Resignation Notice and Regularization for Probationary Employees Exceeding Six Months

1) Why this topic matters

In the Philippines, the intersection of (a) the 30-day resignation notice rule and (b) the six-month ceiling on probationary employment regularly generates disputes: employees resign (or are made to resign) while still labeled “probationary,” even though they have already worked beyond six months; employers deny regular status; parties argue about notice, clearance, final pay, and liability. Understanding the legal framework helps prevent unlawful dismissals, invalid “probation extensions,” and costly labor claims.


2) Core legal framework

A. Probationary employment: concept and rule

Probationary employment is a trial period during which an employer evaluates whether an employee meets the reasonable standards for regular employment.

Key elements:

  1. Time limit: Probationary employment shall not exceed six (6) months from the employee’s start of work, unless:

    • the employee is covered by an apprenticeship agreement; or
    • the work is such that it requires a longer period, as when allowed by law or jurisprudence for certain special cases (these are exceptions, not the norm).
  2. Standards requirement: The employer must make known to the employee, at the time of engagement, the standards under which the employee will qualify as a regular employee. If the employer fails to do so, the employee is generally treated as regular from day one for purposes of security of tenure.

Practical consequence:

  • Probation is not a “free dismissal” period. A probationary employee still has security of tenure within probation and may be terminated only for:

    • just causes (e.g., serious misconduct), or
    • failure to meet the reasonable standards made known at hiring, with due process.

B. Regularization: the status after probation

In Philippine labor law, an employee becomes regular when:

  • they are engaged to perform activities usually necessary or desirable in the employer’s business (subject to legitimate fixed-term/project/seasonal arrangements), and/or
  • they have completed the probationary period and are allowed to work beyond it.

For probationary employees specifically:

  • If the employee continues working after the six-month probationary period, they are typically deemed regular by operation of law, assuming no valid and timely separation based on known standards or just cause was effected within the probationary window.

3) The six-month rule in detail

A. Computing the six months

General approach:

  • The six months is counted from the first day of actual work.
  • Counting conventions in labor disputes tend to look at actual calendar progression and employment records. Where an employee is allowed to continue working after the probation cut-off, that continued work strongly supports regular status.

Important nuance:

  • If employment is interrupted (e.g., a genuine break in service), disputes arise over whether the six months “reset.” The outcome depends on facts such as the genuineness of the break and whether it was used to circumvent regularization.

B. “Extension of probation” and why it’s risky

A common practice is making employees sign a “probation extension” beyond six months. This is legally precarious.

General rule:

  • Extending probation beyond six months is generally invalid unless it falls under a recognized legal exception, or the extension is to address employee-requested circumstances that prevented proper evaluation (and even then, it is heavily scrutinized).

What tends to make an extension invalid:

  • It is employer-driven to avoid regularization.
  • There are no lawful grounds or recognized exception.
  • It is imposed as a condition to keep the job, without genuine employee consent.
  • The employee performs the same core duties and simply continues employment past six months.

Practical effect:

  • Even if a document labels the employee “probationary extended,” the employee may still be deemed regular, because labels do not control over the law and the reality of the work arrangement.

C. Regularization does not require a “regularization paper”

Many employers assume regularization happens only after issuing a notice. In law, regularization can occur by operation of law once the probation period ends and the employee remains employed. HR paperwork is evidence, not the source of the right.


4) Resignation in Philippine employment

A. Resignation defined

Resignation is the voluntary act of an employee who finds themselves unable to continue working and gives notice to the employer. The key is voluntariness.

B. The default notice requirement: 30 days

The general rule is:

  • An employee who resigns should give the employer at least 30 days’ written notice (often called the “one-month notice”) so the employer can find a replacement and transition responsibilities.

Why this matters:

  • If an employee leaves without the required notice (without a valid reason), the employer may claim the employee is liable for damages (in practice, employers sometimes attempt to offset amounts against pay, but offsets have legal limits and must be justified).

C. Resignation without 30 days: “just causes” for immediate resignation

Philippine labor law recognizes circumstances where an employee may resign without serving the 30-day notice, typically when the employer commits serious acts that make continued employment unreasonable.

Common examples (conceptually):

  • serious insult or inhuman treatment by the employer/representative,
  • commission of a crime or offense by the employer/representative against the employee or immediate family,
  • other analogous causes.

In these cases:

  • The employee may resign effective immediately and should ideally document the grounds.

D. Clearance and resignation acceptance

  • Resignation does not require “acceptance” to be valid if it is clear, voluntary, and communicated. Employers may still process clearance as an administrative step, but they cannot invalidate a resignation solely because they “didn’t accept it.”
  • However, employers can require return of company property, final turnover, and settlement of accountabilities as part of clearance—so long as these are reasonable and not used to unlawfully withhold wages.

5) How resignation interacts with probation and regularization

Scenario 1: Employee resigns within the six-month probationary period

  • The employee remains probationary at time of resignation.
  • Notice rule still applies: generally 30 days, unless immediate resignation is justified.
  • Employer cannot “convert” a resignation into a dismissal to avoid pay obligations; separation is employee-initiated.

Scenario 2: Employee resigns after working beyond six months but is still labeled “probationary”

Legal reality tends to prevail over HR labels.

Key implications:

  1. Status: If the employee continued working past six months, they are usually considered regular (absent a lawful exception).
  2. Resignation notice: The 30-day notice rule applies whether the employee is probationary or regular.
  3. Rights at separation: Regular status strengthens claims relating to benefits, security of tenure issues (if the resignation is challenged as forced), and other statutory entitlements.

