Regularization is used to describe the process of becoming a regular employee. It means that the employee qualifies for the permanent position in the company. But what is the regularization policy and what if the employee does not qualify for regular employment?

What You Will Learn

  • What does it mean to be a regular employee?
  • When is the employee regularized?
  • What is the regularization policy in the Philippines?
  • Termination of Regular Employees

Regular Employee in the Philippines

A regular employee is one who enjoys the security of tenure and may not be terminated without a just or authorized cause. In the event that the employee is illegally terminated, the employee may be entitled to the twin reliefs of reinstatement and backwages.

On the other hand, a probationary employee is one who is being evaluated to determine his qualifications for the job. Therefore, other than just and authorized causes, the employee may also be terminated if he fails to qualify to become a regular employee.

Regularization of Employee

The employer shall review the performance of the probationary employee before the end of the probationary employment contract in accordance with the standards made known to the employee at the time of engagement. If the employee meets the standards as required for the job, the employee shall be regularized to become a regular employee.

However, there are certain circumstances whereby the employee may automatically be considered as a regular employee:

  • The standards to qualify for regular employment was not make known to the probationary employee at the time of his engagement
  • There was no evaluation of the employee’s work performance throughout the probationary period
  • The employee is allowed to continue working after the expiration of the probationary employment contract

Regularization Policy

Different companies may adopt different employee regularization policy. This may include differences in the probationary period, evaluation criteria, and the evaluation methodology. However, regardless of the differences, the probationary period shall not exceed 6 months.

Upon regularization, employees may receive salary increment and/ or be entitled to additional benefits. It may include allowances, vacation leave benefit, health insurance and others. However, these are dependent on the company’s policy. Employers are not required to grant additional privileges upon the regularization of an employee.

Termination of Regular Employees Philippines

According to the Labor Code of the Philippines, regular employees can only be dismissed for a just or authorized cause and only after due process is accorded. Just causes are causes of termination due to an employee’s fault or negligence while authorized causes are causes of termination as permitted by law not attributed to an employee’s fault or negligence.

Click here to find out the due process of terminating an employee.