A practitioner’s guide—how probation works when employees move across related entities, and how to avoid illegal resets of tenure

I. Primer: what probation is (and why it’s tricky across affiliates)

Probationary employment lets an employer test an employee against reasonable, known-at-hiring standards for up to six (6) months from the time the employee starts working.
If the employee meets those standards within the allowable period, they become regular. If not, the employer may end employment with due process and substantial evidence of failure to meet standards.
The six-month cap is a ceiling, not a target; attempts to stretch or reset it to avoid regularization risk illegal dismissal findings.

When an employee moves to an affiliate—parent, subsidiary, sister, JV, or controlled undertaking—three moving parts determine the lawful outcome:

Nature of the move (secondment/assignment vs. transfer of employment vs. new hire).
Continuity of service (is there an interruption? who is the employer on paper and in fact?).
Role/standards alignment (same job and standards, or materially new/changed standards known at (re)engagement?).

II. Common transfer models and their default effects on probation

1) Secondment / Temporary Assignment

Employer of record doesn’t change; payroll may be recharged to the host affiliate.
Probation continues under the original employer (if the employee is still on probation). The host affiliate evaluates but the original employer decides.
No reset occurs merely because the worksite or supervisor changed.
At end of secondment, the employee returns (or may be absorbed per agreement).

Good practice: Tripartite secondment agreement (original employer–host–employee) spelling out duration, evaluation metrics, supervision, and who regularizes.

2) Absorption / Transfer of Employment (intercompany)

Employment terminates with Company A and commences with Affiliate B without a break (often same day).
If the role is substantially the same and the transfer is initiated by the group, a fresh six-month probation is generally suspect. It can look like a tenure-avoidance device, especially if the employee is near regularization in A.
If the role materially changes (e.g., different function/level demanding new, reasonable standards communicated at the point of B’s engagement), Affiliate B may lawfully stipulate probation once, subject to the six-month cap and good faith.

Risk flags for illegal reset: forced resignation in A + same job title/duties in B + “new” six-month probation with no new standards = constructive dismissal / bad faith exposure.

3) New Hire (break in service)

Employee resigns from A, takes a new job at B after a true gap and open competition.
B may impose probation like with any new employee, but group history still matters: if facts show the “break” was engineered only to defeat tenure, tribunals may pierce the veil and treat it as continuous employment.

4) Business Transfers

Share sale (ownership of A changes): employer remains A; staff are not separated; probation clocks continue as is. No reset.
Asset sale / carve-out where B acquires the business and offers employment:
- If there is termination by A for authorized cause (e.g., redundancy/closure) and rehire by B, B can set new probation only if it’s a genuine new engagement with new standards.
- If transfer documents promise seamless absorption and tenure carry-over, probation should not reset.

III. The six-month rule—how to count it during transfers

Start point: when the employee first begins work under the applicable employer.
Suspensions not attributable to the employee (e.g., temporary closure/force majeure) generally don’t count against the six months.
Secondment doesn’t pause the clock.
Intercompany absorption: If the role is substantially the same and service continuous, best practice is to credit prior probation service and finish the remaining period (if any).
One probation per engagement: Multiple, back-to-back probationary contracts for the same job across affiliates can be struck down as a device to deny security of tenure.

IV. Standards must be known at hiring—what that means in transfers

For probation to stick, the employer must show:

Reasonable standards exist (quantified KPIs, skills, behaviors).
They were clearly communicated at the time of engagement by the employer imposing probation.
The employee failed to meet them, proven by objective records.

Applied to affiliates:

Secondment: Use an addendum articulating how the host’s KPIs feed into the original employer’s probation decision.
Absorption/new hire: Provide fresh offers that enumerate standards and evaluation timelines. Vague “subject to company policies” is insufficient.

V. When a reset is lawful vs. unlawful

Lawful (typical):

Employee moves to an affiliate into a materially different role (e.g., Support → Sales), with new, job-specific standards; probation ≤ six months; good faith; no intent to defeat imminent regularization; offer letter and onboarding reflect the change.

Unlawful (typical):

Employee near regularization in A is told to resign and join B in the same job, then put on another six months without new standards.
Chains of short probation stints across sister firms for the same work.
Paper-only transfers while control & supervision never changed (suggesting single employer doctrine) but probation “restarts” on paper.

