In a landmark decision, the Supreme Court has ruled that probationary employees who are illegally dismissed are entitled to backwages from the time their compensation was withheld up to their actual reinstatement. This ruling was made on April 16, 2024, in a case involving Geraldine M. Barbosa, a former probationary employee at C.P. Reyes Hospital.
Barbosa had signed a six-month probationary employment contract with the hospital in September 2013. However, she was dismissed before the end of her probation period, prompting her to file a complaint for illegal dismissal.
The Labor Arbiter initially ruled in favor of Barbosa, stating that she had met the hospital’s standards based on her performance evaluations. Although the National Labor Relations Commission (NLRC) reversed this decision, the Court of Appeals reinstated the original ruling.
The Supreme Court upheld the Court of Appeals’ decision, stating that Barbosa was indeed illegally dismissed and is therefore entitled to backwages.
The Court clarified that if a probationary employee is dismissed without valid grounds, they are entitled to continue working even beyond their probationary period. In such cases, backwages should be computed from the time compensation was withheld until the final decision in the illegal dismissal case.
In Barbosa’s case, her backwages will be calculated from January 1, 2014, when her compensation was first withheld, until the finality of the Court’s decision. This ruling emphasizes the right to security of tenure for all employees, whether regular or probationary, as guaranteed by both the Constitution and the Labor Code.