Substantive and Procedural Due Process in Termination of Employment

May 26, 2018 | Author: Jerianne Tenshi | Category: Due Process Clause, Employment, Layoff, Labour Law, Crime & Justice
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G.R. No. 173151 Under the Labor Code, the requirements for the lawful dismissal of an emploee are two! fold, the substanti"e and the pro#edural aspe#ts. Not onl must the dismissal be for a  $ust%&1' or authori(ed #ause,%&&' the rudimentar requirements of due pro#ess ! noti#e and hearin)%&3' must, li*ewise, be obser"ed before an emploee ma be dismissed. +ithout +it hout the #on#urren#e of the two, the termination would, in the e es of the law, be ille)al,%&' for emploment is a propert ri)ht of whi#h one #a nnot be depri"ed of without due pro#ess.%&5' -en#e, the two &/ fa#ets of a "alid termination of emploment are0 a/ the le)alit of the a#t of dismissal, i.e., the dismissal must be under an of the $ust #auses pro"ided under rti#le &2& of the Labor Code and an d b/ the le)alit of the manner of o f dismissal, whi#h means that there must be obser"an#e of the requirements of due pro#ess, otherwise *nown as the two!noti#e rule.%&4' rti#le &2& of the Labor Code enumerates en umerates the $ust #auses for terminatin) the ser"i#es of an emploee0 R.. &2&. ermination R ermination b emploer. ! n emploer ma terminate an emploment for an of the followin) #auses0 a/ 6erious mis#ondu#t or willful disobedien#e b the emploee of the lawful orders of his emploer or representati"e in #onne#tion with his wor* b/ Gross and habitual ne)le#t b the emploee of his duties #/ raud or willful brea#h b the emploee of the trust reposed in him b his h is emploer or  his dul authori(ed representati"e d/ Commission of a #rime or offense b the emploee a)ainst the person of his emploer  or an immediate member of his famil or his dul authori(ed representati"e and e/ 8ther #auses analo)ous to the fore)oin). G.R. No. &9&::4 Con#omitant to the emploer;s ri)ht to freel sele#t and en)a)e an emploee is the emploer;s ri)ht to dis#har)e the emploee for $ust andn a termination for $ust #ause, due pro#ess in"ol"es the two!noti#e rule0 a/  noti#e of intent to dismiss spe#ifin) the )round for termination, and )i"in) said emploee reasonable opportunit within whi#h to e=p lain his or her side  b/  hearin) or #onferen#e where the emploee is )i"en opportunit to respond to the #har)e, present e"iden#e or rebut the e"iden #e presented a)ainst him or her #/  noti#e of dismissal indi#atin) that upon due #onsideration of all the #ir#umstan#es, )rounds ha"e been established to $ustif termination. . >n a termination for an authori(ed #ause, due pro#ess means a written noti#e of dismissal to the emploee spe#ifin) the )rounds at least 39 das before the date of termination.  #op of the noti#e shall also be furnished the Re)ional 8ffi#e of the Department of Labor and ?mploment D8L?/ where the emploer is lo#ated. 4. +hat is the san#tion if the emploer failed to obser"e pro#edural due pro#ess in #ases of le)al and authori(ed termination@ >n #ases of termination for $ust #auses, the emploee is entitled to pament of indemnit or nominal dama)es in a sum of not more than 39,999 pesos )abon "s. NLRC, & 6CR 573/ in #ase of termination for authori(ed #auses, 59,999 pesos Ea*a ood Fro#essin) "s. Darwin Fa#ot, 5 6CR 11:/. 7. Aa an emploee question the le)alit of his or her dismissal@ Bes. he le)alit of a dismissal ma be questioned before the Labor rbiter of a Re)ional rbitration ran#h of the National Labor Relations Commission NLRC/, throu)h a #omplaint for ille)al dismissal. >n establishments with a #olle#ti"e bar)ainin) a)reement C/, the dismissal ma be questioned throu)h the )rie"an#e ma#hiner established under the C. >f the #omplaint is not resol"ed at this le"el, it ma be submitted to "oluntar arbitration. 2. >n #ases of ille)al dismissal, who has the dut of pro"in) that the dismissal is "alid@ he emploer. :. 6uppose the emploer denies dismissin) the emploee, who has the dut to pro"e that the dismissal is without "alid #ause@

