Employee “regularization” is the point at which a worker gains regular employee status—the strongest form of employment security in Philippine labor law—unless they fall under a lawful non-regular category (e.g., project-based, seasonal, fixed-term under strict conditions, or legitimate contracting arrangements). In everyday practice, the 5th and 6th month matter most because many employees are hired as probationary and the maximum probationary period is generally six (6) months.
This article explains what should (and should not) happen as you approach the 5th and 6th month, using the core principles of the Labor Code and long-standing rules on security of tenure.
1) The legal idea behind “regularization”
Security of tenure is the default principle
Philippine labor law strongly protects security of tenure: employees should not be ended or repeatedly “cycled” merely to avoid regular status. Regularization is not a “bonus” granted by the employer—it is a legal consequence when the facts meet the standards for regular employment.
Regular employment is based on the nature of work
A worker is generally regular if:
- Their job is necessary or desirable in the employer’s usual business or trade; or
- They have rendered at least one (1) year of service (continuous or broken) with respect to work that is not usually necessary/desirable but is repeated and continuing (often discussed in “casual-to-regular” situations).
Practical takeaway: Your label in a contract (“probationary,” “contractual,” “casual”) is less important than the actual nature of the job and the work arrangement.
2) Common employment categories that affect the 5th/6th month
A) Probationary employees (the usual “5th/6th month” scenario)
Probationary employment is a trial period where the employer evaluates whether the employee meets reasonable standards for regularization.
Key rules in practice:
- Probation is generally capped at 6 months.
- The employer must make the regularization standards known to the employee at the time of engagement (commonly through the contract, handbook acknowledgment, job scorecards, KPIs, or documented orientation).
- A probationary employee who continues working after the probation period is typically considered regular.
B) Project employees
Project employees are hired for a specific project with a determinable scope/duration. Regularization is not determined by “6 months,” but by whether:
- The project employment is genuine; and
- The project and its completion/phase are properly defined and documented.
C) Seasonal employees
Seasonal employment is tied to seasons/peak cycles. Regularization depends on whether the employee is repeatedly rehired and whether the work becomes functionally continuing and necessary.
D) Fixed-term employment (narrow and sensitive)
Fixed-term arrangements can be lawful only under strict conditions (freely agreed, not used to defeat security of tenure, and genuinely time-bound). Repeated renewals for core roles can raise serious risk that the employee is effectively regular.
E) Legitimate contracting/subcontracting
Workers engaged through a legitimate contractor are employees of the contractor (not the principal), but labor-only contracting and arrangements meant to evade regularization are prohibited. (This area is heavily regulated by Department of Labor and Employment issuances and enforcement.)
3) What to expect on the 5th month
The 5th month is the “decision window.” Proper employers use it to complete evaluation and documentation so that by the end of the 6th month, status is clear and lawful.
For employees: what usually happens (and what you can reasonably expect)
Performance evaluation intensifies
- Expect formal KPI reviews, coaching sessions, or written feedback.
- If you have not been told what standards you’re being measured against, that’s a warning sign.
Documentation and compliance checks
- HR may verify attendance records, incident reports, training completion, and policy acknowledgments.
Regularization planning
- Some employers issue a regularization notice early (e.g., during the 5th month), effective on a certain date.
- Some employers inform you that a final assessment will occur near the 6th month.
If the employer thinks you will not qualify
- A lawful employer typically starts progressive counseling and creates a paper trail.
- You may be put on a performance improvement plan (PIP) or retraining—though a PIP does not automatically extend probation beyond 6 months.
For employers: best-practice actions (the “right way”)
Ensure the probationary standards were provided at hiring.
Conduct a documented mid-probation and pre-end evaluation.
Prepare either:
- A regularization confirmation, or
- A notice of non-regularization/termination grounded on failure to meet standards (served on time, with clear basis).
4) What to expect on the 6th month
This is where legal consequences crystallize.
Scenario 1: You are regularized
This can happen in two ways:
- Express regularization: Employer issues a written regularization/confirmation notice.
- Implied regularization: You continue working beyond the probationary period (or the employer fails to validly end probation on time). In many cases, continued employment after the end of probation results in regular status by operation of law.
Effects of being regular:
You gain strong security of tenure. Termination must now be for a just cause (employee fault) or an authorized cause (business reasons) and must follow due process.
You typically become eligible for company benefits tied to regular status (depending on policy/CBA), but note:
- Statutory benefits (e.g., minimum labor standards) apply regardless of regular status.
