Termination

1. ARTICLE 279. Security of Tenure. “In cases of regular employment, the employer shall notterminate the
services of an employee except for a just cause or when authorized by this Title. An Employee who is
unjustlydismissed from work shall be entitled to reinstatement without loss of seniority rights and other
privileges and to his fullbackwages, 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.”
2. SECURITY OF TENURE is one of the basic rights of workers (BWC-DOLE). It is the right not to be
removed from one’s job except for a valid reason and through properprocedure. right is guaranteed in the
Constitution. This
3. Excerpts from Sec. 3, Art. XIII of the 1987 Philippine Constitution “The State shall afford full protection to
labor, local and overseas, organized and unorganized, and promote full employment and equality
ofemployment opportunities for all. It shall guarantee the rights of all workers to self-organization, collective
bargaining and negotiations, and peaceful concerted activities, including the right to strike in accordance with
law. They shall be entitled to security of tenure, humane conditions of work, and a living wage.”
4. Though the Article specifies “regularemployment”, security of tenure does notexclusively apply to regular
employment only. It also applies to non-regular employment such as fixed-periodemployment, seasonal,
project and even probationary employment.
5. Managerial employees are also entitled to security of tenure. The fact that one is amanagerial employee does
not by itself exclude him from the protection of the constitutional guarantee of security of tenure. (Case
Example: PLDT vs. Tolentino, Sept. 21, 2004)
6. JUST CAUSES•Faults and misbehaviors of the employee•Effectivity date of dismissal is determinedby the
employer.•Employer is not legally liable to giveseparation pay to the dismissed employee.•Due Process – 2
Notices: a) “Show-CauseMemo”; b) Subsequent Notice informingemployer’s decision
7. ART. 282. Termination by employer.An employer may terminate an employment for any of the
followingcauses:(a) Serious misconduct or willful disobedience by the employee of thelawful orders of his
employer or representative in connection with hiswork;(b) Gross and habitual neglect by the employee of his
duties;(c) Fraud or willful breach by the employee of the trust reposed in him byhis employer or duly
authorized representative;(d) Commission of a crime or offense by the employee against the personof his
employer or any immediate member of his family or his dulyauthorized representatives; and(e) Other causes
analogous to the foregoing.
8. Serious Misconduct•Misbehavior or an improper conduct, which is intentional innature•Transgression of
some established and definite rule of action,a forbidden act, a dereliction of duty, willful in character
andimplies wrongful intent and not mere error in judgment•Grave and not merely trivial•Must be in connection
with work•Sexual Harassment, Drug Use, Habitual Drunkenness, Acts ofImmorality, Falsification of Time
Card
9. WILLFUL DISOBEDIENCE•Refusal to obey orders, regulations and instructions, which arereasonable and
lawful, well-understood and sufficiently knownby the employee, and related to the employee’s duties•Must
relate to substantial matters, not trivial•Ex. Refusal to transfer – An employee, as a rule, should obeyan
employer’s order to transfer (job assignment, location).Transfer though should be reasonable and not
prejudicial tothe employee and should not involve demotion or diminutionof salary and benefits.
10. NEGLECT OF DUTIES•Gross and habitual failure to observe work standards and fulfillwork assignments
which tends to prejudice the employer’sinterest•An employer has the right to impose productivity
standardsthus failure to observe these may constitute just cause fordismissal•Another example is job
abandonment (1) without valid reason& (2) with clear intention to sever employer-employeerelationship
11. FRAUD•Any act, omission, or concealment related to the employee’swork, which involves breach of legal
duty, trust, or confidenceand is injurious to the employer or its representatives•Implies willfulness or wrongful
intent, ergo, the innocent non-disclosure of facts will not constitute just cause for dismissal
12. LOSS OF CONFIDENCE• Willful breach of trust done by employees occupying positions of trust and
confidence• It is the breach that results in employer’s loss of confidence in the employee.
13. COMMISSION OF CRIME OR OFFENSE•Crime against the employer or the employer’s family member
– spouse,ascendants, descendants, siblings (legitimate, natural or adopted), siblingsof his relative by affinity in
the same degrees or by consanguinity within thefourth civil degree•An employee may be acquitted in a
criminal case and yet his dismissal bythe employer may remain. The only requirement mentioned is
commissionof a crime, and not conviction. To convict a criminal requires proof beyondreasonable doubt; to
dismiss an employee requires only substantialevidence.
14. ANALOGOUS CAUSES• Equivalent to the just causes enumerated done voluntarily or willfully by the
employee not to the employer but maybe to the vendor, customer, visitor, etc.• Example: Violago Trucks &
Petrophil Case
15. AUTHORIZED CAUSES•Business and economic reasons & Disease•Employer is legally required to give
