Hearing to Employee is not Required for Termination if so Stipulated in Certain Forms of EmploymentAtty Elvin
As a general rule, hearing is mandatory for termination of employees for just cause where it is provided in the policy or requested in writing. It is part of the procedural due process required by law. It belongs to the twin requirements doctrine.
However, termination of employment not due to just cause has a different requirement. There are certain forms of employment where such hearing is not anymore required in termination as there is already a stipulation in the employment contract or when based on the nature of employment.
In fact, notice may be even dispensed with since the termination of employment is already stipulated being consistent with the nature of employment. Examples of this are the fixed-period, project, and casual.
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The manner of termination for certain forms of employment is governed by contractual stipulation. The contract may also provide for the expiration of the employment. If that is the case, there is no need to hold a hearing to terminate the relationship.
This applies to the following setup inter alia:
- Fixed-period employment. Hearing is not required if the basis of the severance of employment is
the expiration of the fixed-period agreed upon by the employer and the employee.
- Project employment. Hearing is not required in case the termination of the project employment is due to the completion of the project. In fact, no prior notice of termination is required if the termination is brought about by completion of the contract or phase thereof for which the worker has been engaged. This is because completion of the work or project automatically terminates the employment, in which case, the employer is, under the law, only obliged to render a report to the DOLE on the termination of employment.
- Expiration of lawful contracting and subcontracting agreement. The reason is the term or duration of contractual employment is co-extensive with the term or duration of the contract between the principal contractor or subcontractor. And where the contract is divisible into phases such that substantially different skills are required for each phase, the term or duration of the contractual employment may be made co-extensive with each phase.
- In the case of Capule vs. NLRC, hearing is not required in case of termination of casual employees who have not rendered service for at least one (1) year. A casual employee must not occupy position which is necessary and desirable to the business or trade of the company. If he does, he may be a regular employee and cannot be dismissed without just or authorized cause and the proper notice and hearing. A casual employee who has rendered service for at least one (1) year is considered a regular employee under Article 280 of the Labor Code. Once he becomes a regular employee, the employer cannot terminate his service except for just or authorized cause.