Tag - Illegal dismissal

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 Court [...]

Presumption of Regular Performance of Duty in Labor Cases in Relation to Serious Misconduct

For misconduct or improper behavior to be a just cause for dismissal, the following elements must concur: [Globe Telecom, Inc. vs. Ebitner, G.R. No. 242286, January 16, 2023 citing Sterling Paper Products Enterprises, Inc. vs. KMM-Katipunan, 815 Phil. 425 (2017)] (a) the misconduct must be serious; (b) it must relate to the performance of the employee’s duties showing that the employee has become unfit to continue working for the employer; and (c) it must have been performed with wrongful intent. In a case [...]

Illegal Dismissal Case is a Command on Employer to make Public Reparation hence Prescribes in Four Years

Although illegal dismissal is a violation of the Labor Code, it is not the “offense” contemplated in Article 305 [formerly Article 290] of the Labor Code. [Arriola vs. Pilipino Star Ngayon, Inc., G.R. No. 175689. August 13, 2014] Article 305 refers to illegal acts penalized under the Labor Code, including committing any of the prohibited activities during strikes or lockouts, unfair labor practices, and illegal recruitment activities.  The three-year prescriptive period under Article 305, therefore, does not apply to complaints [...]

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 [...]

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 [...]

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 employment [...]

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 disputed, [...]

Diminution in Rank or Diminution of Responsibilities

Diminution is usually associated with benefits. However, in a Supreme Court (SC) decision, the concept of diminution in rank or diminution of responsibilities was established. In the case of Isabela-I Electric Coop, Inc. vs. Del Rosario (July 17, 2019, G.R. No. 226369), the SC discussed diminution in rank of employee whose position was changed from Internal Audit Manager to Area Manager. Although the employee’s position bears the appellation “manager,” the responsibilities he used to discharge as manager in his former position [...]

Resignation and Illegal Dismissal

While the rules on resignation is settled, especially under Article 300 of the Labor Code, as amended, in actual situations, resignation is a confused subject matter especially if attended with claim of illegal dismissal. So, what is the legal perspective on this matter? It is good to revisit the 2020 case of Italkarat 18, Inc. vs. Gerasmio, G.R. No. 221411, September 28, 2020. The Supreme Court (SC) held that the fact of dismissal must first be proven, especially considering the existence [...]

Good Faith of the Employer is Required in Redundancy Program

Under Article 298 (formerly 283) of the Labor Code, redundancy is recognized as an authorized cause for dismissal, viz.: Article 298 [283]. Closure of Establishment and Reduction 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 the provisions of this Title, by serving [...]

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