When it comes to employment, the probationary period is a critical phase. It’s the employer’s chance to evaluate if the new hire fits the role and company culture. But what happens when things don’t work out? The termination of probationary employee is a sensitive yet necessary process that must be handled with care, fairness, and legal precision. Let’s dive into what you need to know!

Understanding Termination of Probationary Employee

Probationary employment in the Philippines typically lasts up to six months. During this time, the employer assesses whether the employee meets the reasonable standards set at the start of employment. Termination can occur if the employee fails to meet these standards or commits acts constituting just cause and authorized cause under the Labor Code.

Grounds for Termination

A probationary employee may be terminated for:

• Just Cause: Serious misconduct, willful disobedience, gross neglect of duties, fraud, or commission of a crime against the employer or co-workers. These are serious offenses that justify immediate termination.
• Failure to Meet Reasonable Standards: If the employee does not meet the performance or behavioral standards clearly communicated at the beginning of the probationary period, termination is lawful. The employer must prove these standards were reasonable and known to the employee.
• Authorized Cause: Less common during probation but possible in cases like redundancy or business closure, requiring compliance with procedural rules such as prior notice and separation pay.

Procedural Requirements for Termination

Terminating a probationary employee is not a free-for-all. Due process is key to avoid claims of illegal dismissal.

For Just Cause

1. First Written Notice: Inform the employee of the specific grounds for termination.
2. Opportunity to Explain: The employee must be given at least five calendar days to respond or attend a hearing.
3. Second Written Notice: After considering the explanation, notify the employee of the decision to terminate if justified.

For Failure to Meet Standards

• Provide written notice specifying which standards were not met.
• Maintain documentation like performance reviews or memos.
• Allow the employee to understand and, if feasible, improve their performance before termination.

For Authorized Causes

• At least one month prior written notice to the employee and the Department of Labor and Employment (DOLE).
• Payment of separation pay as mandated by law.

Timing and Execution of Termination

Once the Notice of Decision to terminate is served following due process, the employer can require the probationary employee to leave immediately. However, undue delay in delivering this notice can be prejudicial to the employee and may expose the employer to legal risks.

Why Following the Rules Matters

Skipping the proper procedures can lead to claims of illegal dismissal, which may result in back wages, reinstatement orders, or other penalties. Employers must exercise their right to terminate with fairness and transparency. Likewise, employees should be aware of their rights during probation to ensure they are treated justly.

Final Thoughts

The termination of probationary employee is a delicate balance between protecting business interests and respecting employee rights. Employers should:

• Clearly communicate performance standards upfront.
• Document all evaluations and communications.
• Follow due process rigorously when termination is necessary.

Employees, on the other hand, should strive to meet expectations and understand their rights during probation.

For a deeper dive into the legal nuances and procedural details, check out this comprehensive guide on probationary employees and due process in termination.

Navigating probationary employment isn’t easy, but with the right knowledge and approach, both employers and employees can ensure a fair and lawful process. Remember, clarity and fairness go a long way!