- Company-specific benefits may lawfully differentiate between probationary and regular if consistent and non-discriminatory.
Scenario 2: You are not regularized (probation is ended)
A probationary employee may be terminated if:
- The standards were made known at hiring; and
- The employee fails to meet those reasonable standards; and
- Due process requirements are observed (in practice, written notice explaining grounds and allowing an opportunity to respond is strongly advisable, and often expected in disputes).
Timing matters: If the employer allows you to continue working past the probation cut-off without a valid end-of-probation action, the employee may assert regular status.
Scenario 3: The employer tries to “extend” probation
As a general rule, probationary employment should not exceed 6 months. Attempts to extend probation to avoid regularization are legally risky.
Limited situations sometimes raised in practice (highly fact-specific):
- Interruptions not attributable to the employer (e.g., long leaves) may complicate computation depending on circumstances and documentation.
- Apprenticeship/learnership and special categories have their own rules.
But as a compliance mindset: probation extension is the exception, not the norm, and often becomes a litigation risk if used to evade tenure.
5) Key rights around the 5th/6th month (what employees should know)
You are entitled to minimum labor standards even while probationary
Probationary employees are still employees. They are generally entitled to:
- Minimum wage and wage-related protections
- Overtime, holiday pay, night shift differential, service incentive leave (as applicable)
- 13th month pay
- Coverage/registration and remittances where applicable (Social Security System, PhilHealth, Pag-IBIG Fund)
- Safe working conditions and protection from unlawful discipline or discrimination
Probationary does not mean “fire at will”
Employers may end probation for failing standards, but they cannot do so:
- For illegal reasons (retaliation, discrimination, union-busting, etc.)
- Without the standards having been made known at hiring (a major issue in disputes)
- In a manner that violates due process and basic fairness
6) Key obligations and risks for employers at month 5–6
A) Communicate standards early, evaluate fairly, document well
In disputes, the employer typically needs to show:
- The employee was informed of the standards at hiring
- The standards were reasonable for the role
- The employee failed those standards based on evidence
- The decision was timely and procedurally fair
B) Avoid “endo” patterns and artificial cycling
Repeated short-term hiring, forced resignations, “training” labels, or contract resets around month 5–6 are common red flags. These practices may be treated as attempts to defeat security of tenure depending on the facts.
C) Align contracts with reality
Mislabeling someone as project/casual while assigning them a core, continuing role can expose the employer to a finding of regular employment despite the contract wording.
7) Red flags employees should watch for near the 5th/6th month
No written job standards, KPIs, or performance criteria were ever given
Sudden negative evaluation with no prior coaching or documentation
Pressure to sign:
- A resignation letter
- A “quitclaim” without full understanding/consideration
- A new contract that “restarts” probation
Being told you will be “rehired” after a short break to “reset” the count
Being moved to a contractor/agency arrangement to avoid regularization despite doing the same core job
Red flags don’t automatically mean illegality, but they are common fact patterns in regularization disputes.
8) If there is a dispute: how cases are typically framed
Regularization disputes often revolve around:
- Status: Is the worker probationary, regular, project-based, seasonal, or fixed-term in substance?
- Standards: Were probationary standards made known at hiring, and were they reasonable?
- Timing: Did employment continue beyond probation without lawful action?
- Due process: Was the separation carried out fairly and properly?
- Evidence: Contracts, handbooks, KPI forms, emails, memos, attendance records, and organizational charts
Claims are commonly filed before the National Labor Relations Commission or its labor arbiters, and principles are shaped by decisions of the Supreme Court of the Philippines.
9) Simple month-by-month expectation timeline (probationary)
- Month 1–2: Onboarding; standards should be communicated; initial coaching.
- Month 3–4: Mid-probation review; documented feedback; course correction.
- Month 5: Pre-end evaluation; HR documentation; decision prep.
- Month 6: Regularization confirmation or end-of-probation action for failure to meet standards (done on time). Continued work beyond the probation period strongly supports regular status.
10) Bottom line
In the Philippine labor framework, the 5th month is when evaluation and documentation should crystallize; the 6th month is when the employer must either (a) confirm regularization, or (b) lawfully end probation based on communicated, reasonable standards and fair process. Any arrangement that uses month 5–6 as a revolving door—rather than a genuine assessment point—creates serious legal vulnerability because security of tenure is a core protection of Philippine labor law.