How to File a Claim for Unjust Dismissal and Wrongful Termination in Employment (Philippine Context)

Disclaimer: The following discussion provides general information on Philippine labor laws and procedures relating to illegal dismissal or wrongful termination. It is not intended as legal advice. For specific concerns, please consult a qualified labor lawyer or the appropriate government agencies.

I. Introduction

In the Philippines, employees enjoy security of tenure, a right enshrined in the Constitution and the Labor Code of the Philippines. This means an employee cannot be dismissed from work except for valid and legally recognized grounds and after following due process. When an employee believes they have been terminated without just or authorized cause—or without adherence to proper procedure—they may file a complaint for illegal (or “unjust”) dismissal, also often referred to as “wrongful termination.”

This article aims to guide employees and employers alike on:

What constitutes unjust or wrongful dismissal
Legal bases and grounds for termination of employment
Proper procedure for dismissal
Remedies and reliefs available to an illegally dismissed employee
Steps to file a claim before the appropriate forums

II. Legal Framework

A. Labor Code of the Philippines

Presidential Decree No. 442 (Labor Code of the Philippines), as amended, is the principal law governing employment, working conditions, labor relations, and termination of employment.
Key provisions on termination are found in Articles 294 to 297 (previously Articles 279 to 283 in older numbering), detailing both the substantive and procedural requirements for legally valid dismissals.

B. Constitutional Principle of Security of Tenure

The 1987 Philippine Constitution enshrines the right of workers to security of tenure, meaning employees can be dismissed only for causes recognized by law.

C. Jurisprudence and Issuances

The Supreme Court has decided numerous cases clarifying concepts like “illegal dismissal,” “constructive dismissal,” “authorized causes,” “just causes,” and due process requirements.
The Department of Labor and Employment (DOLE) and the National Labor Relations Commission (NLRC) also issue rules, regulations, and guidelines that help implement and interpret the Labor Code.

III. Grounds for Termination

Under Philippine labor law, employers may validly terminate an employee only for reasons recognized as just causes or authorized causes. Failure to rely on these grounds or to follow the required procedures can result in a finding of illegal dismissal.

A. Just Causes (Article 297, Labor Code)

These refer to reasons attributable to the employee’s fault or misconduct, including:

Serious Misconduct or Willful Disobedience – For instance, theft, repeated insubordination, or other grave offenses.
Gross and Habitual Neglect of Duties – Chronic absenteeism, negligence resulting in major losses, etc.
Fraud or Willful Breach of Trust – Dishonesty, breach of confidentiality, embezzlement of company funds.
Commission of a Crime or Offense Against the Employer or His/Her Representative – Physical harm, serious threats, or other crimes directed at the employer or co-workers.
Other Similar Causes – Courts generally limit “other causes” to those involving analogous forms of serious wrongdoing.

B. Authorized Causes (Article 298 and 299, Labor Code)

These are business or economic reasons that allow employers to dismiss employees, including:

Installation of Labor-Saving Devices
Redundancy
Retrenchment to Prevent Losses
Closure or Cessation of Business
Disease – When the continued employment of the employee is prejudicial to his health or the health of his co-employees, provided there is certification from a competent public health authority.

C. Constructive Dismissal

While not explicitly stated in the Labor Code, constructive dismissal refers to a situation where, despite not being formally terminated, an employee is forced to resign or abandon their position because of hostile or unreasonable working conditions created by the employer (e.g., demotion without just cause, harassment, or a drastic pay cut without valid reasons).

IV. Procedural Due Process

Even if valid grounds exist, procedural due process must be observed. The standard differs depending on whether the dismissal is based on just causes or authorized causes.

A. Dismissal for Just Causes (Twin Notice Rule)

First Notice (Notice to Explain) – The employer must send a written notice specifying the act or omission constituting the ground for dismissal, giving the employee a reasonable opportunity (usually at least five calendar days) to respond.
Opportunity to Be Heard – The employee should be given a chance to answer the charges in writing and may be given a hearing or conference where both sides can present evidence.
Second Notice (Notice of Decision) – After due consideration of the employee’s response and the evidence, the employer must issue a written notice stating the decision to terminate (if grounds are established) or to impose a lesser penalty (if dismissal is not warranted).

