Alcira vs. National Labor Relations Commission
Alcira vs. National Labor Relations Commission
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.
FACTS
Radin C. Alcira, the petitioner, was hired by Middleby Philippines Corporation (Middleby) as an engineering
support services supervisor on a probationary basis for six months. The employment contract indicated
conflicting starting dates: May 20, 1996, according to Alcira, and May 27, 1996, according to Middleby. Both
documents stated that Alcira's performance would be evaluated after five months, and any salary adjustment
would depend on his work performance.
On November 20, 1996, Alcira was allegedly dismissed when a senior officer withheld his time card and did not
allow him to work.
Alcira filed a complaint for illegal dismissal with the National Labor Relations Commission (NLRC) on
November 21, 1996, claiming he had become a regular employee by then. Middleby defended the termination,
citing Alcira's poor performance, absences, tardiness, and rule violations.
The labor arbiter dismissed Alcira's complaint on May 19, 1998, ruling that he was apprised of the standards
for regularization and was terminated before the end of his probationary period. The NLRC and the Court of
Appeals affirmed this decision, leading Alcira to file a petition for review.
2) Section 6 (d) of Rule 1 of the Implementing Rules of Book VI of the Labor Code (Department Order No. 10,
Series of 1997) provides that:xxx (d) In all cases of probationary employment, the employer shall make known
to the employee the standards under which he will qualify as a regular employee at the time of his
engagement. Where no standards are made known to the employee at that time, he shall be deemed a regular
employee.
The Court held that respondent Middleby substantially notified petitioner of the standards to qualify as a regular
employee when it apprised him, at the start of his employment, that it would evaluate his supervisory skills after
five months.
It is settled that even if probationary employees do not enjoy permanent status, they are accorded the
constitutional protection of security of tenure. This means they may only be terminated for just cause or when
they otherwise fail to qualify as regular employees in accordance with reasonable standards made known to
them by the employer at the time of their engagement.
But we have also ruled in Manlimos, et. al. vs. National Labor Relations Commission [15] that this constitutional
protection ends on the expiration of the probationary period. On that date, the parties are free to either renew
or terminate their contract of employment. Manlimos concluded that a(t)his development has rendered moot
the question of whether there was a just cause for the dismissal of the petitioners ....a [16] In the case at bar,
respondent Middleby exercised its option not to renew the contract when it informed petitioner on the last day
of his probationary employment that it did not intend to grant him a regular status.
DISPOSITIVE