separation payto the employee, except in the case of companyclosure or cessation of operation/s due to
businesslosses.•No hearing neededEmployer has to give the employee and DOLEwritten notices thirty (30)
days ahead of theprojected separation.
16. ART. 283. Closure of establishment and reduction of personnel. The employer may also terminate the
employment of any employee due to theinstallation of labor-saving devices, redundancy, retrenchment to
prevent losses or the closing or cessation of operation of the establishment or undertakingunless the closing is
for the purpose of circumventing the provisions of this Title, by serving a written notice on the workers and the
Ministry of Labor andEmployment at least one (1) month before the intended date thereof. In case of
termination due to the installation of labor-saving devices or redundancy, the worker affected thereby shall be
entitled to a separation pay equivalent to at least his one (1) month pay or to at least one (1) month pay for
every year of service, whichever is higher. In case of retrenchment to prevent losses and incases of closures or
cessation of operations of establishment or undertaking not due to serious business losses or financial reverses,
the separation pay shall be equivalent to one (1) month pay or at least one-half (1/2) month pay for everyyear
of service, whichever is higher. A fraction of at least six (6) months shall be considered one (1) whole year.
17. ART. 284. Disease as ground for termination.An employer may terminate the services of an employee who
has beenfound to be suffering from any disease and whose continuedemployment is prohibited by law or is
prejudicial to his health as well asto the health of his co-employees: Provided, That he is paid separationpay
equivalent to at least one (1) month salary or to one-half (1/2)month salary for every year of service, whichever
is greater, a fraction ofat least six (6) months being considered as one (1) whole year.
18. AUTOMATION• Reduction of the number of workers due to new machinery• Manufacturer has the right
to use new labor-saving devices with an aim to effect more economy and efficiency in production.• Separation
Pay = at least one month pay or at least one month pay for every year of service, whichever is higher (bigger
amount since business is still profitable)
19. REDUNDANCY•Services of an employee are in excess of what is actually required bythe industry; maybe
due to over-hiring of workers, decreased businessvolume, dropping of a product line/service activity,
streamlining,mergers and reorganization•Management must show adequate proof that the abolished positions
wereunnecessary.•Separation Pay = at least one month pay or at least one month pay forevery year of service,
whichever is higher (bigger amount since business isstill profitable)
20. RETRENCHMENT• Termination of employees due to substantial and imminent loss and this loss must be
proven by convincing evidence. Termination is also done when it is seen as a necessary step in effectively
preventing further losses.• Conditions: (1) Intended to prevent losses and such losses are proven; (2) Written
notices are served on the workers and the DOLE at least one month before the effective date of retrenchment;
(3) Separation pay is paid to the affected workers; (4) There must be fair and reasonable criteria in determining
the employees to be dismissed (i.e. temporary employees first, efficiency rating, and seniority)
21. RETRENCHMENT• Justifications: (a) Substantial losses; (b) Substantial loss must be reasonably
imminent which can be perceived objectively and done in good faith; (c) Reasonably necessary, likely to
prevent more losses and done as a last resort; (d) Sufficient and convincing evidence for losses• In selecting
employees, the “Last In – First Out” (LIFO) rule, though not statutory, has its merits. Selection is part of
management’s prerogatives unless this is stipulated in a CBA for organized companies.• Separation Pay = one
month pay or at least one-half month pay for every year of service, whichever is higher
22. CLOSURE OR CESSATION• Firm required to cease operations due to government mandate (i.e.
acquisition of land for agrarian reform), firm suffering serious business decline and loss, or if firm owner
wants to discontinue business for personal reasons, but in good faith, is allowed to close.• Cessation not due to
business loss should meet the following conditions: (1) Written notice to employees and DOLE at least one
month before intended date of termination; (2) Cessation from business operations must be bona fide in
character; (3) Payment to the employees of termination pay amounting to at least one-half month pay for each
year of service or one month pay, whichever is higher
23. ARTICLE 284. DISEASE AS GROUND FOR TERMINATIONDISCUSSION:A medical certificate
issued by a competent public health authority is stillneeded for termination to take place even though disease
does notwarrant the employee to continue working according to law or asconsidered detrimental to his own
health or the health of his co-workers.A company physician is not considered a competent public
healthauthority thus a certificate issued by him is not accepted as a basis fortermination of employment.