he emploee must elaborate, support or substantiate his or her #omplaint that he or she was dismissed without "alid #ause Ledesma, Er. "s. NLRC, 537 6CR 352, 8#tober 1:, &997/. 19. 8n what )rounds ma an emploee question his or her dismissal@ n emploee ma question his or her dismissal based on substanti"e or pro#edural )rounds. he substanti"e aspe#t pertains to the absen#e o f a $ust or authori(ed #ause supportin) the dismissal. he pro#edural aspe#t refers to the failure of the emploer to )i"e the emploee the opportunit to e=plain his or her side. 11. +hat are the ri)hts afforded to an un$ustl dismissed emploee@ n emploee who is dismissed without $ust #ause is entitled to an or all of the followin)0 a/ reinstatement without loss of seniorit ri)hts

 b/ in lieu of reinstatement, an emploee ma be )i"en separation pa of one month pa for e"er ear of ser"i#e Golden #e uilders, et. al "s. Eose alde, Aa 5, &919, GR  No. 127&99/ #/ full ba#*wa)es, in#lusi"e of allowan#es and other benefits or their monetar equi"alent from the time #ompensation was withheld up to the time of reinstatement d/ dama)es if the dismissal was done in bad faith urora Land Fro$e#t Corp. "s NLRC, &44 6CR 2/. 1&. +hat is reinstatement@ Reinstatement means restoration of the emploee to the position from whi#h h e or she has been un$ustl remo"ed. Reinstatement without loss of seniorit ri)hts means that the emploee, upon reinstatement, should be treated in matter in"ol"in) seniorit and #ontinuit of emploment as thou)h he or she had not been dismissed from wor*. +hen a Labor rbiter rules for an ille)al dismissal, reinstatement is immediatel e=e#utor e"en pendin) appeal b the emploer rti#le &&3 of the Labor Code, as amended/. 13. >n what forms ma reinstatement pendin) appeal be effe#ted@ 1. Reinstatement pendin) appeal ma be a#tual or b paroll, at the option of the emploer. 15. 1. +hat is meant b full ba#*wa)es@ ull ba#*wa)es refer to all #ompensations, in#ludin) allowan#es and other benefits with monetar equi"alent that should ha"e been earned b the emploee but was not #olle#ted  b him or her be#ause of un$ust dismissal. >t in#ludes all the amounts he or she #ould ha"e earned startin) from the date of dismissal up to the time of reinstatement. 15. +hat is separation pa@ >n termination for authori(ed #auses, separation pa is the a mount )i"en to an emploee terminated due to installation of labor!sa"in) de"i#es, redundan#, retren#hment, #losure or #essation of business or in#urable disease. 6eparation pa ma also be )ranted to an ille)all dismissed emploee in lieu of reinstatement.

14. -ow mu#h is the separation pa@ >n #ases of installation of labor!sa"in) de"i#es or redundan#, the emploee is entitled to re#ei"e the equi"alent of one month pa or one month for e"er ear of ser"i#e, whi#he"er is hi)her. >n #ases of retren#hment, #losure or #essation of business or in#urable disease, the emploee is entitled to re#ei"e the equi"alent of one month pa or one!half month pa for  e"er ear of ser"i#e, whi#he"er is hi)her.

