2. ARTICLE 279. Security of Tenure.
“In cases of regular employment, the employer shall not
terminate the services of an employee except for a just cause or
when authorized by this Title. An Employee who is unjustly
dismissed from work shall be entitled to reinstatement without
loss of seniority rights and other privileges and to his full
backwages, inclusive of allowances, and to his other benefits or
their monetary equivalent computed from the time his
compensation was withheld from him up to the time of his
3. SECURITY OF TENURE
is one of the basic rights of workers (BWC-DOLE).
is the right not to be removed from one’s job
except for a valid reason and through proper
right is guaranteed in the Constitution.
4. Excerpts from Sec. 3, Art. XIII of
the 1987 Philippine Constitution
“The State shall afford full protection to labor, local and overseas,
organized and unorganized, and promote full employment and equality of
employment opportunities for all. It shall guarantee the rights of all workers
to self-organization, collective bargaining and negotiations, and peaceful
concerted activities, including the right to strike in accordance with law.
They shall be entitled to security of tenure, humane conditions of work,
and a living wage.”
5. Though the Article specifies “regular
employment”, security of tenure does not
exclusively apply to regular employment
only. It also applies to non-regular
employment such as fixed-period
employment, seasonal, project and even
6. Managerial employees are also entitled to
security of tenure. The fact that one is a
managerial employee does not by itself exclude
him from the protection of the constitutional
guarantee of security of tenure.
(Case Example: PLDT vs. Tolentino,
Sept. 21, 2004)
7. JUST CAUSES
•Faults and misbehaviors of the employee
•Effectivity date of dismissal is determined
by the employer.
•Employer is not legally liable to give
separation pay to the dismissed employee.
•Due Process – 2 Notices: a) “Show-Cause
Memo”; b) Subsequent Notice informing
8. ART. 282. Termination by employer.
An employer may terminate an employment for any of the following
(a) Serious misconduct or willful disobedience by the employee of the
lawful orders of his employer or representative in connection with his
(b) Gross and habitual neglect by the employee of his duties;
(c) Fraud or willful breach by the employee of the trust reposed in him by
his employer or duly authorized representative;
(d) Commission of a crime or offense by the employee against the person
of his employer or any immediate member of his family or his duly
authorized representatives; and
(e) Other causes analogous to the foregoing.
9. Serious Misconduct
•Misbehavior or an improper conduct, which is intentional in
•Transgression of some established and definite rule of action,
a forbidden act, a dereliction of duty, willful in character and
implies wrongful intent and not mere error in judgment
•Grave and not merely trivial
•Must be in connection with work
•Sexual Harassment, Drug Use, Habitual Drunkenness, Acts of
Immorality, Falsification of Time Card
10. WILLFUL DISOBEDIENCE
•Refusal to obey orders, regulations and instructions, which are
reasonable and lawful, well-understood and sufficiently known
by the employee, and related to the employee’s duties
•Must relate to substantial matters, not trivial
•Ex. Refusal to transfer – An employee, as a rule, should obey
an employer’s order to transfer (job assignment, location).
Transfer though should be reasonable and not prejudicial to
the employee and should not involve demotion or diminution
of salary and benefits.
11. NEGLECT OF DUTIES
•Gross and habitual failure to observe work standards and fulfill
work assignments which tends to prejudice the employer’s
•An employer has the right to impose productivity standards
thus failure to observe these may constitute just cause for
•Another example is job abandonment (1) without valid reason
& (2) with clear intention to sever employer-employee
•Any act, omission, or concealment related to the employee’s
work, which involves breach of legal duty, trust, or confidence
and is injurious to the employer or its representatives
•Implies willfulness or wrongful intent, ergo, the innocent non-
disclosure of facts will not constitute just cause for dismissal
13. LOSS OF CONFIDENCE
• Willful breach of trust done by employees occupying
positions of trust and confidence
• It is the breach that results in employer’s loss of confidence
in the employee.
14. COMMISSION OF CRIME OR
•Crime against the employer or the employer’s family member – spouse,
ascendants, descendants, siblings (legitimate, natural or adopted), siblings
of his relative by affinity in the same degrees or by consanguinity within the
fourth civil degree
•An employee may be acquitted in a criminal case and yet his dismissal by
the employer may remain. The only requirement mentioned is commission
of a crime, and not conviction. To convict a criminal requires proof beyond
reasonable doubt; to dismiss an employee requires only substantial
15. ANALOGOUS CAUSES
• Equivalent to the just causes enumerated done voluntarily or
willfully by the employee not to the employer but maybe to
the vendor, customer, visitor, etc.
