Wrongful Dismissal Philippines

Dear Attorney,

I was working as a regular employee but was suddenly informed that my employment was being terminated because my position was project-based. Is it legal for my employer to remove me without prior notice or explanation?

Sincerely,
A Concerned Worker

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Insights

In the Philippines, employment is protected by the Labor Code, and wrongful dismissal occurs when an employer terminates an employee without just or authorized cause and without following due process.

Project-Based Employment vs. Regular Employment

Project-based employees are hired specifically for a project, and their employment ends once the project is completed. However, if an employee is considered regular based on the nature of their work, they are entitled to the security of tenure, which prevents termination without just cause. Under the Labor Code, a regular employee cannot be terminated at will, and due process must be observed, regardless of the nature of their employment.

Security of Tenure

Article 279 of the Labor Code guarantees that a regular employee cannot be dismissed without just cause or authorized reason (e.g., redundancy, retrenchment). Any violation of this right constitutes wrongful dismissal, which entitles the employee to reinstatement or separation pay, along with other monetary claims.

Due Process in Termination

Even if an employer has a valid reason to terminate an employee, the law requires due process, which includes:

1. A written notice specifying the grounds for termination.
2. A chance for the employee to respond and defend themselves.
3. A final decision by the employer, which should be given in writing.

Failure to comply with these requirements makes the termination illegal, even if the employer cites a project-based status.

Legal Recourse for Wrongful Dismissal

Employees who believe they were wrongfully dismissed can file a complaint with the National Labor Relations Commission (NLRC) for illegal dismissal. This process may lead to reinstatement, payment of back wages, or separation pay, depending on the circumstances of the case.