the time of engagement. A written contract is therefore strongly recommended. In some cases, repeated rehiring for work that is necessary and desirable to the employer’s usual business may indicate that an employee has already attained regular status, depending on the facts and applicable jurisprudence.
Crucial Rights Probationary Employees Should Remember
Within the six-month probationary period, employees are entitled to security of tenure despite their limited tenure and non-permanent status. Therefore, it is important to remember the three grounds allowed by law for termination: just cause, authorized cause, or if the probationary employee fails to meet the reasonable standards set and made known by the employer. Furthermore, the standards to become a regular employee and the nature of the probationary period must be communicated and made clear to the employee prior to the commencement of the employment.
Lastly, if the probationary employee ends up being terminated under just or authorized cause, procedural due process is required. Meanwhile, if the probationary employee is terminated due to their failure to pass the standards, there must be a written notice of termination with the result of the performance evaluation attached. An employee has the right to know whether they met the standards for which their performance was evaluated. Should they fail, they have the right to know the reasons therefor.
Although probationary employees have not yet attained regular status, they are still protected by the Labor Code. They enjoy security of tenure during the probationary period and may only be dismissed for lawful causes and in accordance with due process. Understanding these rights enables employees to recognize unlawful employment practices and take appropriate steps to protect their interests. When it happens, it is important to document everything, including your contract, screenshots of conversations, proof of transactions, among others, and consult a lawyer to help you with your case.