Probationary Period Rules Under Philippine Labor Law

Overview

Under Philippine labor law, probationary employment is a time-limited “trial period” that allows the employer to assess whether the employee meets the reasonable standards for regular employment. A recurring workplace issue is what happens when a probationary employee is promoted (or moved to a new role) during the probationary period: Does that “restart” probation?

General rule: A promotion does not reset the statutory probationary period and does not strip an employee of rights already earned through continuous service. The employer cannot use a promotion to extend or restart probation beyond what the Labor Code allows, except in narrow, carefully structured situations (and even then, the employee’s security of tenure remains protected).

1) Legal Basis: Probationary Employment in the Philippines

A. Maximum length: 6 months (general rule)

Probationary employment shall not exceed six (6) months from the employee’s start of work, unless the nature of the work (or a special law/rule) provides a different period.

The key idea is time-bound trial employment. Once the employee completes the probationary period, they generally become regular by operation of law.

B. Standards must be made known at the start

A critical rule repeatedly emphasized by the Supreme Court: the employer must make known to the probationary employee the standards for regularization at the time of engagement (or very early in employment in a way that is clearly traceable to the start).

If the employer fails to do so, the employee may be treated as regular from day one, because the “trial” becomes legally defective. (This principle is strongly associated with Abbott Laboratories Philippines, Inc. v. Alcaraz, where the Court highlighted the need to communicate reasonable standards to probationary employees.)

C. When can a probationary employee be terminated?

During probation, employment may be ended for:

Just causes (serious misconduct, fraud, willful disobedience, etc.); or
Failure to meet the reasonable standards made known at the time of engagement.

Even for probationary employees, due process still matters: the employer should provide notice and a fair opportunity to respond, especially where the basis is performance/standards or alleged wrongdoing.

D. Conversion to regular employment

An employee becomes regular when:

They are allowed to work after the probationary period; or
The probationary arrangement is defective (e.g., standards not properly communicated); or
The employer’s acts and records show the employee is being treated as regular.

2) The Core Question: Does Promotion Reset Probation?

Short answer

Usually, no. A promotion does not “restart” the six-month probationary clock.

Why?

Because probationary status is primarily tied to the employment relationship and the statutory limit, not merely the job title. An employer generally cannot keep someone perpetually “on trial” by changing titles or issuing internal movements.

If the employee’s service is continuous, the law’s protective policy (security of tenure) prevents employers from using promotions or transfers to extend probation past its legal limit.

3) Common Scenarios and How the Law Typically Treats Them

Scenario 1: Probationary employee is promoted within the first 6 months

Typical outcome: Probation continues running from the original start date. It does not restart.

Example: Hired January 1 as Sales Associate (probationary). Promoted March 1 to Senior Sales Associate. The probationary period generally still ends June 30 (6 months from January 1), not August 31.

Key point: At the end of the probationary period, if the employee is retained, they become regular—even if the promoted role is new—unless the situation falls into a legally defensible exception.

Scenario 2: Employer tries to extend probation beyond 6 months because of promotion

High legal risk for the employer.

An extension past 6 months is generally disfavored and can be seen as a circumvention of security of tenure, unless it fits recognized exceptions and is done properly.

What’s risky:

“You were promoted, so you’re on another 6-month probation.”
“We’re extending your probation because you changed roles.”
“We’ll keep evaluating you indefinitely before regularization.”

Those can lead to findings that the employee became regular by operation of law and that dismissal (if any) was illegal.

Scenario 3: Employee becomes regular, then later gets promoted — can they be made “probationary again”?

General rule: No. Once regular, the employee cannot be reverted to probationary status simply due to promotion.

However, companies sometimes implement a “promotional trial” or “acting capacity” arrangement. The legality depends on structure and effect:

A. Lawful approach (usually safer):

Promotion is conditional/acting (e.g., “Officer-in-Charge” or “Acting Supervisor”) with clear evaluation criteria, and
If the employee does not meet the standards, the employee is returned to the prior regular position (not terminated), and
There is no bad faith, no punitive demotion, and no wage/benefit stripping that amounts to constructive dismissal.

In this model, the employee remains regular; only the assignment is trial-based.

B. Risky/possibly unlawful approach:

Treating the promoted regular employee as if they are a new probationary hire, and
Terminating them for “failure to pass probation” in the promoted role, without meeting the standards for termination of a regular employee.

A promoted regular employee who fails in the new role is not automatically terminable on a “probation failure” theory. Termination still requires just/authorized cause and due process, and “not meeting expectations” alone is not a magic dismissal category unless it is properly tied to recognized grounds and documented in a legally defensible way.

