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FAQ: Probationary Employees

FAQ: Probationary Employees

As I provided a sample probationary employment contract in my last post I thought I would discuss probationary status a bit further.

Most businesses in the Philippines start their employees as probationary. It’s rumored even that some extremely large businesses circumvent the law by treating their employees as permanently probationary (yes that’s an oxymoron).

With such rumors common place, some employees can be wary of probationary periods and may (fairly or not) see them as yet another means of the employer extracting maximum work from them for minimal pay.

Hopefully some of the Q and A below can help dispel some of the doubts regarding probationary employment status.

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Sample Probationary Contract

Sample Probationary Contract

Inevitably as your business grows you’ll have to hire employees to help with the additional work. This can be daunting for many entrepreneurs as the Philippines has a lot of requirements regarding labor. In general, doubt is resolved in favor of the employee and many of the laws in the Philippines make it difficult to fire or retrench an employee.

(One may argue that all of these protections for the employee have resulted in a complacent, rigid workforce and I think there would be some merit to that argument.)

For this post let’s just start at the beginning, hiring someone. As the employer you usually want the prospective employee to sign a contract. There’s nothing special about an employment contract. You don’t need to be a lawyer to draft one. Indeed, it would be a good exercise for any employer to draft his own contract first and then have a lawyer go over it.

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