Labor Law

Indemnity in the Form of Nominal Damages as Award in a Labor Case

Nominal damages are adjudicated in order that a right of a plaintiff which has been violated or invaded by another may be vindicated or recognized without having to indemnify the plaintiff for any loss suffered by him. [Article 2221, Civil Code] Nominal damages may likewise be awarded in every obligation arising from law, contracts, quasi-contracts, acts or omissions punished by law, and quasi-delicts, or where any property right has been invaded. [Agabon vs. NLRC, G.R. No. 158693, November 17, 2004] In [...]

Delayed Release of Final Pay may Result in Criminal Liability

Final pay, last pay, or back pay, means the same under Labor Advisory 6, Series of 2020 issued by the Department of Labor and Employment (DOLE). To grasp the concept of the rules governing final pay, it is important to understand the rules, doctrines, and principles that interplay on this matter. Considering that this may relate to the policies and rules of employer, the principle on construction in favor of labor applies. Art. 4, of the Labor Code provides that all [...]

Rules on Restrictive Covenants in Employment Relationship

Employers may stipulate with employee in the contract that the latter shall not get employed with a competitor or put up similar competing business. In this instance, the Supreme Court, in the case of Solid Bank vs. Rivera (G.R. No. 163269, April 19, 2006) the employer is burdened to establish that a restrictive covenant barring an employee from accepting a competitive employment after retirement or resignation is not an unreasonable or oppressive, or in undue or unreasonable restraint of trade. [...]

Computation of Backwages in Labor Case where Reinstatement is not Possible

It is settled that the twin reliefs that should be given to an illegally dismissed employee are full backwages and reinstatement. (Peak Ventures Corp. vs. Heirs of Villareal, 747 Phil. 320-337 (2014) citing St. Luke’s Medical Center, Inc. v. Notario, 648 Phil. 285 (2010).) Backwages restore the lost income of an employee and is computed from the time compensation was withheld up to actual reinstatement. Anent reinstatement, only when it is not viable is separation pay given. The computation of backwages [...]

Proof of Good Faith in Redundancy

Redundancy is one of the authorized causes of employee termination under Article 298 of the Labor Code, as amended. The employer who intends to terminate the employee for cause has to comply with two aspects of due process. These are the substantive aspect and the procedural aspect. The substantive aspect pertains to the ground or basis of termination which should be in accordance with law and jurisprudence. The procedural aspect refers to the required notices, which in the case of redundancy, [...]

Presumption of Regular Employment Applies in the Absence of Clear Employment Agreement

Regular employment is presumed in the absence of a clear agreement or contract, whether written or otherwise, which would clearly show that the employee was properly informed of his employment status with employer. In the case of Regala vs. Manila Hotel Corporation, a waiter (Regala) in a hotel (MCH), the Supreme Court (SC) ruled that the employee is a regular employee where the court found that he was performing activities which are necessary and desirable, if not indispensable, in the [...]

Employee ID Issued may not be Competent to Prove Employment Relationship

One of the usual ways to prove employer-employee relationship is the presentation of employee ID. However, there can be an instance where an ID card bearing the label “Employee Name” may not be competent to prove employment relationship. In a dispute over the existence of employer-employee relationship, the Court examines the circumstances surrounding the parties or the complainant and the respondents. The rule in a claim of existence of employer-employee relationship is that the claimant has the burden of proof. It [...]

Constructive Dismissal does not Always Involve Diminution in Rank, Compensation, Benefit and privileges

Constructive dismissal exists where there is cessation of work, because ‘continued employment is rendered impossible, unreasonable or unlikely, as an offer involving a demotion in rank or a diminution in pay’ and other benefits. Aptly called a dismissal in disguise or an act amounting to dismissal but made to appear as if it were not, constructive dismissal may, likewise, exist if an act of clear discrimination, insensibility, or disdain by an employer becomes so unbearable on the part of [...]

Tasks of a Probationary Similar to that of a Consultant may Negate Valid Probationary Status

Probationary employment is allowed under the Labor Code, as amended. Thus, under Art. 296, probationary employment shall not exceed six (6) months from the date the employee started working, unless it is covered by an apprenticeship agreement stipulating a longer period. The services of an employee who has been engaged on a probationary basis may be terminated for a just cause or when he fails to qualify as a regular employee in accordance with reasonable standards made known by the [...]

Lack of First Written Notice in Employee Dismissal is Non Compliance with Procedural Due Process

Procedural due process is required in employee dismissal. Failure to comply shall result in the imposition of indemnity in the form of nominal damages. Due process under the Labor Code involves two aspects: first, substantive––the valid and authorized causes of termination of employment under the Labor Code; and second, procedural––the manner of dismissal. In the present case, the CA affirmed the findings of the labor arbiter and the NLRC that the termination of employment of respondent was based on a [...]

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