Scenario 4: Promotion with a “new probationary period” clause in a contract

Labeling something as “probation” does not automatically make it legal.

Philippine labor law looks at substance over form. If the employee is already regular, calling the promoted role “probationary” does not necessarily remove regular status. Courts and labor tribunals typically examine:

Was there continuous service with the same employer?
Is the “probation” clause being used to defeat security of tenure?
What is the real consequence of failing the “new probation”—reversion or termination?

A clause that effectively allows termination of an already-regular employee for “failure of promotional probation” is highly vulnerable to challenge.

4) When a “Reset” Might Be Argued (Narrow and Fact-Specific)

A true restart is uncommon and usually requires something closer to a genuine new hiring event rather than an internal movement, such as:

A bona fide separation and later rehire (with no employer manipulation); or
A clearly distinct employment relationship (rare in standard corporate structures and often challenged if it appears engineered).

Even then, labor authorities may scrutinize whether the “break” is genuine or a workaround.

5) Practical Legal Standards Employers Must Observe (Especially When Promoting During Probation)

A. Put standards in writing, tied to the role

If a probationary employee is promoted into a role with different expectations, employers should:

Provide updated role standards/KPIs, and
Document acknowledgment, and
Ensure standards remain reasonable and measurable.

This is not to “restart probation,” but to support performance management fairly.

B. Avoid extending beyond 6 months as a default

If you keep the employee working beyond the statutory probationary limit, expect the employee to be treated as regular.

C. Use “acting” or “trial assignment” language for promotions of regular employees

For already-regular employees promoted to supervisory/managerial roles, safer structures include:

“Acting Supervisor for 90 days”
“Trial assignment subject to evaluation; failure results in reversion to prior role”

But beware:

Reversion must not be a disguised penalty without basis.
Reversion that dramatically reduces pay/benefits can be attacked as constructive dismissal.

D. Observe due process in separation decisions

Whether probationary or regular, if separation is based on performance or alleged wrongdoing, employers should keep:

Evaluation records,
Coaching/PIP documentation (when feasible),
Notices and employee responses.

6) Employee Perspective: What to Watch For

Signs a promotion is being used to defeat your rights

The employer says the promotion “restarts” your probation so you’ll be probationary longer than 6 months from hiring.
You are threatened with termination for failing “promotional probation” even though you are already regular.
Standards are vague, shifting, or not provided in writing.
You are asked to sign documents that waive security of tenure.

What helps your position (documentation)

Appointment letters, promotion notices, and employment contracts
Employee handbook provisions on probation/promotion
KPIs, scorecards, evaluation forms, emails about standards
Proof of start date and continuous service (payslips, time records)

7) Frequently Asked Questions

“I was promoted on my 5th month, and they said my probation restarts for 6 more months. Is that valid?”

Generally, no. The safer legal view is that the probationary period runs from your original hiring date and cannot be extended simply because of promotion.

“If I’m regular and promoted to supervisor, can they terminate me if I fail the supervisory ‘probation’?”

They may be able to revert you to your prior role if a valid trial assignment policy exists and you agreed to it, but termination is far harder to justify on “probation failure” alone. As a regular employee, dismissal must still be based on recognized grounds and due process.

“Can the company demote me if I don’t perform in the promoted role?”

A good-faith reversion to the prior role may be defensible if it is truly part of a promotional trial system and not punitive. But a demotion with major pay cuts or humiliation can be challenged as constructive dismissal.

“What if no standards were given at hiring?”

That weakens the employer’s right to terminate on “failure to meet standards” during probation and can support a claim that you were effectively regular from the start (depending on facts and how tribunals evaluate the record).

8) Key Takeaways

Promotion does not normally reset probationary status in the Philippines.
The six-month statutory probationary limit generally runs from the original hiring date, not from promotion.
Once an employee becomes regular, they generally cannot be made “probationary” again by promotion.
Employers may use trial/acting promotional assignments, but these usually support reversion, not automatic termination—and must respect security of tenure and due process.
Clear, reasonable, and well-communicated standards are central to lawful probationary management.

9) Suggested Structure for Workplace Policies (Employer-Side)

If a company wants to manage promotions fairly without legal exposure, policies often work best when they:

Clearly state that promotion does not extend statutory probation for probationary employees;
Define “acting/trial assignment” for promoted regular employees;
Set measurable standards and evaluation timelines;
Provide that failure results in reversion, not automatic dismissal;
Ensure due process and anti-retaliation protections.

This article is for general legal information in the Philippine context and is not a substitute for advice on a specific case. If you share your fact pattern (dates of hiring/promotion, role changes, documents you signed, and what HR is threatening), I can map the likely legal issues and the strongest arguments on both sides.