Letter to a Lawyer

Dear Attorney,

Good day. I am seeking guidance regarding a serious matter involving my employment at a construction company. Recently, I was placed under “preventive suspension” by my employer. The cause for this action is that I admittedly copied or forged the certifying signature of a high-ranking official (the individual whose signature I used) in order to process my Multi-Purpose Loan application with Pag-IBIG. My loan application was subsequently approved because I am a legitimate employee and the name of the certifying officer was correct; however, I concede that my approach in signing on behalf of that official was not authorized.

Although I acknowledge my fault, I have questions about whether my actions truly justify the company’s decision to impose a preventive suspension. I have not yet been presented with a formal notice to explain, nor have I received any additional documents from my employer detailing the charges or evidence against me. I would like to understand the legal basis of this suspension, my potential liability, and whether my employer has followed the proper legal procedure under Philippine law.

Your insights and advice would be immensely helpful. Thank you for taking the time to read my concerns.

Respectfully,
A Concerned Employee

Introduction

In the Philippines, labor laws and jurisprudence have evolved to ensure both the protection of employees’ rights and the preservation of employers’ prerogatives to maintain discipline, order, and productivity in the workplace. One of the more sensitive and complex disciplinary issues that arise is the placement of an employee under preventive suspension—particularly where the alleged misconduct is considered serious, such as forgery or falsification of documents.

Forging or copying another person’s signature, especially that of a high-ranking official or CEO, raises critical questions under both labor and criminal law. The matter touches upon concepts of serious misconduct, loss of trust and confidence, and the need for due process during disciplinary proceedings. This article seeks to provide a comprehensive analysis of the legal and practical ramifications of forging a superior’s signature to secure benefits—like a Pag-IBIG Multi-Purpose Loan (MPL)—and the intricacies surrounding the employer’s right to impose preventive suspension.

Legal Basis for Employer’s Right to Discipline

1. Management Prerogative

Employers generally enjoy a certain degree of management prerogative, allowing them to regulate all aspects of employment, including hiring, work assignments, promotions, transfers, and disciplinary measures. This right is not absolute; it must always conform to the requirements of law, collective bargaining agreements (if applicable), and general principles of fair play.

2. Labor Code and Omnibus Rules

The Philippine Labor Code, along with its implementing rules, does not explicitly itemize every conceivable ground for disciplinary action. However, Article 297 (formerly Article 282) of the Labor Code states that an employer may validly terminate employment for just causes, including serious misconduct, willful disobedience, gross and habitual neglect of duty, fraud or willful breach of trust, and other analogous causes. Forging an official’s signature may qualify under either serious misconduct, fraud, or breach of trust, depending on the circumstances.

Serious Misconduct Defined

1. Misconduct in General

Misconduct refers to any improper or wrongful behavior that is inconsistent with the basic duties owed by an employee to his or her employer. For a misconduct to be classified as serious, it must be of such grave and aggravated character such that it represents a deliberate and willful violation of the employer’s rules or of the law, rendering an employee unfit to continue in his or her position.

2. Requirements for Serious Misconduct

According to Philippine Supreme Court rulings, for misconduct to be considered serious enough to justify termination, it must be:

Grave and aggravated;
Work-related or connected with the performance of the employee’s duties; and
Implies wrongful intent or perversion of duty.

Forgery of a signature, if done intentionally and without authorization, may very well constitute a grave offense tantamount to serious misconduct. In many precedents, falsification or forgery is seen as a dishonest act—especially if it undermines the employer’s trust or subjects the company to potential liability or reputational harm.

The Consequences of Forgery under Philippine Law

1. Labor Consequences

From a purely labor standpoint, forging a signature can be classified as serious misconduct, fraud, or willful breach of trust, making it a just cause for dismissal under Article 297 of the Labor Code. An employer who can establish that an employee forged an official signature, thereby breaching the trust reposed in him or her, is well within the right to terminate or impose a disciplinary sanction, provided due process requirements are strictly followed.

2. Criminal Implications under the Revised Penal Code

Depending on the facts, forging or falsifying a signature can also be prosecuted as a criminal offense under the Revised Penal Code (RPC). Articles 171 to 176 of the RPC deal with forgery and falsification of documents. While forging a signature on a private document (like certain loan forms) might be less severe than falsifying public documents, it can still result in potential criminal liability if filed in court and proven beyond reasonable doubt.

3. Civil Liability

If the forging of a signature caused damage to another party, such as financial loss or harm to the company’s reputation, the employee could theoretically be held civilly liable for damages. Employers may seek restitution for any losses incurred as a direct result of the forgery.

