Termination of Probationary Employees and the Data Privacy Act

In the Philippines, terminating a probationary employee requires consideration and strict adherence to both Labor Laws and the Data Privacy Act of 2012. Employers must be mindful not only of the ground for termination for failure to meet the fair and reasonable standards for regularization, proper handling of confidential and personal information, and the issuance of a certificate of employment.

Grounds for Termination

Under Philippine labor laws, probationary employees may be terminated for "just or authorized causes" (e.g., misconduct, fraud, gross negligence, redundancy, retrenchment) or for failing to meet the employer’s reasonable standards/criteria for regularization made known to the worker prior to or at the time of engagement. These standards should be clearly communicated to the employee at the beginning of the probationary period. Termination decisions should be well-documented to avoid any legal disputes.

Return of Confidential Documents

The Data Privacy Act of 2012 mandates that any personal or sensitive information accessed by the employee during their tenure must be properly secured and returned to the employer. This includes physical and digital documents, files, and devices containing company data. Employers should establish clear protocols for the secure return of all confidential materials upon termination to prevent potential data breaches and ensure compliance with data privacy regulations.

Issuing a Certificate of Employment

After termination, a probationary employee is entitled to receive a certificate of employment (COE), which should detail the duration of employment and the role held, without disclosing reasons for termination. The COE serves as a record of the employee's work history subject to the guidance from Labor Advisory No.06 Series of 2020.

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