Steps After Completing Probation in the Philippines: A Comprehensive Legal Guide

This article provides general information based on Philippine labor standards and common practice. It is not legal advice. For a specific situation, consult counsel or your DOLE Regional Office.

1) The Legal Frame: What “Probationary Employment” Means

Probationary employment is a period during which the employer may assess whether the employee meets reasonable standards for regular employment. Key legal points:

Maximum duration. As a general rule, probation may not exceed six (6) months from the employee’s start date, unless a different period is allowed by law (e.g., apprentices/learners under valid programs) or by narrowly recognized jurisprudential exceptions.
Standards must be made known at engagement. The employer must communicate clear, reasonable performance/behavior standards at the time of hiring. Failure to do so typically results in the employee being deemed regular from day one.
Rights during probation. Probationary employees are entitled to minimum wage, overtime pay, night shift differential, holiday pay, 13th-month pay, and statutory social insurance coverage (SSS, PhilHealth, Pag-IBIG), among others. Service Incentive Leave (5 days with pay) normally accrues after one (1) year of service, not upon regularization.

2) When the Probation Ends: What “Completion” Triggers

A. Automatic Regularization (by operation of law)

If the employee continues working beyond the probationary period without a valid termination or a lawful, mutually agreed, and properly documented extension, the employee generally becomes a regular employee by operation of law.

B. Express Confirmation (best practice)

Even if regularization occurs by operation of law, employers should issue a written Notice/Certificate of Regularization confirming the new status and effective date, and update internal records and benefits accordingly.

3) Employer Checklist: Steps to Take Upon Probation Completion

Calendar and verify the end date.
- Count the probation period precisely from the start date. Avoid ambiguous “six months and a day” rules-of-thumb; use exact dating based on the contract and applicable law.
Complete the final evaluation.
- Evaluate the employee against the pre-communicated standards. Use objective metrics where possible (KPIs, quality scores, attendance).
Decide: regularize, extend (if legally permissible), or terminate (if lawful).
- Regularize if standards are met or if the period lapses without action.
- Extension is exceptional and must be lawful, reasonable, standards-based, time-bound, and expressly accepted in writing by the employee; it cannot be used to defeat security of tenure.
- Terminate only if:
  - standards were properly communicated at engagement;
  - the employee failed to qualify under those standards; and
  - due process is observed (written notice stating reasonable grounds, and opportunity to be heard).
  - For just causes (e.g., serious misconduct), follow the two-notice rule and hearing; for authorized causes (e.g., redundancy), observe statutory notices to DOLE and the employee and pay separation benefits as required.
Issue the right letter, on or before the last day of probation.
- Notice of Regularization (if regularizing).
- Notice of Non-Regularization with grounds and due process documentation (if separating for failure to qualify).
- Extension Agreement (if a lawful extension is pursued).
Update employment records and payroll systems.
- Employment status: probationary → regular.
- Pay structure/allowances: apply any regular-status differentials per company policy (if any; note anti-discrimination rules).
- Leave ledger: apply company-specific leave benefits tied to regular status; statutory SIL accrues after one year of service.
- HMO/insurance: move the employee to regular-plan coverage per policy.
- Retirement plan: enroll or adjust vesting/service credit if your plan ties eligibility to regular status.
- Data privacy: update HRIS profiles in compliance with the Data Privacy Act and internal retention policies.
Communicate benefits and obligations post-regularization.
- Provide a Regular Employment Terms Addendum (if used), employee handbook access, and re-disclose policies (Code of Conduct, InfoSec, Timekeeping, OT approvals).
Reportorial and statutory compliance (as applicable).
- SSS, PhilHealth, and Pag-IBIG coverage should already be in place from hiring; review for rate bracket updates if salary changes on regularization.
- BIR withholding: adjust based on any compensation changes.
Maintain documentation.
- Keep the evaluation, standards, notices, acknowledgment receipts, and any extension agreements in the 201 file (personnel file). Good records are essential in case of labor disputes.

4) Employee Checklist: What to Do After You Complete Probation

Ask for written confirmation of regularization and the effective date.
Request a briefing on benefits now available due to regular status (e.g., leave conversions, HMO dependents, allowances) and when they take effect.
Verify payroll (rate changes, allowances, HMO deductions, contributions).
Update personal records (beneficiary forms, contact info, dependents for HMO).
Review company policies you’re now fully covered by (e.g., progressive discipline matrix, WFH/attendance rules, OT approval workflow).
Track statutory entitlements independent of regularization (e.g., 13th-month, SIL after one year).

5) Due Process Notes at the Cusp of Regularization

Failure to qualify: If the employer intends to separate the employee for failure to meet standards, they should notify in writing within the probation period, stating the factual bases. A mere lapse without action strongly risks automatic regularization.
Standards must be reasonable and measurable (quality metrics, output targets, behavioral expectations). Vague or undisclosed standards are typically ineffective.
Burden of proof: In disputes, employers bear the burden to show compliance with standards-disclosure and due process.

