Tag - Authorized Cause

Valid Termination due to Redundancy

For purposes of the Labor Code, redundancy exists where the services of an employee are in excess of what is reasonably demanded by the actual requirements of the enterprise. Succinctly put, a position is redundant where it is superfluous, and superfluity of a position or positions may be the outcome of a number of factors, such as over hiring of workers, decreased volume of business, or dropping of a particular product line or service activity previously manufactured or undertaken [...]

Burden of Proof in Termination Due to Authorized Cause

The authorized causes under Article 298 are as follows: Installation of labor-saving devices; Redundancy; Retrenchment; and Closure or cessation of business operations of an establishment or an undertaking. It appears that the enumeration is exclusive. Meaning, there can be no other grounds that can be invoked other than those stated. This is so because the precursor of Article 298, Article 299, previously carried a comprehensive phrase “other similar causes” which was repeated twice in the old provision. While in the new provision as presently worded, [...]

Termination Due to Authorized Cause

Article 298 of the Labor Code, as amended, provides causes which are grounds for the termination of employees. It is one of the authorized causes for termination. Thus: “Art. 298. Closure of establishment and re- duction of personnel. The employer may also terminate the employment of any employee due to the installation of labor- saving devices, redundancy, retrenchment to prevent losses or the closing or cessation of operation of the establishment or undertaking unless the closing is for the purpose of circumventing [...]

Employee Termination Based on Form of Employment

Termination of employee depends on the form of employment. Just cause or authorized cause as ground for dismissal is the only blanket ground applicable to all forms. Hence, to terminate employee, it can be argued that there are two main classifications of grounds: Just Cause / Authorized Cause Peculiar cause provided in the nature of employment and terms of contract For just cause or authorized cause, the law is clear since these are provided under Articles 297, 298, and 299, respectively. For the [...]

Procedural Due Process for Authorized Cause

Procedural due process is also required for termination due to authorized cause. For termination based on authorized causes, that is, retrenchment, redundancy, etc., under Article 298 of the Labor Code, as amended, the due process is deemed complied with upon the service of a written notice as follows: Notice to the employee (at least 30 days before the effectivity thereof); and Notice to the appropriate Regional Office of the Department of Labor and Employment (DOLE) at least thirty (30) days before the [...]

Dismissal of Employee Does not Involve his Property in Constitutional Sense

Dismissal of an employee requires observance of due process. There are two aspects of due process, the substantive and the procedural. The usual dispute involves failure to notify the employee to explain the charge, attend hearing/conference, and notice of dismissal. Does failure to provide notice or opportunity for a hearing to the employee violate his constitutional right to his property? Is his job property in constitutional sense? Previously, court decisions consider the right of a person to his labor to be [...]

Grounds For Dismissal: Just Cause And Authorized Cause

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 [...]

Authorized cause is one of the Processes to Terminate Employees

Authorized cause for termination is provided under Article 283 [now 298 as re-numbered] of the Labor Code, as amended. Unlike the just cause found under Article 282 [now 297], the employee being terminated is not at fault. The changing business conditions or situations are the reason for the loss of employment. Re-numbered Labor Code 2017 by Atty. Elvin now available for pre-launch orders While dismissal when it is the fault of employee requires hearing or conference, termination due to authorized cause does not [...]

Termination Due to Authorized Cause Requires Observance of Procedural Due Process

Termination due to authorized cause under Article 299 of the Labor Code, as amended requires compliance by employer of the procedural due process. It used to be Article 284 prior to re-numbering of the Labor Code per R.A. 10151. Re-Numbered Labor Code per DOLE Department Advisory 01, Series of 2015 The post below is based on the book Guide to Valid Dismissal of Employees Second Edition (pp. 56-57). For termination based on authorized causes, that is, retrenchment, redundancy, etc., under Article 283, the [...]

Termination for Authorized Cause

The post below is based on the book Guide to Valid Dismissal of Employees (pp. 25-27). Just cause pertains to a situation where the employee is at fault. It does not mean however, that termination can only be undertaken when there is commission of an offense by the employee. The employer may exercise his prerogative to terminate as well when the business situation requires. For example, if there is excess in position he may implement redundancy. If there are losses he [...]

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