Termination of Employment

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TERMINATION OF EMPLOYMENT

Art. 297: Termination by Employer

Totality of Infractions Doctrine


The totality of instructions or number of violations
committed during the period of employment shall be
considered in determining the penalty to be imposed
on erring employee. The offenses committed should
not be taken singly and separately but in their totality.

Entitlement to Separation Pay


General Rule: an employee whose employment is
terminated by reason of just causes is not entitled to
separation pay except as expressly provided for in the
company policy or CBA

Reason: lawbreakers should not benefit from their


illegal acts

Except: when the court finds justification in applying


the principle of social justice well-entrenched in the
1987 Constitution

Note: an employee dismissed for valid cause, although


not entitled to separation pay, is still entitled to:

1. benefits under the Labor Code or other existing


laws

2. benefits granted by CBA provisions

3. benefits granted by voluntary management


policy or practice

Two-fold Process Requirement


1. Substantive aspect which means that the
dismissal must be for any of the:
a. just cause; and
b. authorized causes
2. Procedural aspect which means that the
employee must be accorded due process, the
elements of which are notice and the opportunity
to be heard and to defend himself

JUST CAUSES OF DISMISSAL BY EMPLOYER


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

5. Other causes analogous

DISCUSSION ON JUST CAUSES


1. Serious Misconduct
Misconduct has been defined as transgression
of some established and definite rule of action, a
forbidden act, a dereliction of duty, willful in
character, and implies wrongful intent and not
mere error in judgment

Requisites:
a. There must be misconduct
b. the misconduct must be of such grave and
aggravated character
c. it must relate to the performance of the
employee’s duty
d. there must be showing that the employee
becomes unfit to continue working for the
employer

Example:
a. sexual harassment
b. fighting within company premises
c. uttering obscene, insulting or offensive
words against a superior
d. falsification of time records
e. sexual intercourse inside company premises
and during work hours
f. Theft of company owned property
g. Gross immortality

In determination of whether a conduct is


disgraceful or immoral involves a two step
process
1. a consideration of the totality of the
circumstances surrounding the conduct; and

2. an assessment of the said circumstances vis-à-


vis the prevailing norms of conduct, i.e., what
the society generally considers moral or
respectable.

when the law speaks of immoral or, necessarily,


disgraceful conduct, it pertains to public and secular
morality and not religious; did you refers to those
conducts which are proscribed because they are
detrimental to conditions upon which depend the
existence and progress of human society.

WILLFUL DISOBEDIENCE or INSUBORDINATION


Insubordination refers to the refusal to obey some
order, which a superior is entitled to give and have
obeyed. It is a willful or intentional disregard of the
lawful and reasonable instructions of the employer.

Requisites:
a. there must be disobedience or insubordination
b. the disobedience or insubordination must be
willful or intentional characterized by a wrongful
or perverse attitude

c. the order violated must be reasonable, lawful


and made known to the employee

d. the order must pertain with the duties which he


has been engaged to discharge

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