Letter to a Lawyer

Dear Attorney,

I am writing to seek your guidance regarding a termination I recently experienced. I was dismissed from my job for what was described as “unprofessional behavior” during a company call. I received a Notice to Explain, submitted my written response within the 120-hour period provided, and attended a single hearing. Shortly thereafter, I received the company’s Notice of Decision stating that I was dismissed effective January 17, 2024.

I have been struggling to secure new employment, and as a result, my finances are in disarray. I am falling behind on my rent and other bills, and I have no close relatives to turn to for financial help. I would like to know if I have a viable legal claim to challenge the termination or to seek any form of relief. Your advice would be highly appreciated as I navigate this difficult situation.

Thank you very much for your time and assistance. I look forward to your kind response.

Sincerely,
A Distressed Employee

Legal Analysis and Comprehensive Discussion on Termination, Employee Rights, and Remedies Under Philippine Law

Introduction

In the Philippines, employee rights are safeguarded by both statutory law (the Labor Code of the Philippines) and prevailing jurisprudence. A worker who has been terminated under questionable circumstances has the right to challenge the dismissal if it fails to comply with the substantive and procedural requirements mandated by law. These requirements include valid grounds for dismissal (substantive due process) and adherence to the twin-notice rule (procedural due process).

The situation at hand involves an employee who was allegedly dismissed for unprofessional behavior. Unprofessional conduct or serious misconduct could be grounds for valid dismissal, but only if the allegations meet the strict legal standard. This article seeks to provide a meticulous examination of the relevant provisions of Philippine labor law, the labor dispute resolution process, remedies for illegal dismissal, and other essential considerations.

Legal Framework

The principal law governing labor relations in the Philippines is the Labor Code of the Philippines (Presidential Decree No. 442, as amended). Jurisprudential interpretations by the Supreme Court also play a significant role in shaping the rights of both employers and employees. Key provisions include:

Article 297 (formerly Article 282) of the Labor Code, which enumerates just causes for dismissal, such as serious misconduct, willful disobedience, gross and habitual neglect of duties, fraud, breach of trust, and commission of a crime against the employer or their family.
Article 298 (formerly Article 283), which addresses authorized causes for termination such as redundancy, retrenchment, closure of the establishment, or disease.
Article 299 (formerly Article 284), which covers termination due to the disease of an employee.

For dismissals based on just causes, compliance with due process as mandated by Department Order No. 147-15 of the Department of Labor and Employment (DOLE) is essential. The twin-notice rule stipulates that an employee must be notified of the charges against them, given an opportunity to explain or defend themselves, and subsequently informed of the employer’s decision.

Grounds for Termination: Focus on Alleged Unprofessional Behavior

In Philippine labor jurisprudence, “unprofessional behavior” typically falls under “serious misconduct” or “willful disobedience” if it involves a flagrant disregard for policies, disrespect, or actions detrimental to the employer’s interest. However, the Supreme Court has consistently held that termination for serious misconduct requires the following elements:

The misconduct must be serious.
It must relate to the performance of the employee’s duties, showing that the act has a direct adverse effect on the employment relationship.
It must imply wrongful intent and not be a mere error in judgment or lesser infraction.

If an employee’s behavior on a call is deemed rude, discourteous, or contrary to company policy, the company may consider it “serious misconduct.” Yet, the mere labeling of certain conduct as “unprofessional” does not automatically justify termination. The employer carries the burden of proof to establish that the misconduct was:

Inconsistent with the employee’s obligations
Grave enough to warrant the ultimate penalty of dismissal
Supported by substantial evidence

Procedural Due Process: The Twin-Notice Rule and the Opportunity to be Heard

Regardless of the grounds for dismissal, the employer must abide by the following procedural steps:

First Notice (Notice to Explain): The employee must be clearly apprised of the specific causes or charges for dismissal. A general reference to “unprofessional behavior” may not suffice unless it is adequately explained in detail, together with the specific incident(s) in question. The employer must give the employee reasonable time to respond, commonly at least five days from the receipt of the notice, unless the company policy stipulates a longer period.
Opportunity to Respond and be Heard: The employee must have the chance to explain and present evidence in a manner that adequately refutes or mitigates the charges. This can be done through a written explanation, a formal administrative hearing, or both. The employer should conduct a hearing if the employee requests one or if the circumstances warrant further clarification.
Second Notice (Notice of Decision): After assessing the employee’s explanation and the evidence presented, the employer is obligated to provide a written notice indicating the decision. The notice must include a clear indication of the reason(s) for upholding or overturning the charges, along with the penalty imposed, if any.

a. Timeframe for the Hearing and Decision
While the Labor Code and its implementing rules do not prescribe a strictly defined timeframe for the entire disciplinary process, the requirement is that it be completed within a reasonable period. The employee’s right to due process is not complied with by rushing the process in a way that impedes a proper defense.

b. Single vs. Multiple Hearings
The Supreme Court has ruled that a formal administrative hearing is not always mandatory if the employee has had sufficient opportunity to respond in writing. However, if the issues are complex or if credibility is in question, a thorough hearing could be necessary to observe the rules of fair play.

