Reason the Probationary Employee Should be Rated or Evaluated

Reason the Probationary Employee Should be Rated or Evaluated

Most employers would just go through the motion of six months of the probationary period, then make decision on the eve of six months and one day. By then the employee is already regular.

This practice of rating the employee the last minute is risky since the employee may already be of regular status who cannot simply be dismissed for failure to qualify as regular.

Probationary employment is one of the forms of employment in the Philippines wherein the employee undergoes the trial period to determine qualification as regular employee.

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).)

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.

Of course, that the probationary employee is actually evaluated periodically and not just overnight after six months of trial period. Hence, it is to the best interest of the company to regularly evaluate the employee based on reasonable standards made known to him at the time of engagement otherwise, he may be deemed as regular employee already.

There are probationary employment contracts and templates that can help the company on this matter. Below are sample provisions in the contract showing the ratings. While there is no hard-and-fast rule as to the metrics to follow, there must be relevance to the job being performed and the expectations of the company.

The sample metrics below may be revised, edited, or replaced, as they only serve as guide or maybe even an inspiration in crafting similar document.

The following are sample probationary employment contracts which can help HR practitioners, business owners, and managers craft with ease:

  1. Daily Paid in English
  2. Monthly Paid in English
  3. Daily Paid in Filipino / Tagalog

Contract for Probationary Employment Monthly Paidprobationary contract

Get a complete package of probationary employment documents from employment contract, evaluation criteria, notices, etc. through the Super 5 Packet.

See also the Probationary Tabulation Metrics.



         This CONTRACT FOR PROBATIONARY EMPLOYMENT is entered into by and between

                  XYZ Corporation, a corporation duly organized and existing under and by virtue of the laws of the Republic of the Philippines with principal place of business at 123 Bldg., Ayala Ave., Makati City, Philippines, represented herein by its President, MR. ____________________, hereinafter known as EMPLOYER,


  1. ________________________, of legal age, and a resident of _____________________________________________, hereinafter called the PROBATIONARY EMPLOYEE,


WHEREAS, the EMPLOYER is in need of employee who will xxx;

WHEREAS, the PROBATIONARY EMPLOYEE seeks employment, applied for and xxx;

WHEREAS, the agreement shall be based on probationary status for a maximum period of xxx;

THEREFORE, the parties hereby covenant:


  1. The PROBATIONARY EMPLOYEE is engaged as xxx;
  1. The PROBATIONARY EMPLOYEE shall report for work on or before 8:00 a.m. and leave not earlier than 5:00 p.m., Monday to Saturday. Any entry later than xxx;
  1. The hiring date of the PROBATIONARY EMPLOYEE, which is the commencement of this agreement shall be on __________. The probationary status shall be for a maximum period of xxx unless sooner xxx;
  1. The probationary employment shall be conditioned upon the following:


  1. Any violation of the provisions of paragraph 4 hereof and its subsections shall be deemed breach of xx;
  1. In the event of revocation of this agreement on account of violation of Section 4 and its subsections, the employee shall reimburse xxx;
  1. During the course of employment the PROBATIONARY EMPLOYEE shall render full-time service and shall not engage in any moonlighting xxx.


  1. During probationary employment, the PROBATIONARY EMPLOYEE shall undergo monthly evaluation of performance based on reasonable standards made known at the time of engagement;
  1. In the event that the PROBATIONARY EMPLOYEE fails to meet the standards mentioned, in any of the month xxx failure to qualify;
  1. The PROBATIONARY EMPLOYEE agrees that the EMPLOYER may extend xxx;


  1. In addition to failure to qualify, the PROBATIONARY EMPLOYEE may also be dismissed from service for just causes found under Article 297 xxx;
  1. The employment may likewise be terminated for authorized cause under Articles 298 and Article 299 of the Labor Code, as amended xxx;
  1. Further, the employment may be terminated in the event of violation by the PROBATIONARY EMPLOYEE of the provisions of the Code of Conduct. The PROBATIONARY EMPLOYEE undertakes xxx;
  1. Employment may likewise be validly terminated if xxx;
  1. The employment may likewise be suspended due to causes arising from xxx;


  1. The initial place of posting of the PROBATIONARY EMPLOYEE shall be xxx;
  1. The place of work may change when xxx;


  1. The PROBATIONARY EMPLOYEE shall perform duties and responsibilities hereto attached as Annex “A,” and such other responsibilities that may xxx;
  1. In addition, the PROBATIONARY EMPLOYEE shall observe the xxx;
  1. In the performance of duties, the PROBATIONARY EMPLOYEE shall be xxx:

