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Republic of the Philippines
SUPREME COURT
Manila
THIRD DIVISION
G.R. No. 72222 January 30, 1989
INTERNATIONAL CATHOLIC MIGRATION COMMISSION, petitioner,
vs.
NATIONAL LABOR RELATIONS COMMISSION and BERNADETTE GALANG, respondents.
FERNAN, C.J.:
The issue to be resolved in the instant case is whether or not an employee who was terminated during the
probationary period of her employment is entitled to her salary for the unexpired portion of her sixmonth
probationary employment.
The facts of the case are undisputed.
Petitioner International Catholic Migration Commission (ICMC), a nonprofit organization dedicated to refugee
service at the Philippine Refugee Processing Center in Morong, Bataan engaged the services of private respondent
Bernadette Galang on January 24, 1983 as a probationary cultural orientation teacher with a monthly salary of
P2,000.00.
Three (3) months thereafter, or on April 22, 1983, private respondent was informed, orally and in writing, that her
services were being terminated for her failure to meet the prescribed standards of petitioner as reflected in the
performance evaluation of her supervisors during the teacher evaluation program she underwent along with other
newlyhired personnel.
Despite her termination, records show that private respondent did not leave the ICMC refugee camp at Morong,
Bataan, but instead stayed thereat for a few days before leaving for Manila, during which time, she was observed by
petitioner to be allegedly acting strangely.
On July 24, 1983, private respondent returned to Morong, Bataan on board the service bus of petitioner to
accomplish the clearance requirements. In the evening of that same day, she was found at the Freedom Park of
Morong wet and shivering from the rain and acting bizarrely. She was then taken to petitioner's hospital where she
was given the necessary medical attention.
Two (2) days later, or on July 26, 1983, she was taken to her residence in Manila aboard petitioner's service bus.
Thru a letter, her father expressed appreciation to petitioner for taking care of her daughter. On that same day, her
father received, on her behalf, the proportionate amount of her 13th month pay and the equivalent of her two week
pay.
On August 22, 1983, private respondent filed a complaint 1 for illegal dismissal, unfair labor practice and unpaid
wages against petitioner with the then Ministry of Labor and Employment, praying for reinstatement with backwages,
exemplary and moral damages.
On October 8, 1983, after the parties submitted their respective position papers and other pleadings, Labor Arbiter
Pelagio A. Carpio rendered his decision dismissing the complaint for illegal dismissal as well as the complaint for
moral and exemplary damages but ordering the petitioner to pay private respondent the sum of P6,000.00 as
payment for the last three (3) months of the agreed employment period pursuant to her verbal contract of
employment. 2
Both parties appealed the decision to the National Labor Relations Commission. In her appeal, private respondent
contended that her dismissal was illegal considering that it was effected without valid cause. On the other hand,
petitioner countered that private respondent who was employed for a probationary period of three (3) months could
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not rightfully be awarded P6,000.00 because her services were terminated for failure to qualify as a regular
employee in accordance with the reasonable standards prescribed by her employer.
On August 22, 1985, the NLRC, by a majority vote of Commissioners Guillermo C. Medina and Gabriel M.
Gatchalian, sustained the decision of the Labor Arbiter and thus dismissed both appeals for lack of merit.
Commissioner Miguel Varela, on the other hand, dissented and voted for the reversal of the Labor Arbiter's decision
for lack of legal basis considering that the termination of services of complainant, now private respondent, was
effected during her probationary period on valid grounds made known to her. 3
Dissatisfied, petitioner filed the instant petition.
