731 Phil. 235
VILLARAMA, JR., J.:
x x x x
Please be informed that teachers in the Universidad are not re-ranked during their probationary period. The Faculty Manual as revised for school year 2002-2003 provides (page 38) “Re-ranking is done every two years, hence the personnel hold their present rank for two years. Those undergoing probationary period and those on part-time basis of employment are not covered by this provision.” This provision is found also in the 2000-2001 Operations Manual.
Your personnel file shows that you were hired as a probationary teacher in the second semester of school year 2002-2003. By October 2004, you will be completing four (4) semesters (two school years) of service. Even permanent teachers are re-ranked only every two years, and you are not even a permanent teacher. I am informed that you have been told several times and made to read the Provision in the Faculty Manual by the personnel office that you cannot be re-ranked because you are still a probationary teacher.
x x x x[8]
x x x
Under the Faculty Manual a permanent teacher is not entitled to re-ranking oftener than once every two years. From this it should be obvious that, with all the more reason, a probationary teacher would not be entitled to “evaluation,” which could result in re-ranking or “adjustment in salary” oftener than once every two years.
Since you are a probationary teacher, the University is under no obligation to re-rank you or adjust your salary after what you refer to as “evaluation.” Nevertheless, considering that in October 2004 you were completing two years of service, the University adjusted your salary in the light of the CHED Special Order you submitted showing that you had obtained the degree of Master of Arts in Education. Instead of being grateful for the adjustment, you insist that the adjustment be made retroactive to June 2003. Simply stated, you want your salary adjusted after one semester of probationary service. We do not think a probationary teacher has better rights than a permanent teacher in the matter of re-ranking or “evaluation.”[9]
Greetings of Peace in the Lord!
We regret to inform your good self that your full time probationary appointment will not be renewed when it expires at the end of this coming March 31, 2005.
Thank you so much for the services that you have rendered to USI and to her clientele the past several semesters. We strongly and sincerely encourage you to pursue your desire to complete your Post Graduate studies in the University of your choice as soon as you are able.
God bless you in all your future endeavors.
Godspeed![13]
WHEREFORE, in view of the foregoing, judgment is hereby rendered finding respondent school UNIVERSIDAD DE SANTA ISABEL liable for the illegal dismissal of complainant MARVIN-JULIAN L. SAMBAJON, JR.
Accordingly, and consistent with Article 279 of the Labor Code, respondent school is hereby directed to pay complainant full backwages covering the period/duration of the 1st semester of academic year 2005-2006. Reinstatement being rendered moot by the expiration of the probationary period, respondent school is directed to pay complainant separation pay in lieu of reinstatement computed at one (1) month’s pay for every year of service. An award of 10% attorney’s fees in favor of complainant is also held in order.
(please see attached computation of monetary award as integral part of this decision).
All other claims and charges are DISMISSED for lack of legal and factual basis.
SO ORDERED.[14]
In the instant case, the first contract (records, pp. 36; 92) executed by the parties provides that he was hired on a probationary status effective November 1, 2002 to March 30, 2003. While his employment continued beyond the above-mentioned period and lasted for a total of five (5) consecutive semesters, it appears that the only other contract he signed is the one (records, p. 103) for the second semester of SY 2003-2004. A portion of this contract reads:“I am pleased to inform you that you are designated and commissioned to be an Apostle of Love and Service, Unity and Peace as you dedicate and commit yourself in the exercise of your duties and responsibilities as a:There is no showing that the complainant signed a contract for the first and second semesters of SY 2004-2005.FULL-TIME FACULTY MEMBER
of the Religious Education Department from November 1, 2003 to March 31, 2004.
Unless otherwise renewed in writing this designation automatically terminates as of the date expiration above stated without further notice.”
Under the circumstances, it must be concluded that the complainant has acquired permanent status. The last paragraph of Article 281 of the Labor Code provides that “an employee who is allowed to work after a probationary period shall be considered a regular employee.” Based thereon, the complainant required [sic] permanent status on the first day of the first semester of SY 2003-2004.
