Probationary Employment in the Philippines: Rules, Regularization, and Common Pitfalls

Probationary employment is one of the most misunderstood areas of Philippine labor law. Many employers accidentally regularize employees by missing the 180-day deadline, failing to communicate performance standards, or not conducting timely evaluations.

This guide covers the legal rules, proper procedures, and the common traps that lead to unintended regularization.

The 180-Day Rule

Under Article 296 of the Labor Code (formerly Article 281), probationary employment cannot exceed 6 months or 180 calendar days from the date the employee starts working.

Rule	Detail
Maximum probation period	180 calendar days
Counted from	First day of actual work
Can be extended?	No (not even with employee's consent)
Exception	Apprenticeship under TESDA program

When Does the Clock Start?

The 180-day count begins on the first day the employee actually reports for work, not the date the contract was signed or the date of the job offer. If an employee's contract is dated January 1 but they start work on January 15, the 180 days run from January 15.

When Does Probation End?

The probationary period expires exactly 180 calendar days from the start date. If the employer has not acted by this date — either regularizing or terminating the employee — automatic regularization takes effect.

Example: Employee starts February 1, 2026.

• Probationary period: February 1 to July 31, 2026 (180 days)
• Regularization deadline: July 31, 2026
• If no action is taken by July 31, the employee is automatically regular on August 1, 2026

Performance Standards

The employer must communicate reasonable performance standards to the probationary employee at the time of engagement (on or before the first day of work).

What Makes Standards Valid?

Requirement	Example
Specific	"Close at least 5 sales per month" (not "sell well")
Measurable	"Maintain 95%+ accuracy rate" (not "be accurate")
Job-related	Standards must relate to the actual job duties
Written	Must be documented and acknowledged by the employee
Communicated at start	Given on or before the first day of work

Consequences of Not Setting Standards

If the employer fails to communicate performance standards at the start of probation:

1. The employer cannot terminate the employee for "failure to meet standards" (because none were set)
2. The employee can still be terminated for just cause (misconduct, fraud, etc.)
3. If the employee works beyond 180 days, they are automatically regularized

This is one of the most common mistakes Philippine employers make.

Terminating a Probationary Employee

Grounds for Termination

A probationary employee may be terminated for:

1. Just cause — Same grounds as regular employees (serious misconduct, willful disobedience, gross neglect, fraud, crime)
2. Failure to meet standards — The specific, written standards communicated at the start of probation

Procedure

For just cause: Follow the full twin notice procedure (NTE → hearing → notice of decision). This is the same as for regular employees.

For failure to meet standards:

1. Conduct a performance evaluation before the 180-day deadline
2. Document the specific standards not met with evidence
3. Issue a written notice of non-regularization stating:
   • Which standards were not met
   • The specific evidence or instances
   • The effective date (must be before or on the 180th day)
4. Give the employee an opportunity to respond

Timing Is Critical

The notice of termination or non-regularization must be served before the 180th day expires. If the notice is served on the 181st day, the employee is already deemed regularized and can only be dismissed for just or authorized cause.

Automatic Regularization

An employee is automatically regularized if any of these conditions are met:

Condition	Result
Works beyond 180 days without termination	Automatic regularization
No written performance standards communicated	Cannot terminate for failure to meet standards
Employer fails to evaluate before deadline	Deemed to have passed probation
Verbal-only evaluation (no written notice)	May be challenged as insufficient

Once regularized, the employee gains full security of tenure and can only be dismissed through the standard termination process (just cause or authorized cause with full due process).

Probationary Employee Rights

During probation, employees are entitled to all statutory benefits:

Benefit	Entitled?
SSS contributions	Yes (from day 1)
PhilHealth contributions	Yes (from day 1)
Pag-IBIG contributions	Yes (from day 1)
13th month pay	Yes (pro-rated)
Holiday pay	Yes
Overtime pay	Yes
Night shift differential	Yes
Service Incentive Leave	After 1 year of service
Maternity/paternity leave	Yes (if eligible)

The only difference between probationary and regular employees is the limited duration of employment and the additional ground for termination (failure to meet standards).

Probationary Employment Best Practices

1. Document standards in the employment contract — Include specific, measurable KPIs in the probationary employment contract itself. Have the employee sign and date it.

2. Conduct evaluations at 60, 120, and 150 days — Don't wait until the last minute. Regular check-ins give the employee a chance to improve and give you documentation.

3. Set calendar reminders for the 180-day deadline — Missing this by even one day triggers automatic regularization. Use a system that alerts you 30 days before.

4. Keep written records — Every evaluation, feedback session, and performance issue should be documented in writing with the employee's acknowledgment.

5. Issue the non-regularization notice with time to spare — Serve the notice at least 1-2 weeks before the 180th day to avoid timing disputes.

Common Probation Mistakes

1. Verbal-only performance standards — "I told them what was expected" is not enough. Standards must be in writing, acknowledged by the employee, and given at the start of probation.

2. Late evaluation — Conducting the first and only evaluation on day 179 looks arbitrary. Regular documented evaluations throughout the probation period strengthen the employer's position.

3. Extending probation — Some employers try to "extend" probation by 3 months. This is illegal. The 180-day limit is absolute.

4. "Project-based" misclassification — Hiring someone as a "project employee" to avoid regularization is a common but risky tactic. If the work is regular and continuous, the employee may be deemed regular regardless of the contract label.

5. Forgetting the deadline entirely — The most expensive mistake. An employer who simply forgets to evaluate or act by day 180 has a new regular employee with full security of tenure.

How TalinoHR Tracks Probation

TalinoHR's probation tracking module prevents missed deadlines and unintended regularization:

• Automatic deadline computation — The system calculates the 180-day regularization deadline from the hire date per Article 296 of the Labor Code
• 30-day alert window — Employees approaching their regularization deadline (within 30 days) are automatically flagged on the probation dashboard
• Color-coded status — On-track (green), needs evaluation (yellow), overdue (red) — visible at a glance on the HR dashboard
• Performance review integration — Regularization actions can be linked to the employee's most recent completed performance review
• Personnel action workflow — Regularization is tracked as a formal personnel action with approval workflow and audit trail
• Regularization alerts API — Dashboard widgets show upcoming regularizations so no deadline is ever missed

No more spreadsheet tracking. No more missed deadlines. Book a demo to see TalinoHR's probation management.