Challenging Wrongful Dismissal Due to Alleged Performance Misrepresentation

Below is a comprehensive overview of the topic “Challenging Wrongful Dismissal Due to Alleged Performance Misrepresentation” in the Philippine context. This discussion is intended for general informational purposes and does not constitute legal advice.


1. Introduction

In the Philippines, labor laws place a premium on the protection of employees’ rights, particularly the right to security of tenure. An employee can only be terminated for just or authorized causes, and the employer must observe both substantive (valid grounds) and procedural (due process) requirements. When an employer terminates an employee on grounds of “performance misrepresentation” or alleged falsification of qualifications or achievements, it falls under potential causes related to fraud, willful breach of trust, or analogous causes. If the termination lacks sufficient basis or does not follow proper procedure, it may be considered wrongful dismissal (or illegal dismissal).


2. Legal Framework

2.1. The Labor Code of the Philippines

  • Security of Tenure: Under the Philippine Constitution and the Labor Code, employees enjoy security of tenure. They cannot be dismissed without just or authorized cause and compliance with procedural due process.
  • Just Causes (Article 297, formerly Article 282 of the Labor Code) include:
    1. Serious misconduct or willful disobedience
    2. Gross and habitual neglect of duties
    3. Fraud or willful breach of the trust reposed in the employee
    4. Commission of a crime or offense against the employer or his immediate family
    5. Other causes analogous to the foregoing

Depending on the nature of “performance misrepresentation,” the employer may allege fraud, breach of trust, or an analogous cause as the basis for dismissal.

2.2. Substantive and Procedural Due Process

  • Substantive Due Process: Requires that the dismissal be based on a valid or just cause as enumerated in the Labor Code or relevant jurisprudence.
  • Procedural Due Process: Involves a two-notice rule:
    1. First Notice: A written notice informing the employee of the specific acts or omissions that serve as grounds for dismissal.
    2. Opportunity to be Heard: The employee must be given a chance to explain or defend themselves in a hearing or through a written explanation.
    3. Second Notice: A written notice of the decision to dismiss (if the employer finds the employee’s explanation unsatisfactory), stating the reasons for the termination.

Failure to observe these steps may render the dismissal procedurally infirm, leading to potential liability for the employer even if there was a valid substantive cause.


3. Grounds for Dismissal Related to “Performance Misrepresentation”

3.1. Fraud or Willful Breach of Trust

In situations where an employee is alleged to have misrepresented their performance—such as inflating sales figures, fabricating achievements, falsifying credentials, or otherwise providing fraudulent statements—the employer may invoke “fraud or willful breach of trust” under the Labor Code as a just cause for termination.

For the dismissal to be valid under fraud or willful breach of trust:

  • The employer must prove that the employee committed a wrongful act (misrepresentation, falsification, etc.).
  • The act must be work-related and must justify the loss of trust and confidence in the employee.

3.2. Analogous Causes

Sometimes, an employee’s conduct does not perfectly fit the enumerated just causes but is considered sufficiently serious or analogous. “Misrepresentation of performance” could be classified under an analogous cause if it does not exactly fall under fraud but still involves dishonesty or deception materially related to work.


4. Burden of Proof on the Employer

The employer, as the party who initiates the dismissal, bears the burden of proving that the termination was for a valid cause and that all due process requirements were satisfied. If the employer fails to discharge this burden—either by lacking sufficient evidence of misrepresentation or by not following the proper dismissal procedure—the dismissal can be declared illegal by the Labor Arbiter, the National Labor Relations Commission (NLRC), or the courts.


5. Due Process in Detail

5.1. The Two-Notice Rule

  1. Charge Sheet or First Notice: Must state the specific allegations of misrepresentation, the circumstances, and the dates and details of the alleged offense.
  2. Opportunity to Explain: The employee should be given a period (usually five days or more) to respond in writing or be heard in an administrative hearing.
  3. Decision or Second Notice: Must state clearly if the employer is proceeding with termination and the reasons for it.

5.2. Documentation and Investigation

  • The employer is expected to conduct a fair investigation—collecting evidence, interviewing witnesses, etc.
  • The employee should be allowed to present counter-evidence or clarifications regarding the alleged performance misrepresentation.

Failure to comply with these procedural steps can make the dismissal procedurally invalid even if substantively there was ground for termination.


