A regular employment is an arrangement where the employee has been engaged to perform work which is usually necessary in the business of the employer. If the work is usually necessary in the business of the employer, the presumption is that the employment is one of regular employment, unless there is an arrangement to the contrary, like that of a probationary employment or that of a project employment.
A probationary employment is that where the employee is on a trial basis, during which he has to meet the reasonable standards made known to him at the time of hiring, in order to qualify for regularization. A project employment is that where the employee is engaged for a specific project, the completion or termination of which has been determined at the time of hiring. While a probationary employment should not exceed a period of 6 months, a project employment is coterminous with the duration or completion of the project.
In a probationary employment, the employer, before or upon the end of the probation, has to make a decision whether or not to regularize the probationary employee based on the former’s assessment of the latter’s performance. In a project employment, the completion of the project shall bring about the end of the project employment.
Indeed, consistent with the employer’s prerogative to select whom to hire, the employer has the discretion to put a new employee under probation first before giving him regular status. In certain cases, the employer is also allowed to hire an employee on a temporary basis, such as for a particular project or a limited undertaking.
To be clear, the employer should specifically spell out the employment status at the time of hiring, especially when the arrangement is one for probation or for project, and then see to it that the terms of the arrangement are being observed from the time of hiring up to the end of the contract or employment. In the end, the validity of the arrangement shall be tested based on its consistency with our labor laws.