MAY 10, 2016

NR # 4196

Bill assures regular employment of probationary workers

The chairman of the House Committee on Labor and Employment is seeking to amend
Presidential Decree 442 or the Labor Code of the Philippines, as amended, to provide regular
employment to workers repeatedly hired on probationary status.
Rep. Karlo Alexei B. Nograles (1st District, Davao City) filed House Bill 5806 to address the
issues blurring employer-employee relationship and the circumvention of the law on security of tenure
through numerous employment engagements such as probationary, project, fixed term, casual, seasonal,
temporary and extra, which result in 5-5-5 work arrangement or contractualization.
This bill seeks to define and classify employment relationship, amending Articles 279, 280 and
281 of Presidential Decree 442, to secure compliance with Constitutional and statutory guarantee on the
right to security of tenure, Nograles said.
All employees irrespective of employment status or position shall not be dismissed without cause
and due process, he stressed.
Under the measure, an employee, who is dismissed without cause and due process, shall be
entitled to reinstatement without loss of seniority rights, full back wages and benefits.
The benefits shall comprise of allowances, commission including the coverage of Social Security
System (SSS), PhilHealth, Pag-IBIG and all other remunerations provided by law, company policy and
collective bargaining agreement (CBA), computed from the time compensation was withheld up to the
time of actual reinstatement.
Under the measure, all employees are deemed regular except those under probationary
employment or those under industry-specific work arrangement the Secretary of the Department of Labor
and Employment (DOLE) may determine through tripartite approval.
Engagement of the same employee after the expiration of the probationary employment or
contract of employment in industry-specific work arrangement would render the employment regular.
Probationary employment shall not exceed six months from the first day of service regardless of
the nature of work to be performed. The probationary employee shall automatically become a regular
employee after meeting the standards stipulated in the written contract of probationary employment.
The rights, terms and conditions of employment of a probationary employee shall not be lower
than the minimum standards set by laws or regulations. His or her job description and qualification
standards to qualify for regular employment shall be in a written contract and made known by the
employer to the employee at the time of his or her engagement.
The services of a probationary employee may be terminated for just and authorized cause under
the Labor Code, or when he or she fails to qualify as a regular employee. However, the employer shall
have the burden of proving that the termination is with cause and due process.
The Labor Secretary shall promulgate the necessary implementing rules and regulation (IRR) for
the effectivity of the proposed Act. (30) jc