Illegal Dismissal in the Philippines: What Constitutes it?

Question: What constitutes illegal dismissal under Philippine labor law, and how can employees address it?

Illegal dismissal, also known as unlawful or unjust termination, occurs when an employee is terminated without just or authorized cause or in violation of due process under Philippine labor law. The Labor Code of the Philippines protects employees from arbitrary dismissal, ensuring that proper procedures are followed and that employees have access to remedies in case of violations.

Grounds for Dismissal

Philippine labor law outlines two types of causes that can justify the dismissal of an employee:

1. Just Causes - These involve serious misconduct or breaches committed by the employee. Common just causes include:

   • Gross and habitual neglect of duties.
   • Fraud or willful breach of the trust reposed by the employer.
   • Commission of a crime against the employer or co-workers.
   • Other analogous causes.

2. Authorized Causes - These pertain to economic or operational reasons within the company, such as:

   • Installation of labor-saving devices.
   • Redundancy.
   • Retrenchment to prevent losses.
   • Closure or cessation of operations.

If the termination does not fall within these just or authorized causes, it is likely considered illegal.

Violations of Due Process

Even if a valid cause for dismissal exists, the employer must observe due process, which consists of two aspects:

1. Substantive Due Process – This refers to the existence of a valid reason for dismissal, such as a just or authorized cause. Without a legitimate reason, the dismissal is deemed unlawful.

2. Procedural Due Process – This requires that the employer follow the correct procedure for terminating an employee. For dismissals due to just cause, the employer must:

   • Provide the employee with a written notice specifying the grounds for dismissal.
   • Allow the employee the opportunity to explain and defend themselves in a hearing or through a written explanation.
   • Issue a notice of termination if dismissal is decided upon after the employee’s defense.

For authorized causes, a 30-day prior notice must be served both to the employee and the Department of Labor and Employment (DOLE).

Employee Remedies for Illegal Dismissal

When an employee is terminated without just cause or due process, they may file a complaint with the DOLE or the National Labor Relations Commission (NLRC). If proven, the employee may be entitled to:

• Reinstatement without loss of seniority or benefits.
• Full back wages from the time of dismissal until actual reinstatement.
• Separation pay (if reinstatement is no longer feasible due to strained relations or company closure).

Conclusion

Illegal dismissal undermines the security of tenure guaranteed by the Philippine Constitution. Employees who believe they have been unfairly dismissed should promptly seek legal remedies to assert their rights and secure appropriate compensation. The labor law framework in the Philippines ensures that dismissals are conducted fairly and in accordance with established legal standards.