Petitioner maintains that private respondent is not entitled to the award of salary for the unexpired threemonth
portion of the probationary period since her services were terminated during such period when she failed to qualify
as a regular employee in accordance with the reasonable standards prescribed by petitioner; that having been
terminated on valid grounds during her probationary period, or specifically on April 24, 1983, petitioner is not liable
to private respondent for services not rendered during the unexpired threemonth period, otherwise, unjust
enrichment of her part would result; that under Article 282 (now Article 281) of the Labor Code, if the employer finds
that the probationary employees does not meet the standards of employment set for the position, the probationary
employee may be terminated at any time within the sixmonth period, without need of exhausting raid entire six
month term. 4
The Solicitor General, on the other hand, contends that a probationary employment for six (6) months, as in the
case of herein private respondent, is an employment for a definite period of time and, as such, the employer is duty
bound to allow the probationary employee to work until the termination of the probationary employment before her
re employment could be refused; that when petitioner disrupted the probationary employment of private
respondent, without giving her the opportunity to improve her method of instruction within the said period, it held
itself liable to pay her salary for the unexpired portion of such employment by way of damages pursuant to the
general provisions of civil law that he who in any manner contravenes the terms of his obligation without any valid
cause shall be liable for damages; 5 that, as held in Madrigal v. Ogilvie, et al, 6 the damages so awarded are
equivalent to her salary for the unexpired portion of her employment for a fixed period. 7
We find for petitioner.
There is justifiable basis for the reversal of public respondent's award of salary for the unexpired threemonth
portion of private respondent's sixmonth probationary employment in the light of its express finding that there was
no illegal dismissal. There is no dispute that private respondent was terminated during her probationary period of
employment for failure to qualify as a regular member of petitioner's teaching staff in accordance with its reasonable
standards. Records show that private respondent was found by petitioner to be deficient in classroom management,
teacherstudent relationship and teaching techniques. 8 Failure to qualify as a regular employee in accordance with
the reasonable standards of the employer is a just cause for terminating a probationary employee specifically
recognized under Article 282 (now Article 281) of the Labor Code which provides thus:
ART. 281. Probationary employment. — Probationary employment shall not exceed six months from
the date the employee started working, unless it is covered by an apprenticeship agreement stipulating
a longer period. The services of an employer who has been engaged in a probationary basis may be
terminated for a just cause or when he fails to qualify as a regular employer in accordance with
reasonable standard made known by the employer to the employer at the time of his engagement. An
employee who is allowed to work after a probationary period shall be considered a regular employee.
(Emphasis supplied.)
It must be noted that notwithstanding the finding of legality of the termination of private respondent, public
respondent justified the award of salary for the unexpired portion of the probationary employment on the ground that
a probationary employment for six (6) months is an employment for a "definite period" which requires the employer
to exhaust the entire probationary period to give the employee the opportunity to meet the required standards.
The legal basis of public respondent is erroneous. A probationary employee, as understood under Article 282 (now
Article 281) of the Labor Code, is one who is on trial by an employer during which the employer determines whether
or not he is qualified for permanent employment. A probationary appointment is made to afford the employer an
opportunity to observe the fitness of a probationer while at work, and to ascertain whether he will become a proper
and efficient employee. 9 The word "probationary", as used to describe the period of employment, implies the
purpose of the term or period, but not its length. 10
Being in the nature of a "trial period" 11 the essence of a probationary period of employment fundamentally lies in the
purpose or objective sought to be attained by both the employer and the employee during said period. The length of
time is immaterial in determining the correlative rights of both in dealing with each other during said period. While
the employer, as stated earlier, observes the fitness, propriety and efficiency of a probationer to ascertain whether
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he is qualified for permanent employment, the probationer, on the other, seeks to prove to the employer, that he has
the qualifications to meet the reasonable standards for permanent employment.
It is well settled that the employer has the right or is at liberty to choose who will be hired and who will be denied
employment. In that sense, it is within the exercise of the right to select his employees that the employer may set or
fix a probationary period within which the latter may test and observe the conduct of the former before hiring him
permanently. The equality of right that exists between the employer and the employee as to the nature of the
probationary employment was aptly emphasized by this Court in Grand Motor Parts Corporation v. Minister of Labor,
et al., 130 SCRA 436 (1984), citing the 1939 case of Pampanga Bus. Co., Inc. v. Pambusco Employees Union, Inc.