• Example: Violago Trucks & Petrophil Case
16. AUTHORIZED CAUSES
•Business and economic reasons & Disease
•Employer is legally required to give separation pay
to the employee, except in the case of company
closure or cessation of operation/s due to business
•No hearing needed
Employer has to give the employee and DOLE
written notices thirty (30) days ahead of the
17. ART. 283. Closure of establishment and reduction of personnel.
The employer may also terminate the employment of any employee due to the
installation of labor-saving devices, redundancy, retrenchment to prevent losses
or the closing or cessation of operation of the establishment or undertaking
unless the closing is for the purpose of circumventing the provisions of this Title,
by serving a written notice on the workers and the Ministry of Labor and
Employment at least one (1) month before the intended date thereof. In case of
termination due to the installation of labor-saving devices or redundancy, the
worker affected thereby shall be entitled to a separation pay equivalent to at
least his one (1) month pay or to at least one (1) month pay for every year of
service, whichever is higher. In case of retrenchment to prevent losses and in
cases of closures or cessation of operations of establishment or undertaking not
due to serious business losses or financial reverses, the separation pay shall be
equivalent to one (1) month pay or at least one-half (1/2) month pay for every
year of service, whichever is higher. A fraction of at least six (6) months shall be
considered one (1) whole year.
18. ART. 284. Disease as ground for termination.
An employer may terminate the services of an employee who has been
found to be suffering from any disease and whose continued
employment is prohibited by law or is prejudicial to his health as well as
to the health of his co-employees: Provided, That he is paid separation
pay equivalent to at least one (1) month salary or to one-half (1/2)
month salary for every year of service, whichever is greater, a fraction of
at least six (6) months being considered as one (1) whole year.
• Reduction of the number of workers due to new machinery
• Manufacturer has the right to use new labor-saving devices
with an aim to effect more economy and efficiency in
• Separation Pay = at least one month pay or at least one
month pay for every year of service, whichever is higher
(bigger amount since business is still profitable)
•Services of an employee are in excess of what is actually required by
the industry; maybe due to over-hiring of workers, decreased business
volume, dropping of a product line/service activity, streamlining,
mergers and reorganization
•Management must show adequate proof that the abolished positions were
•Separation Pay = at least one month pay or at least one month pay for
every year of service, whichever is higher (bigger amount since business is
• Termination of employees due to substantial and imminent loss and this
loss must be proven by convincing evidence. Termination is also done
when it is seen as a necessary step in effectively preventing further
• Conditions: (1) Intended to prevent losses and such losses are proven; (2)
Written notices are served on the workers and the DOLE at least one
month before the effective date of retrenchment; (3) Separation pay is
paid to the affected workers; (4) There must be fair and reasonable criteria
in determining the employees to be dismissed (i.e. temporary employees
first, efficiency rating, and seniority)
• Justifications: (a) Substantial losses; (b) Substantial loss must be
reasonably imminent which can be perceived objectively and done in good
faith; (c) Reasonably necessary, likely to prevent more losses and done
as a last resort; (d) Sufficient and convincing evidence for losses
• In selecting employees, the “Last In – First Out” (LIFO) rule, though not
statutory, has its merits. Selection is part of management’s prerogatives
unless this is stipulated in a CBA for organized companies.
• Separation Pay = one month pay or at least one-half month pay for every
year of service, whichever is higher
23. CLOSURE OR CESSATION
• Firm required to cease operations due to government mandate (i.e.
acquisition of land for agrarian reform), firm suffering serious business
decline and loss, or if firm owner wants to discontinue business for
personal reasons, but in good faith, is allowed to close.
• Cessation not due to business loss should meet the following
conditions: (1) Written notice to employees and DOLE at least one
month before intended date of termination; (2) Cessation from business
operations must be bona fide in character; (3) Payment to the employees
of termination pay amounting to at least one-half month pay for each
year of service or one month pay, whichever is higher
24. ARTICLE 284. DISEASE AS GROUND FOR TERMINATION
A medical certificate issued by a competent public health authority is still
needed for termination to take place even though disease does not
warrant the employee to continue working according to law or as
considered detrimental to his own health or the health of his co-workers.