24. There are two facets of valid termination:1. Legality of the act of dismissal a. If found illegal, employee is
entitled to reinstatement with backwages up to the time of his actual reinstatement if the contract of
employment is not for a definite period. b. If found illegal, employee is entitled to payment of salaries
corresponding to the unexpired portion of the employment contract.2. Legality in the manner of dismissal
25. DUE PROCESS IN AUTHORIZED CAUSES•Employer has to give though the employee and
DOLEwritten notices thirty (30) days ahead of the projectedseparation.•The purpose for requiring a thirty-day
written notice beforean employee is laid off is not to afford him opportunity to beheard on any charge against
him, for there is none. Rather,this is done to give him time to prepare for the eventual lossof his job and the
DOLE an opportunity to determinewhether economic causes do exist justifying termination.
26. “Termination of employment is not anymore a merecessation or severance of contractual relationship butan
economic phenomenon affecting members of thefamily. This explains why, under the broad principles ofsocial
justice, the dismissal of employees is adequately protected by the laws of the State.” (Alhambra Industries, Inc.
vs. NLRC, Nov. 18, 1994, as cited by Chan, 2000)
27. ART. 247. Concept of unfair labor practice and procedure for prosecution thereof.Unfair labor practices
violate the constitutional right of workers and employees to self-organization, are inimical to the legitimate
interests of both labor and management, including their right to bargain collectively and otherwise deal with
each other in an atmosphere of freedom and mutual respect, disrupt industrial peace and hinder the promotion
of healthy and stable labor-management relations. Consequently, unfair labor practices are not only violations
of the civil rights of both labor andmanagement but are also criminal offenses against the State which shall be
subject to prosecution and punishment as herein provided. Subject to the exercise by the President or by the
Secretary of Labor and Employment of the powersvested in them by Articles 263 and 264 of this Code, the
civil aspects of all cases involving unfair labor practices, which may include claims for actual, moral,
exemplary and other forms of damages, attorney’s fees and other affirmative relief, shall be under the
jurisdiction of the Labor Arbiters. TheLabor Arbiters shall give utmost priority to the hearing and resolution of
all cases involving unfair labor practices. They shall resolve such cases within thirty (30) calendar days from
the time they are submitted for decision. Recovery of civil liability in the administrative proceedings shall bar
recovery under the Civil Code. No criminal prosecution under this Title may be instituted without a final
judgment finding that anunfair labor practice was committed, having been first obtained in the preceding
paragraph. During the pendency of such administrative proceeding, the running of the period of prescription of
the criminaloffense herein penalized shall be considered interrupted: Provided, however, that the final
judgment inthe administrative proceedings shall not be binding in the criminal case nor be considered as
evidence of guilt but merely as proof of compliance of the requirements therein set forth.
28. ART. 248. Unfair labor practices of employersIt shall be unlawful for an employer to commit any of the
following unfair labor practice:(a) To interfere with, restrain or coerce employees in the exercise of their right
to self-organization;(b) To require as a condition of employment that a person or an employee shall not join a
labor organization or shallwithdraw from one to which he belongs;(c) To contract out services or functions
being performed by union members when such will interfere with, restrainor coerce employees in the exercise
of their rights to self-organization;(d) To initiate, dominate, assist or otherwise interfere with the formation or
administration of any labor organization,including the giving of financial or other support to it or its organizers
or supporters;(e) To discriminate in regard to wages, hours of work and other terms and conditions of
employment in order toencourage or discourage membership in any labor organization. Nothing in this Code
or in any other law shall stopthe parties from requiring membership in a recognized collective bargaining agent
as a condition for employment,except those employees who are already members of another union at the time
of the signing of the collectivebargaining agreement. Employees of an appropriate bargaining unit who are not
members of the recognizedcollective bargaining agent may be assessed a reasonable fee equivalent to the dues
and other fees paid bymembers of the recognized collective bargaining agent, if such non-union members
accept the benefits under thecollective bargaining agreement: Provided, that the individual authorization
required under Article 242, paragraph (o)of this Code shall not apply to the non-members of the recognized
collective bargaining agent;(f) To dismiss, discharge or otherwise prejudice or discriminate against an
employee for having given or being aboutto give testimony under this Code;(g) To violate the duty to bargain
collectively as prescribed by this Code;(h) To pay negotiation or attorney’s fees to the union or its officers or
