Termination of employment by the employer

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Security of tenure provides that no employee may be dismissed from work except for just or authorized causes, and only after due process.  Just causes refer to wrongdoings of the employee, while authorized causes refer to the economic circumstances of the employer that are not the employees’ fault.  Due process refers to notice and hearing.

In this 3-part series, we will discuss the just causes for termination, authorized causes for termination and the requirements of due process.

Under the Labor Code of the Philippines, the just causes for termination are:  (1) serious misconduct, willful disobedience or insubordination (2) gross and habitual neglect of duties (3) fraud or willful breach of trust (4) commission of a crime or offense and (5) other causes analogous or similar to the first four causes.

Under new guidelines released by the Department of Labor and Employment, these rules are applicable to workers and employers of all work arrangements, with existing employer-employee relationship.

Misconduct involves an act against a definite rule of action, a forbidden act or dereliction of duty, willful in character and shows a wrongful intent and not a mere error in judgment.  For misconduct to be serious, it must be of grave character, not merely trivial or unimportant and connected with the work of the employee.

Dismissal on the ground of willful disobedience or insubordination is characterized by the employee’s intentional, wrongful and perverse attitude and that the order violated must be reasonable, lawful, made known to the employee and pertains to his official duties.

Neglect of duty must be both gross and habitual.  Gross negligence shows lack of care in the performance of one’s duties, while habitual neglect implies repeated failure to perform one’s duties.  A single or isolated act of negligence does not constitute a ground for dismissal.  But under several Supreme Court decisions, habitual absenteeism and tardiness is a form of gross neglect of duty.

Fraud is defined as a wrongful or criminal deception intended to result in financial or personal gain.  Breach of trust results in loss of confidence and to be a valid ground for termination, the breach must be intentional and purposely without any justifiable excuse.  An employee may be validly terminated for acts of work-related dishonesty, resulting to a breach of trust.

Termination of an employee for a commission of a crime or offense is deemed valid only if the employee committed an act or omission punishable or prohibited by law, and committed against the person of his employer or any immediate member of his family or his duly authorized representatives.  It is not necessary that the employee is convicted of such crime or offense.

Other causes analogous simply means that willful and voluntary acts or omissions of the employee which are similar or comparable to the first four just causes for termination, shall be considered as valid grounds for dismissal. This is intended by law as a catch-all phrase, in cases not expressly specified by law. (To be continued)

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