As a background, a probationary employee is one who is placed on trial by an employer, during which the latter determines whether or not the former is qualified for permanent employment. [See Canadian Opportunities Unlimited, Inc. v. Dalangin, Jr., 681 Phil. 21, 33 (2012), citing International Catholic Migration Commission v. NLRC, 251 Phil. 560 (1989)]

By virtue of a probationary employment, an employer is given an opportunity to observe the fitness and competency of a probationary employee while at work. During the probationary period of employment, an employer has the right or is at liberty to decide who will be hired and who will be denied employment. [Moral vs. Momentum Properties Management Corporation, G.R. No. 226240, March 06, 2019.]

The essence of a probationary period of employment lies primordially in the purpose or objective of both the employer and the employee during such period. While the employer observes the fitness, propriety, and efficiency of a probationary employee, in order to ascertain whether or not such person is qualified for regularization, the latter seeks to prove to the former that he or she has the qualifications and proficiency to meet the reasonable standards for permanent employment.

A probationary employee enjoys security of tenure, although it is not on the same plane as that of a permanent employee. Other than being terminated for a just or authorized cause, a probationary employee may also be dismissed due to his or her failure to qualify in accordance with the standards of the employer made known to him or her at the time of his or her engagement.

Hence, the services of a probationary employee may be terminated for any of the following: (1) a just cause; (2) an authorized cause; and (3) when he or she fails to qualify as a regular employee in accordance with the reasonable standards prescribed by the employer.

The Labor Code, as amended, provides, that 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.

With respect to the termination of a probationary employee, a different procedure is applied – the usual two-notice rule does not govern. The aforesaid two-notice rule is that which is found under Article 292 (b) of the Labor Code, as amended.

If the termination is brought about by the failure of an employee to meet the standards of the employer in case of probationary employment, it shall be sufficient that a written notice is served the employee within a reasonable time from the effective date of termination.

Below is sample Notice of Termination of Probationary Employment for Failure to Qualify:
To:             JUAN DELA CRUZ
                  Probationary Clerk

From:         HR

Date:          ______ October 20____

Subject:     FAILURE TO QUALIFY

This refers to your probationary employment wherein it was mentioned at the time of your engagement that during the trial period for a maximum of 6 months, you would be periodically evaluated to determine your fitness as regular employee.

These standards are as follows:

Performance                         30%
Punctuality/Attendance          20%
Behavior                               20%
Teamwork                             20%
Initiative                               10%
TOTAL                                   100%

It was mentioned to you that any score below 85% shall be deemed as a failed rating which shall be caused for your failure to qualify.

Thus, using the above standards, the following are the results of your four-month evaluation period:

June 20___                            75%
July 20__                               81%
August 20___                        80%
September 20___                  79%

Hence, despite the chances given to you and the support system accorded, you have failed to meet the reasonable standards mentioned. In this regard, we regret to inform you that your employment is hereby being terminated effective seven (7) calendar days from service of this notice.

For your guidance.

BAGSIC S. ARETING
HR Manager

The following are sample probationary employment contracts which can help HR practitioners, business owners, and managers craft with ease:

1. Daily Paid in English
2. Monthly Paid in English
3. Daily Paid in Filipino / Tagalog

Get a complete package of probationary employment documents from employment contract, evaluation criteria, notices, etc. through the Super 5 Packet.

See also the Probationary Tabulation Metrics.