Sample - Probationary Employment Agreement

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PROBATIONARY EMPLOYMENT CONTRACT

(DATE)

(NAME)
(ADDRESS)

Dear (LAST NAME):

We are pleased to inform you that (NAME OF EMPLOYER) (“the PRINCIPAL”) is


hiring you as a (POSITION) on a probationary status under the following terms and
conditions:

1. PROBATION PERIOD

1.1. Your probationary employment with the PRINCIPAL shall be for a period
not exceeding SIX (6) MONTHS, commencing on ______________ and
automatically terminated on _____________________ unless notified for
promotion to regular status.

1.2. Both parties mutually agree that employment under this Contract does
not constitute permanent employment and does not give rise to the
privileges of permanent employment, unless the PRINCIPAL confirms in
writing your status at the end of the probationary period.

2. EVALUATION

2.1. During your six-month probationary employment, you shall be under


observation and evaluation by the PRINCIPAL to determine whether you
are qualified for permanent employment. You are expected to perform all
duties which may be required of you as a (POSITION). You must comply
with all the reasonable directions given to you. You are likewise enjoined
to observe all the policies, procedures and rules of the PRINCIPAL. Prior
to the expiration of the period of your probationary employment, your
performance as a (POSITION) shall be evaluated based on reasonable
standards.

2.2. Attainment of regular employment shall be conditioned on your having


successfully passed and complied with the PRINCIPAL’s established
standards for regularization as set forth in this Contract. These standards
are based, among others, on the following criteria: (1) dependability; (2)
efficiency; (3) initiative; (4) attitude towards work, the PRINCIPAL, its
officers and other colleagues; (5) cooperation; (6) client response; (7)
judgment; (8) punctuality; (9) quality and quantity of work produced; and
(10) professionalism. The PRINCIPAL may establish other requirements
from time to time as the need for the same arises.

3. COMPENSATION AND BENEFITS

3.1. You will receive a gross basic monthly salary of


______________________________ PESOS (P ____________) Philippine
Currency payable on the 15th and last day of each month, subject to the
corresponding government imposed tax and other deductions. This
amount already includes compensation for worked legal holidays and
other mandatory allowance under existing laws.

3.2. Only regular or permanent employees are entitled to vacation and/or sick
leave credits. However, you are entitled to the other benefits extended to
all employees regardless of status including those provided under the law.

3.3. If your services are terminated for cause or for failure to qualify as a
regular employee, you are entitled to collect your salary for the last
worked month, subject to any applicable deductions, on the last day of
your probationary period at the close of business hours.

3.4. In case of termination of your employment for whatever cause, the


PRINCIPAL shall have the right, and you hereby authorize the
PRINCIPAL, to deduct or withhold your last salary or any other benefits
accrued in your favor, pending liquidation of whatever obligations which
you may have with the PRINCIPAL without prejudice to the right of the
PRINCIPAL to demand, collect, or recover from you any balance
remaining thereafter.

4. HOURS OF WORK

4.1. You shall work for a period of FORTY (40) hours per week as the
PRINCIPAL may reasonably require. You may be required to work
additional hours as may be necessary or appropriate to enable you to
carry out your duties properly.

4.2. The PRINCIPAL reserves the right to require you to report for work on
weekends/holidays and/or beyond your usual work schedule as well as
to vary or alter the hours or time of your work as the exigencies of the
PRINCIPAL’s business require.

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5. DUTIES AND RESPONSIBILITIES

5.1. You are required to report to the PRINCIPAL’s (POSITION –


IMMEDIATE SUPERIOR), (NAME OF SUPERIOR), or in his absence, to
the PRINCIPAL’s (POSITION – 2ND SUPERIOR), (NAME OF THE 2 ND
SUPERIOR).

5.2. You shall devote your time, attention, skills and abilities to the
performance of your duties under this Contract and shall act in the best
interest of the PRINCIPAL. You shall not undertake any other work or
employment even outside your normal hours of work without prior
written consent of the PRINCIPAL.

5.3. Any misrepresentations with regard to your previous employment,


qualification, educational attainment, personality or character and/or any
medical findings which will pose a threat to the health or safety of other
employees shall be a cause for your termination from employment.

5.4. During the probationary period, you may be assigned to work in different
work stations for such periods of time to be determined by the
PRINCIPAL or as the business of the PRINCIPAL may require.

6. EXIT CLEARANCE PROCEDURE

Upon the termination of this Contract, you agree to undergo an exit clearance
procedure whereby:

(1) You shall surrender all documents and records of the PRINCIPAL or its
clients in your possession;
(2) You shall furnish the PRINCIPAL a written memorandum of your
pending work;
(3) You shall settle your obligations with the PRINCIPAL, if any; and
(4) The PRINCIPAL shall determine any possible violation/s of the employee
of the provisions or terms of this Contract and/or the PRINCIPAL’s
policies.

7. MEDICAL/DRUG TEST

By signing this Contract, you hereby consent and agree to, upon request from the
PRINCIPAL, undergo at a government accredited institute to be nominated by
the PRINCIPAL a medical/drug test at your expense. This is to be carried out for
the purpose of determining your physical and mental fitness to perform the
functions of this job.

