Probationary employment and regularization
Probationary employment may not exceed six months from the first day of work, and the employee becomes regular if allowed to work after that period or after meeting the standards made known at hiring.
The rule
Article 296 of the Labor Code limits probationary employment to six months. The employer must tell the employee, at the time of engagement, the reasonable standards the employee must meet to become regular. An employee who is allowed to continue working after the period is considered a regular employee.
Practical steps
- State the probationary period and the regularization standards in the employment contract.
- Schedule the evaluation before the end of the period so a decision is documented in time.
- Notify the employee in writing of the result.
- Update the employee record so benefits that depend on regular status, such as leave accrual, start on the right date.
Reminders
- Pay statutory benefits from day one, whatever the status.
- A regularization date should come from the evaluation or the end of the period, not from the HR calendar alone.
Questions people ask
How long can the probationary period be?
Not more than six months from the date the employee started working, unless the employee is covered by an apprenticeship agreement that sets a longer period.
When does an employee become regular?
When the employee is allowed to work after the probationary period, or earlier if the employer confirms that the employee has met the standards.
Do probationary employees get 13th month pay and benefits?
Yes. Rank-and-file probationary employees are covered by 13th month pay, SSS, PhilHealth and Pag-IBIG like other employees.
Can a probationary employee be terminated?
For a just cause, or for failing to meet the standards that were made known to the employee at the time of engagement.
Sources
- Labor Code of the Philippines, Article 296 (formerly 281), probationary employment