Wrongful Termination or Constructive Dismissal for Absences in the Philippines

Disclaimer: The following discussion provides general information on wrongful termination or constructive dismissal in the context of employee absences under Philippine labor laws. It is not intended as a substitute for personalized legal advice. Individuals facing specific concerns should consult a qualified labor law practitioner or the Department of Labor and Employment (DOLE).


1. Overview of Employment Termination in the Philippines

In the Philippines, employment termination is primarily governed by the Labor Code of the Philippines (Presidential Decree No. 442, as amended), jurisprudence (decisions of the Supreme Court), and relevant rules and regulations issued by the Department of Labor and Employment (DOLE). Under the Labor Code, there are two general categories of valid termination:

  1. Termination by the employer for a just or authorized cause
  2. Termination by the employee for a just cause (e.g., resignation with cause)

When an employer terminates an employee without complying with the grounds or procedures set by law, the termination may be declared illegal or wrongful. This often leads to possible liability for the employer, such as payment of back wages, reinstatement, or separation pay in lieu of reinstatement.


2. Just Causes for Termination and How Absences Fit In

Under Article 297 (formerly Article 282) of the Labor Code, the following are considered just causes for dismissal:

  1. Serious misconduct or willful disobedience of lawful orders.
  2. Gross and habitual neglect of duties.
  3. Fraud or willful breach of the trust reposed in the employee.
  4. Commission of a crime or offense against the employer or the employer’s family.
  5. Other causes analogous to the foregoing.

Absenteeism or tardiness can fall under “gross and habitual neglect of duties” or a cause analogous to it if the employer can prove the following:

  • There is a pattern of frequent absences or tardiness that severely affects work performance or disrupts company operations;
  • The employee disregarded legitimate rules on attendance or timekeeping (e.g., repeated violations of a company’s attendance policy);
  • The employee received appropriate warnings or disciplinary notices before the final dismissal (this shows that the employer made efforts to correct the employee’s behavior).

However, single or isolated instances of absence usually do not qualify as gross and habitual neglect of duty. Additionally, if the employee’s absences are justified (for instance, medical reasons with proper documentation) or protected (e.g., maternity leave, authorized leaves, or other leaves provided by law or CBA), dismissal could be unlawful if it is based solely on such absences.


3. Concept of Wrongful (Illegal) Termination

Wrongful or illegal termination occurs when:

  1. The dismissal is not premised on a valid or just/authorized cause; or
  2. The employer failed to observe due process (also known as the “twin notice rule”):
    • A first notice informing the employee of the specific act or omission for which dismissal is sought.
    • An opportunity to be heard (typically through an administrative hearing or a chance to submit an explanation in writing).
    • A second (final) notice informing the employee of the employer’s decision to dismiss them.

Even if absenteeism might be validly classified as a just cause for termination, failure to comply with procedural due process can render a dismissal illegal. On the other hand, if the employer follows proper procedure but the ground for dismissal is factually or legally insufficient, the termination is likewise considered wrongful.


4. Constructive Dismissal

Constructive dismissal arises when an employee quits his or her job due to the employer’s behavior, policies, or working conditions that effectively coerce or force the employee to resign. Common indicators of constructive dismissal include:

  • A demotion in rank or diminution of salary and benefits without valid justification;
  • Unreasonable or impossible work assignments that harass the employee;
  • A transfer to a different location without valid reasons, done purely to inconvenience or prejudice the employee;
  • Harsh, hostile, or oppressive working conditions that leave the employee no choice but to resign.

In the context of absences, constructive dismissal might be alleged if:

  • The employer imposes punitive or retaliatory measures (e.g., heavy financial penalties or consistent harassment) for absences that are excusable or authorized by law/policy;
  • The employer intentionally fails to approve legitimate leave requests in an attempt to harass or force the employee out;
  • The employer places the employee in a situation where taking needed leaves (sick leave, emergency leave, etc.) would be unreasonably difficult or lead to near-certain termination.

If an employee resigns because the employer’s attendance-related policies or disciplinary measures are unlawfully oppressive, the employee may file a complaint for constructive dismissal with the National Labor Relations Commission (NLRC). The employee must prove that the employer’s actions were unjustified and that there was no reasonable option but to resign.


5. Balancing the Employer’s Right to Discipline vs. the Employee’s Right to Security of Tenure

Under Philippine law, while employers have the right to protect their business interests, manage operations, and discipline employees, these rights are tempered by the constitutional right to security of tenure. Employees cannot be removed from their positions without substantial evidence of just or authorized causes, and without strictly following procedural due process.

