Breach of Contract Between an Employee and Employer Philippines

Question: What Will Happen if There is a Possible Breach of Contract Between an Employee and Employer in the Context of Philippine Law?

Answer:

1. Identification of Breach:

   • The first step is to determine whether there is an actual breach of contract. This could involve violations of terms related to duties, salary, tenure, or other conditions explicitly outlined in the employment contract.

2. Notification and Discussion:

   • The party who believes they are aggrieved usually notifies the other party about the alleged breach. It’s advisable to do this in writing and specify the terms that have been violated.

3. Internal Remedies:

   • Employers often have internal grievance mechanisms. If possible, it’s usually best to resolve the issue internally before seeking legal remedies.

4. Legal Remedies:

   • If the issue is not resolved internally, the parties may resort to litigation or arbitration, as specified in the contract.

5. Damages:

   • The aggrieved party may seek damages for any losses incurred due to the breach. The type and amount of damages would depend on the specifics of the contract and the nature of the breach.

6. Termination of Contract:

   • Depending on the severity of the breach and the terms of the contract, it could result in termination of employment. However, Philippine labor laws lean toward the protection of employees, so arbitrary dismissal is generally not allowed.

7. NLRC Intervention:

   • The National Labor Relations Commission (NLRC) may become involved in cases that cannot be resolved through internal mechanisms or ordinary civil action.

8. Criminal Liabilities:

   • In extreme cases, breach of contract could also lead to criminal charges, although this is rare in the employment context in the Philippines.

9. Reputation:

   • A breach of contract can harm the reputation of both the employee and the employer, affecting future employment or hiring opportunities.

10. Legal Counsel:

    • Both parties are advised to seek legal advice to understand their rights, obligations, and the legal remedies available to them.

It is critical to understand the specific terms of the employment contract and to consult with legal professionals for a comprehensive understanding of your options and responsibilities under Philippine law.