Updated for the current Labor Code renumbering and controlling jurisprudence.
1) Big picture
Even probationary employees enjoy constitutional security of tenure. They may be dismissed only for:
- a just cause;
- an authorized cause; or
- failure to meet reasonable probationary standards that were made known at the time of engagement.
Each ground has its own notice and due-process rules. When employers miss either the substantive (valid ground) or procedural (correct process) requirement, the dismissal can be illegal (or at least procedurally defective, with damages).
2) Who is “before regularization”?
- Probationary employees (default maximum: 6 months from start of work, unless a different period is expressly allowed by law/regulation—e.g., certain private school faculty—or by a valid apprenticeship agreement).
- Employees who continue working past the end of probation without a valid termination become regular by operation of law.
- Project/seasonal/casual arrangements follow their own rules, but if an employer labels someone “probationary,” these probation rules apply.
3) Grounds to end probationary employment
A. Just causes (misconduct, willful disobedience, gross and habitual neglect, fraud/breach of trust, crime against employer/representatives, and analogous causes)
- Standard of proof: substantial evidence.
- Timing: may be imposed any time the cause arises—even during probation.
B. Authorized causes (business-related or health-related)
Installation of labor-saving devices / Redundancy / Retrenchment / Closure – Business reasons under the Labor Code. – Separation pay is mandatory (rate depends on the specific cause; see §10 below). – 30-day prior written notice to both the employee and the DOLE (for these Article 298 causes).
Disease (Article 299) – A public health authority must certify that the disease is not curable within six (6) months even with proper treatment and continued employment would be prejudicial to the employee or co-workers. – 30-day prior written notice to the employee (no DOLE notice required by statute). – Separation pay due (see §10).
C. Failure to meet reasonable probationary standards
- The standards must be reasonable and made known to the employee at hiring (or at least at the start of work for the job). If not communicated, dismissal on this ground is invalid and the employee is deemed regular.
- Due process still applies (see §5C).
4) The 30-day notice rule—when it applies (and when it doesn’t)
The much-cited “30-day notice” is a statutory requirement for authorized causes:
- Article 298 (business causes): 30-day prior written notice to the employee and to DOLE.
- Article 299 (disease): 30-day prior written notice to the employee (no DOLE notice).
There is no 30-day rule for just-cause dismissals or for failure to meet probationary standards. Those require the twin-notice due process (or its probationary variant), not a 30-day lead time.
5) Procedural due process (notice & hearing)
A. For just cause
- First notice (Notice to Explain): states specific facts/acts and the rule violated, gives a reasonable period to respond (jurisprudence often treats 5 calendar days as reasonable), and informs of a hearing/meeting.
- Opportunity to be heard: written explanation and/or hearing or conference where the employee can defend themselves, present evidence, and confront accusers if needed.
- Second notice (Notice of Decision): states findings, reasons, and the penalty.
B. For authorized causes (Art. 298)
- Single 30-day prior notice to employee and DOLE (form and content should identify the cause, effective date, and affected positions).
- No hearing is required by statute, but employers must be able to prove the good-faith business necessity and the fair selection criteria (for redundancy/retrenchment).
C. For termination due to failure to meet probationary standards
- At minimum, written notice stating that the employee failed to meet the standards previously communicated at hiring, and an opportunity to explain/be heard.
- Many employers follow the twin-notice format by analogy to just-cause to be safe.
- The notice must be served within the probationary period; allowing probation to lapse without notice risks automatic regularization.
6) Substantive pitfalls that commonly make dismissals illegal
- Standards not communicated at the start: you cannot terminate for “failure to qualify” on standards the employee never knew.
- Vague or shifting standards (“didn’t fit the culture,” “not a team player”) without objective metrics.
- Using probation to circumvent authorized-cause rules (e.g., ending several probationary employees because of “cost-cutting” without observing Article 298 requirements).
- Lateness/attendance issues without a clear policy, progressive discipline, or proof of habituality/gross neglect.
- No health certificate from a public health authority for disease terminations.
7) Burden of proof
- In all dismissal cases, the employer bears the burden to prove (a) the valid ground and (b) observance of due process.
- No written notices or inadequate records (e.g., missing performance scorecards, attendance logs, audit findings) often results in a finding of illegal dismissal.
8) Remedies if dismissal is illegal (probationary employees included)
- Reinstatement (without loss of seniority) and full backwages from dismissal until actual reinstatement; or
- Separation pay in lieu of reinstatement (when reinstatement is no longer feasible due to strained relations, position abolition, or closure) plus backwages up to finality of judgment.
- Damages and attorney’s fees where bad faith or malice is shown.
- Legal interest (currently 6% p.a.) on monetary awards as guided by jurisprudence.