Preventive Suspension: Nature and Purpose

1. Definition and Justification

Preventive suspension is a temporary measure that an employer can impose on an employee who is suspected of committing a serious infraction. The rationale is to remove the employee from the workplace if his or her continued presence poses a threat to property, might influence witnesses, or disrupt the integrity of the investigation. Unlike a disciplinary suspension, preventive suspension is not a penalty in itself. It is merely a precautionary step.

2. Legal Requirements

While the Labor Code does not directly define the concept of preventive suspension in detail, jurisprudence and the Omnibus Rules Implementing the Labor Code provide guidance. Generally, the following principles apply:

Grounds: Preventive suspension is warranted only if the employee’s continued presence could pose a serious and imminent threat to the life or property of the employer or the employer’s representatives, or to the operations of the employer.
Duration: The maximum allowable period for preventive suspension is 30 calendar days. If the investigation extends beyond 30 days, the employee should be recalled to work or the employer must opt to extend it, in which case the employer generally must pay the employee’s wages and other benefits beyond that period.
Procedural Compliance: Employers must observe due process. They must notify the employee in writing, stating the acts or omissions constituting the misconduct and the specific reasons why preventive suspension is essential to the investigation.

3. Procedural Nuances

A key point is that preventive suspension cannot be used as a punishment. If an employer imposes it without just cause or in violation of the rules on due process, the employer risks incurring liability for illegal suspension, which could give rise to backwages or damages for the employee. Additionally, if the employer decides to extend preventive suspension beyond 30 days without compensating the employee, that might violate the established jurisprudential rules.

Procedural Due Process in Disciplinary Cases

1. The Two-Notice Rule

Philippine labor law mandates compliance with the two-notice rule whenever an employee is being considered for termination or serious disciplinary action. These notices are:

Notice to Explain (NTE) or Show-Cause Memorandum – The employer notifies the employee in writing, detailing the specific charges or allegations.
Notice of Decision – After the employee is given an opportunity to explain and attend a hearing (if necessary), the employer issues a final decision, either imposing a penalty or exonerating the employee.

2. Opportunity to Be Heard

The employee must be given a reasonable chance to be heard and to defend against the charges, either in writing, through a hearing, or both. The employer must weigh the evidence presented by both sides and then render a fair determination of guilt or innocence.

3. Relation to Preventive Suspension

While the imposition of preventive suspension can occur concurrently with the issuance of the notice to explain—especially in cases where the gravity of the charges necessitates immediate suspension for investigative purposes—the employer must still adhere to due process. If an employee is placed on preventive suspension, the employer must still furnish a notice specifying that the suspension is preventive (not punitive) and must follow up with a proper investigation within the statutory timeframe.

The Implications of Non-Compliance with Due Process

1. Possible Illegal Dismissal Claim

If the employer terminates or punishes the employee without providing proper notices and the opportunity to be heard, the dismissal could be declared illegal by labor tribunals or courts. Even if the grounds for dismissal are valid, a violation of procedural due process may result in liability for nominal damages.

2. Potential Damages

The Supreme Court has repeatedly underscored the necessity of strict compliance with due process, awarding damages (often nominal damages) against employers who fail to meet this requirement, even if there is just cause. Such damages serve as a deterrent to arbitrary employer actions.

3. Reinstatement or Separation Pay

In cases of illegal dismissal, employees may be entitled to reinstatement without loss of seniority rights and backwages. If reinstatement is no longer feasible, employees can instead opt for separation pay.

Preventive Suspension vs. Disciplinary Suspension

It is crucial to distinguish between preventive and disciplinary suspension:

Preventive Suspension is a provisional measure aimed at preventing further harm or interference during an investigation. It is not a declaration of guilt or a penalty.
Disciplinary Suspension is a penalty handed down after due process has been observed, where the employer finds sufficient evidence of wrongdoing.

If an employer uses preventive suspension as a form of penalty without following the proper procedures, it can be deemed an improper exercise of management prerogative.

Potential Criminal Liabilities for Forgery

1. Falsification under Articles 172 and 374 of the Revised Penal Code

Depending on the nature of the document forged and the resulting harm, an employee could be charged with falsification of private or commercial documents under the Revised Penal Code. Penalties may range from fines to imprisonment. However, in many real-world cases, employers opt for administrative or labor law remedies first, and only proceed with criminal charges if the forgery causes significant damage or involves a public document.

2. Estafa or Fraud

If the forging of a signature resulted in the unjust appropriation of funds or caused financial harm to the company or a third party, an employee may also be exposed to charges of Estafa under Articles 315–316 of the RPC. Proof of deceit and damage or potential damage are generally required for this charge.

3. Employer’s Discretion

While the employer certainly has the discretion to file a criminal complaint, not all instances of forgery lead to criminal prosecution. Some employers may prefer to settle administratively, especially if the employee admits fault, offers restitution, or negotiates a disciplinary settlement.