As presently worded, Section 92 of the revised Manual of Regulations for Private Schools merely provides for the maximum lengths of the probationary periods of academic personnel of private schools in the three (3) levels of education (elementary, secondary, tertiary). The periods provided therein are not requirements for the acquisition, by them, of permanent status.
WHEREFORE, the decision appealed from is hereby AFFIRMED.
SO ORDERED.[15]
WHEREFORE, premises considered, the petition docketed as CA-G.R. SP No. 108103 is GRANTED. The challenged Decision of the NLRC dated August 1, 2008 in NLRC NCR CA No. 050481-06 (NLRC Sub-RAB V-05-04-00053-05) is AFFIRMED with MODIFICATION in that Universidad de Sta. Isabel is directed to reinstate Marvin-Julian L. Sambajon, Jr. to his former position without loss of seniority rights and to pay him full backwages computed from the time his compensation was withheld from him up to the time of his actual reinstatement. All other aspects are AFFIRMED.
As regards CA-G.R. SP No. 108168, the petition is DENIED for lack of merit.
SO ORDERED.[17]
Section 4. Requisites for perfection of appeal. x x x.
x x x x
(d) Subject to the provisions of Article 218 of the Labor Code, once the appeal is perfected in accordance with these Rules, the Commission shall limit itself to reviewing and deciding only the specific issues that were elevated on appeal.
5.01
WHETHER THE MARVIN JULIAN L. SAMBAJON, JR. WAS ILLEGALLY DISMISSED FROM THE UNIVERSIDAD DE STA. ISABEL.5.02
WHETHER THE UNIVERSIDAD DE STA. ISABEL SHORTENED THE PROBATIONARY PERIOD OF MARVIN JULIAN L. SAMBAJON.5.03
WHETHER RESPONDENTS-APPELLANTS ARE ENTITLED TO DAMAGES.[19]
Petitioners then suggest that the respondent Commission abused its discretion in awarding reliefs in excess of those stated in the decision of the labor arbiter despite the absence of an appeal by Villareal. To stress this point, they cited Section 5(c) of the Rules of Procedure of the National Labor Relations Commission which provides that the Commission shall, in cases of perfected appeals, limits itself to reviewing those issues which were raised on appeal. Consequently, those which were not raised on appeal shall be final and executory.
There is no merit to this contention. The records show that the petitioners elevated the issues regarding the correctness of the award of damages, reinstatement with backpay, retirement benefits and the cost-saving bonus to the respondent Commission in their appeal. This opened the said issues for review and any action taken thereon by the Commission was well within the parameters of its jurisdiction. (Emphasis supplied.)
ART. 281. Probationary Employment.–Probationary employment shall not exceed six (6) months from the date the employee started working, unless it is covered by an apprenticeship agreement stipulating a longer period. The services of an employee who has been engaged on a probationary basis may be terminated 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. An employee who is allowed to work after a probationary period shall be considered a regular employee.
Section 92. Probationary Period. – Subject in all instances to compliance with the Department and school requirements, the probationary period for academic personnel shall not be more than three (3) consecutive years of satisfactory service for those in the elementary and secondary levels, six (6) consecutive regular semesters of satisfactory service for those in the tertiary level, and nine (9) consecutive trimesters of satisfactory service for those in the tertiary level where collegiate courses are offered on a trimester basis. (Emphasis supplied.)