20.1  Performance                 30%

20.2  Punctuality/Attendance 20%

20.3  Behavior                       20%

20.4  Teamwork           20%

20.5  Initiative                       10%

  1. The total weight is 100%. If the PROBATIONARY EMPLOYEE receives a total weight below 85% it shall be deemed as failure to xxx;
  1. Performance metrics representing 30% of the total weight shall be based on the following:

22.1  Business knowledge               20%

22.2  Output/production                 50%

22.3  Resourcefulness                     20%

22.4  Teamwork                    10%

  1. Punctuality/attendance shall be xxx;
  1. Behavior shall be 20% subject to deduction for every citation or violation of company rules, to wit:

24.1  Written warning            –        less 2%

24.2  Stern          warning      –        less 5%

24.3  Written reprimand        –        less 6%

24.4  1-day Suspension –        less 7%

24.5  Longer suspension        –        less 10%

  1. The PROBATIONARY EMPLOYEE is expected to be a team player and xxx;
  1. The rating for Initiative shall be xxx;
  1. Based on the above standards, the PROBATIONARY EMPLOYEE shall be rated monthly. If he/she fails to meet the standard in a single month, it shall be xxx;


  1. The PROBATIONARY EMPLOYEE shall receive an NCR-based wage of ________________________ PESOS (PhP______.00) per xxx.



  1. The PROBATIONARY EMPLOYEE recognizes and acknowledges that the systems that the EMPLOYER owns, holds in trust, develops, xxx;
  1. Thus, the PROBATIONARY EMPLOYEE agrees that, xxx;
  1. The term “confidential information” shall include all xxx;
  1. The PROBATIONARY EMPLOYEE undertakes not to make copies or duplicates of any confidential information or other sensitive property or materials mentioned, including but not limited to keys, access cards, diskettes, flash drives, electronic files programs, databases regardless of storage location, photographs or such other proprietary information relating to the EMPLOYER’s business;
  1. Failure of the PROBATIONARY EMPLOYEE to submit, xxx;
  1. In case of violation, the PROBATIONARY EMPLOYEE agrees to compensate the EMPLOYER the amount equivalent to xxx;
  1. The PROBATIONARY EMPLOYEE authorizes the EMPLOYER to apply whatever salary earned or accruing to him/her as compensation for the xxx;


  1. The PROBATIONARY EMPLOYEE agrees and covenants within a period of two (2) years after xxx;
  1. The PROBATIONARY EMPLOYEE shall not, during the same period directly or indirectly solicit to provide or provide, without the prior written consent of the EMPLOYER, any professional services for anyone who is a client of the EMPLOYER;
  1. If the PROBATIONARY EMPLOYEE would in the future be directed by any governmental agency or judicial forum or court or asked to testify xxx;
  1. In the event of any breach of the non-compete clause, the PROBATIONARY EMPLOYEE shall xxx;
  1. Payment of liquidated damages shall in no way affect the other rights which the EMPLOYER may have xxx;


  1. The PROBATIONARY EMPLOYEE understands and acknowledges that during the probationary period, the EMPLOYER is subjecting him to training relating to product knowledge, operation, skills, strategies, techniques using materials, documents, equipment, device, technology, among others which the EMPLOYER has invested and which the latter spent for incurred expenses;
  1. Thus, the PROBATIONARY EMPLOYEE shall remain with the EMPLOYER during the entire probationary period of six (6) months to fully satisfy the cost of training. In case of resignation, the PROBATIONARY EMPLOYEE shall notify the EMPLOYER in writing at least thirty (30) days prior to the effective date thereof by serving in person to his immediate superior a hard copy of the resignation letter. The thirty (30) days shall be counted from the actual receipt of said hard copy document;
  1. If the PROBATIONARY EMPLOYEE resigns without observing the 30-day prior notice she shall reimburse the EMPLOYER the total amount equivalent to xxx;


  1. By providing personal information and sensitive personal information, the employee acknowledges and recognizes the exclusive right of the company to utilize the data for xxx;
  1. This written contract and its annexes constitute the entire agreement between the parties binding between them and their assigns, heirs and successors-in-interest;

IN WITNESS WHEREOF, the parties have hereby affixed their respective signature this ____ day of _______, 20____, in the City of ____________.


______________________   _____________________

President                      PROBATIONARY EMPLOYEE

Signed in the presence of:

__________________________    _________________________


Republic of the Philippines     )

City of _______________      ) S.S.


         BEFORE ME, a notary public for and in the City of ______________, the parties appeared and presented their respective identification cards as competent proof of identity and are known to me and to me known to be the same persons who executed the foregoing Contract for Probationary Employment consisting of seven (7) pages, including this page where the Acknowledgment is written and affirmed to me that the same is their own, free, voluntary act and deed.

          WITNESS MY HAND AND SEAL, this _____ day of __________, 20____.


Doc. No.: _________;

Page No.: _________;

Book No.: _________;

Series of 20____”

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