Regularization refers to the process of an employee securing their long term placement at a company after a probationary employment period. Regularization is legally required in the Philippines.
As an employer of a CoDev team member based in the Philippines, it’s important to become familiar with this term and what it means for you.
When companies hire in-office employees, they often go through a probationary period. This is a period of time where you, the employer, assess whether or not your new hire is a good fit for the position they’ve just been hired for.
In the Philippines, this probationary period is a legally defined period of time wherein the employer and the employee determine if the working relationship will be a positive long term engagement. If the employee passes the probationary period, the employee becomes a “regularized” or “regular” employee. A “Regular” employee is eligible for additional employment benefits and legal employee protections – similar to a Tenured Professor. The regularization period typically lasts around 6 months.
Probationary and Regularized Employees: What’s the Difference?
For most employees in the Philippines, getting regularized is an important step in their employment process. First off, it means that they have performed according to agreed upon standards, and that they can keep their job. But it also means so much more for regularized employees:
- They get additional benefits, like more leave credits and health insurance coverage.
- They are better protected by local laws when it comes to termination.
- They can now feel secure with their employment, and are more likely to have long-term careers with their current employers.
Being a probationary employee is a position of great uncertainty, which is why most employees will do their best to get regularized as soon as possible.
Regularization at CoDev
At CoDev, we follow the usual regularization period and process, wherein probationary employees undergo regularization 6 months after they are hired. This process begins five months into the probationary period, when the CoDev team member’s immediate head or supervisor (assigned locally) will fill out an evaluation form and reach out to the customer to get feedback from them on their Extended Team Member’s performance. This form provides general performance metrics on which the CoDev team member’s performance will be measured against. These will be the basis for your CoDev team member’s regularization.
In order to provide sound feedback, it’s important to set realistic standards beforehand for the performance and/or output you would expect from your offshore team members within the probationary period. You should also be clear on the length of the probationary period. Having a clear regularization schedule is a big selling point to new hires. While it is expected to last for 6 months, it can take shorter or longer depending on your requirements.
At CoDev, we handle most of the employee regularization processes for you. This includes informing your new hires of the standards, expectations, and policies set, and the length of their probationary period (if you would like to shorten or extend this, you need only to speak with your customer success representative). We also speak to employees on your behalf on whether or not they achieve regularization, and may move them to another project in the unlikely event that they do not.
CoDev employees receive full benefits upon regularization. That means that they will receive full health insurance coverage, maximum leave credits, and are eligible for an annual performance-based salary increase.
Regularization is a great benefit for your CoDev team members, but it can also be beneficial for you. Through regularization, you are assured of a dedicated, highly qualified, long-term employee, and you won’t have to worry about their benefits and other work requirements when you partner with CoDev.
Still have questions about employee regularization? Get in touch with one of our representatives today.