Best Practices and Advice for Employees

1. Acknowledge the Offense (If Established)

If an employee indeed committed the act of forging a signature, the first step is acknowledging the gravity of the offense. Admission of fault and expression of remorse can sometimes mitigate the severity of the disciplinary action.

2. Seek an Amicable Resolution

Attempting to reach an amicable settlement with the employer—especially if the forgery did not lead to substantial harm—can be beneficial. Demonstrating contrition may influence the employer’s final decision on penalties.

3. Ensure Due Process

Employees must be vigilant about their right to due process. If no Notice to Explain has been served, or if no hearing is scheduled, an employee can request that management clarify the charges and properly initiate the investigation. Keeping copies of all relevant documents—like the alleged forged document, internal memos, notices, etc.—is essential for defense or negotiation.

4. Consult a Lawyer

Because the stakes can be high (potential termination from employment, administrative sanctions, and even criminal liability), consulting with a lawyer experienced in labor law is strongly advised. Legal counsel can guide the employee on the proper way to respond to notices, how to request a formal hearing, and how to present defenses or mitigating factors.

Best Practices and Advice for Employers

1. Conduct a Thorough Investigation

Employers should conduct a prompt and objective investigation. Gathering evidence, taking statements from witnesses, and reviewing all pertinent documents help ensure that any subsequent disciplinary action is founded on solid grounds.

2. Observe Due Process

Employers must provide the employee with a notice to explain, allow them a reasonable period to respond, hold a hearing if necessary, and issue a decision based on the evidence. Failure to comply with these steps could render the disciplinary action void, regardless of the gravity of the offense.

3. Impose Proportionate Penalties

Even if the forgery is a serious offense, employers should carefully consider whether dismissal is the only viable penalty. Each case must be evaluated on its own merits, with consideration for factors like the employee’s length of service, track record, and the degree of damage caused.

4. Keep Documentation

From the notice to explain, hearing transcripts (if any), notices of decisions, and the documentation of the preventive suspension, all records should be accurately maintained. Proper documentation is crucial if the case escalates to the National Labor Relations Commission (NLRC) or the courts.

Frequently Asked Questions (FAQs)

Is preventive suspension mandatory if an employee commits forgery?
Not necessarily. Preventive suspension is discretionary, usually imposed if the employee’s continued presence might jeopardize the investigation, endanger company property, or influence witnesses.
Does preventive suspension automatically lead to dismissal?
No. Preventive suspension is only an interim measure. The employer must still conduct an investigation and observe due process before deciding whether dismissal is warranted.
Can an employee receive back pay for the duration of preventive suspension?
Generally, if the employee is found guilty and eventually dismissed, back pay for the preventive suspension period is not required. However, if the employee is reinstated or if the preventive suspension extends beyond 30 days without a lawful basis, the employee may be entitled to his or her wages for the excess period.
Could the employee face criminal charges for forging a signature on a loan form?
Yes, especially if the offended party files a complaint for falsification or estafa. However, many such matters are resolved administratively or through settlement.
What should an employee do if no notice to explain has been served?
The employee can formally request the notice or clarification of charges in writing, ensuring there is a paper trail of the request. This step demonstrates the employee’s willingness to cooperate and can later serve as evidence that due process was not observed if the employer refuses to respond.

Conclusion

Preventive suspension, under Philippine labor law, is a critical managerial tool designed to protect the company and ensure a fair investigation of serious allegations—such as forgery or falsification of documents. It is, however, not a penalty in itself. The employer is bound by due process requirements, including issuing a notice to explain, allowing the employee to respond, and rendering a decision in good faith.

Forging a superior’s signature is considered a severe form of misconduct, possibly constituting just cause for termination if proven through an impartial and lawful inquiry. It can also expose an employee to potential criminal liability for falsification or fraud under the Revised Penal Code. Nonetheless, employees have the right to contest improper or arbitrary suspensions and can seek relief under the Labor Code and jurisprudence should an employer fail to follow correct legal procedures.

In summary, if an employee has indeed forged a signature, they must understand the gravity of the situation, prepare to address potential disciplinary action or termination, and possibly face criminal repercussions. The employee should ensure that due process is observed at all stages—receiving formal notices, being allowed to present a defense, and obtaining a well-founded decision from management. Consulting with a competent lawyer is pivotal in protecting the employee’s rights and navigating potential legal liabilities. On the employer’s side, meticulous compliance with the legal requisites for imposing preventive suspension and ensuring procedural fairness underscores their commitment to justice and shields them from charges of arbitrariness.

Ultimately, this scenario underscores the significance of honesty and transparency in employment relationships. While employees are entitled to statutory benefits such as Pag-IBIG loans, forging a key official’s signature, even for seemingly benign reasons, can lead to severe consequences. Balancing one’s immediate personal needs with abiding by lawful and company-sanctioned processes is essential in preserving both one’s career and legal standing.