Probationary Employment Agreement in the Philippines: What You Need to Know
In the Philippines, a probationary employment agreement is common among employers and new employees. This type of agreement is a trial period for the employer to evaluate the employee’s performance, behavior, and overall fit for the company. It is also a time for the employee to assess whether the company is a good fit for them.
What is a Probationary Employment Agreement?
A probationary employment agreement is a contractual agreement between the employer and the employee, outlining the terms and conditions of the probationary period. It is usually a period of six months, but can be shorter or longer depending on the agreement of both parties.
During the probationary period, the employer can terminate the employment of the employee for any valid reason, such as poor performance or attitude. However, the employer must ensure that the termination is reasonable and not discriminatory.
What are the Benefits of a Probationary Employment Agreement?
For Employers:
1. Reduced Risk – A probationary period allows employers to assess if the employee is a good fit for the company before offering a permanent contract.
2. Expectations – Employers can set clear expectations for the employee during the probationary period, which can help manage their performance.
3. Training – Employers can provide training and support to the employee during the probationary period, which can improve their skills and knowledge.
For Employees:
1. Professional Development – Employees can use the probationary period to learn new skills and improve their performance, which will increase their chances of getting a permanent contract.
2. Company Culture – The probationary period allows employees to assess the company culture and determine whether it is a good fit for them.
3. Job Security – If the employee performs well during the probationary period, they will have a higher chance of getting a permanent contract, which provides job security.
How to Create a Probationary Employment Agreement?
When creating a probationary employment agreement, both the employer and employee must agree to the terms and conditions. The agreement should outline the following:
1. Start and end date of the probationary period
2. Expectations and responsibilities of the employee
3. Performance standards and measurement metrics
4. Termination clauses and procedures
5. Salary and benefits
6. Any additional terms and conditions
Conclusion
A probationary employment agreement is an important tool for both employers and employees in the Philippines. It provides a period of evaluation for the employer and a window of professional development for the employee. Both parties should ensure that the agreement is fair and reasonable, and that both parties are aware of their responsibilities and expectations. Overall, a probationary employment agreement can help build a strong and productive working relationship between the employer and the employee.