68 Phil. 541, thus:
The right of a laborer to sell his labor to such persons as he may choose is, in its essence, the same as
the right of an employer to purchase labor from any person whom it chooses. The employer and the
employee have thus an equality of right guaranteed by the Constitution. If the employer can compel the
employee to work against the latter's will, this is servitude. If the employee can compel the employer to
give him work against the employer's will, this is oppression.
As the law now stands, Article 281 of the Labor Code gives ample authority to the employer to terminate a
probationary employee for a just cause or when he fails to qualify as a regular employee in accordance with
reasonable standards made known by the employer to the employee at the time of his engagement. There is
nothing under Article 281 of the Labor Code that would preclude the employer from extending a regular or a
permanent appointment to an employee once the employer finds that the employee is qualified for regular
employment even before the expiration of the probationary period. Conversely, if the purpose sought by the
employer is neither attained nor attainable within the said period, Article 281 of the Labor Code does not likewise
preclude the employer from terminating the probationary employment on justifiable causes as in the instant case.
We find unmeritorious, therefore, public respondents argument that the security of tenure of probationary employees
within the period of their probation, as in the case of herein private respondent, justified the award of salary for the
unexpired portion of her probationary employment. The termination of private respondent predicated on a just cause
negates the application in this case of the pronouncement in the case of Biboso v. Victories Milling Co., Inc., 12 on
the right of security of tenure of probationary employees.
Upon inquiry by the then Ministry of Labor and Employment as a consequence of the illegal dismissal case filed by
private respondent before it, docketed as Case No. NLRC NCR8378683, it was found that there was no illegal
dismissal involved in the case, hence, the circumvention of the rights of the probationary employees sought to be
regulated as pointed out in Biboso v. Victorias Milling Co., Inc., 13 is wanting.
There was no showing, as borne out by the records, that there was circumvention of the rights of private respondent
when she was informed of her termination. Her dismissal does not appear to us as arbitrary, fanciful or whimsical.
Private respondent was duly notified, orally and in writing, that her services as cultural orientation teacher were
terminated for failure to meet the prescribed standards of petitioner as reflected in the performance evaluation
conducted by her supervisors during the teacher evaluating program. The dissatisfaction of petitioner over the
performance of private respondent in this regard is a legitimate exercise of its prerogative to select whom to hire or
refuse employment for the success of its program or undertaking. More importantly, private respondent failed to
show that there was unlawful discrimination in the dismissal.
It was thus a grave abuse of discretion on the part of public respondent to order petitioner to pay private respondent
her salary for the unexpired threemonth portion of her sixmonth probationary employment when she was validly
terminated during her probationary employment. To sanction such action would not only be unjust, but oppressive
on the part of the employer as emphasized in Pampanga Bus Co., Inc., v. Pambusco Employer Union, Inc. 14
WHEREFORE, in view of the foregoing, the petition is GRANTED. The Resolution of the National Labor Relations
Commission dated August 22, 1985, is hereby REVERSED and SET ASIDE insofar as it ordered petitioner to pay
private respondent her P6,000.00 salary for the unexpired portion of her sixmonth probationary employment. No
cost.
SO ORDERED.
Gutierrez, Jr., Feliciano, Bidin and Cortes, JJ., concur.
Footnotes
1 Records, P. 1.
2 Records, p. 93.
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3 Rollo, pp. 912.
4 Rollo, pp. 4345.
5 Article 1170 of the Civil Code.
6 104 Phil. 749.
7 Rollo, pp. 2936.
8 Annexes 'A", "A 1 to A5"; 'B', Records, pp. 2127.
9 34 Words and Phrases 113, citing 53 P.S. s9370, 9377; McCartney v. Johnston, 191 A. 121, 124, 326
Pa. 442. '
10 Id., at 115, citing People v. Kearney, 58 N.E. 14, 15, 164 N.Y.64.
11 Id., at 114, citing Application of Williams, 150 N.Y.S. 2d 420, 423, 1 Misc. 2d 804.
12 76 SCRA 250 (1977).
13 Supra.
14 Supra.
The Lawphil Project Arellano Law Foundation
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