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Legal Consequences of Refusal to Accept the Resignation

Acquire Mastery of HR/Labor Doctrines, Rules and Principles with Atty. Elvin’s HR Bundle Books at Discounted Rate Resignation is the voluntary act of an employee who is in a situation where one believes that personal reasons cannot be sacrificed in favor of the exigency of the service, and one has no other choice or is otherwise compelled to dissociate oneself from employment. [Dela Fuente vs. Gimenez, G.R. No. 214419, November 17, 2021] It is a formal pronouncement or relinquishment of an [...]

Directing Employee to Resign than to Face Termination

An employee may have committed serious offense within the company thus, the employer decides to save the employee from incurring bad record and asks the employee to resign instead of being terminated. As a rule, resignation should be voluntary pursuant to paragraph a, Article 300 of the Labor Code, as amended. However, there are instances when different circumstances arise surrounding resignation. These are the resignation due to severe abuses, inhumane treatment, etc. as set forth in paragraph b of Article 300. [...]

Exemplary Damages in Labor Cases

Exemplary or corrective damages are imposed, by way of example or correction for the public good, in addition to the moral, temperate, liquidated or compensatory damages. [Article 2229, Civil Code] Further, the Civil Code provides for the rules concerning the award of exemplary damages. In Article 2229 it states that exemplary or corrective damages are imposed, by way of example or correction for the public good, in addition to the moral, temperate, liquidated or compensatory damages. While in Article 2232 it [...]

Moral Damages in Labor Cases

Moral damages are recoverable when the dismissal of an employee is attended by bad faith or fraud or constitutes an act oppressive to labor, or is done in a manner contrary to good morals, good customs or public policy. [Torreda vs. Investment and Capital Corporation of the Philippines, G.R. No. 229881, September 5, 2018] In the case of Aldovino vs. Gold and Green Manpower Management and Development Services, Inc. [G.R. No. 200811, June 19, 2019], the instances when moral damages [...]

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 [...]

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