When an employee is absent, it is the employer’s right to investigate the reasons:

  • If the absence is authorized (e.g., sick leave supported by valid medical certificates) or is justified (e.g., emergency circumstances recognized by law or company policy), then penalizing the employee with termination could be deemed an overreach.
  • If the absences are unexplained, frequent, and prolonged, and the employee ignores or violates clear attendance policies, the employer may legally pursue disciplinary action, including dismissal, provided the due process steps are followed.

6. Jurisprudential Guidelines on Absences Leading to Dismissal

Philippine Supreme Court decisions have emphasized the following points regarding absenteeism:

  1. Habitual and gross absenteeism or tardiness can be a valid ground for dismissal if it disrupts operations.
  2. Employers must establish that they exercised “ample and repeated warnings” or progressive disciplinary measures before resorting to termination.
  3. A single or isolated absence (especially if justified) is generally not sufficient to justify dismissal.
  4. Due process (“twin notice rule” and opportunity to be heard) must be strictly followed.
  5. Proportionality of the penalty matters: if the infraction is minor and can be corrected through suspension or a lesser penalty, dismissal may be considered too harsh and thus illegal.

7. Remedies Available to an Illegally Dismissed Employee

If an employee believes they have been wrongfully terminated or constructively dismissed, they may file a complaint before the National Labor Relations Commission (NLRC) or the appropriate labor arbiter. Possible remedies include:

  1. Reinstatement without loss of seniority rights.
  2. Full back wages computed from the time compensation was withheld up to the time of actual reinstatement.
  3. Separation pay in lieu of reinstatement (if reinstatement is no longer viable, such as when the relationship between the employer and the employee is severely strained).
  4. Moral and exemplary damages, in some cases where bad faith on the part of the employer is proven.

8. Best Practices for Employers

  1. Clear Attendance Policies

    • Draft, disseminate, and consistently implement explicit guidelines on absences, tardiness, and leaves.
    • Provide a process for employees to notify and document legitimate absences (e.g., medical certificates, emergency notices).
  2. Progressive Discipline

    • Impose disciplinary measures gradually (written warnings, suspensions) before resorting to termination, except in extreme cases of blatant or willful neglect of duty.
  3. Maintain Documentation

    • Keep records of any infractions, notices of explanation, memoranda, or meeting minutes when discussing attendance issues.
    • Document each step of the due process, including the issuance of the first notice, the employee’s opportunity to respond, and the final notice of decision.
  4. Follow Due Process Strictly

    • Ensure that both substantive (valid reason) and procedural (twin notice, hearing, or explanation period) aspects are satisfied.
    • Even a valid ground for dismissal may be rendered illegal if procedural steps are not observed.

9. Practical Tips for Employees

  1. Know Your Rights and Company Policies

    • Familiarize yourself with the Labor Code provisions, DOLE regulations, and your own company’s rules on attendance.
  2. Communicate and Document

    • If you must be absent, submit written notices or documentation (e.g., medical certificates) promptly.
    • If the employer’s attendance policy is being applied unfairly or appears punitive, keep detailed records (emails, memos) to support any future claims.
  3. Exhaust Internal Remedies

    • Before filing a formal complaint, consider going through the company’s grievance or HR processes to try and address disputes internally.
  4. Seek Legal Advice if Necessary

    • When in doubt, consult with a labor lawyer or approach the NLRC/DOLE for guidance on your rights and remedies.

10. Key Takeaways

  • Absenteeism may be a valid ground for dismissal, but only if it is frequent, habitual, or gross, and significantly prejudicial to the employer’s operations.
  • Even where absenteeism is established, due process must be strictly followed. Failure to comply with the twin notice rule could render a dismissal wrongful.
  • Constructive dismissal can occur if employer policies or actions relating to attendance effectively force the employee to resign.
  • Wrongfully or illegally dismissed employees have legal remedies such as reinstatement and back wages.
  • It is vital for both employers and employees to maintain thorough documentation, follow company policies, and remain aware of their rights and obligations under the Labor Code and existing labor jurisprudence.

Disclaimer: The information provided herein is for general educational and informational purposes only and should not be construed as legal advice. For specific situations or further clarity, one should consult a licensed Philippine labor attorney or approach the relevant government agencies such as DOLE or the NLRC.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.