Tag - dismissal

No Abandonment and No Constructive Dismissal Result in Reinstatement without Backwages

It is well settled that abandonment of work cannot be simply presumed from the occurrence of certain equivocal acts. In proving abandonment, this the Supreme Court (SC) held in Hubilla vs. HSY Marketing Ltd., Co. (823 Phil. 358, 385 (2018) that there must be a positive and overt act signifying an employee’s deliberate intent to sever his or her employment. Thus, mere absence from work, even after a notice to return, is insufficient to prove abandonment. The employer must show [...]

Execution of the Compromise Agreement does not Necessarily Bar Liability for Claims

Waivers and quitclaims executed by employees are generally frowned upon for being contrary to public policy. This is based on the recognition that employers and employees do not stand on equal footing. [Aldovino vs. Gold and Green Manpower Management and Development Services, Inc., G.R. No. 200811, June 19, 2019] In Land and Housing Development Corporation vs. Esquillo, the Supreme Court (SC) held that the reason why quitclaims are commonly frowned upon as contrary to public policy, and why they [...]

Proof Required in Allegation of Fraud in Employee Dismissal Cases

Where the employer claims that the employee’s act constituted fraud which warranted her dismissal, the employer has to submit substantial evidence as proof. Article 297 (c) of Presidential Decree No. 442, also known as the Labor Code of the Philippines, provides that fraud or willful breach by the employee of the trust reposed in him or her by his or her employer or duly authorized representative is a ground for dismissal being a just cause. As held by the Supreme [...]

Constructive Dismissal does not Always Involve Diminution in Rank, Compensation, Benefit and privileges

Constructive dismissal exists where there is cessation of work, because ‘continued employment is rendered impossible, unreasonable or unlikely, as an offer involving a demotion in rank or a diminution in pay’ and other benefits. Aptly called a dismissal in disguise or an act amounting to dismissal but made to appear as if it were not, constructive dismissal may, likewise, exist if an act of clear discrimination, insensibility, or disdain by an employer becomes so unbearable on the part of [...]

Lack of First Written Notice in Employee Dismissal is Non Compliance with Procedural Due Process

Procedural due process is required in employee dismissal. Failure to comply shall result in the imposition of indemnity in the form of nominal damages. Due process under the Labor Code involves two aspects: first, substantive––the valid and authorized causes of termination of employment under the Labor Code; and second, procedural––the manner of dismissal. In the present case, the CA affirmed the findings of the labor arbiter and the NLRC that the termination of employment of respondent was based on [...]

Employer Employee Relationship Issue in a Labor Dispute

While the Labor Arbiter (LA) has no jurisdiction over dispute that does not arise from employer-employee relationship, the determination of whether such relationship exists lies with the LA also. In the case of Atok Big Wedge Company, Inc. vs. Gison (G.R. No. 169510, August 8, 2011), the Supreme Court (SC) held that well-entrenched is the doctrine that the existence of an employer-employee relationship is ultimately a question of fact and that the findings thereon by the Labor Arbiter and [...]

Notice Requirement and Compelling Economic Reason in Bona Fide Suspension of Operations

The suspension of employment under Article 301 of the Labor Code is only temporary and should not exceed six months, as the Supreme Court (SC) explained in PT&T Corp. vs. National Labor Relations Commission, it may be applied but only by analogy to set a specific period that employees may remain temporarily laid-off or in floating status. Six months is the period set by law that the operation of a business or undertaking may be suspended thereby suspending the [...]

Admission by Silence in Labor Case

Admission by silence can be taken against the one who slept on the right to speak against the declaration. Thus, when an illegal dismissal case is filed against the company, but the company denies having dismissed the employee, should the company first prove that there was no illegal dismissal in this case? The rule is that “in illegal dismissal cases, the burden of proof is on the employer in proving the validity of dismissal. However, the fact of dismissal, if [...]

Standards to Observe in Alleging Offenses in the Notice to Explain

Issuance of the Notice to Explain (NTE) is one of the steps required in employee dismissal. At least, insofar as avoiding payment of indemnity is concerned for violation of procedural due process. Not observing the proper NTE may also impress upon the tribunal the haphazard nature of the employer in issuing such legal requirement. The last thing that an employer, as respondent in a case, wants is to have a wrong impression in the eyes of the labor tribunal. So, [...]

Resigned Employees are not Entitled to Separation Pay

Resignation is provided under Art. 300 of the Labor Code. There is nothing in such article that mandates the payment of separation pay to resigned employee. In a case of Italkarat 18, Inc. vs. Gerasmio, (G.R. No. 221411, September 28, 2020), the Supreme Court held that as a general rule, the law does not require employers to pay employees that have resigned any separation pay, unless there is a contract that provides otherwise or there exists a company practice [...]

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