4. “
Some Relevant
Principles:
• Existence of employer-employee relationship
• Power to discipline – Management Prerogative
• Right to Security of Tenure – Right of
Employees
5. Two Facets of Legal
Dismissal
Legality in the Manner
PROCEDURAL
• Depends on the ground for
termination (Substantive
aspect)
Legality of the Act
SUBSTANTIVE
• Just causes – acts or
omissions attributable to the
employee
• Authorized causes –
economic necessity or health
condition
5
6. Just Causes
6
• Directly attributable to the fault of the employee
A. Serious Misconduct
B. Willful Disobedience or Insubordination
C.Gross and Habitual Neglect of Duties
D.Fraud or Willful Breach of Trust
E. Loss of Confidence
F. Commission of a Crime or Offense
G.Analogous Cases
7. A. Serious Misconduct
7
1. There must be a misconduct.
2. The misconduct must be of such grave and aggravated character
3. It must relate to the performance of the employee’s duties.
4. There must be showing that the employee becomes unfit to
continue working for the employer.
8. A. Serious Misconduct -
Examples
8
• Gambling within company premises
• Falsifying timecards of other employees
• Contracting work in direct competition with employer
9. B. Willful Disobedience or
Insubordination
9
1. There must be a disobedience or insubordination.
2. The disobedience or insubordination must be willful or intentional
characterized by a wrongful and perverse attitude.
3. The order violated must be reasonable, lawful, and made known
to the employee.
4. The order must pertain to the duties which the employee has
been engaged to discharge.
10. B. Willful Disobedience or
Insubordination
Examples
10
• Refusal to comply with a lawful transfer
• Refusal of company drivers to undergo random drug testing
• Refusal to comply with company safety protocols
11. C. Gross and Habitual Neglect of Duties
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1. There must be a neglect of duty
2. The negligence must be both gross and habitual in character*
*Exception: Habituality may be disregarded if the damage or loss is
substantial
12. C. Gross and Habitual Neglect of Duties
Examples
12
• Repeated absence
without official leave
(AWOL)
• Abandonment of work
• Bank teller who regularly
leaves cash exposed on
his/her counter
13. D. Fraud
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1. There must be an act, omission, or concealment
2. The act omission, or concealment involves a breach of legal duty,
trust, or confidence justly reposed
3. It must be committed against the employer or his/her
representative
4. It must be in connection with the employee’s work
14. D. Fraud Examples
14
• Misappropriation of company funds
• Covering up pilferage of company collections
• Using fictitious requisition slips to purchase materials for personal
gain
15. E. Loss of Trust and Confidence
15
1. There must be an act, omission or concealment
2. The act, omission, or concealment justifies the loss of trust and
confidence of the employer to the employee.
3. The employee must be holding a position of trust and confidence.
• Rank and File Personnel – cashiers, auditors, property custodians, or
employees who, in the routine exercise of their functions, regularly handle
significant amounts of the employer’s money or property
4. The loss of trust and confidence should not be simulated.
5. It should not be used as a subterfuge for causes which are
imporper, illegal, or unjustified.
6. It must be genuine and not a mere afterthought
16. E. Loss of Trust and Confidence
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• Rank and File Employees loss of trust and confidence as a
valid ground for dismissal requires proof of involvement in the
alleged events in question and that mere uncorroborated
assertions and accusations by the employer will not be sufficient
• Managerial Employees there mere existence of a basis for
believing that the employee has breached the trust of his
employer would suffice for his dismissal
17. E. Loss of Trust and Confidence
Examples
17
• Misappropriation of company funds
• Use of one’s position to take advantage of the company for
personal gain
Editor's Notes
Management prerogative – power to hire/power to fire and discipline Security of tenure – no employee shall be terminated from work except just or authorized cause and upon observance of due process
Both must concur
Art. 297 One act or omission of the employee may fall in one or more just causes provided the elements for each are present.
Misconduct – wrong doing
Serious
All four requisites must concur
Relate to Spongebob video
Gambling – Dimalanta v. Sec of Labor
To be a valid ground for termination, the following must be present.
Question that is relevant today? Can an employee be validly terminated if he/she refuses to get vaccinated as ordered by the company. Is mandatory vaccination reasonable and lawful? It can be said given the
To be a valid ground for termination, the following must be present.
Gross negligence implies a want or absence of or a failure to exercise the diligence, or the entire absence of care
Habitual negligence” implies repeated failure to perform one’s duties for a period of time
Employee commits intentional deception and uses dishonest methods
Employee commits intentional deception and uses dishonest methods . Client use of credit card
Employee commits intentional deception and uses dishonest methods
Managerial those which lay down company protocols and implement company policies. By reason of their position they are entrusted with condifential and delicate matters and as such, greater fidelity to duty is expected from them.
Commission of fraud necessarily results in loss of trust and confidence
Example: Procurement rigging results