6. Challenging Wrongful Dismissal

An employee who believes they have been wrongfully dismissed due to alleged performance misrepresentation may take the following steps:

  1. Documentation: Gather all relevant documents, including:

    • Employment contract
    • Performance appraisals
    • Communications or memoranda from the employer
    • Notices of the alleged offense
    • Personal records, receipts, or logs that refute the alleged misrepresentation
  2. Internal Appeal or Grievance: Check if the company has an internal grievance mechanism or appeal process. If so, the employee can exhaust internal remedies first.

  3. File a Complaint with the Department of Labor and Employment (DOLE):

    • In some cases involving labor violations, the employee may first seek assistance through the Single Entry Approach (SEnA) at DOLE for possible mediation.
  4. File a Complaint with the NLRC or the Regional Arbitration Branch:

    • The employee can file a case for illegal dismissal.
    • In illegal dismissal cases, the employer must prove that the dismissal was for a valid cause and that due process was observed.
  5. Attend Conciliation and Mediation:

    • The Labor Arbiter may conduct mandatory conciliation/mediation to encourage settlement before proceeding to formal hearings.
  6. Proceed to Formal Hearing:

    • Both parties will present evidence, witnesses, and arguments.
    • The Labor Arbiter will issue a decision based on the merits of the case.

7. Potential Remedies for Wrongful Dismissal

If the Labor Arbiter or the NLRC finds that the dismissal was illegal, the employee may be entitled to:

  1. Reinstatement without loss of seniority rights and other privileges.
  2. Full Back Wages from the time of dismissal up to actual reinstatement (or finality of the decision, as the case may be).
  3. Separation Pay (in lieu of reinstatement) if reinstatement is not feasible due to strained relations or other valid reasons.
  4. Damages and Attorney’s Fees in certain cases where bad faith or malice is shown.

Note that if the dismissal is held valid in terms of just cause but is procedurally infirm (i.e., there was no proper due process), the employer may be liable for nominal damages as recognized by Philippine jurisprudence.


8. Common Defenses for Employees

When an employee challenges a dismissal based on performance misrepresentation, common defenses may include:

  1. Denial of Allegations: Demonstrating that the performance records or qualifications are accurate or that any discrepancy was not intentional.
  2. Lack of Employer Evidence: Pointing to the employer’s failure to present substantial proof of the alleged fraud or misrepresentation.
  3. Good Faith: Showing that any error in performance records or credentials was made without intent to deceive, and thus not constituting fraud or willful breach of trust.
  4. Procedural Defenses: Arguing that the employer did not issue the proper notices or allow an opportunity to be heard, rendering the dismissal invalid.

9. Relevant Philippine Jurisprudence

Philippine courts have issued various decisions emphasizing:

  • The burden of proof is on the employer to show that the dismissal was valid.
  • Misrepresentation, when proven, can be a valid ground for dismissal if it involves dishonesty or fraud that undermines the trust and confidence required in an employment relationship.
  • The strict observance of procedural due process is a key requirement. Failure to comply can lead to awards for nominal damages even if the dismissal is substantively justified.

Key Supreme Court rulings often refer to the principle that “If doubts exist between the evidence presented by the employer and the employee, the scale of justice must tilt in favor of the latter,” reinforcing the state’s policy of protecting labor.


10. Practical Tips and Considerations

  1. From the Employer’s Perspective:

    • Ensure that any allegations of performance misrepresentation are well-documented and supported by substantial evidence.
    • Follow the two-notice rule meticulously.
  2. From the Employee’s Perspective:

    • Keep personal copies of documents related to work performance, achievements, and any feedback or performance evaluations.
    • Respond promptly and clearly to any written charges from the employer.
  3. Alternative Dispute Resolution:

    • Attempt to resolve disputes through mediation or settlement. Litigation can be expensive and time-consuming.
  4. Seek Legal Assistance:

    • Labor disputes can be complex. Consulting with a labor lawyer or seeking guidance from the Public Attorney’s Office (PAO) may be beneficial.

11. Conclusion

Challenging a wrongful dismissal due to alleged performance misrepresentation requires a solid understanding of Philippine labor law, particularly the rules on just causes and due process. Both employer and employee must take care to follow the prescribed procedures and gather sufficient evidence to support their respective claims. While the employer has the prerogative to dismiss employees for valid causes, the employee’s right to security of tenure and due process is rigorously protected by law. In any dispute, prompt, well-documented, and legally compliant actions are crucial to achieving a fair outcome.


Disclaimer: This article is for informational purposes only and does not constitute legal advice. For case-specific concerns, individuals should seek professional legal counsel from an attorney experienced in Philippine labor law.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.