A company physician is not considered a competent public health
authority thus a certificate issued by him is not accepted as a basis for
termination of employment.
25. There are two facets of
1. Legality of the act of dismissal
a. If found illegal, employee is entitled to reinstatement
with backwages up to the time of his actual reinstatement
if the contract of employment is not for a definite period.
b. If found illegal, employee is entitled to payment of
salaries corresponding to the unexpired portion of the
2. Legality in the manner of dismissal
26. DUE PROCESS IN AUTHORIZED CAUSES
•Employer has to give though the employee and DOLE
written notices thirty (30) days ahead of the projected
•The purpose for requiring a thirty-day written notice before
an employee is laid off is not to afford him opportunity to be
heard on any charge against him, for there is none. Rather,
this is done to give him time to prepare for the eventual loss
of his job and the DOLE an opportunity to determine
whether economic causes do exist justifying termination.
27. “Termination of employment is not anymore a mere
cessation or severance of contractual relationship but
an economic phenomenon affecting members of the
family. This explains why, under the broad principles of
social justice, the dismissal of employees is adequately
protected by the laws of the State.”
(Alhambra Industries, Inc. vs. NLRC, Nov. 18, 1994, as cited by Chan, 2000)
29. ART. 247. Concept of unfair labor practice and procedure for prosecution thereof.
Unfair labor practices violate the constitutional right of workers and employees to self-organization, are
inimical to the legitimate interests of both labor and management, including their right to bargain
collectively and otherwise deal with each other in an atmosphere of freedom and mutual respect,
disrupt industrial peace and hinder the promotion of healthy and stable labor-management relations.
Consequently, unfair labor practices are not only violations of the civil rights of both labor and
management but are also criminal offenses against the State which shall be subject to prosecution and
punishment as herein provided.
Subject to the exercise by the President or by the Secretary of Labor and Employment of the powers
vested in them by Articles 263 and 264 of this Code, the civil aspects of all cases involving unfair labor
practices, which may include claims for actual, moral, exemplary and other forms of damages,
attorney’s fees and other affirmative relief, shall be under the jurisdiction of the Labor Arbiters. The
Labor Arbiters shall give utmost priority to the hearing and resolution of all cases involving unfair labor
practices. They shall resolve such cases within thirty (30) calendar days from the time they are
submitted for decision.
Recovery of civil liability in the administrative proceedings shall bar recovery under the Civil Code.
No criminal prosecution under this Title may be instituted without a final judgment finding that an
unfair labor practice was committed, having been first obtained in the preceding paragraph. During the
pendency of such administrative proceeding, the running of the period of prescription of the criminal
offense herein penalized shall be considered interrupted: Provided, however, that the final judgment in
the administrative proceedings shall not be binding in the criminal case nor be considered as evidence
of guilt but merely as proof of compliance of the requirements therein set forth.
30. ART. 248. Unfair labor practices of employers
It shall be unlawful for an employer to commit any of the following unfair labor practice:
(a) To interfere with, restrain or coerce employees in the exercise of their right to self-organization;
(b) To require as a condition of employment that a person or an employee shall not join a labor organization or shall
withdraw from one to which he belongs;
(c) To contract out services or functions being performed by union members when such will interfere with, restrain
or coerce employees in the exercise of their rights to self-organization;
(d) To initiate, dominate, assist or otherwise interfere with the formation or administration of any labor organization,
including the giving of financial or other support to it or its organizers or supporters;
(e) To discriminate in regard to wages, hours of work and other terms and conditions of employment in order to
encourage or discourage membership in any labor organization. Nothing in this Code or in any other law shall stop
the parties from requiring membership in a recognized collective bargaining agent as a condition for employment,
except those employees who are already members of another union at the time of the signing of the collective
bargaining agreement. Employees of an appropriate bargaining unit who are not members of the recognized
collective bargaining agent may be assessed a reasonable fee equivalent to the dues and other fees paid by
members of the recognized collective bargaining agent, if such non-union members accept the benefits under the
collective bargaining agreement: Provided, that the individual authorization required under Article 242, paragraph (o)
of this Code shall not apply to the non-members of the recognized collective bargaining agent;
(f) To dismiss, discharge or otherwise prejudice or discriminate against an employee for having given or being about
to give testimony under this Code;
(g) To violate the duty to bargain collectively as prescribed by this Code;
(h) To pay negotiation or attorney’s fees to the union or its officers or agents as part of the settlement of any issue in
collective bargaining or any other dispute; or
(i) To violate a collective bargaining agreement.
