Tag - Just Cause

Burden of Proof in Employee Dismissal

Burden of proof in dismissal cases lies with the employer. This means that if an employee is dismissed from service, the employer has to prove that such dismissal is valid. An employee is entitled to security of tenure. Article 294 of the Labor Code provides, that: “ART. 294. Security of tenure.—In cases of regular employment, the employer shall not terminate the services of an employee except for a just cause or when authorized by this Title. An employee who is unjustly [...]

Constructive Dismissal Involving Reduced Responsibilities

Usually, constructive dismissal involves demotion in rank or diminution in pay. However, there could be constructive dismissal even though on paper there was no demotion in title or diminution in pay. To give a conceptual view, 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 and a diminution in pay.” (Globe Telecom, Inc. vs. Galang, G.R. No. 150092, September 27, 2002.) There is constructive [...]

How to Validly Terminate Employee in the Philippines – A Video Course by Atty. Elvin B. Villanueva

Employee dismissal in the Philippines is probably one of the most technical areas of running a business in the country. Many companies lose the labor case because they failed to observe the proper grounds and procedure in employee dismissal. Termination is usually the last resort when it comes to handling problem employee. There could be other primary approaches like coaching, mentoring, caddying, or any other similar methods. However, it is also a fact that there are employees which the company [...]

Notice to Explain vs. Investigation Report: Does the Company Need to have Both?

Notice to Explain (NTE) is one of the steps required in employee discipline. Most importantly it is mandatory to be issued in the case of employee termination. NTE is part of the procedural due process mandated by law. Not to make the valid termination illegal but to ensure that the right to due process is respected. Failure to issue the NTE violates this process and renders the employer liable for indemnity in the form of nominal damages. In some establishments, especially [...]

How to Handle an Employee Who Violates Company Rules with Threat to Property

Acquire Mastery of HR/Labor Doctrines, Rules and Principles with Atty. Elvin’s HR Bundle Books at Discounted Rate Employers are sometimes faced with the challenge of imposing disciplinary action on employees who commit an offense that poses serious and imminent threat on the property. An example of this scenario is commission of theft of employer’s property. The common understanding is that the employer has to ask for an explanation or issue the Notice to Explain (NTE) to get the side of the [...]

Serious Misconduct Exists When the Employee Creates False Narrative Against the Employer

Serious misconduct as ground for valid dismissal requires: (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. Thus, the Supreme Court (SC) ruled in the following case of Metro Psychiatry, Inc. vs. Bernie J. Llorente (G.R. No. 245258, February 5, 2020). Llorente was served with a Memorandum by MPI [...]

Just Cause for Employee Dismissal

In the previous post, the guideposts on employee dismissal were discussed. The discussion is based on the book Guide to Valid Dismissal of Employees. Having already shown the guideposts, the first to be discussed is the cause allowed by law in termination. What are the “proper and valid grounds” for dismissal? The Labor Code mentions that this refers to just causes under Article 282 [now Article 297 in a re-numbered Labor Code] and authorized causes under Article 283 [now Article 298] [...]

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