Labor Relations _O _ Law on Termination & Disciplinary cases

Question 1

Balancing of interest in DISCIPLINARY CASES

1. Labor interests
2. Management interests
3. Balancing of interest

Answer 1

Constitution recognizes the right to labor of workers as a PROPERTY RIGHT

Employer in its exercise of Management Prerogatives may promulgate rules and regulations geared towards the efficient running of its business operations.

Labor code MANDATES that all Doubts in the implementation of its provisions shall be RESOLVED in Favor of Labour.

Question 2

Balancing of interests ; Labor v Management

Guiding principles

Answer 2

1. Burden of proof on the EMPLOYER TO SHOW just cause ( after employee proved dismissal)
2. SUBSTANTIAL Evidence required to prove Cause of Termination ( Just or Authorized)
3. In the imposition of penalty, it must be COMMENSURATE to the offense or damage committed
4. For termination to be Valid, there must be CAUSE ( J or A) plus DUE PROCESS

Question 3

Grounds for Termination
A. Just causes
B. Authorized Causes (0.5 month pay for 1 year of service for DRC causes, 1 full month for Install & Redun)

Answer 3

A. F-rH-O-Gi-S
1) Serious Misconduct
2) Gross Insubordination
3) Fraud or Wilful Breach of Trust
4) Gross & Habitual neglect of Duty
5) Other Analogous cases

B. D-i-Re2xtd-C
1) Disease
2) Installation of labor saving device
3) Retrenchment
4) Redundancy
5) Closure but not due to Serious business Losses

Question 4

Grounds for Termination
A. Just causes

Serious misconduct - elements

Answer 4

1. Serious grave Wrong Willful Transgression
2. Related to employees duties
3. Becomes UNFIT to continue working for the Employer

Question 5

Grounds for Termination
A. Just causes

Gross Insubordination

Answer 5

1. Intentional
2. Wrongful & deliberate desire
3. Order violated - is reasonable, lawful & made known to employee
4. Order relates to Duties of employees

Question 6

Grounds for Termination
A. Just causes

Fraud ( wilful breach of Trust)

Answer 6

1. Intentional, not mere lapse in judgment
2. Employee hold Position of TRUST & confidence
3. Related to the duties
4. Substantial evidence, not just speculations

Question 7

Grounds for Termination
A. Just causes

Neglect of Duty - gross & habitual

What is the Totality of Infractions rule?

Answer 7

Absence of diligence amounting to Reckless Disregard of Duties
Repeated (over period of time)
imply Bad Faith ( to the detriment of business)

This rule is akin to Habitual Delinquency. Totality of violations justified the dismissal

Question 8

Grounds for Termination
A. Just causes

OTHER analogous cases

Answer 8

Incompetence - failure to attain work goals

Immorality - conflict with accepted norms; akin to moral turpitude

Constructive Dismissal - employers (employee’s) conduct made employment relationship Untenable

Preventive Suspension - disciplinary measure for malfeasance, misfeasance, nonfeasance

Resignation - employee voluntarily resigning is not entitled to separation pay except if the CBA or contract provides otherwise

Termination due to Union Security clauses

Question 9

Grounds for Termination

B. Authorized Causes

Disease

Answer 9

1. Disease prejudicial to his health and of co-workers
2. Certification from Public health authority that its incurable within6 months

Question 10

Grounds for Termination

B. Authorized Causes

Installation of labor saving device (computerization or mechanization)

Answer 10

introduction of technology or equipment that reduces the need for human labor

Question 11

Grounds for Termination

B. Authorized Causes

Retrenchment

Answer 11

1. Substantial losses
2. Imminent losses
3. Dismissal is necessary to prevent Losses and
4. Substantial evidence to prove these losses

Question 12

Grounds for Termination

B. Authorized Causes

Redundancy

Answer 12

Employer is not legally obliged to keep more employees than necessary for economical operation of business.

due to
- over hiring
- discontinued operations
- decreased volume of business

Question 13

Grounds for Termination

B. Authorized Causes

Closure of Business - partial or total - does not require Losses as its MP

Answer 13

Management Prerogative as long as done in Good Faith

Requirements
1. in Good Faith
2. Notice to Employees and DOLE one month before

Question 14

Procedure for Termination

What is the rule?

If there is illegal dismissal ( dismissal WITHOUT Just cause ) - what are the remedies (3)?

If there is illegal dismissal ( due to the Manner eg. without due process) - what is the remedy?

Answer 14

GR:
Twin requirements of (1) Notice and (2) Hearing

Remedies under LC for illegal dismissal WITHOUT just cause:
a) Reinstatement without Loss of Seniority rights. But if no longer available, then separation pay will be paid equivalent to 1 month of pay for every year of service

b) Payment of FULL BACKWAGES from time of illegal dismissal to actual reinstatement; and

c) Damages plus Attorneys fees.

Remedies under LC for illegal dismissal WITHOUT Due Process but there is a just cause: same as above but REINSTATEMENT IS NOT AVAILABLE.

Question 15

Notice and Hearing

What notice is required?

Answer 15

1st Notice - Notice of Appraisal - states ground for dismissal and gives opportunity to explain

2nd Notice - Notice of Termination - administrative investigation is not essential for due process. what is required is the opportunity to be heard.

Question 16

Reinstatement - procedures

Answer 16

R is the admission of employee back to work prior to his dismissal

No demotion in rank nor diminution of benefits, salary

If the position no longer exists, reinstatement may be to a SUBSTANTIALLY EQUIVALENT POSITION

If there is STRAINED RELATIONS, or employee decides not to be Reinstated, the employer shall PAY SEPARATION PAY in lieu of restoration

The order of reinstatement by Labor Arbiter is IMMEDIATELY EXECUTORY except if a higher tribunal reversed the LA decision

Question 17

Liability of Corporate officers - Joint

Answer 17

Separate Juridical personality - Corporate officer is NOT PERSONALLY LIABLE for paying obligations of the corporation EXCEPT if the officer is in Bad Faith he will be liable.

Question 18

Backwages

Answer 18

From time of dismissal

Wage increases of Other benefits are not included in the calculation of backwages

Question 19

Attorneys Fees - reasonable compensation for legal services per agreement or as assessed

Answer 19

According to 2208 civil code, awarded Attys fees are payable to the client and not to the lawyer.