iv. Power to Suspend Effects of Termination (EO 51, s. 2018)

Power to Suspend Effects of Termination (EO 51, s. 2018)

Concept

The DOLE Secretary may suspend the effects of a termination while a labor dispute is pending when the statutory grounds are present. This is interim protection: it does not finally decide whether the dismissal is valid. (Labor Code, Art. 292(b))

Governing provisions

Article 292(b) of the Labor Code governs the Secretary’s general power to suspend the effects of termination. Executive Order No. 51, s. 2018 concerns implementation of Article 106 on contracting and protection of workers’ security of tenure. Its implementing rule also protects workers covered by a compliance order directing regularization while that order is on appeal. (Labor Code, Art. 292(b)) (Preamble, Labor Code)¹ (EO No. 51, s. 2018, Sec. 4)²

Requisites / Rules

• A termination dispute must be pending before the appropriate DOLE official, who makes a prima facie finding that the termination may cause a serious labor dispute or is in implementation of a mass layoff. The Secretary may then suspend the effects of the termination pending resolution of the dispute. (Labor Code, Art. 292(b))
• Where a compliance order directs regularization, the workers’ employment must not be terminated pending appeal, except for a just or authorized cause. An appeal alone does not permit their removal. (EO No. 51, s. 2018, Sec. 4)²
• The underlying compliance order arises from the Secretary’s visitorial and enforcement authority, which permits DOLE to issue labor-standards compliance orders based on inspection findings. DOLE may determine the existence of an employer-employee relationship for that purpose without first referring the question to the NLRC. (Art. 128, Labor Code)³ (Manco Synthetic Inc.-Employee Labor Union-Organized Labor Union in Line Industries and Agriculture (Msi-Elu-Olalia) and Manila Cordage Company- Employees Labor Union-Organized Labor Union in Line Industries and Agriculture (Mcc-Elu-Olalia) v. Manila Cordage Company (Mcc) and Manco Synthetics, G.R. No. 260801, 13 May 2024)⁴

Distinctions

Suspension of a termination’s effects is provisional. It differs from a final ruling of illegal dismissal, for which the Labor Code provides reinstatement without loss of seniority rights and full backwages. It also differs from a return-to-work order issued in a dispute assumed by the Secretary, which maintains the employment status quo while that dispute is resolved. (Labor Code, Art. 292(b)) (Labor Code, Art. 300 [279])⁵ (San Fernando Coca-Cola Rank-And-File Union v. Coca-Cola Bottlers Philippines, Inc., G.R. No. 200499, 4 October 2017)⁶

Bar tip

Identify the source of the protection: Article 292(b) requires a prima facie finding tied to a serious labor dispute or mass layoff; the EO 51 regularization rule applies while the compliance order is on appeal, subject to just or authorized cause. (Labor Code, Art. 292(b)) (EO No. 51, s. 2018, Sec. 4)²