Probationary Employment Agreement

A Probationary Employment Agreement is a contract between a new employee (the "probationary employee") and an employer. Like other employment agreements, it outlines the duties and responsibilities of the probationary employee for their employment. It also outlines the rights, compensation, and benefits of the probationary employee that arise out of their employment. However, unlike other employment agreements, a Probationary Employment Agreement also outlines the standards or criteria under which a probationary employee will be evaluated to see if he qualifies as a regular employee.

A probationary employee is usually hired on a probationary employment. Probationary employment is a time, starting from the engagement of the probationary employment, when the probationary employee undergoes a trial period. During this time, the employer determines whether the probationary employee qualifies (and the probationary employee seeks to prove that they qualify) as a regular employee based on reasonable standards. These standards should be made known to the probationary employee at the time of engagement otherwise (if the standards are not made known to the probationary employee), the probationary employee will be deemed a regular employee.

Unlike probationary employees, regular employees can only be dismissed from employment for just and authorized causes under the Labor Code of the Philippines. Probationary employees, on the other hand, can be dismissed, not only for just and authorized causes but also for failure to qualify as regular employees in accordance with reasonable standards that were made known to them at the time of engagement.

One of the ways to ensure that the standards were made known to the probationary employee is to include the same in the employment agreement. Since the employment agreement will have to be read and signed by the probationary employee, they would be made aware of the standards for qualifying as a regular employee. On top of having the standards outlined in the employment agreement, the employer should also explain the same to the probationary employee at the time of engagement. This will allow the probationary employee to ask any questions or raise any concerns that they may have.

Having the standards outlined in the employment agreement can also serve as written proof that the standards for regularization were made known to the probationary employee at the time of their engagement.

The period for probationary employees should not exceed 6 months, which should be counted as 180 calendar days. Generally, if the probationary employee is allowed to work beyond the probationary period then the probationary employee becomes a regular employee.

This document also contains a non-disclosure clause, however, the parties may also use a separate Non-Disclosure Agreement if necessary.

If the employer is merely offering possible employment to the employee, then an Employee Offer Letter may be used. The Employee Offer Letter is an offer of employment. It invites the potential employee to discuss the potential employment with the employer.

How to use this document

The user should enter all the information necessary to complete the document. This includes the names of the employer and the employee and their addresses. Aside from the personal information of the parties, the user should also enter the dates of the probationary period, the duties and responsibilities of the probationary employee, their compensation and benefits, and, as discussed above, the standards for qualifying as a regular employee. Documents attached to this Agreement should also be marked (ex. Annex "A") and attached before the same is signed. To facilitate the marking, the Annexes have been written in bold in this document.

Once the document is completed, it should be reviewed by both parties and, if the parties agree, sign the same. The employer and the employee should each keep one original copy of the Probationary Employment Agreement for their records.

A copy of the document which contains the Employer's policies, rules, and regulations should also be given to the Employee.

Notarizing the document

Notarizing this document is optional. However, if the parties would want to notarize this document, the document includes an Acknowledgment portion. Notarization of the document converts the document from a private document to a public document so that it becomes admissible in court without the need for further proof of its authenticity.

To notarize the document, the parties must print and sign an extra copy (for the notary public) of the document and bring all the copies to a notary public to acknowledge that they have signed this document freely and voluntarily. They should also present a valid I.D. issued by an official agency bearing their photograph and signature such as a driver's license or a passport, among others.

Once notarized, the parties should each keep at least one (1) copy of the notarized document and the notary public will also keep one (1) copy for their notarial book.

Applicable laws

The Labor Code of the Philippines governs employment in the Philippines. The Department of Labor and Employment also issues Department Orders and Guidelines for the implementation of the Labor Code and to set the minimum wage.

The general laws on contracts and obligations found in the Civil Code of the Philippines also apply.

How to modify the template

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.