Is selling scraps a valid ground for termination in the Philippines?
Under Philippine labor law, employees have the right to security of tenure, which means they cannot be dismissed without a valid cause and adherence to due process. The grounds for termination of employment are clearly outlined under Article 297 of the Labor Code of the Philippines, and selling scraps, per se, is not specifically listed as a valid ground for dismissal. However, the legality of termination due to selling scraps depends on the context in which the action was taken.
Just Causes for Termination
The Labor Code provides several just causes for termination, including serious misconduct, willful disobedience, gross and habitual neglect of duties, fraud or willful breach of trust, commission of a crime against the employer or their family, and other analogous causes. If an employee’s action of selling scraps falls under any of these categories, it could potentially be a valid ground for termination.
For example, if an employee sells company property classified as scraps without proper authorization, this could be considered serious misconduct or a willful breach of trust. In such cases, the employer must establish that the action was not only unauthorized but also detrimental to the company, either financially or reputationally.
Company Policies and Procedures
Many companies have specific policies regarding the disposal or sale of scraps. Employees are typically required to follow these procedures, and failure to comply may constitute a violation of company policy. If selling scraps without authorization violates established company rules, it could justify disciplinary action, including termination, provided that due process is observed.
Due Process in Termination
Even if an employer has a valid ground for termination, due process must be observed. This involves two key elements: notice and hearing. The employee must be given a written notice specifying the grounds for termination and an opportunity to respond. A hearing or conference should be conducted where the employee can defend themselves. After considering the employee’s explanation, the employer may then issue a decision, which could include termination if justified.
Failure to observe due process could render the termination illegal, entitling the employee to reinstatement and back wages.
Conclusion
In the Philippines, termination of employment for selling scraps is not automatically valid. It depends on whether the act constitutes a just cause under the Labor Code and whether due process is observed. Employers should ensure that they have clear policies regarding the handling of company property, including scraps, and that employees are fully informed of these rules to avoid disputes related to wrongful termination.