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POSC 4219 Module V Outline

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POSC 4219 Module V Outline

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University of San Carlos

Department of Political Science


POSC 4219 (Labor Law and Social Legislation)
By: Atty. Lalaine P. Salve - Esmeralda

MODULE V. TERMINATION OF EMPLOYMENT

I. TERMINATION OF EMPLOYEES
A. SUBSTANTIVE DUE PROCESS
i. Just Causes
1. Article 297, LC
2. Section 5.2, 6, and 7, DOLE Department Order No.147-15, Series
of 2015 entitled Amending the Implementing Rules and
Regulations of Book VI of the Labor Code of the Philippines, As
Amended
3. Serious Misconduct
a. Definition of Serious Misconduct
b. Requisites
c. Cases:
i. Zenco Sales, Inc. v. NLRC, G.R. No. 111110,
August 2, 1994
ii. Empas v. Mariwasa Siam Ceramics, Inc., G.R. No.
246176
4. Insubordination or Willful Disobedience of the Lawful Order of
the Employer
a. Elements or Requisites of willful disobedience
b. Cases:
i. Westin Philippine Plaza Hotel v. NLRC, G.R. No.
121621, May 3, 1999
ii. Manila Pavilion Hotel v. Delada, G.R. No. 189947,
[January 25, 2012]
5. GROSS AND HABITUAL NEGLECT OF DUTY
a. Requisites
b. Test to Determine Negligence
c. Cases:
i. Sugarsteel Industrial, Inc. v. Albina, G.R. No.
168749, [June 6, 2016]
ii. Quiambao v. Manila Electric Railroad and Light
Co., G.R. No. 171023, [December 18, 2009], 623
PHIL 416-424)
6. FRAUD
a. Concept
b. Case:
i. Globe Telecom, Inc. v. Ebitner, G.R. No. 242286,
[January 16, 2023])

7. WILLFUL BREACH OF TRUST


a. Requisites
b. Position of Trust and Confidence
i. Classes of Positions of Trust and Confidence
1. Managerial
2. Non-Managerial where holders regularly
handle significant amounts of money or
property in the normal and routine
exercise of their functions
ii. Some cases and principles:
1. Bristol Myers Squibb (Phils.), Inc. v.
Baban, G.R. No. 167449, [December 17,
2008], 594 PHIL 620-636)
2. Vivo v. QDynamics Global Corp., G.R. No.
236160 (Notice), [August 23, 2023]
8. ABANDONMENT OF EMPLOYMENT
a. Concept
b. Requisites
c. Case:
i. Icawat v. National Labor Relations Commission,
G.R. No. 133573, [June 20, 2000], 389 PHIL 441-
447)
ii. Shie Jie Corp. v. National Federation of Labor,
G.R. No. 153148, [July 15, 2005], 502 PHIL 143-
151)
9. TERMINATION OF EMPLOYMENT PURSUANT TO A UNION
SECURITY CLAUSE
10. OTHER ANALOGOUS CASES
a. Gross Inefficiency – neglect of duty
i. St. Luke's Medical Center, Inc. v. Fadrigo, G.R. No.
185933 (Resolution), [November 25, 2009], 620
PHIL 745-758)
b. Sexual harassment – serious misconduct
c. Drug Abuse – serious misconduct
d. Conflict of Interest – Willful breach of Trust
e. Disloyalty – Willful breach of Trust

ii. AUTHORIZED CAUSES


1. Concept
a. Article 283. Closure of establishment and reduction of
personnel.
b. Installation of labor-saving devices
i. Requirements
ii. Case:
1. Agustilo v. Court of Appeals, G.R. No.
142875, [September 7, 2001], 417 PHIL
218-234)
c. Redundancy
i. Requirements
ii. Case:
1. 3M Philippines, Inc. v. Yuseco, G.R. No.
248941, [November 9, 2020])

d. Retrenchment
i. Requirements
ii. Standards that the company must meet to justify
retrenchment to prevent abuse of employer
iii. Cases on retrenchment:
1. Philippine Airlines, Inc. v. Ligan, G.R. No.
203932 (Resolution), [June 8, 2016])
e. Closure or cessation of business operation
i. Concept
ii. Requirements
f. Disease
i. Article 284, LC

iii. TERMINATION OF PROBATIONARY EMPLOYMENT


iv. TERMINATION OF PROJECT EMPLOYMENT
v. VOLUNTARY RESIGNATION
vi. TERMINATION BY EMPLOYEE
1. Article 285. Termination by employee.
vii. FORCED RESIGNATION OR CONSTRUCTIVE DISMISSAL
1. LBC Express-Vis, Inc. v. Palco, G.R. No. 217101, [February 12,
2020])
viii. SUSPENSION OF EMPLOYER-EMPLOYEE RELATION

B. PROCEDURAL DUE PROCESS


i. Procedural Requirement
1. Just Causes
2. Twin Requirement of notice and hearing
a. First Written Notice
b. Conduct of hearing
c. Second written notice
3. Except – Abandonment
ii. Authorized Causes
1. Notice to Employee
2. Notice to DOLE
iii. Definite-Period Employment
1. Project
2. Seasonal
3. Casal
4. Fixed Termn
iv. Probationary
1. – failure to qualify
2. Same procedure for just causes
v. Preventive Suspension

C. POST-TERMINATION : EFFECTS OF TERMINATION FOR JUST OR AUTHORIZED


CAUSE AND AFTER OBSERVANCE OF PROCEDURAL DUE PROCESS
i. Termination for Just Cause
ii. Termination for Authorized Causes

D. POST-TERMINATION : EFFECTS OF TERMINATION WITHOUT JUST OR


AUTHORIZED CAUSE DESPITE OBSERVANCE OF PROCEDURAL DUE PROCESS
i. Right to Reinstatement and Backwages
ii. Separation Pay in Lieu of Reinstatement

E. POST-TERMINATION : EFFECTS OF TERMINATION WITH JUST OR


AUTHORIZED CAUSE BUT WITHOUT OBSERVANCE OF PROCEDURAL DUE
PROCESS
i. Wenphil Doctrine
ii. Serrano Doctrine
iii. Agabon Doctrine
iv. Jaka Case
(see Book discussion)

F. SUMMARY: SEVEN STANDARDS IN TERMINATION DISPUTES:


i. DISMISSAL (Just, Authorized Health) + Due Process = LEGAL
ii. Dismissal (w/o J /A) + Due Process = ILLEGAL
iii. Dismissal (w/o J/A) + no Due Process = ILLEGAL
iv. Dismissal (J/A) + no DP = LEGAL
v. Dismissal (Non-Existing Cause) = ILLEGAL
vi. Dismissal was not supported by any evidence of termination =
TERMINATION IS NEITHER LEGAL OR ILLEGAL as there is no dismissal to
speak of
vii. Dismissal was brought about by the implementation of Law = LEGAL

G. REMEDIES OF EMPLOYEES
i. Filing of Complaint with Labor Arbiter
ii. Appeal to NLRC

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