The provisions of the preceding paragraph notwithstanding, only the officers and agents of corporations,
associations or partnerships who have actually participated in, authorized or ratified unfair labor practices shall be
held criminally liable.
31. UNFAIR LABOR PRACTICES
•refers to acts opposed to the right to organize or to engage in lawful concerted
activities for collective bargaining or for the workers’ mutual aid and protection
•Two Elements – (1) Employer-employee relationship exists between the offender
and the offended; (2) Act done is expressly defined in the Code as an unfair labor
There are two (2) aspects, namely: (1) Civil; and (2) Criminal. Labor Arbiters
shall have jurisdiction over the civil aspect of all cases involving unfair labor
practices, which may include claims for actual, moral, exemplary and other forms
of damages, attorney’s fees and other affirmative relief. No criminal prosecution
may be instituted without a final judgment finding that an unfair labor practice
was committed having been first obtained in the labor case.
•Not every unfair act is an unfair labor practice.
32. UNFAIR LABOR PRACTICES
1. INTERFERENCE, RESTRAINT OR COERCION – interference may be
considered ULP even when it is committed before union is formally registered.
Example of unlawful acts are dismissal of union members upon refusal to give
up membership and dismissal of an employee allegedly for inefficiency, on
account of her having joined a union or union activities.
33. UNFAIR LABOR PRACTICES
2. Yellow dog contract - promise exacted from workers or prospective employees
that they will not belong to or form a union if hired. If he does, he’ll lose his job.
The typical yellow dog contract embodies the ff: representation by the
employee that he is not a member of a labor organization, promise by the
employee that he will not join a union, and a promise by the employee that
upon joining a labor organization, he will quit his job.
34. UNFAIR LABOR PRACTICES
3. SUBCONTRACTING - The act of an employer in having work or certain
services or functions being performed by union members be contracted out is
not generally an unfair labor practice act. It is only when the contracting out of
a job, work or service being performed by union members will interfere with,
restrain or coerce employees in the exercise of their right to self-organization
that it shall be unlawful and shall constitute unfair labor practice. If the motive
then is to prevent employees from organizing or to get rid of union members or
to escape his statutory duty to bargain collectively with the employees’
bargaining representative, then the contracting becomes ULP.
35. UNFAIR LABOR PRACTICES
4. COMPANY-DOMINATION OF UNION – manifested in the following forms:
a. Initiation of the company union idea – either outright formation by the
employer or its representatives, employee formation on outright demand
or influence by employer, or managerially motivated formation
b. Financial support to the union – defray union expenses or paying for
c. Employer encouragement and assistance – immediately granting
exclusive recognition even without checking if union has majority
d. Supervisory assistance – soliciting membership, permitting union
activities during work time or coercing employees to join union with threats
of certain penalties
36. UNFAIR LABOR PRACTICES
5. DISCRIMINATION – To discriminate in regard to wages, hours of work and
other terms and conditions of employment in order to encourage or discourage
membership in any labor organization.
**Union security clause – any form of agreement which imposes upon employees
the obligation to acquire or retain union membership at the expense of their
employment upon failure to do so. (valid discrimination since favors unionism)
37. UNFAIR LABOR PRACTICES
6. RETALIATION – To dismiss, discharge or otherwise prejudice or
discriminate against an employee for having given or being about to give
testimony under this Code. Employer’s retaliation against employee
regardless of employer’s purpose and regardless of the nature or subject
matter of the employee’s testimony
38. UNFAIR LABOR PRACTICES
7. To violate the duty to bargain collectively as prescribed by this Code
8. To pay negotiation or attorney’s fees to the union or its officers or
agents as part of the settlement of any issue in collective bargaining
or any other dispute – part of Company Domination of Union
9. To violate a collective bargaining agreement - but only if gross in
39. UNFAIR LABOR PRACTICES
* The “totality of conduct doctrine” means that expressions of opinion by an
employer, though innocent in themselves, may be held to be constitutive of
unfair labor practice because of the circumstances under which they were
uttered, the history of the particular employer’s labor relations or anti-union
bias or because of their connection with an established collateral plan of
coercion or interference.
* A “runaway shop” is an industrial plant moved by its owners from one location
to another to escape union labor regulations or state laws.
* Closure – sale or closure of a business enterprise done with bad faith