a3b

MARIWASA MANUFACTURING INC and Angel T. Daze vs. HON. VICENTE

LEOGARDO, JR. and JOAQUIN DEQUILA
FACTS:
 Joaquin a. Daquila ( Daquila) was hired on probation by Mariwasa Manufacturing
Incorporated as a general utility worker.
 Upon expiration of his probationary contract, he was informed that his work was
unsatisfactory and had failed to meet the required standards.
 To give him a chance to improve his performance, instead of firing him, Mariwasa
extended his probation period for three months. This was done with his written
consent.
 However, his performance did not improve and thus Mariwasa terminated his
services at the end of the extended period.
 Daquila filed with the ministry of Labor a complaint for illegal dismissal and
violation of PD 9200 and 1389 against Mariwasa.
MINISTRY OF LABOR
o Ruled that the termination of Daquila’s employment was justified and
rejected his money claims for insufficiency of evidence.
DEPUTY MINISTER
o Daquila, already a regular employee at the time of his dismissal,
therefore, cannot have been lawfully dismissed for failure to meet company
standards as a probationary worker.
o Ordered reinstatement with full back wages from the date of his dismissal
up to actual reinstatement this was later amended to payment of back wages
from dismissal up to December 20, 1982 only.
ISSUE: WON ARTICLE 296 OF THE LABOR CODE NOTWITHSTANDING,
PROBATIONARY EMPLOYMENT MAY VALIDLY BE EXTENDED BEYOND
THE PRESCRIBED SIX MONTH PERIOD BY AGREEMENT OF THE EMPLOYER
AND EMPLOYEE.

HELD:
YES. An extension may lawfully be covenanted, notwithstanding the seemingly
restrictive language of Article 282 (now Art. 295) of the Labor Code (Buiser vs.
Leogardo, Jr.). The court in Buiser vs Leogardo, Jr. held that the exception to the general
rule is when the parties to an employment contract agree otherwise, such as when the
a3b

same is established by company policy or when the same is required by the nature of
work to be performed. The later is a valid exercise of management prerogative e.g., when
the job requires certain qualifications, skills experience or training.
The Inability of Daquila to make the grade became apparently only at or about
the end of the six-month probationary period hence the extension could not have been
pre-arranged.
The extension was given ex gratia, an act of liberality on the part of the employer
affording him a second chance to make good after having initially failed to prove his
worth as an employee. The employer cannot be compelled to keep in its payroll one who
could not perform according to its work standards.
Voluntarily agreeing to an extension of the probationary period waived any
benefit attaching to the completion of said period if the probationer still failed to make
the grade during the period of extension. The law does not prohibit such waiver and no
public policy protecting the employee or the security of tenure is served by proscribing
voluntary agreements, which by reasonably extending the probationary period, actually
improve and further a probationary employee’s prospects of demonstrating his fitness for
regular employment.

Liberality – the quality or condition of being liberal in giving; generosity; bounty.