Analysis of the Provided Facts

In the scenario presented, the employee received a Notice to Explain and was given 120 hours to respond—a relatively lengthy period that may be considered fair. The employee then submitted their written explanation. There was only a single hearing before a Notice of Decision was issued. While a single hearing might be sufficient if conducted properly, any lack of clarity in the charges or lack of opportunity to fully present evidence could support a procedural due process argument against the employer.

Crucially, the question that a labor court or the National Labor Relations Commission (NLRC) would ask is: Were the requirements for both substantive and procedural due process satisfied?

Substantive Due Process: Was the Cause for Dismissal Valid?

If “unprofessional behavior” amounts to serious misconduct, the employer must show that it was grave in nature and sufficiently work-related. Simple discourtesy or a one-time lapse of judgment might not necessarily qualify. The Supreme Court in various cases (for example, Globe Telecom, Inc. v. Florendo-Flores, G.R. No. 150092; and St. Luke’s Medical Center, Inc. v. Notario, G.R. No. 210547) has stressed that the penalty of dismissal is often disproportionate if the infractions are not proven to be severe enough to damage the employer’s trust irretrievably.

Remedies for Illegal Dismissal

If the termination is found to be illegal due to lack of substantive or procedural due process, the employee is entitled to certain remedies under Philippine law:

Reinstatement: An employee illegally dismissed is usually reinstated to their former position without loss of seniority rights or benefits. However, if reinstatement is not feasible due to strained relations or closure of the business, the courts may order separation pay instead.
Back Wages: The illegally dismissed employee is entitled to back wages from the date of dismissal up to the date of reinstatement or finality of the decision. This is typically computed on the basis of the employee’s basic salary and benefits that they would have received had they continued working.
Moral and Exemplary Damages: While not automatically awarded, moral and exemplary damages may be granted if the employer acted in bad faith or with malice, or if the dismissal was carried out in a manner that was oppressive, humiliating, or violative of the employee’s dignity.
Attorney’s Fees: If an employee is compelled to litigate or incur expenses to protect their rights, the labor courts may award attorney’s fees up to a certain percentage of the total monetary award.

Filing a Labor Complaint

To challenge the dismissal, the employee must file a complaint with the Regional Arbitration Branch of the National Labor Relations Commission (NLRC) that has jurisdiction over the place where the employee works or resides. The complaint must be filed within four (4) years from the date of dismissal if it involves monetary claims. Practically speaking, prompt filing is advisable to avoid any adverse effect on the employee’s case.

a. Conciliation and Mediation (Single-Entry Approach or SEnA)
Before formal arbitration, the Department of Labor and Employment (DOLE) encourages parties to undergo conciliation and mediation to explore an amicable settlement. This can be done through the Single-Entry Approach at the DOLE field office.

b. Arbitration Proceedings
If the parties fail to reach a settlement, the case proceeds to arbitration at the NLRC. Both parties present evidence and witnesses, after which a labor arbiter issues a decision.

c. Appeal to the Commission
Should there be an adverse decision, the losing party may appeal to the Commission (NLRC Commissioners). If still not satisfied, the party may file a petition for certiorari with the Court of Appeals, and eventually the Supreme Court in extraordinary instances.

Practical Considerations in Seeking Legal Redress

Legal Representation: While the labor arbitration process is less formal than regular courts, seeking legal counsel can significantly impact the outcome. A lawyer can help draft pleadings, prepare witnesses, and argue the legal aspects of the case more effectively.
Documentation: The employee should gather all pertinent documents, including the Notice to Explain, the written explanation, the Notice of Decision, company policies, relevant email exchanges, or any other evidence that demonstrates compliance or lack of it during the disciplinary process.
Timeline: Labor cases in the Philippines can take several months to years, depending on the complexity and the willingness of parties to settle. Persistence and a clear legal strategy are essential.

Financial and Emotional Considerations

Unemployment, especially when abrupt and contentious, can place an immense financial and emotional toll on an individual. The law recognizes the need to protect employees from arbitrary dismissal, and the reliefs available—reinstatement, back wages, and damages—aim to mitigate the harm caused by an unjust separation. That said, going through a labor dispute can be challenging. Employees should weigh the benefits of pursuing legal action against the potential strain on finances and well-being.

Likely Outcomes and Strategies

Given the facts provided, the potential scenarios include:

Employer Settles: If the employer sees potential exposure to an illegal dismissal claim, they might settle early—offering separation pay or a compromised sum. A settlement can expedite financial relief.
Employee Prevails: If the employee’s complaint is successful, they might be reinstated or receive separation pay in lieu of reinstatement, plus back wages and possibly damages.
Employer Prevails: If the employer can justify that unprofessional behavior was in fact serious misconduct or willful disobedience, and that due process was followed, the labor tribunal may rule that the dismissal was lawful.

a. Strategy in Bargaining
During settlement discussions, focusing on the procedural lapses (if any) can strengthen the employee’s bargaining position. The “single hearing” might be argued as insufficient if the employee had not been adequately heard or if the charges were not fully substantiated.

b. Mitigating Circumstances
Even if the employee committed the infractions, the law allows a discretionary approach in imposing penalties. For instance, progressive discipline (warning, suspension) may be appropriate if the offense was not egregious. The employer must justify that the dismissal was proportional to the offense.

