In the realm of employment, it is crucial to understand the rights and protections afforded to workers. Unfortunately, cases of illegal dismissal are not uncommon, and employees often find themselves facing unjust termination. In the Philippines, labor laws provide safeguards against such unfair practices, aiming to ensure that employees are treated fairly and justly in their workplaces.
What are the valid grounds for the dismissal of an employee?
According to Philippine labor laws, employers may terminate an employment contract based on just and authorized causes.
What is the distinction between a dismissal for just cause and a dismissal for authorized cause?
Dismissal for just cause refers to the termination of an employee’s employment contract based on the employee’s actions or behavior. Thus, it can be said that the employee himself initiated the dismissal process.
Dismissal for authorized cause, on the other hand, is the termination of an employee’s employment contract which is typically related to economic or business circumstances that necessitate the reduction or termination of employees. Unlike dismissal for just cause, dismissal for authorized cause does not require the employee’s fault or misconduct.
What are the just causes for the termination of employment?
The employer may terminate an employment for any of the following just causes:
- Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in connection with his work;
- Gross and habitual neglect by the employee of his duties;
- Fraud or willful breach by the employee of the trust reposed in him by his employer or duly authorized representative;
- Commission of a crime or offense by the employee against the person of his employer or any immediate member of his family or his duly authorized representatives; and
- Other causes analogous to the foregoing[1].
What are the authorized causes for the termination of employment?
The authorized causes are as follows:
- Installation of labor-saving devices;
- Redundancy;
- Retrenchment to prevent losses;
- Closing or cessation of operation of the establishment or undertaking;[2] and
- Disease[3]
What is the two-notice rule under procedural due process on termination of employment based on just cause?
The two-notice rule provides that in dismissing an employee, the employer has the burden of proving that that the former worker has been served two notices:
- One to apprise him of the particular acts or omission for which his dismissal is sought; and
- The other to inform him of the employer’s decision to dismiss him.[4]
What are the requirements of due process on termination of employment based on authorized causes?
The requirements of due process on termination of employment based on authorized causes shall be deemed complied with upon service of a written notice to the employee and the appropriate Regional Office of the DOLE at least 30 days before the effectivity of the termination, specifying the ground or grounds for termination.[5]
What are the procedural rules on termination of employment due to disease?
If dismissal is due to disease, the procedural rules are similar to due process for just cause termination. Thus, the employer must furnish the employee two (2) notices, namely:
- The notice to apprise the employee of the ground for which his dismissal is sought; and
- The notice informing the employee of his dismissal, to be issued after the employee has been given reasonable opportunity to answer and to be heard on his defense.[6]
What happens if the termination was done without observing substantive due process?
The employer shall not terminate the services of an employee except for a just cause or cause authorized by law. Where there is no showing of clear, valid and legal cause of termination, the law considers it a case of illegal dismissal.
What are the rules in the interplay of substantial and procedural process requirement?
The dismissal is:
- LEGAL if it was done observing both substantive and procedural due process. [7]
- ILLEGAL if it was done without substantive due process although procedural due process was observed. [8]
- ILLEGAL if it was done without the observance of both substantive and procedural due process. [9]
- LEGAL if it was done with substantive due process but without procedural due process. [10]
What is contractual due process rule?
The contractual due process rule applies in a situation where there is an existing company policy enunciating the procedural due process that must be observed in termination of employment, compliance alone with the statutory due process would not suffice. Additionally, there must be compliance with the company-prescribed due process procedure.[11]
What are the consequences of failure to comply with due process rule?
The termination be considered legal but for lack of contractual due process, the employer will be penalized with the payment of indemnity in the form of nominal damages.[12]
What are the reliefs available to an employee upon finding that he was illegally dismissed?
An illegally dismissed employee is entitled to the following reliefs:
- Reinstatement without loss of seniority rights and other privileges or separation pay if no longer available; and
- Full backwages inclusive of allowances and other benefits or their monetary equivalent computed from the time his compensation was withheld from him up to his actual reinstatement. [13]
[1] Article 297 of the Labor Code.
[2] Article 298 of the Labor Code.
[3] Article 299 of the Labor Code.
[4] Tan v. NLRC, G.R. No. 128290, November 24, 1998.
[5] D.O. No. 147-15, Sec 5.3.
[6] Deoferio v. Intel Technology Philippines, G.R. No. 202996, June 18, 2014.
[7] Philippine Airlines v. NLRC, G.R. No. 115785, August 4, 2000.
[8] ACD Investigation Security Agency, Inc., v. Daquiera, G.R. No. 147473, March 30, 2004.
[9] Lambert Pawnbrokers and Jewelry Corp., v. Binamira, G.R. No. 170464, November 17, 2004.
[10] Agabon v. NLRC, G.R. No. 158693, November 17, 2004.
[11] Abbot Laboratories, Philippines v. Alcaraz, G.R. No. 192571, July 23, 2013.
[12] Ibid.
[13] Art. 279 of the Labor Code.
