Labor Law a) Notice to dismiss with intent to dismiss

specifying the ground for termination, and

Module 5
giving said employee reasonable
Termination of Employment opportunity within which to explain his or
her side.
b) A hearing of coherence where the employee
➢ An employer may terminate an employment is given opportunity to respond to the
ONLY if the is legal cause for termination and charge present evidence or rebut the
it has followed the procedures required for evidence presented against him/her.
the cause of termination. c) A notice of dismissal indicating that upon
due consideration of all the circumstances
➢ Employment where the employer may gourds have been established
dismiss an employee at any time, without
cause and by mere notice or salary in lieu of
notice, is NOT allowed under the Philippine
labor law.
TERMINATION OF EMPLOYMENT

In termination for an authorized cause, due process

➢ An employee may terminate his means a written notice of dismissal to the employee
employment for any reason by serving a specifying the grounds at least 30 days before the
written notice to his employer at least one date of termination. A copy of the notice shall also
month in advance. If the employee does not be furnished the Regional Office of the Department
give any notice, the employer may hold the of Labor and Employment (DOLE) where the
employee liable damages. Under Article 300 employer is located.
of the Labor Code, the employee may
terminate his employment without need of
any notice like serious insult of the employer CAUSE OF DISMISSAL
on the honor and person of the employee.
➢ Just Causes
➢ Authorized Causes

➢ Right to security of tenure Note: Dismissing employees is the act by the

employer of terminating their employment on the
o The right to secure tenure means ground of just causes and after observance of
that a regular employee shall remain substantive and procedural due process.
employed unless his or her services
While a management prerogative, it is subject to the
are terminated for just or authorized
two-fold limitations of good faith and employee
cause and after observance of
rights.
procedural due process.
➢ Dismissal: The Highest form of penalty
➢ An employer shall observe procedural due ➢ Penalties usually range from verbal
process before terminating one’s reprimand, written warning, suspension, to
employment. In a termination just cause, dismissal. Thus, dismissal is the highest form
due process involves of the penalty that an employer may impose
 as a penalty for an erring employee as this or any immediate member of his family or
will result in the severance of the employer- his duly authorized representative
employee relationship. ➢ Other Causes analogous to the foregoing.
➢ Penalty: Commensurate of the Offense
➢ The Supreme Court has repeatedly help that
the penalty of dismissal should be exercised
humanely and considerately, as well as to AUTHORIZED CAUSES FOR TERMINATION
ensure that sanction is commensurate to the OF EMPLOYMENT ARE FOLLOWS:
offense. ➢ Installation of labor-saving devices
➢ “Although we recognize the inherent right of ➢ Redundancy
the employer to discipline its employees, we ➢ Retrenchment of prevent losses
should still ensure the employer to discipline ➢ Closing or cessation of operation of the
its employee, we should still ensure the establishment or undertaking
employer exercises the prerogative ➢ Diseases, where the continued employment
discipline humanely and considerately, and of the afflicted employee is prohibited by
that the sanction imposed is commensurate law or is prejudicial to his health as well as to
to the offense involved and to the degree of the health and his co-employees
the infraction. The discipline exacted by the
employer should further consider the
employee’s length of service and the TERMINATION OF EMPLOYMENT BY THE
number of infractions during his EMPLOYER WITHOUT A LEGAL CAUSE
employment. The employer should never ➢ The illegally dismissed employee is entitled
forget that always at sake in entirely to reinstatement without loss of seniority
dependent on his earnings.” rights and other privileges, to payment of full
DONGONS vs Rapid Movers and Forwarders back wages, inclusive of allowances and of
Co. Inc. G.R. No. 163431, 28 August 2013) other benefits or their monetary equivalent
computed from the time compensation was
JUST CAUSES FOR TERMINATION OF withheld until actual reinstatement, and to
EMPLOYMENT ARE AS FOLLOWS payment of damages.

➢ Serious misconduct or willful disobedience PROCEDURES FOR DISMISSAL

by the employee of the lawful orders of his ➢ In exercising the management prerogative of
employer or representative in connection dismissal of an employee from work due to a
with his work. just cause, the Labor Code requires the
➢ Gross and habitual neglect by the employee employee informing him of the charges
of his duties. against him.
➢ Fraud or willful breach by the employee of ➢ After serving the notice, the employer must
the trust reposed in him by his employer or afford the employee an opportunity to be
duly authorized representative. heard where the employee can answer the
➢ Commission of crime or offence by the charges with the assistance of counsel, if he
employee against the person of his employer so desires. If the employer decides to dismiss
the employee, it must serve another written
 notice to the employee to inform him of its ➢ Employees generally have the right to self-
decision to dismiss him. organization and the right to form, join or
➢ When termination of employment due to an assists labor unions for purposes of
authorized cause, the employer must serve collective bargaining. There are, however
a written notice to each affected employee certain limitation to the right to form, join or
DOLE at least one month before the assists labor union.
intended effective date of the termination. ➢ Managerial employees and confidential
➢ For employment termination by reason of employee are not eligible to form, join or
disease, there must also be certification by a assist labor unions.
competent public health authority that the ➢ Supervisory employee is not eligible for
disease cannot be cured within a period of membership in the collective bargaining
six months even with proper medical units and/ or labor unions of their own.
treatment.
➢ In all cases of authorized cause employment
termination, the employee is entitled to
receive separation pay is equivalent to half-
month’s salary for every year of service or
one-month’s salary for every salary for every
year of service depending on the authorized
cause of employment termination.
➢ When the employee is dismissed without
management observing the appropriate
procedures, the employee is entitled to
nominal damages, the amount of which is
subject to discretion of the court, even if
there is a just or authorized cause for
employment termination. For this purpose,
the court will take into consideration the
relevant circumstances of each case,
particularly the gravity of the due process
violation.
➢ The nominal damage serves as a penalty
upon the employer for its failure to comply
with the requirements of procedural due
process for employment termination.

LABOR RELATIONS
➢ Employees right to self -organization is
enriched in the 1987 Philippine Constitution,
Likewise, it is the policy of the Philippines to
promote the free and responsible exercise of
the right to self-organization.