Buiser v. Leogardo, G.R. No.

L- 63316, (1984)

FACTS: Buiser, Rilloacuna and Intengan were employed by General Telephone Directory Co.
as sales representative.

Buiser et al. entered an “Employment Contract (on Probationary Status)” with GT Directory.

The employment contact states that:

o The company hereby employs the employee as telephone sales representative

on a probationary status for a period of eighteen (18) months.
o During the probationary period of employment, the Employee may be terminated
at the pleasure of the company without the necessity of giving notice of
termination or the payment of termination pay.
o It takes about eighteen (18) months before his worth as a telephone sales
representative can be fully evaluated.

GT Directory prescribed sales quotas to be accomplished by Buiser. Failing to meet their

respective sales quotas, Buiser et al. were dismissed from the service. Thus, Buiser filed a
complaint for illegal dismissal. Hence, this petition.

ISSUE: W/N the 18 months probationary status is allowed.

HELD: YES

General Rule: probationary period of employment is limited to six (6) months.

Exception:

o parties to an employment contract agreed otherwise,

o established by company policy
o required by the nature of work to be performed by the employee.

There is an exercise of managerial prerogatives in requiring a longer period of probationary

employment, especially where the employee must learn a particular kind of work such as
selling, or when the job requires certain qualifications, skills, experience or training.

Under the Labor Code, six (6) months is the general probationary period, but the probationary
period is the period needed to determine fitness for the job. This period, for lack of a better
measurement is deemed to be the period needed to learn the job.

Moreover, an eighteen month probationary period is recognized by the Labor Union GT

Directory Co, which is Article V of the Collective Bargaining Agreement.