Employee regularization is legally required in the Philippines. It refers to an employee securing their long-term placement at a company after a probationary employment period.
As an employer of a CoDev team member based in the Philippines, it’s essential to be familiar with employee regularization and what it means for you.
Employee Regularization Trial Period
When companies hire in-office employees, they often undergo a probationary period. This period is when you, the employer, assess whether your new hire is a good fit for employee regularization.
In the Philippines, this probationary period is a legally defined period during which the employer and the employee determine whether 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 benefits and legal employee protections—similar to a Tenured Professor. The regularization period typically lasts around 6 months.
Regular and Probationary Employees: What’s the Difference?
For most workers in the Philippines, employee regularization is an essential step in their employment process. First, they have performed according to agreed-upon standards and 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, so most employees will do their best to get regularized as soon as possible.
Employee Regularization at CoDev
At CoDev, we follow the usual employee regularization process, where the probationary employees undergo regularization six months after they are hired. This process begins five months into the probationary period.
The CoDev team member’s immediate head or supervisor (assigned locally) will fill out an evaluation form and contact the customer to get feedback on their Extended Team Member’s performance.
This form provides general performance metrics for measuring the CoDev team member’s performance. These will be the basis for your CoDev team member’s employee regularization.
To provide sound feedback, it’s essential to set realistic standards beforehand for the performance and 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 for new hires. While it is expected to last six months, it can take shorter or longer, depending on your requirements.
Hire Great Workers With Us!
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 only need to speak with your customer success representative.
We also speak to employees on your behalf about whether they achieve regularization and may move them to another project if they do not.
CoDev employees receive full benefits upon regularization, meaning they get full health insurance coverage and maximum leave credits and are eligible for an annual performance-based salary increase.
Employee regularization is an excellent benefit for your CoDev team members, but it can also benefit you.
Regularization guarantees a dedicated, long-term employee, and you won’t have to worry about other work requirements when you partner with CoDev.
Do you have questions about employee regularization? Contact one of our representatives today to start your journey to scaling your business with us!