agents as part of the settlement of any issue incollective bargaining or any other dispute; or(i) To violate a
collective bargaining agreement.The provisions of the preceding paragraph notwithstanding, only the officers
and agents of corporations,associations or partnerships who have actually participated in, authorized or ratified
unfair labor practices shall beheld criminally liable.
29. UNFAIR LABOR PRACTICES•refers to acts opposed to the right to organize or to engage in lawful
concertedactivities for collective bargaining or for the workers’ mutual aid and protection•Two Elements – (1)
Employer-employee relationship exists between the offenderand the offended; (2) Act done is expressly
defined in the Code as an unfair laborpracticeThere are two (2) aspects, namely: (1) Civil; and (2) Criminal.
Labor Arbitersshall have jurisdiction over the civil aspect of all cases involving unfair laborpractices, which
may include claims for actual, moral, exemplary and other formsof damages, attorney’s fees and other
affirmative relief. No criminal prosecutionmay be instituted without a final judgment finding that an unfair
labor practicewas committed having been first obtained in the labor case.•Not every unfair act is an unfair
labor practice.
30. UNFAIR LABOR PRACTICES1. INTERFERENCE, RESTRAINT OR COERCION – interference may
be considered ULP even when it is committed before union is formally registered. Example of unlawful acts
are dismissal of union members upon refusal to give up membership and dismissal of an employee allegedly
for inefficiency, on account of her having joined a union or union activities.
31. UNFAIR LABOR PRACTICES2. Yellow dog contract - promise exacted from workers or prospective
employees that they will not belong to or form a union if hired. If he does, he’ll lose his job. The typical
yellow dog contract embodies the ff: representation by the employee that he is not a member of a labor
organization, promise by the employee that he will not join a union, and a promise by the employee that upon
joining a labor organization, he will quit his job.
32. UNFAIR LABOR PRACTICES3. SUBCONTRACTING - The act of an employer in having work or
certain services or functions being performed by union members be contracted out is not generally an unfair
labor practice act. It is only when the contracting out of a job, work or service being performed by union
members will interfere with, restrain or coerce employees in the exercise of their right to self-organization that
it shall be unlawful and shall constitute unfair labor practice. If the motive then is to prevent employees from
organizing or to get rid of union members or to escape his statutory duty to bargain collectively with the
employees’ bargaining representative, then the contracting becomes ULP.
33. UNFAIR LABOR PRACTICES4. COMPANY-DOMINATION OF UNION – manifested in the following
forms: a. Initiation of the company union idea – either outright formation by the employer or its
representatives, employee formation on outright demand or influence by employer, or managerially motivated
formation b. Financial support to the union – defray union expenses or paying for lawyer’s fee c. Employer
encouragement and assistance – immediately granting exclusive recognition even without checking if union
has majority representation d. Supervisory assistance – soliciting membership, permitting union activities
during work time or coercing employees to join union with threats of certain penalties
34. UNFAIR LABOR PRACTICES5. DISCRIMINATION – To discriminate in regard to wages, hours of
work and other terms and conditions of employment in order to encourage or discourage membership in any
labor organization.**Union security clause – any form of agreement which imposes upon employees the
obligation to acquire or retain union membership at the expense of their employment upon failure to do so.
(valid discrimination since favors unionism)
35. UNFAIR LABOR PRACTICES6. RETALIATION – To dismiss, discharge or otherwise prejudice or
discriminate against an employee for having given or being about to give testimony under this Code.
Employer’s retaliation against employee regardless of employer’s purpose and regardless of the nature or
subject matter of the employee’s testimony
36. UNFAIR LABOR PRACTICES7. To violate the duty to bargain collectively as prescribed by this Code8.
To pay negotiation or attorney’s fees to the union or its officers or agents as part of the settlement of any issue
in collective bargaining or any other dispute – part of Company Domination of Union9. To violate a collective
bargaining agreement - but only if gross in character.
37. UNFAIR LABOR PRACTICES* The “totality of conduct doctrine” means that expressions of opinion by
an employer, though innocent in themselves, may be held to be constitutive of unfair labor practice because of
the circumstances under which they were uttered, the history of the particular employer’s labor relations or
anti-union bias or because of their connection with an established collateral plan of coercion or interference.*
A “runaway shop” is an industrial plant moved by its owners from one location to another to escape union
labor regulations or state laws.* Closure – sale or closure of a business enterprise done with bad faith

