Module 3 HRMT 80
Module 3 HRMT 80
Preface
This module is designed to help Business Management Students taking up Labor
relations and negotiations subject thru online. The material is designed to be read
interactively or after downloading; while the embedded interactive exercises require
internet connectivity, each can also be downloaded for offline work. These exercises are
presented to help you test and apply what you are reading, challenge yourself, prepare
quizzes, and have a little fun along the way.1
Objectives:
After successfully completing this module, you should be able to have an overview of the
law in relation to labor relations and negotiations. This module aims to provide insight
into the nature and function of labor law, familiarize the students with legal concepts,
terminology and principle related to labor relations and negotiations.
1
Ostate.pressbook.pub
Title I
TERMINATION OF EMPLOYMENT
Art. 292. Coverage. The provisions of this Title shall apply to all establishments or
undertakings, whether for profit or not.
Art. 293. 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.
Art. 296. Termination by employer. An employer may terminate an employment for
any of the following causes:
1. Serious misconduct or willful disobedience by the employee of the lawful orders of
his employer or representative in connection with his work;
2. Gross and habitual neglect by the employee of his duties;
3. Fraud or willful breach by the employee of the trust reposed in him by his employer
or duly authorized representative;
4. Commission of a crime or offense by the employee against the person of his
employer or any immediate member of his family or his duly authorized
representatives; and 5. Other causes analogous to the foregoing.
Constructive dismissal
Floating status for more than 6 months becomes constructive dismissal which entitles
the employee to separation pay (Phil. Industrial Security Agency Corp. vs. Virgilio
Dapiton and NLRC, 320 SCRA 124)
Art. 297. 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 a written notice on the workers and
the Ministry of Labor and Employment 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 in cases 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 every year of service, whichever is
higher. A fraction of at least six (6) months shall be considered one (1) whole year.
Art. 298. Disease as ground for termination. An employer may terminate the services of
an employee who has been found to be suffering from any disease and whose continued
employment is prohibited by law or is prejudicial to his health as well as to the health of
his co-employees: Provided, that he is paid separation pay 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 of at least six (6) months being considered as one (1) whole year.
Willful Disobedience
3. Dongon vs Rapid Movers and Forwarders Co., Inc. (G.R. No. 163431 August 28,
2013)
Serious Misconduct
4. Stanfilco – Division of DOLE Phil., Inc. vs Tequillo (G.R. No. 209735)
Constructive Dismissal
Torreda vs Investment and Capital Corp of the Phil. (G.R. No. 229881, September 05,
2018)