Consequences: Illegal dismissal, backwages, reinstatement or separation pay in lieu, damages, attorney’s fees; potential solidary liability across affiliates if used to circumvent security of tenure or if labor-only contracting is found.

VI. Due process and termination during/after transfer

During probation: dismissal must be for just cause, authorized cause, or failure to meet known standards, and must observe due process (notice to explain, chance to be heard, written decision).
Post-probation: if the employee continued working past six months without valid extension, they are regular; termination now needs just/authorized cause + proper process.
Transfer refusal: If A abolishes the role and offers transfer to B:
- A must use a valid authorized cause (redundancy/closure) with 30-day notices and separation pay if the employee refuses.
- Coercing resignation to avoid separation pay or to reset probation risks constructive dismissal.

VII. Pay and benefits across affiliates

Statutory benefits (SSS, PhilHealth, Pag-IBIG, minimum wage, OT/NSD, 13th month, OSH) apply from Day 1 regardless of probation or transfer.
Non-diminution: If the move is employer-initiated and the job is substantially the same, rolling back established benefits (allowances, HMO tiers) can breach non-diminution unless justified and prospective.
Service credit carry-over: For seamless group transfers, recognize length of service for leave accruals and retirement eligibility if the move is company-mandated. Spell this out in the transfer letter.

VIII. Documentation that wins (or loses) disputes

Have ready:

Transfer or secondment agreement (signed by all three parties), dates, reporting lines.
Offer letter from the affiliate (if new engagement), with probation term and enumerated standards.
Continuity memo stating whether service credit and benefits carry over.
Evaluation records (coaching notes, scorecards) tied to the stated standards.
No-coercion acknowledgment if resignation in A was voluntary (avoid boilerplate; facts control).

Avoid:

Back-dated offers; generic “subject to company policies” with no standards; multiple short contracts for the same role; “quit A today, start B tomorrow” scripts designed to wipe tenure.

IX. Special contexts

Union/CBAs: Check CBA probation provisions—some shorten probation or recognize intra-group seniority. CBA terms prevail for covered employees.
Contractors vs. affiliates: If the “affiliate” merely supplies labor back to the principal and lacks substantial capital or investment, authorities may find labor-only contracting, making the principal (or group) the employer—erasing paper resets.
Overseas affiliates: If employment is moved offshore, consider choice-of-law, mandatory Philippine labor standards for work performed here, and repatriation obligations if initially hired for overseas work.

X. HR playbooks (one-page each)

A. Secondment (employee still on probation)

Issue Secondment Addendum: duration, host supervisor, KPIs, how feedback informs regularization decision by original employer.
Keep the same probation end date.
Conduct mid-probation review with host input; give written feedback.

B. Absorption to affiliate (same role)

Draft Absorption Letter: continuous service, no reset of probation, carry-over of tenure and benefits (if policy).
If some standards differ, issue a Standards Alignment Sheet but do not restart the clock.

C. Absorption to affiliate (new role)

Issue New Engagement Offer with clear, job-specific standards, ≤ six months probation, and good-faith rationale for probation.
Provide onboarding & training aligned to those standards; calendar check-ins.

XI. Employee strategies if a reset looks fishy

Document everything: transfer emails, meeting notes, old and new job descriptions.
Ask for the standards in writing; if none, send a polite memo memorializing what you were told.
Don’t backdate resignations or sign blank forms.
File SEnA at DOLE for quick conciliation; escalate to NLRC for illegal dismissal if terminated on a sham reset or if tenure was evaded.

XII. Quick Q&A

Can an affiliate lawfully impose a new six-month probation for the same job? Generally no—not if the transfer is group-initiated, service is continuous, and duties are substantially the same. That looks like tenure avoidance.
What if the affiliate changes me from Analyst to Sales Executive? Yes, probation may be valid if new, reasonable standards are clearly set at hiring, and the employer acts in good faith.
Does passing six months at Company A automatically make me regular at Company B? Not automatically; but continuous service and same role strongly argue against any reset. Absent good-faith basis for probation at B, you can claim regular status (or at least credit for prior months).

XIII. Bottom line

Across affiliates, form should follow substance. If the employee’s move is seamless, duties unchanged, and the transfer company-driven, probation should not reset. A lawful new probation exists only where the move is a genuine new engagement with materially different work and clearly communicated standards, all within the six-month cap and good faith. Build clean paper—offers, standards, secondment/absorption letters—and you’ll protect both security of tenure and legitimate flexibility in group staffing.