Employees have rights duly recognized by the Constitution and the laws. The employees enjoy security of tenure, rightful benefits, safe working environment, among others.

Under the Labor Code, employees enjoy security of tenure. This simply means that employees cannot be dismissed unless for just or authorized cause. An employee cannot simply be terminated because the boss does not like the way he looks.

In cases of regular employment, the employer shall not terminate the services of an employee except for a just cause or when authorized by the Labor Code. An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges and to his full backwages, inclusive of allowances, and to his other benefits or their monetary equivalent computed from the time his compensation was withheld from him up to the time of his actual reinstatement.

“Just cause” is a technical term under the Labor Code. It is found under Article 282 [now Article 297 per Department Advisory 01, Series of 2015] of the Labor Code. It states:

An employer may terminate an employment for any of the following causes:

  1. Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in connection with his work;
  2. Gross and habitual neglect by the employee of his duties;
  3. Fraud or willful breach by the employee of the trust reposed in him by his employer or duly authorized representative;
  4. 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
  5. Other causes analogous to the foregoing.

(See Discussion on the book How to Design and Formulate Company Code of Discipline pp. 9-10)


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