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8. TERMINATION OF EMPLOYMENT

8.1. Upon the expiration of the probationary period provided in paragraph


1.1, this Contract shall be deemed immediately cancelled and your
employment is considered terminated without any need of further notice,
unless the PRINCIPAL confirms in writing your status for
regular/permanent employment. Thereafter, your name shall be
transferred to the permanent payroll.

8.2. Even prior to the expiration of your probationary period as provided


herein, the PRINCIPAL reserves the right to terminate or cancel this
Contract for just or authorized causes, after compliance with the
procedure for termination provided in the Labor Code and its
implementing rules. Termination may be due to any of, but not
necessarily limited to, the following:

a. Inefficiency or incompetence in the performance of work;


b. Without any prior notice, failure to report to assigned office for
__________(___) consecutive days;
c. Insubordination;
d. Engagement in any undertaking or activity unrelated to his
employment during working time and/or fails to devote full-time
work to his employment with the PRINCIPAL;
e. Work or employment with any other employer ;
f. Just and authorized causes enumerated in Articles 282, 283, and 284 of
the Labor Code;
g. Violation of the provisions of policies, rules, and regulations
promulgated by the PRINCIPAL;
h. Breach of the provisions of this Contract; and
i. Other analogous causes.

8.3. Should you resign from the PRINCIPAL prior to the expiration of your
probationary period, you are required to submit a written notice THIRTY
(30) days prior to the effectivity of such resignation.

8.4. Failure to observe the required advance notice provided in the above
paragraph shall render you liable for damages equivalent to ___________
PESOS (P_________) as liquidated damages. The amount representing
liquidated damages due to the PRINCIPAL shall be chargeable from the
amount owing to you by reason of this employment upon your
cancellation of this Contract. Notwithstanding, the PRINCIPAL shall
have the right to institute the appropriate suit to protect its interest under
the circumstances.

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9. MISCELLANEOUS PROVISIONS

A. SEPARABILITY CLAUSE

If any provision or provisions of this Contract be declared illegal, invalid or void


by any court of competent jurisdiction, such declaration shall not render illegal,
invalid, or void any other provisions of this Contract which can remain
independently valid.

B. NON-DISCLOSURE

You acknowledge that this Contract must remain confidential. Except as may be
legally required by competent authority or applicable statutes, the parties hereto
shall not make any unauthorized disclosures of the terms and conditions
embodied in this Contract.

C. CONFIDENTIALITY

1. During the duration of your employment with the PRINCIPAL and for a
period of __________(____) YEARS after the cessation of your
employment under this Contract in any manner, you shall not at any time
or in any matter, either directly or indirectly, divulge, disclose, or
communicate to any person, natural or juridical, or in any manner
whatsoever, any information that you may obtain while employed with
the PRINCIPAL concerning any matter affecting or relating to the
business of the PRINCIPAL, without regard to whether or not such
matters will be deemed confidential, material, or important.

2. You must formally declare that you have properly tendered your
resignation from your previous employer and is free from any obligation
to them, not bound to any other company, or subject to any non-
competition clause. Moreover, you shall neither disclose to the
PRINCIPAL nor induce the PRINCIPAL to use any confidential
information or material, which belongs to your former employer.

3. Failure to comply with this confidentiality undertaking shall be construed


and considered as Gross Misconduct and shall be deemed a ground for the
termination of your employment.

D. AMENDMENTS AND MODIFICATIONS

This Contract may only be amended or modified with the mutual consent of both
parties evidenced by their signature on a written document.

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E. ENTIRE AGREEMENT

This Contract comprises the entire agreement between you and the PRINCIPAL
and supersedes all previous oral and written communications, representations,
and agreements between the parties.

F. INDEMNIFICATION

You agree to indemnify, defend, save, and hold harmless the PRINCIPAL, its
shareholders, officers, directions, and other agents from and against all claims,
liabilities, causes of action, damages, judgments, attorneys’ fees, court costs, and
expenses which arise out of or are related to your performance of this Contract,
failure to perform job functions or duties as required, or result from conduct
while engaging in any activity outside the scope of this Contract, before, during
or after the termination of this Contract. This obligation of indemnification is
understood to survive the expiration or termination of this Contract.

G. WAIVER OF BREACH

The waiver by the PRINCIPAL of your breach of any provision of this Contract
shall not operate as a waiver of any subsequent breach by the PRINCIPAL. No
waiver shall be valid unless placed in writing and signed by an officer of the
PRINCIPAL.

H. VENUE

Any and all actions arising from or in connection with this Contract shall be filed
or commenced in the appropriate courts in the City of ______________ to the
exclusion of all other courts or tribunals.

I. AMBIGUITIES

Both parties agree that any ambiguity created by this Contract will not be
construed against the PRINCIPAL.

J. ACCEPTANCE OF TERMS AND CONDITIONS OF EMPLOYMENT

Your signature in the space provided hereunder shall constitute your conformity
and acceptance of the foregoing terms. Furthermore, it signifies that the terms
and conditions for the regularization of your employment have been clearly
communicated to and accepted by you at the time of your engagement.

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We welcome you into our organization. We hope that your association with us will be
mutually beneficial.

Very truly yours,

____________________________________________
(NAME OF REPRESENTATIVE OF PRINCIPAL)
(POSITION)

I hereby acknowledge receipt of the original of this Contract and agree to all the terms
stated therein.

______________________________
(NAME AND SIGNATURE)

______________________________
(DATE)

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