Probationary Faculty Rights: Constructive Dismissal and Fixed-Term Contracts in Philippine Education

The Supreme Court recently clarified the legal boundaries of probationary employment for faculty members in Philippine private higher education institutions. In De La Salle Araneta University, Inc. v. Dr. Eloisa G. Magdurulang (G.R. No. 224319, November 20, 2017), the Court addressed when a probationary professor may be considered constructively dismissed and how fixed-term contracts affect the computation of backwages. The ruling offers important guidance for both educational institutions and academic personnel navigating the delicate balance between institutional prerogatives and employee security of tenure.

The Facts of the Case

Dr. Eloisa Magdurulang began teaching at De La Salle Araneta University as a part-time faculty member in 2007. She was later appointed as a full-time professor and BSBA Program Coordinator for the second semester of school year 2008-2009, with her designation renewed for both semesters of SY 2009-2010.

During her contract, the Acting Assistant Dean recommended that she be granted permanent status. While the University President initially agreed, he ultimately did not extend a permanent appointment. Instead, the University cited Section 117 of the Manual of Regulations for Private Higher Education (MORPHE), which sets the probationary period for academic teaching personnel at no more than six consecutive semesters of satisfactory service. The University renewed her appointment for SY 2010-2011 on a contractual basis with a re-classified rank.

When the professor questioned the rank change and the lack of a permanent appointment, she was subsequently given no teaching load and her administrative position was discontinued. She filed a complaint for constructive dismissal.

The Issue

The central question was whether the professor was a probationary employee who had been constructively dismissed, and if so, what benefits she was entitled to receive.

The Ruling: Probationary Status Confirmed

The Supreme Court affirmed that the professor remained a probationary employee. For academic personnel in higher education, the probationary period is governed not by the Labor Code's general six-month rule, but by standards set by the Commission on Higher Education. Under Section 117 of the MORPHE, the probationary period shall not exceed six consecutive semesters of satisfactory service.

The Court enumerated three requirements for an academic personnel to acquire regular or permanent status: (1) the employee must be full-time; (2) the employee must have completed the required probationary period; and (3) the service must have been satisfactory.

In this case, the professor's part-time appointments could not be counted toward regularization. Her full-time appointments only totaled three consecutive semesters—far short of the six-semester requirement. Even counting the semesters when she was no longer given teaching loads, she would only have completed five semesters. The Court also rejected the argument that the Acting Assistant Dean's recommendation effectively shortened the probationary period, noting that the University President ultimately did not act on it.

Constructive Dismissal Established

Despite confirming her probationary status, the Court ruled that the professor was constructively dismissed. A probationary employee enjoys limited security of tenure—she cannot be terminated except for just or authorized causes, or if she fails to qualify under reasonable standards set by the employer.

The University's unjustified acts of depriving her of teaching loads and discontinuing her administrative functions during the pendency of her contract constituted constructive dismissal. This is defined as a cessation of work because continued employment is rendered impossible, unreasonable, or unlikely, or when there is a demotion in rank or diminution in pay.

The Limits of Fixed-Term Contracts

However, the Court modified the award of backwages. Citing Magis Young Achievers' Learning Center v. Manalo, the Court recognized the accepted practice among educational institutions of splitting probationary employment into multiple fixed-term contracts. This gives employers flexibility to discontinue employment should the employee fail to meet standards.

The professor's probationary employment was split into three separate fixed-term contracts. Since her constructive dismissal occurred during the effectivity of her last contract—covering both semesters of SY 2010-2011—she was entitled only to benefits arising from that contract. She could not claim benefits for the first semester of SY 2011-2012 because no contract covered that period.

Practical Takeaways

• Probationary periods for faculty differ from the general Labor Code rule. Academic personnel in higher education may be placed on probation for up to six consecutive semesters, not just six months.
• Completion of the probationary period does not automatically grant permanent status. The employer retains the prerogative to decide whether to re-hire and grant regular status, consistent with academic freedom.
• Probationary employees still enjoy limited security of tenure. They cannot be terminated except for just or authorized causes or failure to meet reasonable standards.
• Fixed-term contracts define the scope of liability. When constructive dismissal occurs during a fixed-term contract, backwages are limited to the unexpired portion of that specific contract.
• Educational institutions should document standards and decisions clearly. A recommendation for permanency that is not acted upon does not shorten the probationary period absent unmistakable evidence of an agreement.

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