The Supreme Court affirmed that a probationary employee can be dismissed for failing to meet reasonable standards of conduct, even if those standards are not directly related to job skills. The case underscores the employer’s right to assess an employee’s suitability for regular employment based on factors beyond technical competence, such as adherence to company rules and ethical behavior. This ruling emphasizes that probationary employment is an opportunity for employers to evaluate an employee’s overall fit within the organization.

When Words Wound: Can Slander Justify Termination During Probation?

Jennifer Fabello Pasamba, a staff nurse at St. Luke’s Medical Center (SLMC), faced termination during her probationary period. The hospital alleged that Pasamba made slanderous remarks against a senior doctor, Dr. Pacita Lopez, violating the hospital’s Code of Discipline. The core legal question revolved around whether these remarks, even if unrelated to Pasamba’s nursing skills, could constitute a valid ground for dismissal during her probationary employment. The Labor Arbiter, the National Labor Relations Commission (NLRC), and the Court of Appeals all sided with SLMC, upholding Pasamba’s dismissal. This case provides a detailed look at the rights and responsibilities of both employers and employees during the probationary period, particularly concerning conduct that may not directly impact job performance but violates company standards.

The controversy began when Hazel Cabales, a patient’s mother, reported that Pasamba had made disparaging comments about Dr. Lopez. These comments, relayed in a letter, questioned Dr. Lopez’s competence and practices. SLMC, upon receiving the complaint, issued memoranda to Pasamba, providing her an opportunity to respond to the allegations. A hearing was also conducted where Pasamba could confront Cabales, the complainant. Despite Pasamba’s denials and the support of some colleagues and former patients, SLMC found her guilty of violating the Code of Discipline and terminated her employment.

Pasamba’s primary argument was that the slanderous utterances, even if proven, were not related to her job as a staff nurse and could not, therefore, justify her dismissal. She cited a previous case, Philippine Aeolus Automotive United Corporation v. National Labor Relations Commission, to support her claim that misconduct must relate to the performance of duties to warrant dismissal. However, the Court distinguished this case, emphasizing that Pasamba was a probationary employee, not a regular employee, and thus subject to different standards for termination.

The Labor Code differentiates between the grounds for dismissing regular and probationary employees. Article 281 of the Labor Code specifically addresses probationary employment, stating:

ART. 281. 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.

This provision makes it clear that an employer can terminate a probationary employee’s services if they fail to meet reasonable standards for regularization, provided these standards were made known to the employee at the start of their engagement. The Court emphasized that probationary employment serves as an opportunity for the employer to assess not only the employee’s skills and competence but also their attitude and adherence to company rules.

In Pasamba’s case, SLMC had clearly communicated its standards through the Employment Contract and the Code of Discipline. The Employment Contract explicitly stated that Pasamba’s suitability for the job, including her work habits and personal characteristics, would be assessed during the probationary period. It also emphasized her strict adherence to the SLMC’s Code of Discipline. Furthermore, Pasamba attended an orientation seminar where the Code of Discipline, including the prohibition against slanderous utterances, was discussed. This fulfilled the requirement that the employer communicate the standards for regularization to the probationary employee.

The Court recognized that SLMC’s business relies heavily on the reputation of its medical practitioners. Slanderous remarks against a senior doctor, particularly when made to a patient, could severely damage the hospital’s reputation and undermine trust in its services. The Court stated:

An employer cannot be compelled to retain an employee who is guilty of acts inimical to the interests of the employer. A company has the right to dismiss employees guilty of acts of dishonesty and disloyalty, if only as a measure of self-protection. Dismissal of an employee guilty of such a serious infraction would be reasonable.

Pasamba also argued that the SLMC’s Code of Discipline only prescribed a thirty-day suspension for slanderous utterances, not dismissal. However, the Court rejected this argument, noting that as a probationary employee, Pasamba’s failure to adhere to the Code of Discipline constituted a failure to meet the standards for regularization, justifying her termination. The Court distinguished this case from Batangas Laguna Tayabas Bus Co. v. Court of Appeals, which involved a regular employee and a vague penalty, emphasizing that Pasamba’s probationary status and the clear communication of standards made the dismissal valid. The Court also affirmed that Pasamba was afforded due process, with opportunities to respond to the allegations against her.

FAQs

What was the key issue in this case?	The key issue was whether a probationary employee could be dismissed for uttering slanderous remarks against a senior doctor, even if those remarks were not directly related to her job skills as a nurse. The Court determined the dismissal was valid.
What is probationary employment?	Probationary employment is a trial period, typically up to six months, during which an employer evaluates an employee’s suitability for a permanent position. During this time, the employer assesses the employee’s skills, competence, attitude, and adherence to company rules.
Can a probationary employee be dismissed for any reason?	No, a probationary employee cannot be dismissed for any reason. The dismissal must be based on a just cause or the employee’s failure to meet reasonable standards for regularization, which must be communicated to the employee at the start of their employment.
What are “reasonable standards” for regularization?	Reasonable standards can include not only job-related skills and performance but also adherence to company rules, ethical conduct, and overall suitability for the work environment. These standards must be clearly communicated to the employee.
What is the significance of the SLMC Code of Discipline in this case?	The SLMC Code of Discipline outlined the rules and regulations that employees were expected to follow. Pasamba’s violation of the code, by making slanderous remarks, was a key factor in the decision to terminate her probationary employment.
Was Jennifer Pasamba given due process before being dismissed?	Yes, the Court found that Pasamba was given due process. She was notified of the complaint against her, given an opportunity to respond, and allowed to participate in a hearing where she could confront the complainant.
What was the basis of the court’s decision?	The Court based its decision on Article 281 of the Labor Code, which allows for the termination of a probationary employee who fails to meet reasonable standards for regularization. The Court also considered the importance of maintaining a hospital’s reputation.
What is the key takeaway for employers?	Employers can terminate probationary employees for failing to meet reasonable standards, including those related to conduct and adherence to company rules, as long as those standards are clearly communicated. Document everything.
What is the key takeaway for probationary employees?	Probationary employees need to understand that their performance and behavior are being evaluated against the employer’s standards for regularization. Compliance with company rules and ethical conduct are critical during this period.

This case serves as a reminder that probationary employment is a crucial period for both employers and employees. Employers have the right to assess an employee’s overall suitability, and employees must understand and adhere to the company’s standards. The Pasamba ruling clarifies that these standards extend beyond technical skills and include conduct that can impact the employer’s reputation and interests.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: Jennifer Fabello Pasamba v. National Labor Relations Commission, G.R. No. 168421, June 08, 2007