Understanding Employment Status in Private Schools: The Importance of Meeting Full-Time Criteria

Arlene Palgan v. Holy Name University, G.R. No. 219916, February 10, 2021

Imagine a dedicated teacher who has spent years nurturing young minds, only to find themselves at a crossroads when their contract isn’t renewed. This scenario played out in the case of Arlene Palgan, whose journey through the Philippine legal system sheds light on the complexities of employment status in private educational institutions. At the heart of this case lies a critical question: what defines a regular or permanent employee in the context of private schools?

Arlene Palgan was employed by Holy Name University as a clinical instructor and later as a part-time faculty member. When her contract expired without renewal, she filed a complaint for illegal dismissal, asserting that she had attained regular employee status. The Supreme Court’s decision in this case not only resolved Palgan’s situation but also clarified the legal standards governing employment in private schools.

Legal Context: Employment Regulations in Private Schools

In the Philippines, the employment status of teachers in private schools is governed by specific regulations rather than the general provisions of the Labor Code. The Revised Manual of Regulations for Private Schools (1992 Manual) and the Commission on Higher Education (CHED) regulations set the standards for determining whether a teacher is considered full-time, probationary, or permanent.

According to the 1992 Manual, a full-time teacher must meet several criteria, including possessing the minimum academic qualifications prescribed by the Department of Education. For nursing faculty, CHED Memorandum Order No. 30 Series of 2001 (CMO 30-01) and the Philippine Nursing Act of 1991 (RA 9173) specify additional requirements, such as a minimum of one year of clinical practice experience.

These regulations are crucial because only full-time teachers who have satisfactorily completed a probationary period can achieve permanent status. This principle was reinforced in the case of Lacuesta v. Ateneo de Manila University, where the Supreme Court emphasized that the Manual of Regulations, not the Labor Code, determines the employment status of faculty members in private educational institutions.

Case Breakdown: Arlene Palgan’s Journey Through the Courts

Arlene Palgan’s career at Holy Name University began as a clinical instructor in the College of Nursing. She worked in various capacities over the years, including as a part-time faculty member and a municipal councilor. In 2004, she rejoined the university as a full-time clinical instructor, signing contracts for term/semestral employment until 2007, when her contract was not renewed.

Palgan argued that she had become a regular employee after teaching for more than six consecutive semesters, as per the Manual of Regulations. However, the university contended that she remained a probationary employee and that her contract had simply expired.

The case went through several stages:

• Labor Arbiter: Initially dismissed Palgan’s complaint, ruling that her employment was probationary.
• National Labor Relations Commission (NLRC): Initially affirmed the Labor Arbiter’s decision but later reversed it on reconsideration, declaring Palgan illegally dismissed.
• Court of Appeals (CA): Reversed the NLRC’s decision, reinstating the Labor Arbiter’s ruling that Palgan was not illegally dismissed.
• Supreme Court: Upheld the CA’s decision, denying Palgan’s petition for review.

The Supreme Court’s reasoning focused on Palgan’s failure to meet the criteria for full-time faculty status. The Court noted that:

“Only a full-time teaching personnel can acquire regular or permanent status.”

Furthermore, the Court clarified that Palgan’s experience as a clinical instructor could not be considered as “clinical practice experience” required for nursing faculty under CHED regulations and the Philippine Nursing Act:

“Evidence on record would reveal that petitioner was hired by HNU as a ‘full-time’ clinical instructor assigned at the medical ward from 1994-1997… While there is no exact definition of ‘clinical practice’ under the law, its ordinary meaning can be ascertained through rules of statutory construction.”

The Court concluded that Palgan’s fixed-term contracts were valid and that her employment ended upon the expiration of her latest contract, not due to illegal dismissal.

Practical Implications: Navigating Employment in Private Schools

This ruling has significant implications for teachers and private educational institutions in the Philippines. It underscores the importance of adhering to the specific regulations governing employment status in private schools, particularly the criteria for full-time and permanent employment.

For teachers, understanding these regulations is crucial when negotiating employment terms. They must ensure that they meet the necessary qualifications and document their compliance with the required criteria. For institutions, clarity on these regulations can help in structuring employment contracts that align with legal standards and avoid disputes over employment status.

Key Lessons:

• Teachers must meet the full-time criteria outlined in the Manual of Regulations to be considered for permanent status.
• Clinical practice experience is a specific requirement for nursing faculty and cannot be substituted with teaching experience alone.
• Fixed-term contracts are valid in private schools, provided they are entered into knowingly and voluntarily by both parties.

Frequently Asked Questions

What defines a full-time teacher in private schools?

A full-time teacher must meet the criteria set by the Manual of Regulations, including possessing the required academic qualifications and dedicating their working day to the school without other conflicting remunerative occupations.

Can a part-time teacher become permanent?

No, only full-time teachers who have satisfactorily completed their probationary period can achieve permanent status.

What is the significance of clinical practice experience for nursing faculty?

Clinical practice experience is a mandatory requirement under CHED regulations and the Philippine Nursing Act for nursing faculty to be considered full-time.

Are fixed-term contracts valid in private schools?

Yes, fixed-term contracts are valid provided they are entered into knowingly and voluntarily by both parties and do not circumvent the employee’s right to security of tenure.

How can teachers protect their employment rights?

Teachers should ensure they meet the necessary qualifications and document their compliance with the required criteria. They should also seek legal advice when negotiating employment terms to understand their rights and obligations.

ASG Law specializes in employment and education law. Contact us or email hello@asglawpartners.com to schedule a consultation.