Can an agency worker be terminated by the host company without due process?
In the Philippines, employment law under the Labor Code provides protections for all workers, including those hired through agencies, against termination without due process. Agency workers, often referred to as "contractual employees," are typically deployed to work at a host company. The legal framework ensures that these workers are given the same protective standards concerning termination as permanent staff.
According to Philippine labor law, due process in the context of employment termination involves two substantive requirements: a lawful or valid cause for termination and the proper execution of that termination according to legal standards, which includes a formal notice and the opportunity for the employee to defend themselves.
Valid causes for termination may include just causes such as misconduct, willful disobedience, gross and habitual neglect of duties, fraud or willful breach of trust, commission of a crime against the employer or any immediate member of the employer’s family, and other similar causes. Additionally, termination can occur for authorized causes such as installation of labor-saving devices, redundancy, retrenchment to prevent losses, closure or cessation of operation, and disease not curable within six months.
Here’s a breakdown of the due process requirements for termination:
Written Notice: The employee must be given a written notice stating the specific causes for termination, and this must be delivered at least 30 days before the date of termination.
Opportunity to Respond: The employee must be given an opportunity to respond to the allegations, with the assistance of a representative if the employee so desires.
Report to DOLE: In cases of termination for authorized causes, the employer is required to notify the Department of Labor and Employment (DOLE) at least 30 days prior to the intended date of termination.
For agency workers, the responsibility typically lies with the agency as the direct employer. However, if an agency worker is terminated from the host company, it should also follow due process, coordinated by the agency. If an agency worker feels that their termination was without just or authorized cause, or if due process was not followed, they can file a complaint with the National Labor Relations Commission (NLRC) for illegal dismissal.
In conclusion, both the labor agency and the host company must adhere to the due process requirements laid out by Philippine law. Any deviation from these norms can be grounds for a claim of illegal dismissal, giving the dismissed employee a right to seek redress through legal channels. This ensures that the rights of agency workers are protected in a manner similar to those of regular employees.