6) Post-Regularization Rights and Protections

Once regular, the employee gains security of tenure. Termination may occur only for:

Just causes (e.g., serious misconduct, willful disobedience, gross and habitual neglect, fraud, crimes against the employer) with two-notice due process and an opportunity to be heard; or
Authorized causes (e.g., redundancy, retrenchment, closure, disease) with statutory notice periods and separation pay where required.

7) On Extending Probation: Narrow, Risk-Sensitive Ground

Default rule: Extensions are disfavored and closely scrutinized.
If ever used: The extension must be (i) justified by specific unmet, disclosed standards; (ii) reasonable in length; (iii) consented to in writing by the employee; and (iv) not used to circumvent security of tenure.
Best practice: If standards are substantially met, regularize and use performance improvement plans (PIPs) under regular status instead of extending probation.

8) Special Employment Set-Ups

Apprentices/Learners: May follow program-specific durations under DOLE-approved arrangements.
Project/Seasonal employment: Regularization analysis differs; completion of probation is not always the key event—nature of work and repeated engagement may control.
Fixed-term contracts: Must meet strict validity conditions; “probation” concepts may interact differently.
Unionized workplaces: CBA provisions may refine evaluation procedures but cannot reduce statutory protections.

9) Templates (Practical, Adaptable Forms)

A. Notice of Regularization

Subject: Notice of Regular Employment – [Employee Name] Effective Date: [Date, typically the day after the last probation day] Dear [Employee Name], We are pleased to inform you that, effective [date], you are hereby regularized as [Position] with [Department]. Your compensation and benefits will be as follows: [insert, or “as per Company Policy/Employee Handbook”]. Your duties and responsibilities remain as defined in your Job Description and company policies. Please acknowledge receipt. Sincerely, [Authorized Signatory] [Position]

B. Notice of Non-Regularization (Failure to Qualify)

Subject: Notice of Non-Regularization – [Employee Name] Dear [Employee Name], After evaluation against the performance standards communicated on [date of engagement/offer], specifically [enumerate standards], it was determined that you failed to qualify for regular employment due to [specific factual grounds, e.g., metrics, attendance, quality issues]. You are invited to submit a written explanation and to attend a meeting on [date/time] to discuss this notice. Sincerely, [Authorized Signatory]

C. Probation Extension Agreement (Use with Caution)

Subject: Agreement to Extend Probation – [Employee Name] This confirms our mutual agreement to extend your probationary period from [orig. end date] to [new end date] for the limited purpose of assessing [specific unmet standards]. All other terms remain the same. This extension is not intended to defeat security of tenure and shall not exceed [reasonable period]. Acknowledged and accepted: [Employee Signature/Date] [Employer Signature/Date]

10) Policy and Documentation Toolkit (for Employers)

Probation Standards Sheet (attached to job offer or onboarding pack).
Evaluation Forms (mid-probation and end-probation).
Calendar Controls (automated alerts 30/15/7 days before end of probation).
Notice Templates (regularize / non-regularize / extension).
HRIS Workflow (status change, pay adjustments, HMO enrollment, leave ledgers).
Records Matrix (201 file index; retention periods aligned with Data Privacy Act policies).

11) Common Pitfalls—and How to Avoid Them

Silence at the end of probation → results in deemed regularization.
Undisclosed standards → invalid basis for non-regularization.
Vague notices (“unsatisfactory performance” without specifics) → due process risk.
Open-ended extensions → may be struck down; use specific, short, and consented extensions only if truly warranted.
Confusing regularization with statutory entitlements → remember 13th-month and statutory contributions apply during probation; SIL accrues after one year, not at regularization.

12) Quick Reference Timelines

Day 0: Employee starts; standards given in writing.
Mid-probation: Conduct interim review; issue coaching notes/PIP if needed.
≤ Last day of probation: Issue Regularization OR Non-Regularization notice (or a narrowly tailored, lawful Extension Agreement with employee’s written consent).
Immediately after: Update HRIS, payroll, HMO, and communicate benefits.

13) Frequently Asked Questions

Q: Do I have to receive a letter to be regular? A: Not necessarily. If you continued working past a valid probation end without lawful action, regularization may occur by operation of law, even without a letter—though a written confirmation is best practice.

Q: Can an employer extend probation because the manager “forgot” to evaluate me? A: Forgetfulness is not a lawful basis. Extensions must be justified, reasonable, and consented to—not a cure for administrative lapses.

Q: Does regularization automatically increase my salary? A: Not by law. Any increase depends on company policy or agreement, but pay can’t fall below statutory minimums and anti-discrimination rules apply.

Q: When do I get Service Incentive Leave? A: After completing one year of service (subject to lawful exemptions). This is independent of regularization.

14) Bottom Line

Employers should plan evaluations and issue the correct notice on or before the probation end, then promptly update records and benefits.
Employees should secure written confirmation, understand benefits, and maintain records.
Silence at the end of probation often equals regularization—documentation and timing are everything.

If you want, I can adapt the templates to your company’s exact policies and generate ready-to-use Word or PDF forms.