SECURITY OF TENURE

The principle of stability of tenure of personnel is one of Henri Fayol's fourteen administrative
principles. In this lesson, you will learn what it is and some of its important concepts.

Definition
French business executive Henri Fayol developed the principle of stability of tenure of personnel as part
of his 14 administrative management principles. Stability of tenure of personnel is a principle stating
that in order for an organization to run smoothly, personnel (especially managerial personnel) must not
frequently enter and exit the organization. Consequently, an organization must take steps to obtain as
much stability in its management and workforce as possible.

Rationale
Change and disruptions are often expensive in both time and resources. When a large percentage of your
workforce or management team leaves frequently, new personnel must be hired as replacements. These
replacements will have to be trained and educated about the organization and their role in it. They need
to become accustomed to the policies, procedures and culture of the organization. Their initial
productivity, effectiveness, and efficiency will probably be substantially less than the employees they
replaced. This costs the organization time and money that is best expended elsewhere.

Constant turnover often has a significant impact on the organization's sense of esprit de corps (group
cohesion) and morale. Finally, there is a risk that some organizational memory will be lost, which is the
knowledge and information stored only in the memories of employees rather than archived by the
organization.

Management must attempt to reduce employee attrition (or turnover). Careful selection of employees
whose values and goals match the goals and values of the organization will help. Fair and competitive
compensation packages will provide an incentive for employees to stay. Facilitating employee choice
and initiative will help create job satisfaction. Finally, techniques can be utilized to build up the
organization's esprit de corps to instill a sense of loyalty among the members of the organization.
Security of Tenure and Kinds of Employment

1. Security of Tenure andSecurity of Tenure and Kinds of EmploymentKinds of Employment Prepared

by: Ruth P. Mocorro Legal Aspects of Management

2. Security of TenureSecurity of Tenure Article 279. 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 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. (As amended by Section 34, Republic Act
No. 6715, March 21, 1989)

3. Security of TenureSecurity of Tenure  It is one of the Basic Rights of workers (BWC-DOLE)  Every
employee shall be assured security of tenure.  The right NOT TO BE REMOVED from work except for a
just or authorized cause, and only after due process.

4. Security of TenureSecurity of Tenure Excerpt from Sec. 3 Art. XIII of the 1987 Philippine Constitution.
“The State shall afford full protection to labor, local and overseas, organized and unorganized, and
promote full employment and equality of employment opportunities for all. It shall guarantee the rights
of all workers to self-organization, collective bargaining and negotiations, and peaceful concerted
activities, including the right to strike in accordance with law. They shall be entitled to security of
tenure, humane conditions of work, and a living wage.”

