Mitsubishi Motors vs Chrysler Philippines Labor Union

G.R. No. 148738

June 29, 2004
Petitioner: Mitsubishi Motors Philippines Corporation
Respondents: Chrysler Philippines Labor Union and Nelson Paras
FACTS: Private respondent Nelson Paras first worked with Mitsubishi Philippines as a shuttle
bus driver on March 19, 1976. He resigned on June 16, 1982 because he went to Saudi Arabia
and worked there as a diesel mechanic and heavy machine operator from 1982 to 1993. Upon his
return, Mitsubishi Philippines re-hired him as a welder-fabricator at a tooling shop from
November 1, 1994 to March 3, 1995.
On May 1996, Paras was re-hired again, this time as a probationary manufacturing trainee at the
Plant Engineering Maintenance Department. He had an orientation on May 15, 1996 and
afterwhich, with respect to the companys rules and guidelines, started reporting for work on
May 27, 1996.
Paras was evaluated by his immediate supervisors after six months of working. The supervisors
rating Paras performance were Lito R. Lacambacal and Wilfredo J. Lopez, as part of the
MMPCs company policies. Upon this evaluation, Paras garnered an average rating.
Later, respondent Paras was informed by his supervisor, Lacambacal, that he received an average
performance rating but it is a rate which would still qualify him to be regularized. But as part of
the company protocols, the Division Managers namely A.C. Velando, H.T. Victoria and Dante
Ong reviewed the performance evaluation made on Paras. Despite the recommendations of the
supervisors, they unanimously agreed that the performance was unsatisfactory. As a
consequence, Paras was not considered for regularization.
Paras received a Notice of Termination on November 26, 1996 which was dated November 25,
1996. This letters intent is to formally relieve him off of his services and position effective the
date since he failed to meet the companys standards.
ISSUE: Whether or not respondent Paras termination was legal or not.
HELD: The Court holds that a company employer may indeed hire an employee on a
probationary basis in order to determine his fitness to perform work. The Court stresses the
existence of the statements under Article 281 of the Labor Code which specifies that the
employer must inform the employee of the standards they were to meet in order to be granted
regularization and that such probationary period shall not exceed six (6) months from the date
the employee started working, unless specified in the apprenticeship agreement.
Respondent Paras was employed on a probationary basis and was apprised of the standards upon
which his regularization would be based during the orientation. His first day to report for work

was on May 27, 1996. As per the company's policy, the probationary period was from three (3)
months to a maximum of six (6) months. Applying Article 13 of the Civil Code, the probationary
period of six (6) months consists of one hundred eighty (180) days. The Court conforms with
paragraph one, Article 13 of the Civil Code providing that the months which are not designated
by their names shall be understood as consisting of thirty (30) days each. This case, the Labor
Code pertains to 180 days. Also, as clearly provided for in the last paragraph of Article 13, it is
said that in computing a period, the first day shall be excluded and the last day included. Thus,
the one hundred eighty (180) days commenced on May 27, 1996, and ended on November 23,
1996. The termination letter dated November 25, 1996 was served on respondent Paras only at
3:00 a.m. of November 26, 1996. The Court held that by that time, he was actually already a
regular employee of the petitioner under Article 281 of the Labor Code. His position as a
regularized employee is thus secured until further notice.