Note: For procedurally defective but substantively valid dismissals, reinstatement/backwages do not follow; instead, nominal damages are awarded (amount depends on the cause—higher for authorized causes).
9) Procedural defects: nominal damages (guideposts)
- Just cause, due process lacking: courts typically award nominal damages (benchmark developed in jurisprudence; amount may vary case-to-case).
- Authorized cause, notice defect: higher nominal damages are commonly imposed than in just-cause defects.
- These are not a license to skip due process: a valid ground plus proper procedure is still required to avoid liability.
10) Separation pay—when payable and how much
- Not payable for just causes (misconduct, fraud, etc.), except in some equitable rare cases.
- Payable for authorized causes and for separation in lieu of reinstatement (illegal dismissal but reinstatement is impracticable).
Statutory baselines (Labor Code):
- Redundancy / Installation of labor-saving devices: At least 1 month pay per year of service (a fraction ≥ 6 months counts as a year), or one month pay, whichever is higher.
- Retrenchment to prevent losses / Closure or cessation not due to serious losses: At least 1/2 month pay per year of service, or one month pay, whichever is higher.
- Disease (Art. 299): At least 1 month pay or 1/2 month pay per year of service, whichever is greater.
Separation pay in lieu of reinstatement (illegal dismissal): computed per jurisprudence (commonly one month pay per year of service), separate from backwages.
11) Computing the probationary period and cut-offs
- Default cap: 6 months from day 1 of actual work (count calendar months, not just days worked), unless a different period is lawfully prescribed.
- Extensions must rest on a lawful basis (e.g., explicit agreement aligned with law, or an industry-specific rule).
- Cut-off risk: if the employer fails to serve a valid notice of non-regularization before the probation ends, the employee becomes regular.
12) Documentation employers should have (and employees should look for)
- At hiring: Job description; written probationary standards (KPIs, metrics, pass/fail thresholds); work rules.
- During probation: Orientation records; coaching notes; performance scorecards; memos; NTEs; attendance/quality reports; client complaints (if relevant).
- At termination: Proper notice(s) with specific grounds; proof of opportunity to be heard; for authorized causes—DOLE notice and selection criteria (e.g., LIFO, efficiency ratings); for disease—public health authority certification.
- Pay documents: Final pay, proportionate 13th month pay, separation pay (if applicable), tax withholdings, and certificate of employment.
13) Special notes on “failure to meet standards”
- The heart of validity is prior communication of reasonable, job-related standards.
- Examples of good practice: scorecards tied to KPIs; objective pass/fail thresholds; minimum output/quality metrics; clear attendance policy.
- Bad practice: amorphous “fit,” moving targets, undocumented coaching, or only post-hoc rationalizations.
14) Final pay, clearances, and release documents
- Employees are entitled to final pay (e.g., unpaid wages, proportionate 13th month, accrued benefits) within a reasonable period (DOLE guidance uses 30 days as a benchmark for final pay processing).
- Employers sometimes request a quitclaim; courts will scrutinize these for voluntariness, full understanding, and reasonable consideration. An invalid quitclaim does not waive claims.
15) Litigation pathway (quick map)
- Single-entry approach (SEnA) / mandatory conciliation-mediation at DOLE.
- If unresolved: NLRC complaint for illegal dismissal and money claims.
- Appeals may go to the Court of Appeals via Rule 65, and ultimately the Supreme Court on pure questions of law.
16) Practical checklists
For employees (self-audit)
- Was I told the standards at hiring (in writing)?
- Is the ground in the notice one of the valid grounds?
- Did I receive the correct notice(s) and a chance to be heard?
- If the reason was business-related, did the employer give 30-day notice to me and DOLE and pay statutory separation pay?
- Did dismissal happen before probation ended? If not, I may have become regular.
- Do I have copies of my employment contract, notices, evaluations, and pay slips?
For employers (compliance)
- Embed standards in the job offer/contract and orient on day 1.
- Use objective scorecards and document coaching.
- Calendar the probation end date; decide and notify timely.
- If invoking authorized causes, prepare business records, selection criteria, and issue 30-day DOLE + employee notices; compute separation pay.
- For just cause, follow the twin-notice + hearing.
17) Key takeaways
- Security of tenure applies even before regularization.
- 30-day prior notice is not a universal rule; it applies to authorized causes (and to the employee for disease).
- For probationary non-regularization, the decider is priorly-communicated standards + proper notice and hearing before probation lapses.
- Burden of proof is on the employer; paper wins cases.
- Illegal dismissal leads to reinstatement and backwages or separation pay in lieu, plus possible damages and interest.
Disclaimer
This article is an information resource on Philippine labor law principles. For a specific situation, consult a lawyer or the DOLE; facts and recent rulings can shift outcomes.