5. Security of TenureSecurity of Tenure JUST CAUSE (any wrongdoing committed by an employee)

•serious misconduct •willful disobedience of employers' lawful orders connected with work •gross and
habitual neglect of duty •fraud or willful breach of trust •commission of crime or offense against the
employer, employer's family member/s or representative •other analogous case AUTHORIZED CAUSE
(an economic circumstance not due to the employee's fault) •the introduction of labor-saving devices
•redundancy •retrenchment to prevent losses •closure or cessation of business DUE PROCESS in cases
of just cause involves: • notice to employee of intent to dismiss and grounds for dismissal • opportunity
for employee to explain his or her side • notice of decision to dismiss

6. Kinds of EmploymentKinds of Employment Article 280. Regular and casual employment. The
provisions of written agreement to the contrary notwithstanding and regardless of the oral agreement
of the parties, an employment shall be deemed to be regular where the employee has been engaged to
perform activities which are usually necessary or desirable in the usual business or trade of the
employer, except where the employment has been fixed for a specific project or undertaking the
completion or termination of which has been determined at the time of the engagement of the employee
or where the work or service to be performed is seasonal in nature and the employment is for the
duration of the season.

7. Kinds of EmploymentKinds of Employment An employment shall be deemed to be casual if it is not

covered by the preceding paragraph: Provided, That any employee who has rendered at least one year of
service, whether such service is continuous or broken, shall be considered a regular employee with
respect to the activity in which he is employed and his employment shall continue while such activity
exists.
8. Kinds of EmploymentKinds of Employment Article 281. Probationary employment. Probationary
employment shall not exceed six (6) months from the date the employee started working, unless it is
covered by an apprenticeship agreement stipulating a longer period. The services of an employee who
has been engaged on a probationary basis may be terminated for a just cause or when he fails to qualify
as a regular employee in accordance with reasonable standards made known by the employer to the
employee at the time of his engagement. An employee who is allowed to work after a probationary
period shall be considered a regular employee.

9. Sample CaseSample Case [G.R. NO. 177937. 19 JANUARY 2011] ROBINSONS GALLERIA/ ROBINSONS
SUPERMARKET CORPORATION AND/OR JESS MANUEL, Petitioner, VS. IRENE R. RANCHEZ, Respondent.

10. Sample CaseSample Case [G.R. NO. 177937. 19 JANUARY 2011][G.R. NO. 177937. 19 JANUARY 2011]
THE FACTS: •Sanchez was a probationary employee of Robinsons Galleria/Robinsons Supermarket Corp
for a period of five (5) months, or from Oct 15, 1997 to Mar 14, 1998. •She underwent 6 weeks of
training as cashier before she was hired last Oct 15, 1997. •She reported loss of Php20,000 to
management. Management ordered that Sanchez be strip- searched but yielded nothing. •Sanchez
acknowledged her responsibility and requested that she be allowed to settle and pay the lost amount.
However, petitioner Manuel did not heed her request and instead reported the matter to the police.
•Sanchez was jailed for two weeks and charged for qualified theft. •On Nov 25, 1997, Sanchez filed a
case for illegal dismissal and damages. •Petitioners sent to respondent by mail a notice of termination
and/or notice of expiration of probationary employment dated March 9, 1998. •Labor arbiter dismissed
complaint but ordered reinstatement. NLRC ruled that there was constructive dismissal and ordered
reinstatement and backwages. CA affirmed but ruled that separation pay would be paid in lieu of
reinstatement.

11. Sample CaseSample Case [G.R. NO. 177937. 19 JANUARY 2011][G.R. NO. 177937. 19 JANUARY 2011]
THE ISSUE: •Whether there was illegal dismissal. THE RULING: •Yes, Sanchez was not afforded due
process. As probationary employee, she could be dismissed for just cause, authorized cause or for failure
to meet the standards set. •The due process requirements under the Labor Code are mandatory and may
not be supplanted by police investigation or court proceedings. Thus, employers are mandated to
conduct their own separate investigation, and to accord the employee every opportunity to defend
himself. •Respondent was constructively dismissed by petitioner Supermarket effective October 30,
1997. It was unreasonable for petitioners to charge her with abandonment for not reporting for work
upon her release in jail. •As an illegally or constructively dismissed employee, respondent is entitled to:
(1) either reinstatement, if viable, or separation pay, if reinstatement is no longer viable; and (2)
backwages. THE DECISION: •That petitioners were ordered to pay respondent Irene R. Ranchez
separation pay equivalent to one (1) month pay and backwages from October 30, 1997 to March 14,
1998.