The illegal dismissal of an employee is one of the most common labor cases filed in the Philippines. Termination of employment should undergo due process. The processes include notice of dismissal, which requires employers to furnish a written notice stating grounds for the employees' dismissal. The employee will be given a chance to answer the allegations within a reasonable period. Once the employer receives the answer from the employee, the employer may provide an opportunity to the employee to defend themselves. After the hearing, the notice of decision will be released stating reasons for the dismissal. The notice of decision will be in writing. The final step will be the submission of the report on dismissal to the regional office.
Just Causes For The Dismissal Of An Employee
As stated under 282 of the Labor Code, an employer has the right to terminate an employment for the following reasons:
(a) Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in connection with his work;
(b) Gross and habitual neglect by the employee of his duties;
(c) Fraud or willful breach by the employee of the trust reposed in him by his employer or duly authorized representative;
(d) 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
(e) Other causes analogous to the foregoing.
Aside from the aforementioned causes, employment may also be terminated due to "installation of labor-saving devices, redundancy, retrenchment to prevent losses or the closing or cessation of operation of the establishment or undertaking unless the closing is for the purpose of circumventing the provisions of this Title, by serving a written notice on the workers and the Ministry of Labor and Employment at least one (1) month before the intended date thereof. In case of termination due to the installation of labor-saving devices or redundancy, the worker affected thereby shall be entitled to a separation pay equivalent to at least his one (1) month pay or to at least one (1) month pay for every year of service, whichever is higher. In case of retrenchment to prevent losses and in cases of closures or cessation of operations of establishment or undertaking not due to serious business losses or financial reverses, the separation pay shall be equivalent to one (1) month pay or at least one-half (1/2) month pay for every year of service, whichever is higher. A fraction of at least six (6) months shall be considered one (1) whole year."
Dismissed employees are not entitled to separation pay if the cause for dismissal falls under any of the five circumstances stated under Article 282. However, if termination of employment was due to the installation of labor-saving devices or redundancy, the employee shall be entitled to a separation pay.