>n #ase of separation pa in lieu of reinstatement, the emploee is entitled to re#ei"e the equi"alent of one month pa for e"er ear of ser"i#e. 17. >s proof of finan#ial losses ne#essar to $ustif retren#hment@ Bes. Froof of a#tual or imminent finan#ial losses that are substanti"e in #hara#ter must be  pro"en b the emploer to $ustif retren#hment Lope( 6u)ar Central "s. NLRC, 12: 6CR 17:/. 12. re there other #onditions before an emploee ma be d ismissed on the )round of redundan#@ Bes. >t must be shown that there is0 a/ Good faith in abolishin) redundant position and  b/ air and reasonable #riteria in sele#tin) emploees to be dismissed, su#h as but not limited to less preferred status e.). temporar emploee/, effi#ien# and seniorit sian l#ohol Corp. "s. NLRC, 395 6CR 14/ #/  one!month prior noti#e is )i"en to the emploee and D8L? Re)ional 8ffi#e as  pres#ribed b law. 1:. Aa the ser"i#es of an emploee be terminated due to disease@ Bes. he emploer ma terminate emploment on )round of disease onl upon the issuan#e of a #ertifi#ation b a #ompetent publi# health authorit that the disease is of su#h nature or at su#h sta)e that it #annot be #ured within a period of si= months e"en with proper medi#al treatment. &9. +hat is #onstru#ti"e dismissal@ Constru#ti"e dismissal refers to an in"oluntar resi)nation resorted to when #ontinued emploment be#omes impossible, unreasonable or unli*el when there is a demotion in ran* or a diminution in pa or when a #lear dis#rimination, insensibilit or disdain b an emploer be#omes unbearable to an emploee or an unwarranted transfer or demotion of a emploee, or other un$ustified a#tion pre$udi#ial to the emploee. he emploer has to  pro"e that su#h mana)erial a#tions do not #onstitute #onstru#ti"e dismissal lue Dair Corp. "s. NLRC, 31 6CR 91/ &1. Aa an emploee be pla#ed on floatin) status@ Bes, pro"ided it is permitted under #ir#umstan#es for a period of not more than si= 4/ months. eond this period, floatin) status be#omes #onstru#ti"e dismissal whi#h entitles the emploee to separation pa Fhil. >ndustrial 6e#urit )en# Corp. "s. ir)ilio Dapiton and NLRC, 3&9 6CR 1&/ &&. +hen an emploee resi)ned "oluntaril, is he or she entitled to separation pa@  No. n emploee is not entitled to separation pa when he or she resi)ns "oluntaril, unless it is a #ompan pra#ti#e or pro"ided in the C -anford Fhilippines >n#. "s. 6hirle Eoseph, 5 6CR 724, Aar#h 31, &995/.