… As can be gleaned from Section 92 of the 1992 Manual of Regulations for Private Schools, the probationary period applicable in this case is not more than six (6) consecutive regular semesters of satisfactory service. In other words, the probationary period for academic personnel in the tertiary level runs from one (1) semester to six (6) consecutive regular semesters of satisfactory service. In the instant case, records reveal that Sambajon, Jr. only signed two appointment contracts. The first appointment-contract which he signed was dated November 2002 for the period November 1, 2002 to March 30, 2003, as Assistant Professor 10 on probationary status. x x x The second appointment-contract which Sambajon, Jr. executed was dated February 26, 2004, for the period November 1, 2003 to March 31, 2004. x x x Compared with the first appointment-contract, it was not indicated in the February 26, 2004 appointment-contract that Sambajon, Jr. was hired on probationary status, which explains the NLRC’s conclusion that Sambajon, Jr. already attained permanent status. At this juncture, it is worthy to emphasize that other than the period provided under Article 281 of the Labor Code, the following quoted portion of Article 281 of the Labor Code still applies:“ART. 281. PROBATIONARY EMPLOYMENT. – x x x x An employee who is allowed to work after a probationary period shall be considered a regular employee.”Thus, We sustain the NLRC’s conclusion that Sambajon, Jr. acquired permanent status on the first day of the first semester of SY 2003-2004 when he was allowed to continue with his teaching stint after the expiration of his first appointment-contract on March 30, 2003.[27]
Date Contract Period November 1, 2002 November 1, 2002-March 30, 2003 September 28, 2003 June 1, 2003-October 31, 2003 February 26, 2004 November 1, 2003-March 31, 2004 September 30, 2004 June 1, 2004-October 31, 2004 October 28, 2004 November 3, 2004-March 31, 2005
February 26, 2004
MR. MARVIN JULIAN SAMBAJON
Religious Education Department
Dear Mr. Sambajon,
I am pleased to inform you that you are designated and commissioned to be an Apostle of Love and Service, Unity and Peace as you dedicate and commit yourself in the exercise of your duties and responsibilities as a:FULL TIME FACULTY MEMBER
of the Religious Education Department from November 1, 2003 to March 31, 2004.
Unless otherwise renewed in writing, this designation automatically terminates as of the date expiration above states without further notice.
As a member of the academic/clinical community, you are expected to live by and give your full support to the promotion and attainment of the Vision-Mission, goals and objectives, the rules and regulations, the Core Values which the University professes to believe and live by.
Congratulations and keep your work full in the spirit of the Lord for the Charity of Christ urges us to live life to the fullest.
God bless
In Christ,
Sr. Ma. Asuncion G. Evidente, D.C.
USI President
Witness:
Sr. Stella O. Real, D.C.
HR Officer
I, ______________________ understand that unless renewed in writing, my services as ________________ expires automatically on the specific date above stated.
Furthermore, I fully accept this appointment to help build the Kingdom of God here and now and to facilitate the living of the Core Values and the attainment of the Vision-Mission and the goals and objectives of the University.
Received and Conforme:(SGD.) MARVIN-JULIAN L. SAMBAJON, JR.[29]
The problem is that your good office has never categorically resolved whether or not probationary teachers can also be evaluated for salary adjustment. Nevertheless, inferring from your statement that evaluation precedes re-ranking and in fact is the basis for re-ranking, may I categorically ask: does it really mean that since, it precedes re-ranking, evaluation should not take place among probationary teachers for they can not yet be re-ranked? If so, then how pitiful are we, probationary teachers for our credentials are never evaluated since we cannot yet be re-ranked. Oh my goodness! Can your good office not give me a clearer and more convincing argument shedding light on this matter?[30]
The three (3)-year period of service mentioned in paragraph 75 [of the Manual of Regulations for Private Schools] is of course the maximum period or upper limit, so to speak, of probationary employment allowed in the case of private school teachers. This necessarily implies that a regular or permanent employment status may, under certain conditions, be attained in less than three (3) years. By and large, however, whether or not one has indeed attained permanent status in one’s employment, before the passage of three (3) years, is a matter of proof. (Emphasis supplied.)
2. Subject in all instances to compliance with the concerned agency and school requirements, the probationary period for teaching or academic personnel shall not be more than three (3) consecutive school years of satisfactory service for those in the elementary and secondary levels; six (6) consecutive regular semesters of satisfactory service for those in the tertiary and graduate levels, and nine (9) consecutive trimesters of satisfactory service for those in the tertiary level where collegiate courses are offered on a trimester basis.
Unless otherwise provided by contract, school academic personnel who are under probationary employment cannot be dismissed during the applicable probationary period, unless dismissal is compelled by a just cause or causes.
3. Teachers or academic personnel who have served the probationary period as provided for in the immediately preceding paragraph shall be made regular or permanent if allowed to work after such probationary period. The educational institution, however, may shorten the probationary period after taking into account the qualifications and performance of the probationary teachers and academic personnel.
