Employee Rights in Workplace Relationship Conflicts and Unfair Dismissal Cases
(Philippine Context)

1. Introduction

In the Philippines, labor laws and jurisprudence strongly protect workers’ rights, particularly regarding security of tenure and fair treatment at work. As workplace dynamics evolve, conflicts between employees—and between employees and employers—can arise from interpersonal differences or from management decisions. When such conflicts escalate, they may lead to disciplinary action, dismissal, or constructive dismissal. This article provides an overview of employee rights in the context of workplace relationship conflicts and unfair dismissal, citing relevant Philippine laws and jurisprudence.

2. Legal Basis for Employee Rights

1987 Philippine Constitution
- Article XIII, Section 3: Mandates the State to afford full protection to labor, ensuring security of tenure, humane conditions of work, and participation in policy- and decision-making processes affecting their rights and benefits.
Labor Code of the Philippines (Presidential Decree No. 442, as amended)
- Book VI, Title I (Termination of Employment) outlines the substantive and procedural requirements for valid termination.
- Article 279 [now renumbered as Article 294]: Enshrines the worker’s right to security of tenure.
Relevant Department of Labor and Employment (DOLE) Issuances
- Department Orders, Labor Advisories, and Implementing Rules reinforce workers’ rights and guide employers in compliance with lawful procedures.
Jurisprudence (Supreme Court Decisions)
- Supreme Court rulings form part of the law of the land (i.e., doctrine of stare decisis), clarifying issues such as due process requirements, permissible management prerogatives, and standards of just and authorized causes for termination.

3. Doctrine of Security of Tenure

Under Philippine law, an employee—whether regular, probationary (if the probationary period has not yet lapsed), or project-based (subject to special rules)—is entitled to security of tenure, meaning they cannot be dismissed without a lawful cause and adherence to due process. Employers must strictly comply with both substantive (valid cause) and procedural (proper notice and hearing) requirements when terminating employment.

Substantive Requirement

The employer must prove a valid ground (just or authorized cause) under the Labor Code or relevant laws.

Procedural Requirement

The “Twin Notice Rule”:
1. A written notice specifying the ground for termination and giving the employee a chance to explain.
2. A second written notice, if the explanation is not satisfactory or proven otherwise, formally terminating employment and stating the reasons.

Failure to comply with either of these requirements can render the dismissal illegal.

4. Types of Dismissal

4.1 Just Causes (Article 297 of the Labor Code)

“Just causes” are reasons attributable to the employee’s own actions or omissions. Examples include:

Serious misconduct or willful disobedience of lawful orders.
Gross and habitual neglect of duties.
Fraud or willful breach of trust and confidence.
Commission of a crime or offense against the employer or his/her family.
Other analogous causes (e.g., abandonment, violation of company rules amounting to serious misconduct).

4.2 Authorized Causes (Article 298 and 299 of the Labor Code)

“Authorized causes” refer to business or economic reasons for termination, not necessarily blaming the employee. Examples include:

Installation of labor-saving devices
Redundancy
Retrenchment to prevent losses
Closure or cessation of operation
Disease where continued employment is prohibited by law or prejudicial to the employee’s health or the health of co-employees

In these cases, employees are typically entitled to separation pay.

4.3 Illegal/Unfair Dismissal

A dismissal is illegal or unfair if it does not meet the substantive or procedural requirements. The employee may be entitled to:

Reinstatement without loss of seniority rights.
Full backwages from the time of dismissal until actual reinstatement.
In certain cases, separation pay in lieu of reinstatement if reinstatement is no longer feasible (e.g., strained relations).

5. Workplace Relationship Conflicts

Workplace conflicts can stem from personality clashes, power struggles, harassment, discrimination, or differences in values and interests. Under Philippine labor law, conflicts themselves—unless they rise to the level of “serious misconduct” or another just cause—do not automatically justify dismissal.

5.1 Employee Rights in Conflict Situations

Right to a Grievance Mechanism
- Many companies establish grievance machinery or dispute resolution procedures. Employees may file complaints or concerns through these channels without fear of retaliation.
Right to Due Process and Fair Investigation
- If an employee is accused of misconduct, they must be given a chance to explain (via first written notice), a fair hearing or meeting, and a formal resolution (via second written notice).
Freedom from Retaliation
- Employers are prohibited from retaliating against employees who report workplace issues (e.g., harassment, bullying, or violations of labor standards).

5.2 Management Prerogative vs. Employee Rights

Employers have “management prerogative” to discipline and manage their workforce. However, such prerogative must always be exercised in good faith and must not violate the employees’ rights under labor laws. Arbitrary or discriminatory actions disguised as “management prerogatives” can lead to claims of unfair labor practice or illegal dismissal.

