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Grounds For Dismissal: Just Cause And Authorized Cause

03 Mar

Grounds For Dismissal: Just Cause And Authorized Cause

By Labor Law , , , , , , , , , , , 35 Comments

Grounds for dismissal are required ingredients to ensure that termination is valid. There are three classifications of valid grounds for dismissal or termination under the Labor Code which can be used by the employer:

First is the just cause under Article 297 of the Labor Code, as amended.

Second, the authorized cause under Article 298 therein.

Third is the dismissal due to disease found in Article 299.

The employee is also authorized to cut employment ties under Article 300.

The burden of proof in dismissal cases lies with the employer. However, before the issue of dismissal can even be resolved the employee or complainant must first establish the fact of dismissal.

As held by the Court, in illegal dismissal cases, while the employer bears the burden to prove that the termination was for a valid or authorized cause, the employee must first establish by substantial evidence the fact of dismissal from service. The burden of proving the allegations rests upon the party

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alleging and the proof must be clear, positive and convincing.

The fact of dismissal must be evidenced by positive and overt acts of an employer indicating an intention to dismiss.

Just cause presupposes that there was an act done by or an act that is required to be done of an employee but was not accomplished which the employer treats as an offense under the company policy. The employee in this instance creates the ground for dismissal unlike in authorized cause where the termination is independent of the act of the employee.

For the HR practitioner involved in employer relations, it is paramount to know the basic concept of each ground for dismissal enumerated in Article 297. The Labor Code, under Article 297 provides for grounds for the dismissal of an employee. This is known as the just causes for termination of employment discussed previously.

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The Company’s Code of Conduct or regulations may also provide for other grounds and which may be complemented by those under Article 297. It may likewise provide the corresponding penalties which may be lower than dismissal. Generally, the company’s rules and regulations fall within the analogous causes of Article 297.

The Labor Code provides for just cause for termination as follows:

Art. 297. Termination by employer.—An employer may terminate an employment for any of the following causes:

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.

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