Probationary Employment in Philippine Schools: Contract Terms and Termination Rights

Probationary employment is a common arrangement in Philippine schools, allowing employers to evaluate a teacher's or staff member's fitness for regular appointment. But the rules governing probationary periods are strict, and mistakes in handling them can lead to illegal dismissal claims. A recent Supreme Court decision, Carpio v. Green Era Biotech Corp. (G.R. No. 267217, November 19, 2025), clarifies important principles on employee absences, company policies, and procedural due process that schools and other employers should note.

The Facts of the Case

Alvin Carpio worked as a Production Utility worker for Green Era Biotech Corp., a company that later transferred him to Great Value Management, a manpower service provider. When Carpio incurred unauthorized absences, his employer issued a Notice to Explain and later a Notice of AWOL, treating his absences as abandonment of work. Carpio was eventually informed via text message that he could no longer return to work.

Carpio filed a complaint for illegal dismissal. The Labor Arbiter and the National Labor Relations Commission (NLRC) ruled that his dismissal was valid, but the Supreme Court reversed, finding that his absences did not constitute abandonment.

Abandonment Requires Intent

The Court reiterated that abandonment of work requires two elements: (1) failure to report for work without valid or justifiable reason, and (2) a clear intention to sever the employer-employee relationship. The second element is the more determinative factor and must be shown by overt acts.

In Carpio's case, although his absences were unauthorized, he later attempted to report for work and promptly filed an illegal dismissal complaint. The Court noted that abandonment is incompatible with the prompt filing of an illegal dismissal case—an employee who truly intended to quit would not immediately challenge the termination.

Company Policies Cannot Be Too Harsh

The employer's manual considered five consecutive days of unauthorized absence as gross and habitual neglect of duty warranting dismissal. The Court found this policy "too harsh and disproportionate" to the offense committed, citing its earlier ruling in Verizon Communications Philippines, Inc. v. Margin.

While employers have management prerogative to discipline employees, this power is limited by constitutional protection of labor. Dismissal is the ultimate penalty, and where a less punitive penalty would suffice, the law requires proportionality between the offense and the penalty.

Procedural Due Process Still Required

Even when a valid ground for dismissal exists, employers must observe procedural due process. The Court reiterated the "twin notice" rule from King of Kings Transport, Inc. v. Mamac:

1. First notice: A written notice specifying the grounds for termination and giving the employee at least five calendar days to respond
2. Hearing or conference: An opportunity for the employee to explain, present evidence, and rebut management's evidence
3. Second notice: A written notice of termination stating that all circumstances were considered and grounds were established

In Carpio's case, the employer failed to provide a proper hearing and the second notice was deficient. The employee was only informed via text message that he was on AWOL. This failure warranted nominal damages of PHP 30,000.

No Backwages for Unjustified Absences

Despite finding the dismissal illegal, the Court withheld backwages. The normal consequence of illegal dismissal is reinstatement and full backwages, but the Court may withhold backwages when: (1) dismissal would be too harsh a penalty, and (2) the employer acted in good faith.

Both circumstances were present—the absences were unjustified, and the employer relied on its company policy in good faith. Carpio was entitled to reinstatement or separation pay, but not backwages.

Practical Takeaways

• Abandonment requires proof of intent. Mere absence from work, without overt acts showing an intention to quit, will not support a finding of abandonment. Employees who promptly challenge their termination are unlikely to be considered as having abandoned their posts.

• Company policies must be proportionate. Rules that automatically impose dismissal for a fixed number of absences may be struck down as too harsh. Employers should consider progressive discipline and less severe penalties for first-time or minor infractions.

• Follow the twin notice rule strictly. Provide a first notice with specific grounds, conduct a genuine hearing or conference, and issue a second notice of termination that states all circumstances were considered. Text messages and vague communications do not satisfy due process.

• Good faith matters in computing damages. Even when dismissal is found illegal, employers who acted in good faith and relied on reasonable company policies may avoid backwages liability.

• Labor-only contracting creates solidary liability. Schools and companies that engage contractors lacking substantial capital or investment may be deemed the direct employer of contracted workers, making them jointly and severally liable for labor claims.

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.