Contract for Probationary Employment Monthly Paid English Version

Contract for Probationary Employment Monthly Paid English Version





A probationary employee is one who, for a given period of time, is being observed and evaluated to determine whether or not he is qualified for permanent employment.


A probationary appointment affords the employer an opportunity to observe the skill, competence and attitude of a probationer.


The word probationary, as used to describe the period of employment, implies the purpose of the term or period (Enchanted Kingdom, Inc. vs. Verzo, G.R. No. 209559, December 09, 2015).


While the employer observes the fitness, propriety and efficiency of a probationer, to ascertain whether he is qualified for permanent employment, the probationer, at the same time, seeks to prove to the employer that he has the qualifications to meet the reasonable standards for permanent employment. (41Escorpizo v. University of Baguio, 366 Phil. 166, 175-176 (1999).)


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The concept of probationary employment was, thus, introduced for the benefit of the employer to provide him with ample time to observe and determine whether a newly hired employee has the competence, ability and values necessary to achieve his objectives.


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 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.


Employers should be careful in crafting probationary employment since any ambiguity shall be resolved in favor of labor (Art. 4, Labor Code). Such favor means regular employment since it offers a better status of the employee.


It bears noting as well that an employee who was not informed of the reasonable standards for regular employment shall be deemed as regular from day one. Thus, it makes better sense when these standards are included in the contract.


As held in Buiser vs. Leogardo, an probationary employment may also be extended upon mutual consent of the parties. This means that instead of terminating an employee who failed the trial period he is given a chance. Now, to avoid ambiguity, the employment contract should already provide a clause for this just like what is found in this template.


A sample contract will help employers to overcome the technicalities of this form of employment. This template is easy to edit using the Word application. This version is using MS Office 365.


Salient points of this template are:


  1. Parties
  2. Whereas Clause
  3. Commencement of probationary employment
  4. Extension Clause
  5. Termination of Employment
  6. Place of Posting
  7. Full Time Service
    • Prohibits Moonlighting
    • Prohibits Sideline, etc.
  8. Duties and responsibilities clause
    • Reasonable Standards Metrics
      • Performance
      • Punctuality/Attendance
      • Behavior
      • Teamwork
      • Initiative
    • Periodic Evaluation
    •  Passing Clause
  1. Compensation and Benefits
    • Specifically indicating the factor used and the deemed payment of Saturday and Regular Holidays
  2. Office Decorum
  3. Non-compete Clause
  4. Training Expenses
  5. Data privacy consent clause




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