Authorized Cause of Termination
Article 283 of the Labor Code provides that termination due to the authorized cause is allowed where the employer is in the losses sustained by the company due to substantial losses; closure or cessation of the company’s operations not due to serious business losses or financial reverses; and cessation of the company’s operation either temporary in nature (i.e. not exceeding six (6) months). In case of termination due to cessation of operation either temporary or permanent, the employee whose employment has been terminated for authorized causes shall be entitled in pay an amount equivalent to his wages for the unexpired portion of his contract which shall not exceed one (1) month, as well as to other monetary benefits (i.e. severance pay, retirement pay, etc.).
The primary source of employment-related laws in the Philippines is the Labor Code of the Philippines, which governs every aspect of the employer/employee relationship from pre-hire to post-termination. Under the Code, an employment may be terminated may arise in the following circumstances: (a) the employee may terminate the contract of employment voluntarily (resignation); (b) the company may terminate the employment based on just causes, which may either be authorized or not under the Code; and (c) the company may terminate the employment based on authorized causes. This article will elaborate on the authorized cause of termination and the employee’s right and relief in case of illegal termination on this ground. An authorized cause of termination refers to valid reasons recognized by law or employment contracts, such as redundancy, retrenchment, or closure of the business, which warrant the dismissal of an employee.
AWOL: Defined
From the employee’s point of view, there is a plethora of reasons to not report for work, including but not limited to the lack of interest in the job, the unbearable officer, natural calamities, and medical conditions. The common thread is the employee’s freedom to disrupt the employer’s objectives, which is to be productive if an employer-employee contract of employment exists. Unfortunately, the essence of employment that is the obligation of an employee to report for work is not realized as a significant violation without a contractually stipulated consequence. Whereas lacking legal teeth to concession violations.
On a similar footing, the common notion of absence without leave (AWOL) is not specifically defined in the law, whether the Labor Code or other relevant statutes. It is mostly the product of long-used jurisprudential test. In the same manner as the Dole, the NLRC has a policy-based judgment when dealing with offenders of the anti-absenteeism doctrines. Absence Without Official Leave (AWOL) denotes instances where an employee is absent from work without prior approval or notification, potentially leading to disciplinary action or termination depending on company policies and employment agreements.
Employee Rights and Protections
An employee is entitled to be paid for every hour of overtime work done with an additional compensation equivalent to his regular wage plus at least 25% (Article 87, Philippine Labor Code) of the latter. The employee must submit required documents to the employer such as a written notice of the intention to go on leave at least one day in advance (except in cases of emergencies where the employee can notify the employer on the day of their emergency or illness). A US employer and the employee should agree to the same terms of leave applies in the situation of termination of employment. Once the agreement has been reached, the employer must pay the employee the entire salary due to him/her on or before the end of his/her last day of employment. Not doing so may result in payment of a penalty equivalent to the employee’s daily salary for every day of delay. This equates to an additional cost to a company. Special labor laws apply to overseas workers.
The “right to security of tenure” of employees is protected under the Philippine Labor Code. Employees can be removed from service only for just causes such as: 1) serious misconduct, 2) willful disobedience, 3) gross and habitual neglect of duties, 4) fraud or breach of trust, 5) loss of confidence, 6) commission of a crime or offense against the person of the employer or his immediate family or representative, and 7) other causes analogous to the foregoing (Article 282, Philippine Labor Code). Just causes must be proven with due process by the employer through the service of a notice of charge to the individual concerned, affording the individual reasonable opportunity to present his/her side either written or orally. The employer must also conduct a hearing or investigation to allow the individual to answer and rebut the evidence presented against him/her. The security of tenure listed under the Philippine Labor Code does not only protect the employee from unjust or illegal dismissal but also the right to be entitled to holiday pay, rest day pay, overtime pay, holiday pay and service incentive leave pay.
Employer Obligations
The Labor Code provides that it is the employer’s obligation to pay the wages, provide safety devices, comply with labor laws, safeguard the rights of the employees, and ensure that the employee is not a victim of personal insult, or that employees are not physically or mentally under undue pressure from superiors among others. The employer may be held liable under the labor standards if their actions are without just or authorized cause such as harassment in the form of unjust termination of employment. In a case where a teacher was harassed to the point that she could no longer perform her duties, it was ordered that she be treated as resigned from employment and is entitled to backwages from the time of her termination up to the finality of the decision.
The employer is principally responsible for the proper and faithful observance and compliance with all the laws, labor standards and other obligations provided for the benefit of the employees under any law, government order or regulations for its enforcement. It is the duty of the employer to minimize, if not to prevent the employees from risk at work by observing safety and health measures deemed necessary and proper including the provision of safety devices. The employer’s duty includes compliance with statutes’ implementing rules and regulations such as, but not limited to safety, health and sanitation laws.
