|  Post Reply

Navigating the termination of a probationary employee requires a delicate balance between management prerogative and strict adherence to the Labor Code of the Philippines. While the law grants employers the right to assess a worker's fitness for a permanent role, this power is not absolute. I have outlined the essential legal standards and procedures to ensure the process remains valid and fair.
The Legal Standard for termination of probationary employee Probationary Employment
Under Article 281 of the Labor Code, a probationary period generally cannot exceed six months. For a termination during this period to be lawful, it must be based on one of two grounds:

Just Cause: This includes serious misconduct, willful disobedience, or termination of probationary employee gross neglect of duties.


Failure to Qualify: This occurs when the employee fails to meet the reasonable standards made known to them at the time of engagement.

I must emphasise that the "failure to qualify" aspect is the most common pitfall for businesses. If the standards were never clearly communicated at the start, the employee is often deemed a regular employee by operation of law, making termination significantly more complex.
Procedures for Lawful termination of probationary employee
To protect the interests of the firm and maintain a professional environment, I recommend following a structured "Two-Notice" or "Formal Notice" approach, depending on the grounds for dismissal.
1. Communication of Standards
At the very start of the employment, I provide the employee with a written set of Performance Standards. This document should detail the Key Performance Indicators (KPIs) and the expected conduct. Without this proof of communication, a termination for "failure to qualify" may be challenged.
2. Regular Performance Evaluations
I conduct monthly or mid-probation reviews to give the employee a chance to improve. These sessions must be documented with written reports. If an employee is struggling, these records serve as evidence that the company provided a fair opportunity for the individual to succeed.
3. The Notice of Termination
If the employee still fails to meet the mark, a written notice must be served before the six-month period expires. This notice should clearly state:

The specific standards the employee failed to meet.


The dates of previous evaluations where these gaps were discussed.


The effective date of termination.


Terminating a probationary employee is never a pleasant task, but it is a necessary part of building a high-performing team. By ensuring that standards are communicated early and performance is tracked diligently, I can protect the company from potential illegal dismissal claims. Transparency and documentation are the most effective tools for any employer during this period.
Always remember that once a person is allowed to work beyond the six-month window, they automatically gain security of tenure as a regular employee. Acting decisively and legally within the probationary window is vital for healthy business operations.
Would you like me to draft a template for a "Failure to Qualify" termination notice or a set of Performance Standards for a specific role?

Add comment