2. Just Causes (DO 147, s. 2015)

A. Termination of Employment by Employer

• Just Causes – Labor Code, art. 297; DOLE D.O. No. 147-15
• Authorized Causes – Labor Code, arts. 298-299; DOLE D.O. No. 147-15
• Due Process Requirements – Labor Code, art. 292 (b); DOLE D.O. No. 147-15

Government employees, including employees of GOCCs with original charters, are covered by civil-service law. Employees of GOCCs without original charters are generally governed by labor law (1987 Constitution, Art. IX-B, Sec. 2(1); National Service Corporation v. NLRC, G.R. No. L-69870, November 29, 1988). The quoted Labor Code provision (Labor Code, Art. 291) requires reconciliation with this constitutional rule.

WITHOUT NOTICE: Termination with Just Cause

• Grounds
• Serious insult on the honor and person of employee by the employer or his representative
• Inhumane and unbearable treatment accorded to the employee
• Commission of a crime against person of the employee or any of the immediate members of his family
• Other causes analogous to the foregoing
• Notice not necessary when resignation is with just cause.

REQUISITE FOR VALIDITY AND DUE PROCESS REQUIREMENTS

Note: In September 2015, DOLE issued D.O. 147-15, Amending the IRR of Book VI of the Labor Code.

JUST CAUSES

Grounds:

• Serious misconduct or Willful Disobedience by the employee of the lawful orders of his employer or representative in connection with his work (work-related)
• Gross and Habitual neglect by the employee of his duties
• Fraud or Willful breach by employee of the Trust reposed in him by his employer or duly authorized representative (not mere suspicion)
• Commission of a crime or offense
• Other analogous cases

Habitual Infractions

A series of irregularities when put together may constitute serious misconduct (Gustilo v. Wyeth Phil., G.R. No. 149629, 2004)

Poor performance

Previous infractions by the employee should have been acted upon appropriately by the employer before terminating the former.

As a general concept, “poor performance” is equivalent to inefficiency and incompetence in the performance of official duties. An unsatisfactory rating can be just cause for dismissal only if it amounts to gross and habitual neglect of duties. Thus, the fact that an employee’s performance is found to be poor and unsatisfactory does not necessarily mean that the employee is grossly and habitually negligent of his duties. (Universal Staffing Inc. v. NLRC, G.R. No. 177576, 2008)

Gross negligence includes gross inefficiency

Article 297(b) [282(b)] of the Labor Code provides that one of the just causes for terminating an employment is the employee's gross and habitual neglect of his duties. This cause includes gross inefficiency, negligence and carelessness (Century Iron Works, Inc. v. Bañas, G.R. No. 184116, 2013)

FRAUD OR WILLFUL BREACH OF TRUST (Labor Code, Article 297(c) [282(c)])

Elements of Loss of Confidence

• There must be an act, omission or concealment;
• The act, omission or concealment justifies the loss of trust and confidence of the employer to the employee;
• The employee concerned must be holding a position of trust and confidence;
• The loss of trust and confidence should not be simulated;
• It should not be used as a subterfuge for causes which are improper, illegal, or unjustified; and
• It must be genuine and not a mere afterthought to justify an earlier action taken in bad faith. (D.O. No. 147-15, Sec. 5.2[e])

Loss of trust and confidence to be a valid cause for dismissal must be based on a willful breach of trust and founded on clearly established facts. The basis for the dismissal must be clearly and convincingly established but proof beyond reasonable doubt is not necessary. (Prudential Guarantee and Assurance Employee Labor Union v. NLRC, G.R. No. 185335, 2012)

Guidelines for the application of the doctrine of loss of confidence

• Loss of confidence should not be simulated;
• It should not be used as a subterfuge for causes which are improper, illegal or unjustified;
• It may not be arbitrarily asserted in the face of overwhelming evidence to the contrary; and
• It must be genuine, not a mere afterthought to justify earlier action taken in bad faith (Coca-Cola Bottlers, Phils. Inc. v. Kapisanan ng Malayang Manggagawa sa Coca-Cola, G.R. No. 148205, 2005)

The breach must be related to the performance of the employee’s function. (Enriquez v. BPI, G.R. No. 172812, 2008)

When an employee accepts a promotion to a managerial position or to an office requiring full trust and confidence, she gives up some of the rigid guarantees available to ordinary workers infractions which is committed by others would be overlooked or condoned or penalties mitigated may be visited with more sever disciplinary action. (Tirazona v. CA, G.R. No. 169712, 2008)

Commission of a crime or offense

Refers to an offense by the employee against the person of his employer or any immediate member of his family or his duly authorized representative.

Requisites

• There must be an act or omission similar to those specified just causes;
• The act or omission must be voluntary and/or willful on the part of the employees (D.O. No. 147-15, Sec. 5.2[g])

Analogous Cases must be due to the voluntary and/or willful act or omission of the employee. (Cosmos Bottling Corp. v. Fermin, G.R. No. 193676, 2012)

D.O. No. 147-15 (new qualification)

No act or omission shall be considered as analogous cause unless expressly specified in the company rules and regulations or policies.

Analogous Cases must be due to the voluntary and/or willful act or omission of the employee. (Cosmos Bottling Corp. v. Fermin, G. R. No. 193676, 2012).

Doctrine of Incompatibility

Where the employee has done something that is contrary or incompatible with the faithful performance of his duties, his employer has a just cause for terminating his employment. (Manila Chauffer’s League v. Bachrach Motor, G.R. No. L-47138, 1940)