Scenario 3: Employee is pressured to resign after six months (“forced resignation”)

This is a major litigation risk.

If a resignation is not voluntary—e.g., obtained through threats, coercion, intimidation, humiliation, or a fabricated choice between resignation and termination—this can be treated as:

  • constructive dismissal (an illegal dismissal concept), even if there is a resignation letter.

Indicators that a resignation may be involuntary:

  • employee immediately contests resignation,
  • resignation letter is prepared by management,
  • employee is threatened with criminal charges or blacklisting,
  • employee is not given time to decide,
  • circumstances show the employee had no real choice.

Employer exposure:

  • reinstatement and backwages (or separation pay in lieu in certain situations), plus possible damages and attorney’s fees depending on circumstances.

Scenario 4: Employer ends employment after six months claiming probation failure

If the probation period has already lapsed and the employee is effectively regular, termination must comply with rules for regular employees:

  • valid cause (just/authorized cause) and
  • due process.

An employer cannot validly terminate someone as a “probationary” employee for standards-based failure after the probation window has already passed without timely action.


6) Due process requirements (high-level)

A. If the employer terminates during probation (not resignation)

For termination based on failure to meet standards:

  • Standards must have been made known at engagement.
  • The employer should observe procedural fairness: notice and an opportunity to respond, especially where facts are disputed.

For termination for just cause:

  • The employee is entitled to due process consistent with just-cause termination.

B. If the employee resigns

Due process for termination is not the issue; the key issues become:

  • voluntariness,
  • notice compliance,
  • final pay computation and lawful deductions,
  • documentation (COE, quitclaim, clearance).

7) Final pay, benefits, deductions, and documentation upon resignation

A. Final pay components

Final pay typically includes:

  • unpaid wages up to last day worked,
  • proportionate 13th month pay (if applicable),
  • cash conversion of unused service incentive leave (if applicable and if convertible under company policy/law),
  • other company benefits due under policy/contract/CBA.

B. Deductions and offsets

Employers sometimes attempt to deduct:

  • unreturned company property,
  • cash advances,
  • loan balances,
  • accountable forms/equipment,
  • “damages” for failure to render 30 days.

General caution:

  • Deductions from wages are regulated. Employers should ensure deductions are lawful, supported by policy/authorization, and consistent with wage protection rules. Disputed “damages” are not automatically deductible from wages without proper basis.

C. Certificates and records

Upon separation, employees commonly request:

  • Certificate of Employment (COE),
  • BIR forms, contribution-related documents where applicable,
  • employment clearance records.

Employers generally should not use COE as leverage for waiving rights; COE is a basic employment record.

D. Quitclaims and releases

A quitclaim (release of claims) signed at resignation is not automatically invalid, but it is scrutinized. It can be set aside when:

  • the consideration is unconscionably low,
  • the employee did not understand what they signed,
  • there was coercion, fraud, or undue pressure,
  • it is used to waive non-waivable statutory rights.

Best practice:

  • Use clear language, provide adequate consideration where appropriate, and ensure voluntariness.

8) Common employer compliance failures and how they play out

Failure 1: No written probation standards at hiring

Risk:

  • Employee may be treated as regular from the start or termination for “failure to meet standards” may be invalid.

Failure 2: Probation “extended” beyond six months by policy or memo

Risk:

  • Employee may be deemed regular by operation of law; termination after six months framed as probation failure may be illegal.

Failure 3: Making resignation a condition to avoid due process

Risk:

  • Constructive dismissal findings, monetary awards, reputational harm.

Failure 4: Withholding final pay indefinitely due to clearance

Risk:

  • Potential money claims. Clearance can justify reasonable verification, but not indefinite withholding or coercion.

9) Practical guidance (legally informed)

For employees

  • Put resignation in writing; state last working day (count 30 days if you can).
  • If resigning immediately due to serious employer wrongdoing, document the grounds and supporting events.
  • Keep copies: employment contract, probation standards, evaluations, emails, time records, resignation notice, acceptance/receipts.
  • If you worked beyond six months and are still called probationary, that label may not reflect your legal status.

For employers / HR

  • Provide probation standards in writing at hiring and ensure they are job-related and measurable.
  • Evaluate and document performance within the probation period.
  • If separation for failure to meet standards is contemplated, act within the probation window and observe fair procedure.
  • Avoid “probation extensions” unless clearly lawful and defensible.
  • Process resignations consistently: acknowledge receipt, manage turnover, compute final pay correctly, avoid unlawful deductions, and issue COE.

10) Dispute pathways and likely remedies (overview)

When disputes occur, claims often involve:

  • illegal dismissal / constructive dismissal,
  • money claims (unpaid wages, final pay components, benefits),
  • damages and attorney’s fees in appropriate cases.

Possible outcomes (depending on findings):

  • reinstatement with backwages or separation pay in lieu,
  • payment of wage differentials/benefits,
  • nullification of quitclaims under oppressive circumstances.

11) Key takeaways

  1. Probation cannot generally exceed six months. Continuing work beyond that strongly supports regular status.
  2. Regularization can happen automatically—it does not depend on a “regularization memo.”
  3. Resignation usually requires 30 days’ notice, regardless of status, unless immediate resignation is justified by serious employer wrongdoing.
  4. A resignation that is not truly voluntary may be treated as constructive dismissal, especially where the employee is pressured after surpassing six months.
  5. Final pay, deductions, clearance, COE, and quitclaims are frequent flashpoints; legality depends on voluntariness, lawful bases, and fairness.

This article is for general legal information in the Philippine labor context and does not substitute for advice on a specific case, where facts and documentary evidence can change the analysis.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.