&3. re quit#laims "alid@ Bes, pro"ided that these are "oluntaril si)ned and the #onsideration is reasonable and is not a)ainst the law or publi# poli#. Aore Aaritime )en#ies "s. NLRC, 397 6CR 12:/ Huit#laims entered into b union offi#ers and some members do not b ind those who did not si)n it Liana;s 6upermar*et "s. NLRC, & 57 6CR 124/. Dismissal of wor*er DU? FR8C?66 required ! G.R. No. 175552 G.R. No. 175552 I = = =. or a wor*er;s dismissal to be #onsidered "alid, it must #ompl with both pro#edural and substanti"e due pro#ess. he le)alit of the manner of dismissal #onstitutes pro#edural due pro#ess, while the le)alit of the a#t of dismissal #onstitutes substanti"e due  pro#ess.54 Fro#edural due pro#ess in dismissal #ases #onsists of the twin requirements of noti#e and hearin). he emploer must furnish the emploee with two written noti#es before the termination of emploment #an be effe#ted0 1/ the first noti#e apprises the emploee of the parti#ular a#ts or omissions for whi#h his dismissal is sou)ht and &/ the se#ond noti#e informs the emploee of the emploer;s de#ision to dismiss him. efore the issuan#e of the se#ond noti#e, the requirement of a hearin) must be #omplied with b )i"in) the wor*er an opportunit to be heard. >t is not ne#essar that an a#tual hearin) be #ondu#ted.57 6ubstanti"e due pro#ess, on the other hand, requires that dismissal b the emploer be made under a $ust or authori(ed #ause under rti#les &2& to &2 of the Labor Code. >n this #ase, there was no written noti#e furnished to De Gra#ia, et al. re)ardin) the #ause of their dismissal. Cosmoship furnished a written noti#e tele=/ to 6*ippers, the lo#al mannin) a)en#, #laimin) that De Gra#ia, et al. were repatriated be#ause the latter "oluntaril pre!terminated their #ontra#ts. his tele= was )i"en #redibilit and wei)ht b the Labor rbiter and NLRC in de#idin) that there was pre!termination of the emploment #ontra#t Ja*in to resi)nationK and no ille)al dismissal. -owe"er, as #orre#tl ruled b the C, the tele= messa)e is Ja biased and self!ser"in) do#ument that does not satisf the requirement of substantial e"iden#e.K >f, indeed, De Gra#ia, et al. "oluntaril  pre!terminated their #ontra#ts, then De Gra#ia, et al. should ha"e submitted their written resi)nations. rti#le &25 of the Labor Code re#o)ni(es termination b the emploee of the emploment #ontra#t b Jser"in) written noti#e on the emploer at least one 1/ month in ad"an#e.K Gi"en that pro"ision, the law #ontemplates the requirement of a written noti#e of resi)nation. >n the absen#e of a written resi)nation, it is safe to presume that the emploer terminated the seafarers. >n addition, the tele= messa)e relied upon b the Labor rbiter and NLRC bore #onfli#tin) dates of && Eanuar 1::2 and && Eanuar 1:::, )i"in) doubt to the "era#it and authenti#it of the do#ument. >n && Eanuar 1::2, De Gra#ia, et al. were not e"en emploed et b the forei)n prin#ipal. or these reasons, the dismissal of De Gra#ia, et al. was ille)al. = = =.I DU? FR8C?66 >N ?RA>N>8N ND D>6C>FL>NRB C>8N6 A>N>AUA F?R>8D 8R R?FLB 8 6-8+!CU6? N8>C? Fra#titioners in the field of labor or -uman Resour#es -R/, as well as mana)ers and

e=e#uti"e offi#ers of #ompanies, are aware that an e mploee ma onl be dismissed for #ause. Dis#iplinar a#tions, in#ludin) dismissal from wor*, must #ompl with both substanti"e and pro#edural due pro#ess. 6ubstanti"e due pro#ess requires a "alid #ause for the dismissal. or pro#edural due pro#ess, outlined below, an interestin) question is this0 is there a minimum period that must be )i"en to the emploee to answer the show! #ause noti#e@ +e re#entl re#ei"ed a quer as to how man das should be )i"en to the emploee to answer the show!#ause noti#e. +e find this quer Jinterestin)K be#ause there is no  pro"ision in the Labor Code, or its >mplementin) Rules and Re)ulations, whi#h spells out a spe#ifi# period. +hat;s more interestin), howe"er, is that the 6upreme Court has #onstrued this period to mean fi"e 5/ das from re#eipt of the show #ause noti#e. he  pro#edural requirements, as summari(ed b the 6upreme Court, are0 / he first written noti#e to be ser"ed on the emploees should #ontain the spe#ifi# #auses or )rounds for termination a)ainst them, and a dire#ti"e that the emploees are )i"en the opportunit to submit their written e=planation within a reasonable period. JReasonable opportunitK under the 8mnibus Rules means e"er *ind of assistan#e that mana)ement must a##ord to the emploees to enable them to prepare adequatel for their defense. his should be #onstrued as a period of at least fi"e 5/ #alendar das from re#eipt of the noti#e to )i"e the emploees an opportunit to stud the a##usation a)ainst them, #onsult a union offi#ial or lawer, )ather data and e"iden#e, and de#ide on the defenses the will raise a)ainst the #omplaint. Aoreo"er, in order to enable the emploees to intelli)entl prepare their e=planation and d efenses, the noti#e should #ontain a detailed narration of the fa#ts and #ir#umstan#es that will ser"e as basis for the #har)e a)ainst the emploees.  )eneral des#ription of the #har)e will not suffi#e. Lastl, the noti#e should spe#ifi#all mention whi#h #ompan rules, if an, are "iolated and
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