Relevant Jurisprudence

St. Luke’s Medical Center, Inc. v. Notario (G.R. No. 210547, July 11, 2018): The Supreme Court underscored that an employer must establish by substantial evidence the existence of a valid cause for dismissal and compliance with due process requirements.
Globe Telecom, Inc. v. Florendo-Flores (G.R. No. 150092, September 27, 2002): This case demonstrates that the seriousness of the act, context, and the relationship of the behavior to the job are factors weighed by the courts in determining whether misconduct justifies dismissal.
Agabon v. National Labor Relations Commission (G.R. No. 158693, November 17, 2004): In this landmark case, the Supreme Court clarified the consequences of non-compliance with procedural due process in dismissals. If the cause for dismissal is valid but there is failure to follow procedural due process, the dismissal might be upheld (for valid cause) but the employer may be fined or ordered to pay indemnity to the employee.

How to Strengthen One’s Case

Maintain Copies of All Written Notices: The employee should keep every document related to the disciplinary process for verification and reference in any formal complaint.
Secure Witness Statements: If there were witnesses to the alleged “unprofessional behavior” or to the administrative process, their testimonies might illuminate whether or not the procedure was fair.
Emphasize Procedural Gaps: In preparing a complaint, highlight any disproportionate aspects of the penalty or any lack of clarity or completeness in the notice. Illustrate how only one hearing might have been insufficient under the circumstances.

Alternative Dispute Resolution (ADR)

Given the cost and time associated with litigation, some employees might benefit from exploring mediation or conciliation channels. An amicable agreement can provide a mutually acceptable severance package or settlement. ADR mechanisms, including the Single-Entry Approach (SEnA), can expedite the resolution of labor disputes without resorting to lengthy litigation.

Practical Tips for Employees After Termination

Seek Immediate Legal Advice: Consulting with a labor law practitioner can help assess the strengths and weaknesses of the case.
Document the Timeline: Keep a chronological list of key events—receipt of notice(s), submission of explanation, hearing date(s), date of decision, and the actual date of termination.
Consider Financial Options: While awaiting resolution, employees might need to find interim sources of income or negotiate with creditors for more lenient payment terms.
Keep Job-Hunting Records: While the case is ongoing, employees can continue searching for new employment. If they later claim damages for lost wages, demonstrating diligent efforts to mitigate their loss may be viewed favorably by the labor tribunal.

Importance of a Thorough Administrative Investigation

While employers have the prerogative to discipline or dismiss employees for just causes, the law also compels them to treat employees with fairness. A comprehensive investigation typically involves:

Obtaining statements from the employee and possible witnesses
Reviewing relevant documents, audio or video recordings (if any)
Comparing the infraction to existing company rules or code of conduct
Determining whether a lesser sanction might suffice

Any mishandling of this process could render the dismissal illegal, especially if key pieces of evidence are overlooked or if the penalty is manifestly disproportionate.

Preventive Suspension vs. Outright Dismissal

Sometimes, pending an investigation, an employer may place the employee on preventive suspension if the employee’s continued presence poses a risk to the company’s operations. Preventive suspension may last for a maximum of 30 days unless extended under certain conditions. This procedure ensures due process by allowing time for a full inquiry before imposing the ultimate penalty of dismissal.

Final Thoughts on Pursuing the Case

An employee who experiences questionable termination should evaluate:

The strength of evidence showing unprofessional behavior
Whether the employer clearly outlined the charges
If the hearing was fair and adequate
If the penalty of dismissal is proportionate to the offense

If the employee believes that the dismissal was unjust, filing a complaint for illegal dismissal can be a path to potential compensation or reinstatement. However, the employee must also be prepared for the possibility that the employer might have built a strong case supported by substantial evidence.

Conclusion

Under Philippine law, termination for reasons such as “unprofessional behavior” can be legitimate if it meets the threshold of serious misconduct, willful disobedience, or any of the recognized just causes. Nonetheless, the employer’s compliance with procedural due process—through proper notice, the opportunity to be heard, and a detailed explanation of the final decision—is equally essential.

If a dismissal is found to be without just cause or lacking adherence to due process, it could be declared illegal, entitling the aggrieved employee to reinstatement and back wages, among other forms of relief.

Employees who believe they have been unfairly terminated should act promptly—gather evidence, seek legal advice, and consider filing a complaint with the NLRC if necessary. A thorough understanding of the Labor Code provisions, DOLE regulations, and landmark jurisprudence will help employees and counsel formulate a strong strategy in challenging an unjust dismissal. Ultimately, fairness and equity remain the guiding principles in labor law, ensuring that discipline is administered lawfully and that the rights of employees are respected.

This comprehensive discussion is intended for general informational purposes under Philippine law. For specific circumstances and personalized guidance, individuals should consult with a qualified attorney to determine the best course of action in protecting their rights.