Title
Supreme Court
Abbott Laboratories, Philippines vs. Alcaraz
Case
G.R. No. 192571
Decision Date
Apr 22, 2014
Abbott terminated probationary employee Alcaraz for failing performance standards; SC upheld dismissal, ruling duties as implied regularization criteria, no formal standards required.

Case Summary (G.R. No. 192571)

Finding of Grave Abuse by the NLRC

The Supreme Court affirmed that the NLRC gravely abused its discretion in treating Alcaraz as a regular employee despite:
• clear newspaper advertisement and written job description;
• offer sheet and contract expressly imposing a six-month probation;
• pre-employment orientation on duties, responsibilities, reporting lines and company policies;
• provision of Code of Conduct and Performance Modules explaining the single evaluation system for all employees; and
• Alcaraz’s own acknowledgment of her background and training relevant to the position.

These circumstances collectively demonstrate that Alcaraz was properly informed of her performance standards and remained on probation.

Probationary Standards of Regularization

The law requires two elements for valid probationary employment:
1. Communication of reasonable standards for confirmation at the outset.
2. Termination, if applied, only upon failure to meet those standards within six months.

Adequate performance of duties and responsibilities constitutes an implied standard of regularization, especially for managerial roles where qualitative measures cannot be reduced to numeric quotas. Not all employers maintain sophisticated HR feedback systems, and absence of such tools does not vitiate an otherwise valid probationary framework.

Procedural Lapses and Nominal Damages

Abbott’s failure to follow its own Probationary Performance Standards Evaluation procedure did not undermine the existence of a valid cause for dismissal. Under Agabon v. NLRC and Jaka Food Processing v. Pacot, breach of internal rules only merits nominal damages when statutory due process and substantive cause for termination are satisfied.

Distinction from Aliling

In Aliling v. Feliciano, the probationary employee lacked any communicated standard (e.g., sales quota) at the

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