Probationary Employment: Meeting Reasonable Standards for Regularization

G.R. No. 116419, February 09, 1996

Imagine starting a new job, eager to prove yourself. You work hard, but the feedback is mixed. Some say you’re improving, others say you’re not quite there yet. Then, before your probationary period ends, you’re told you didn’t make the cut. This scenario is all too common, and understanding the rights and responsibilities of both employer and employee during probationary employment is crucial. This case, Maurice C. Flores vs. National Labor Relations Commission and Premiere Development Bank, sheds light on the importance of clearly defined standards and fair evaluation during probationary employment. The central legal question revolves around whether the employee was validly terminated during her probationary period due to failing to meet reasonable standards set by the employer.

Legal Framework of Probationary Employment

Probationary employment in the Philippines is governed primarily by Article 296 (formerly Article 281) of the Labor Code, which states:

“Probationary employment shall not exceed six (6) months from the date the employee started working, unless it is covered by an apprenticeship agreement specifying 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 outlines two key conditions for validly terminating a probationary employee: just cause, such as misconduct or violation of company rules, or failure to meet reasonable standards made known to the employee at the start of employment. The burden of proving that these standards were communicated and that the employee failed to meet them rests on the employer. For example, a sales company might set a quota for new hires during their probationary period. If the employee is informed of this quota and consistently fails to meet it, the company may have grounds for termination.

The Flores vs. Premiere Development Bank Case: A Closer Look

Maurice Flores was hired by Premiere Development Bank as a loan processor on a six-month probationary basis. Throughout her probationary period, her performance was evaluated monthly. The feedback was a mixed bag, with comments ranging from “Improvement in memory and communication skills” to “Still ineffective in terms of communication & interview.” During the last month, she was assigned as Department Secretary, and her supervisor noted areas for improvement in phone etiquette, communication, and common sense.

Before the end of her probationary period, the bank notified Flores that her employment was terminated because she failed to meet the bank’s standards for a permanent employee. Flores filed a complaint for illegal dismissal. The case went through the following stages:

• Labor Arbiter: Initially ruled in favor of Flores, finding the dismissal invalid and ordering reinstatement with backwages and attorney’s fees.
• National Labor Relations Commission (NLRC): Reversed the Labor Arbiter’s decision, holding that the termination was lawful and valid.
• Supreme Court: Upheld the NLRC’s ruling, emphasizing the limited scope of certiorari in labor cases.

The Supreme Court highlighted that the role of certiorari is to correct errors of jurisdiction or grave abuse of discretion, not to re-evaluate the evidence. The Court stated:

“The sole office of the writ of certiorari is the correction of errors of jurisdiction including the commission of grave abuse of discretion amounting to lack or excess of jurisdiction. It does not include correction of public respondent NLRC’s evaluation of the evidence and factual findings based thereon, which are generally accorded not only great respect but even finality.”

The Court also noted that the NLRC correctly observed that Flores was notified of her termination before the probationary period ended. Moreover, there was evidence suggesting alterations in her work records, casting doubt on her claim that she worked beyond the probationary period.

Practical Implications for Employers and Employees

This case underscores the importance of clear communication and documentation during probationary employment. Employers must establish reasonable standards, communicate them clearly to the employee, and provide regular feedback. Employees, on the other hand, should actively seek feedback and strive to meet the employer’s expectations.

Key Lessons:

• Employers: Define clear, job-related standards for probationary employees and provide regular feedback. Document all evaluations and communications.
• Employees: Understand the standards expected of you, actively seek feedback, and document your efforts to improve. Keep accurate records of your work and any communications with your employer.

Hypothetical Example:

A restaurant hires a cook on a probationary basis, stating that they must be able to prepare all menu items within a certain timeframe. If the cook consistently fails to meet the time requirements despite training and feedback, the restaurant may have grounds to terminate the probationary employment. Conversely, if the restaurant never communicated the time requirements or did not provide adequate training, termination may be deemed illegal.

Frequently Asked Questions

Q: What is the maximum length of probationary employment in the Philippines?

A: Generally, probationary employment cannot exceed six months, unless there is an apprenticeship agreement specifying a longer period.

Q: Can an employer terminate a probationary employee for any reason?

A: No. A probationary employee can only be terminated for a just cause or when they fail to meet reasonable standards made known to them at the time of engagement.

Q: What happens if an employee is allowed to work beyond the probationary period?

A: If an employee is allowed to work beyond the probationary period, they are considered a regular employee.

Q: What should an employer do to ensure a valid termination of a probationary employee?

A: Employers should clearly define reasonable standards, communicate them to the employee at the start of employment, provide regular feedback, and document all evaluations and communications.

Q: What can an employee do if they believe they were illegally terminated during their probationary period?

A: The employee can file a complaint for illegal dismissal with the National Labor Relations Commission (NLRC).

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