FACTS:

Petitioner Colegio San Agustin hired the complainant as a grade school classroom teacher on a probationary basis for three school years. However, on March 24, 1987, petitioner informed the complainant that it would be best for her to seek employment elsewhere for the next school year. The petitioner still paid the complainant her salary for the designated period, despite the notice. The complainant sought reconsideration, but received no reply. Consequently, she filed a complaint for illegal dismissal. The Labor Arbiter ordered the petitioner to reinstate the complainant as a permanent teacher without loss of seniority rights and with backwages. The NLRC affirmed the decision with modification, awarding the complainant six months' worth of backwages. The petitioner now seeks to annul the NLRC decision, arguing that they cannot be forced to enter into a contract of teaching employment with a teacher who did not qualify.

ISSUES:

1. Whether or not a school can be lawfully forced to enter into a contract of teaching employment with a teacher who did not qualify for teaching work during the probationary period.

2. Whether or not the NLRC committed grave abuse of discretion or acted in excess of or without jurisdiction in ruling against the petitioner.

RULING:

1. The Court held that the petition has merit. The Labor Code provides that probationary employment shall not exceed six months and the services of an employee on probationary status may be terminated for just cause. The Manual of Regulation for Private Schools also states that full-time teachers who have rendered three consecutive years of satisfactory service shall be considered permanent. It is undisputed that the complainant was on probationary basis for three consecutive school years and her contract was not renewed for the following school year. Therefore, her probationary period has already expired and she should be considered a regular employee. However, the Court modified the decision of the NLRC and awarded the complainant with six months backwages instead of full backwages considering the length of the case's pendency.

PRINCIPLES:

• Probationary employment shall not exceed six months and an employee on probationary status may be terminated for just cause or failure to qualify as a regular employee. (Article 280, Labor Code)

• Full-time teachers who have rendered three consecutive years of satisfactory service shall be considered permanent. (Manual of Regulation for Private Schools)

• Employees who have completed their probationary period shall be considered regular employees. (Faculty Manual of the petitioner)