Authorized cause is one of the Processes to Terminate Employees
Authorized cause for termination is provided under Article 283 [now 298 as re-numbered] of the Labor Code, as amended.
Unlike the just cause found under Article 282 [now 297], the employee being terminated is not at fault. The changing business conditions or situations are the reason for the loss of employment.
Re-numbered Labor Code 2017 by Atty. Elvin now available for pre-launch orders
While dismissal when it is the fault of employee requires hearing or conference, termination due to authorized cause does not require such hearing.
No hearing is required for the termination due to authorized causes or those grounds under Article 283 of the Labor Code. But there must be at least one-month notice to the employee and a report to the DOLE for the same period prior to the effective date of the termination.
In employment terminations due to authorized causes, the due process requirement is not completely done away with. Investigation and hearing need not be done by the employer.95 The reason is obvious, there is no need for investigation and hearing since no allegations of malfeasance or nonfeasance on the part of the employee have been made.
Thus, to require the employer to hold a hearing, at which the employee would have had the right to be present, on the business and financial circumstances compelling retrenchment and resulting in redundancy, would be to impose upon the employer an unnecessary and inutile hearing as a condition for legality of termination.
Does it mean that the employee dismissed would have to accept the decision completely? Can the employee challenge the dismissal grounded under Article 283?
Yes. Since a hearing is not required by law, the remedy of the employees dismissed is to contest the validity thereof before the appropriate forum which is the NLRC or through voluntary arbitration, but certainly not the conduct of an investigation or hearing by the employer itself.
Besides, Article 277 of the Labor Code states that any decision taken by the employer shall be without prejudice to the right of the worker to contest the validity or legality of his dismissal by filing a complaint with the regional branch of the National Labor Relations Commission. The burden of proving that the termination was for a valid or authorized cause shall rest on the employer.
The post above is based on the book Guide to Valid Dismissal of Employees Second Edition (pp. 80-81).
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