Under Philippine labor law and jurisprudence, the existence and enforcement of a union security clause within a Collective Bargaining Agreement (CBA) constitute a recognized and lawful authorized cause for termination of employment under certain conditions. A union security clause, in essence, is a stipulation in the CBA that requires employees covered by the bargaining unit to become and remain members of the union as a condition of their continued employment. The rationale behind this clause is to strengthen the union’s bargaining power, ensure solidarity within the bargaining unit, and prevent “free-riders” from enjoying the benefits of the CBA without supporting the union’s activities.

Key Legal Framework and Authorities

Labor Code of the Philippines:
While the Labor Code does not explicitly enumerate a “union security clause” as a statutory ground for termination, it recognizes that parties to a CBA may lawfully agree to union security arrangements. These arrangements, when violated by the employee, may serve as an authorized cause for termination.

Relevant provisions commonly invoked include the general recognition of CBAs and the emphasis on industrial peace, collective bargaining rights, and the enforceability of agreement stipulations so long as they are not contrary to law, morals, public policy, or public order.
Department Order No. 147-15 (DOLE Rules on Termination of Employment):
D.O. No. 147-15 provides guidelines on the proper procedure for terminating employees based on authorized or just causes. When enforced in relation to union security clauses, the same due process standards apply: the employer must issue the required notices and observe the standards of procedural due process before effecting a dismissal. The union security clause effectively becomes the substantive authorized cause, provided that the grounds fall squarely under the conditions set forth in the CBA and the employee’s violation thereof is duly established.
Constitutional and Policy Backdrop:
- The 1987 Philippine Constitution protects the rights of workers to self-organization, collective bargaining, and negotiations.
- It encourages collective bargaining and the formation of unions and allows, within reasonable bounds, the parties to agree on arrangements to maintain union strength and stability.
- This supportive constitutional and statutory context has led the Supreme Court and the Department of Labor and Employment (DOLE) to uphold reasonable union security clauses as valid exercise of union prerogatives.

Types of Union Security Clauses

Union Shop Clause: Requires that all new employees within the bargaining unit must, after a certain period (e.g., probationary period), join the certified union or face termination.
Maintenance of Membership Clause: Requires that employees who are already union members maintain their membership in good standing for the duration of the CBA. Non-payment of dues or fees, resignation from the union, or other acts that result in loss of good standing may constitute ground for termination.
Closed Shop Clause: More stringent, it requires that only union members in good standing be hired and remain employed. Employees who lose their union membership also lose their employment.

Judicial Recognition and Jurisprudence
The Supreme Court has consistently upheld the validity of union security clauses, provided that:

The Clause is Clearly Stipulated in the CBA: The CBA must contain a clear provision granting the union the right to request termination of employees who violate union security conditions.
The Clause is not Arbitrary or Contrary to Law: Union security measures must not violate existing laws or constitutional rights. They must not discriminate on impermissible grounds or be used to harass employees.
Due Process is Observed:
- Substantive Due Process: There must be a legitimate and reasonable basis for the union’s invocation of the union security clause. Common grounds include non-payment of union dues despite proper notice, resignation or expulsion from the union for valid causes under the union’s constitution and by-laws, or acts inimical to the union.
- Procedural Due Process: The employee must be afforded notice of the violation and an opportunity to be heard. Although the union typically conducts its own internal hearing or investigation, the employee must be informed of the alleged infraction of union rules and given a chance to defend themselves. After the union has validated the violation, it may request the employer in writing to dismiss the employee in accordance with the union security clause.

Employer’s Role and Due Process Requirements under DO 147-15
Even if the union requests the termination of an employee pursuant to a union security clause, the employer cannot effect dismissal automatically without adhering to due process:

Two-Notice Rule:
- First Notice (Notice to Explain): The employer must issue a written notice to the employee specifying the grounds for termination, i.e., the union’s request and the violation of the union security clause.
- Hearing or Opportunity to Explain: The employee must be given a reasonable period to respond to the allegations, present evidence, or clarify any issues.
- Second Notice (Notice of Decision): After evaluating the employee’s explanation and evidence, and verifying that the union’s request is legitimate and supported by evidence, the employer must issue a final written notice of termination, clearly stating that the dismissal is due to the employee’s failure to comply with the union security clause.
Good Faith of the Employer:
The employer, in good faith, relies on the union’s determination that the employee violated union membership requirements. However, the employer must still ensure that the employee’s fundamental rights are respected. The employer should confirm that the union’s decision has undergone proper due process and is neither arbitrary nor retaliatory.

Limits and Safeguards

Non-Arbitrariness:
The union cannot invoke a union security clause to dismiss employees on arbitrary, discriminatory, or malicious grounds. Loss of union membership leading to termination must be predicated on a justifiable violation of union obligations.
Constitutional Rights of Workers:
While the union security clause is meant to protect union integrity, it cannot infringe upon the fundamental rights of workers (e.g., freedom of association, right to due process). Employees have the right to question union decisions through internal union procedures or by filing a case before the National Labor Relations Commission (NLRC) if they believe the invocation of the clause is unjust.
Checks by Labor Arbiters and Courts:
Employees who are terminated pursuant to a union security clause may file a complaint for illegal dismissal. Labor Arbiters, the NLRC, and ultimately the courts will examine whether the substantive and procedural requirements were met. Should it be found that due process was not followed or the cause was invalid, the dismissal may be declared illegal, entitling the employee to reinstatement and backwages.

Jurisprudential Highlights

The Supreme Court has repeatedly upheld union security clauses as lawful so long as the terms in the CBA are fair, the union’s action in expelling or suspending membership is done in accordance with the union’s constitution and by-laws, and due process is accorded to the affected employee.
Courts have also emphasized the need for the union to provide factual and legal basis for the dismissal. If the union’s decision to expel an employee from membership is nullified or found to be without just cause, the consequent dismissal by the employer cannot stand.

Practical Implications

For Employers: It is prudent to maintain documentation showing that the union’s request for termination is grounded on a valid union security clause, accompanied by due process steps and union documents proving the employee’s membership violation. Employers must not dismiss an employee solely on the union’s verbal request or without verifying compliance with procedural safeguards.
For Unions: Proper implementation of union security clauses reinforces union strength. However, unions must strictly adhere to their internal rules and afford members due process to avoid legal challenges. Arbitrary expulsions that lead to illegal dismissals harm the union’s credibility and may erode membership trust.
For Employees: Being aware of the union’s constitution, by-laws, and the obligations of union membership is crucial. Employees must pay dues and comply with union regulations. If they believe their expulsion is unjust, they may seek redress within the union or before the labor tribunals.

Conclusion
A union security clause, when validly incorporated into a CBA and lawfully invoked, is recognized as an authorized cause for termination under Philippine labor law, provided all substantive and procedural due process requirements are met. It is a delicate balance: the law permits such clauses to strengthen the union and protect collective bargaining rights, but equally demands fairness, good faith, and the protection of individual worker rights at every step of the process.