What are the legal rights of employees regarding termination due to low performance in the Philippines?

In the Philippines, employment relationships are governed by the Labor Code of the Philippines, which sets forth the legal framework for the rights and responsibilities of both employers and employees. One critical aspect of this relationship is the conditions under which an employee can be terminated from their job, particularly for reasons related to performance.

Legal Grounds for Termination

Under the Labor Code, an employer has the right to terminate an employee for just causes. These include serious misconduct, willful disobedience, gross and habitual neglect of duties, fraud or willful breach of trust, commission of a crime, and analogous causes. Low performance, if it meets certain criteria, can be considered an analogous cause.

Analogous Causes and Performance

For performance-related terminations to be valid under analogous causes, certain conditions must be met:

Clear Performance Standards: The employer must have established clear, reasonable, and attainable performance standards.
Notice and Opportunity to Improve: The employee should be informed of their performance deficiencies and given a reasonable opportunity to improve. This typically involves a formal performance improvement plan (PIP) outlining specific areas needing improvement and a timeline for achieving the required standards.
Documentation: Employers must document instances of poor performance and the efforts made to help the employee improve. This documentation is crucial in demonstrating that the termination is justified if challenged.

Procedural Due Process

In addition to the substantive grounds, procedural due process must be observed when terminating an employee for poor performance. This includes:

Notice of Intent to Terminate: The employer must serve a written notice to the employee specifying the grounds for termination and giving the employee a chance to explain or defend themselves.
Hearing or Conference: The employee should be given an opportunity to be heard, either in a formal hearing or an informal conference.
Notice of Termination: If the decision to terminate is made, a final notice must be issued, specifying the effective date of termination.

Employee Remedies

If an employee believes their termination was unjust, they can file a complaint with the National Labor Relations Commission (NLRC). The NLRC can investigate and adjudicate the matter, potentially ordering reinstatement, back wages, and other forms of compensation if it finds that the termination was unlawful.

Conclusion

Terminating an employee for low performance is a sensitive and legally complex issue. Employers must ensure that their actions are grounded in just causes as defined by the Labor Code and that they follow due process procedures meticulously. Employees, on the other hand, have the right to be informed, given an opportunity to improve, and to contest any termination they believe to be unjust. Both parties should be aware of their rights and obligations to maintain a fair and lawful employment relationship.