Full-time teaching or academic personnel are those meeting all the following requirements:
x
3.1. Who possess at least the minimum academic qualifications prescribed by the Department of Education, Culture and Sports for Basic Education, the Commission on Higher Education for Tertiary Education, and the Technical Education and Skills Development Authority for Technical and Vocational Education under their respective Manual of Regulations governing said personnel; 3.2 Who are paid monthly or hourly, based on the normal or regular teaching loads as provided for in the policies, rules and standards of the agency concerned; 3.3 Whose regular working day of not more than eight (8) hours a day is devoted to the school; 3.4 Who have no other remunerative occupation elsewhere requiring regular hours of work that will conflict with the working hours in the school; and 3.5 Who are not teaching full-time in any other educational institution
All teaching or academic personnel who do not meet the foregoing qualifications are considered part time.
4. Part-time teaching or academic personnel cannot acquire regular or permanent employment status.
5. Teaching or academic personnel who do not meet the minimum academic qualifications shall not acquire tenure or regular status. The school may terminate their services when a qualified teacher becomes available.[35]
The common practice is for the employer and the teacher to enter into a contract, effective for one school year. At the end of the school year, the employer has the option not to renew the contract, particularly considering the teacher’s performance. If the contract is not renewed, the employment relationship terminates. If the contract is renewed, usually for another school year, the probationary employment continues. Again, at the end of that period, the parties may opt to renew or not to renew the contract. If renewed, this second renewal of the contract for another school year would then be the last year – since it would be the third school year – of probationary employment. At the end of this third year, the employer may now decide whether to extend a permanent appointment to the employee, primarily on the basis of the employee having met the reasonable standards of competence and efficiency set by the employer. For the entire duration of this three-year period, the teacher remains under probation. Upon the expiration of his contract of employment, being simply on probation, he cannot automatically claim security of tenure and compel the employer to renew his employment contract. It is when the yearly contract is renewed for the third time that Section 93 of the Manual becomes operative, and the teacher then is entitled to regular or permanent employment status.[38] (Emphasis supplied.)
The Conflict: Probationary Status
and Fixed-term Employment
The existence of the term-to-term contracts covering the petitioners’ employment is not disputed, nor is it disputed that they were on probationary status – not permanent or regular status – from the time they were employed on May 25, 1998 and until the expiration of their Teaching Contracts on September 7, 2000. As the CA correctly found, their teaching stints only covered a period of at least seven (7) consecutive trimesters or two (2) years and three (3) months of service. This case, however, brings to the fore the essential question of which, between the two factors affecting employment, should prevail given AMACC’s position that the teachers contracts expired and it had the right not to renew them. In other words, should the teachers’ probationary status be disregarded simply because the contracts were fixed-term?
The provision on employment on probationary status under the Labor Code is a primary example of the fine balancing of interests between labor and management that the Code has institutionalized pursuant to the underlying intent of the Constitution.
On the one hand, employment on probationary status affords management the chance to fully scrutinize the true worth of hired personnel before the full force of the security of tenure guarantee of the Constitution comes into play. Based on the standards set at the start of the probationary period, management is given the widest opportunity during the probationary period to reject hirees who fail to meet its own adopted but reasonable standards. These standards, together with the just and authorized causes for termination of employment the Labor Code expressly provides, are the grounds available to terminate the employment of a teacher on probationary status. For example, the school may impose reasonably stricter attendance or report compliance records on teachers on probation, and reject a probationary teacher for failing in this regard, although the same attendance or compliance record may not be required for a teacher already on permanent status. At the same time, the same just and authorize[d] causes for dismissal under the Labor Code apply to probationary teachers, so that they may be the first to be laid-off if the school does not have enough students for a given semester or trimester. Termination of employment on this basis is an authorized cause under the Labor Code.