B. Dismissal for Authorized Causes

Thirty (30) Day Written Notice – Both the employee and the DOLE Regional Office must be provided written notice at least 30 days before the effectivity of the termination.
Payment of Separation Pay – The employer must pay separation pay as required by law (e.g., one month pay for every year of service in redundancy or ½ month pay per year of service for retrenchment/closure, whichever the applicable rule requires).

Failure to comply with procedural due process can lead to legal consequences (e.g., payment of nominal damages to the employee) even if the dismissal ground is valid.

V. Consequences of Illegal (Unjust) Dismissal

If an employer terminates an employee without a valid ground or fails to follow the proper procedure, the dismissal is deemed illegal. The general remedies provided by law include:

Reinstatement – Restoration to the former position without loss of seniority rights and other privileges.
Full Back Wages – Payment from the date of dismissal up to the date of reinstatement.
Separation Pay in Lieu of Reinstatement – If reinstatement is no longer feasible due to strained relations or the cessation of the employer’s business, the employee may receive separation pay in lieu of reinstatement.
Damages and Attorney’s Fees – In some cases, the employee may also be granted moral, exemplary damages, and attorney’s fees if there is bad faith or malice on the part of the employer.

VI. How to File a Claim

An employee who believes they have been illegally dismissed may file a complaint with the National Labor Relations Commission (NLRC). Alternatively, they can first seek assistance from the Department of Labor and Employment (DOLE), which may refer them to voluntary settlement mechanisms.

A. Mandatory Conciliation-Mediation

Single Entry Approach (SEnA) – Before filing a formal complaint with the NLRC, aggrieved employees are required to undergo a 30-day mandatory conciliation-mediation. This is done by filing a “Request for Assistance” (RFA) at the DOLE’s regional offices or field offices.
Mediation Conference – The DOLE-designated officer (SEnA Desk Officer) will facilitate settlement. If the issue is resolved, the parties execute a settlement agreement. If unresolved, the matter proceeds to the NLRC or other appropriate bodies.

B. Filing a Complaint with the NLRC

Preparation of the Complaint – The employee, or their counsel, prepares a complaint affidavit or position paper stating the facts of the case, the nature of dismissal, and the reliefs sought.
Venue – Complaints must be filed with the NLRC Regional Arbitration Branch having jurisdiction over the workplace or where the employer or employee resides.
Payment of Docket Fees – A minimal filing fee may be required. If the complainant cannot afford it, they may request exemption or indigency status.
Submission of Position Papers and Evidence – Both parties (employee and employer) will be required to submit position papers, affidavits, and relevant proof.
Mandatory Med-Arbitration or Hearing – An NLRC Labor Arbiter may schedule hearings or conferences to clarify issues and attempt settlement.
Decision – The Labor Arbiter will issue a decision. If any party is dissatisfied, they can file an appeal to the NLRC Commission Proper, and further to the Court of Appeals or the Supreme Court under certain conditions.

C. Prescription Period

Illegal Dismissal Complaints generally must be filed within four (4) years from the date of dismissal. However, it is always advised to act promptly to avoid issues with evidence and witness availability.

VII. Tips and Practical Considerations

Documentation is Critical
- Gather employment records, payslips, contracts, notices, and any relevant communications (emails, messages) that support your claim of wrongful dismissal or show the employer’s failure to observe due process.
Observe Deadlines
- Pay close attention to the 30-day notice requirements (for employers) and the 4-year prescription period (for employees).
Seek Professional Advice
- Consulting with a labor lawyer or visiting the nearest DOLE/NLRC office can clarify your specific legal standing and guide you on evidence gathering and filing procedures.
Explore Amicable Settlement
- Both parties can opt for mediation or settlement at any stage of the proceedings to save time and resources, but be sure that any settlement reached is in writing and fairly compensates the illegally dismissed employee.

VIII. Conclusion

In the Philippines, unjust (or wrongful) dismissal arises when an employee is terminated without valid or authorized cause or without adherence to the proper procedural requirements mandated by the Labor Code. Fortunately, the law provides robust remedies to protect employees, including reinstatement and full back wages, among others.

To pursue a claim, an illegally dismissed employee typically goes through mandatory conciliation-mediation (under SEnA) and, if unresolved, files a formal case with the National Labor Relations Commission (NLRC). Throughout this process, strict attention to documentary evidence, timely action, and compliance with procedural rules is paramount.

Should you find yourself in a wrongful termination situation, it is highly advisable to consult a qualified labor lawyer or seek help from the DOLE to ensure you understand your rights and follow the proper steps to secure redress for any violation of your security of tenure.