6. Unfair Dismissal and Constructive Dismissal

Unfair Dismissal
- Occurs when an employer terminates an employee without just or authorized cause, and/or without due process. It is synonymous with illegal dismissal in Philippine law.
Constructive Dismissal
- Arises when an employer’s actions make continued employment so difficult or prejudicial that the employee is forced to resign. Classic examples:
  - Demotion without valid cause.
  - Harsh, hostile, or abusive working environment.
  - Non-payment of wages or benefits, or paying unreasonably late.
  - Unreasonable transfers or reassignment without valid cause.

In both scenarios, the employee can file a complaint for illegal dismissal before the National Labor Relations Commission (NLRC) or the appropriate labor arbiters.

7. Procedural Rights of Employees in Dismissal Cases

7.1 The Twin Notice Rule (Procedural Due Process)

First Notice: Informs the employee of the ground(s) for possible dismissal and provides them an opportunity to explain in writing.
Hearing or Conference: The employee should be given a chance to defend themselves, either through a hearing or a conference.
Second Notice: If the employer finds the grounds valid after evaluating the employee’s defense, the employer issues a notice of termination specifying the reasons for dismissal.

7.2 Documentation and Evidence

Employers must document all relevant evidence supporting the termination and must be able to prove that they complied with the procedural rules.
Employees should maintain and keep records of all communications (notices, disciplinary records, emails, etc.) that can support their defense if a dispute arises.

8. Remedies for Wrongfully Dismissed Employees

Reinstatement
- The primary remedy if the dismissal is found illegal. Employees return to the position they held prior to dismissal (or to a substantially equivalent position).
Backwages
- Full backwages from the date of dismissal to the date of reinstatement (or final judgment) as mandated by Philippine law.
Separation Pay in Lieu of Reinstatement
- If reinstatement is no longer feasible or may result in more conflict, the employee can receive separation pay.
- The amount is usually one month’s salary for every year of service (or more, depending on the cause, company policy, or CBA provisions).
Damages and Attorney’s Fees
- In certain cases of bad faith or where the law so provides, the employer might be ordered to pay moral and/or exemplary damages and attorney’s fees.

9. Filing a Labor Complaint

Employees who believe they have been illegally dismissed or prejudiced by a workplace conflict can file a labor complaint with:

Regional Arbitration Branch of the NLRC
- The complaint must be filed within four (4) years from the date of dismissal or cause of action.
DOLE Regional Offices
- For issues involving labor standards, wages, or lesser disputes, DOLE assists through Single-Entry Approach (SEnA) mechanisms, guiding parties to amicable settlement.
Office of the Ombudsman (in certain government employment or if there is corruption or abuse of authority by a public official involved).

10. Workplace Relationship Conflicts: Preventive Measures and Resolutions

10.1 Internal Policies

Employee Handbook: Clear policies on code of conduct, disciplinary procedures, and channels to address complaints.
Anti-Harassment and Anti-Discrimination Policies: Specific guidelines can mitigate interpersonal conflicts and prevent them from escalating.

10.2 Mediation and Conciliation

In-House Mediation: HR or a neutral party can facilitate discussions between conflicting parties.
DOLE’s Single-Entry Approach (SEnA): Encourages early dispute settlement prior to formal litigation at NLRC.

10.3 Work Environment and Culture

Encouraging open communication, training for supervisors on conflict management, and promoting respect can reduce the incidence of workplace conflict.

11. Best Practices for Employers

Implement Clear Rules and Regulations
- Develop and disseminate an employee handbook clarifying acceptable and unacceptable behaviors, as well as consequences for violations.
Train Supervisors and Managers
- On proper disciplinary action, conflict resolution, and compliance with the Labor Code.
Observe Due Process
- Rigidly follow the twin notice rule. Keep thorough records of each step in disciplinary proceedings.
Prioritize Grievance and Conflict Resolution Mechanisms
- Provide employees with accessible avenues to air concerns without fear of reprisal.

12. Conclusion

Employee rights in workplace relationship conflicts and unfair dismissal cases are deeply rooted in the Philippine Constitution and the Labor Code, reinforced by Supreme Court jurisprudence and DOLE regulations. The overarching principle is that an employer’s power to manage, discipline, and terminate employees must always respect workers’ security of tenure and the due process of law.

When interpersonal conflicts arise in the workplace, it is paramount for both employees and employers to approach them with fairness and adherence to established procedures. Employees facing harassment, unjust sanctions, or potential dismissal should understand their rights and remedies, including the right to file a complaint before the NLRC or DOLE. Employers, on the other hand, must ensure that any disciplinary or termination procedure is carried out lawfully, with transparency, and in good faith.

In the end, a harmonious, respectful, and legally compliant workplace benefits both labor and management, fostering productivity, stability, and mutual trust.

Disclaimer

This article is for general informational purposes only and does not constitute legal advice. For specific concerns or legal questions, consulting a licensed labor law practitioner or the appropriate government agency is recommended.