THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
S E N A T E  
Senate Bill No. _I 
84 
INTRODUCED BY SEN. MANNY VILLAR 
EXPLANATORY NOTE 
In coming up with a legislative measure to strengthen the legal provision 
on probationary employment, there are to be considered, on one hand, the 
employer's prerogative to freely select or discharge his employees and the duty 
of the state to promote the welfare of the workers, on the other. It may be noted 
that the said employer's right is subject to regulation by the State in the exercise 
of paramount police power (See Eurolinea Phils., Inc. vs. NLRC, 156 SCRA 
78; PAL, Inc. vs. PALEA, 57 SCRA 498; Phil. Apparel Workers Union vs. 
NLRC, 106 SCRA 444). 
Particularly, this bill provides that 'the probationary employment shall not, 
in any given circumstance, exceed six (6) months. Any stipulation to the contrary 
shall be void. Indeed, apprenticeship agreements do not now constitute an 
exception. Art. 61 of the Labor Code as amended by Executive Order 111 
provides a maximum of six (6) months for apprenticeship agreements. 
The purpose of the measure is to correct the anomaly of keeping 
employees under "permanent" probationary status and effectively deprive them 
of the right to self-organization, collective bargaining and to engage in peaceful 
concerted activities in accordance with law. Generally, employees with 
probationary status do not venture into self-organization for fear of immediate 
dismissal. 
For an employee to graduate from probationary status to that of a regular 
status, six (6) months is reasonably sufficient. 
In any case, the right of the employer to dismiss a regular employee for a 
just cause is always reserved and readily available to him. If after the 
probationary period the employee fails to observe the standards of work, or to 
fulfill the reasonable work assignments, the employer may dismiss him (See 
Buiser vs. Leogardo, Jr., 131 SCRA 151). 
In view of the foregoing, the passage of this bill is earnestly requested. 
MANNYVIL AR 
'j 


THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
- .  ,. 
S E N A T E  
Senate Bill No. __ 
2 
INTRODUCED BY SEN. MANNY VILLAR 
AN ACT 
ENHANCING THE RIGHTS OF AN EMPLOYEE TO SECURITY OF TENURE 
BY STRENGTHENING THE PROVISION ON THE LIMITATION OF THE 
PROBATIONARY PERIOD, AMENDING FOR THIS PURPOSE ARTICLE 281 
OF THE PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE 
KNOWN AS “THE LABOR CODE OF THE PHILIPPINES” 
i+ 
6e)enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
SECTION ‘I. Art. 281 of Presidential Decree No. 442, as amended, is 
hereby amended to read as follows: 
“Art. 281. Probationary Employment. - 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). ANY 
STIPULATION TO THE CONTRARY SHALL BE VOID. 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.” 
SECTION 2. This Act shall take effect fifteen (15) days after its publication 
in the Official Gazette or in at least two (2) national newspapers of general 
circulation, whichever comes earlier. 
Approved,