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Republic af the Philippines
House of Representatives
@ueran City, Motes Manils
Eighteenth Congress

First Regular Session
HOUSE BILL NO4802

Introduced by Representatives Jose “Bonito” C. Singson, Jr.

EXPLANATORY NOTE

This bill seeks to extend the maximum prescribed period of
probationary employment from six months to twenty-four months.

Employees are made to undergo a probationary period of employment
in order for the employers to better assess and ascertain their competence
and level of skill. This trial period is needed in order for the employee to
familiarize themselves with the nature and the standards of the company they
wish to become a permanent part of. Employers on the other hand would
make use of this trial period to observe the probationary employee’s work
ethics, fitness and efficiency in order to determine if such probationary
employees are qualified for regular employment.

Under Article 296 of Presidential Decree No. 442 as amended, otherwise
known as the “Labor Code of the Philippines”, probationary employment shall
not exceed six (6) months from the date the employee started working, unless
it is covered by an apprenticeship agreement stipulating a longer period. The
services of an employee who has been engaged on a probationary basis may
be terminated for a just cause or when the employee fails to qualify as a
regular employee in accordance with reasonable standards made known by
the employer to the employee at the time of the engagement.

If the probationary employee continues to work for more than six
months, the employee becomes a regular employee by operation of law.

However, a period of six months under the present set up is not
sufficient a period in order for the employer to determine if the probationary


employee is qualified for regular employment, especially in positions which
require specialized skills and talents. It limits the right of the employer to
secure quality employees. Considering the advent of technological advances in
various industries, the probationary employees must undergo a series of
developmental training and assessment to ascertain their ability to do the job.
In every stage of the development, the probationary employee must satisfy a
set of standards to qualify. These processes demand more time, which in a lot
of cases takes more than six months.

Because of the maximum six-month period prescribed by law,
employers are inclined to terminate the probationary employees before the
expiration of the six-month period, rather than risk oppression by being stuck
with a substandard employee. Employers are left with no recourse but to end
the probationary employment even when they are still in the process of
evaluating the probationary employee to avoid the automatic regularization of
an unqualified employee in their workforce.

In keeping with the constitutional mandate to afford protection to labor,
the extension of the probationary stage of the employment will provide the
employees better opportunities to prove their value to the employer and that
they have the required skills, talents, and other qualifications that would
warrant their subsequent regularization along with all the mandatory benefits
that go with it. Probationary employees will have a better chance to improve
their performance, meet their targets, and learn new skills that will allow
them to meet the required standards set by the employer. Furthermore, this
measure will also provide an opportunity for the probationary employees to
have continuous employment for more than six months, which will enable
them to qualify for some of the mandatory benefits under existing laws. It will
also free probationary employees from the hassle of finding and applying for a
new job and in incurring job application expenses every time the six-month
probationary period lapses.

As it was held in the case of “Philippine Daily Inquirer, Inc, vs Leon M.
Magtibay, Jr. and Philippine Daily Inquirer Employees Union (PDIEU),” (G.R.
165432, July 24, 2007).

“Being in the nature of a “trial period” the essence of a probationary
period of employment fundamentally lies in the purpose or objective
sought to be attained by both the employer and the employee during
said period. The length of time is immaterial in determining the
correlative rights of both in dealing with each other during said


period. While the employer, as stated earlier, observes the fitness
propriety and efficiency of a probationer to ascertain whether he is
qualified for permanent employment, the probationer, on the other,
seeks to prove to the employer, that he has the qualifications to meet
the reasonable standards for permanent employment. (bold italics ours)

It is noteworthy to state that by increasing the time element of the
probationary period, we are in effect creating better job security for the
average probationary employee, who most often than not fall victim to
company practices that takes advantage of loopholes in the law. Increasing the
probationary period without prejudice to employers granting regular status to
probationary employees at anytime within the period of the probationary
contract, would drastically increase the chances of probationary employees to
qualify for regular status while at the same time employers would be able to
save on labor costs related to the frequent rehiring and retraining of new
probationary employees.

In view of the foregoing, approval of this bill is earnestly sought.

_

” C. SINGSON JR.



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Republic of the Philippines
House of Representatives
Quezon City, Metres Manils
Eighteenth Congress

First Regular Session

802
HOUSE BILL NO.

Introduced by Representatives Jose “Bonito” C. Singson, Jr.

AN ACT EXTENDING THE MAXIMUM ALLOWABLE PERIOD OF
PROBATIONARY EMPLOYMENT, AMENDING FOR THE PURPOSE
PRESIDENTIAL DECREE NO. 442, OTHERWISE KNOWN AS THE “LABOR
CODE OF THE PHILIPPINES,” AS AMENDED

Be it enacted by the Senate and the House of Representatives of the Philippines
in Congress assembled:

SECTION 1: Article 296 of the Labor Code of the Philippines, as
amended, is hereby amended to read as follows:

“ARTICLE 296. Probationary employment. Probationary employment
shall not exceed [24] TWENTY FOUR months from the date the employee
started working, unless it is covered by an apprenticeship agreement
stipulating a longer period. The services of an employee who has been
engaged on a probationary basis may be terminated for a just cause or when
he fails to qualify as a regular employee in accordance with reasonable
standards made known by the employer to the employee at the time of his
engagement. An employee who is allowed to work after a probationary period
shall be considered a regular employee.”

For this purpose the rule on automatic regularization after one year of
continuous employment does not apply to employees under probationary
employment.


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SEC. 2. Within one hundred and twenty (120) days from the
effectivity of this Act, the Secretary of Labor and Employment shall
promulgate the necessary implementing rules and regulations.

SEC. 3. All laws, decrees, rules, and regulations or parts thereof, which
are contrary to or inconsistent with this Act are hereby repealed or modified
accordingly.

SEC. 4. The Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation.

.

Approved

Gi