Labor, for its part, is given the protection during the probationary period of knowing the company standards the new hires have to meet during the probationary period, and to be judged on the basis of these standards, aside from the usual standards applicable to employees after they achieve permanent status. Under the terms of the Labor Code, these standards should be made known to the teachers on probationary status at the start of their probationary period, or at the very least under the circumstances of the present case, at the start of the semester or the trimester during which the probationary standards are to be applied. Of critical importance in invoking a failure to meet the probationary standards, is that the school should show – as a matter of due process – how these standards have been applied. This is effectively the second notice in a dismissal situation that the law requires as a due process guarantee supporting the security of tenure provision, and is in furtherance, too, of the basic rule in employee dismissal that the employer carries the burden of justifying a dismissal. These rules ensure compliance with the limited security of tenure guarantee the law extends to probationary employees.
When fixed-term employment is brought into play under the above probationary period rules, the situation – as in the present case – may at first blush look muddled as fixed-term employment is in itself a valid employment mode under Philippine law and jurisprudence. The conflict, however, is more apparent than real when the respective nature of fixed-term employment and of employment on probationary status are closely examined.
The fixed-term character of employment essentially refers to the period agreed upon between the employer and the employee; employment exists only for the duration of the term and ends on its own when the term expires. In a sense, employment on probationary status also refers to a period because of the technical meaning “probation” carries in Philippine labor law – a maximum period of six months, or in the academe, a period of three years for those engaged in teaching jobs. Their similarity ends there, however, because of the overriding meaning that being “on probation” connotes, i.e., a process of testing and observing the character or abilities of a person who is new to a role or job.
Understood in the above sense, the essentially protective character of probationary status for management can readily be appreciated. But this same protective character gives rise to the countervailing but equally protective rule that the probationary period can only last for a specific maximum period and under reasonable, well-laid and properly communicated standards. Otherwise stated, within the period of the probation, any employer move based on the probationary standards and affecting the continuity of the employment must strictly conform to the probationary rules.
Under the given facts where the school year is divided into trimesters, the school apparently utilizes its fixed-term contracts as a convenient arrangement dictated by the trimestral system and not because the workplace parties really intended to limit the period of their relationship to any fixed term and to finish this relationship at the end of that term. If we pierce the veil, so to speak, of the parties’ so-called fixed-term employment contracts, what undeniably comes out at the core is a fixed-term contract conveniently used by the school to define and regulate its relations with its teachers during their probationary period.
To be sure, nothing is illegitimate in defining the school-teacher relationship in this manner. The school, however, cannot forget that its system of fixed-term contract is a system that operates during the probationary period and for this reason is subject to the terms of Article 281 of the Labor Code. Unless this reconciliation is made, the requirements of this Article on probationary status would be fully negated as the school may freely choose not to renew contracts simply because their terms have expired. The inevitable effect of course is to wreck the scheme that the Constitution and the Labor Code established to balance relationships between labor and management.
Given the clear constitutional and statutory intents, we cannot but conclude that in a situation where the probationary status overlaps with a fixed-term contract not specifically used for the fixed term it offers, Article 281 should assume primacy and the fixed-period character of the contract must give way. This conclusion is immeasurably strengthened by the petitioners’ and the AMACC’s hardly concealed expectation that the employment on probation could lead to permanent status, and that the contracts are renewable unless the petitioners fail to pass the school’s standards.[40] (Additional emphasis supplied.)
Finally, we rule on the propriety of the monetary awards. Petitioner, as employer, is entitled to decide whether to extend respondent a permanent status by renewing her contract beyond the three-year period. Given the acrimony between the parties which must have been generated by this controversy, it can be said unequivocally that petitioner had opted not to extend respondent’s employment beyond this period. Therefore, the award of backwages as a consequence of the finding of illegal dismissal in favor of respondent should be confined to the three-year probationary period. Computing her monthly salary of P15,000.00 for the next two school years (P15,000.00 x 10 months x 2), respondent already having received her full salaries for the year 2002-2003, she is entitled to a total amount of P300,000.00. Moreover, respondent is also entitled to receive her 13th month pay correspondent to the said two school years, computed as yearly salary, divided by 12 months in a year, multiplied by 2, corresponding to the school years 2003-2004 and 2004-2005, or P150,000.00 / 12 months x 2 = P25,000.00. Thus, the NLRC was correct in awarding respondent the amount of P325,000.00 as backwages, inclusive of 13th month pay for the school years 2003-2004 and 2004-2005, and the amount of P3,750.00 as pro-rated 13th month pay.