Introduction: What Is Illegal Dismissal?

Losing your job is stressful enough, but being terminated without a valid reason or without proper procedure makes the situation even more distressing. Under the Labor Code of the Philippines, employees enjoy security of tenure, meaning they cannot be dismissed from work except for a just or authorized cause and only after observing the proper procedural requirements. When an employer terminates an employee without complying with these requirements, it constitutes illegal dismissal.

If you believe you have been illegally dismissed, it is important to understand your rights and the legal remedies available to you. This article explains the grounds for valid termination, the due process requirements employers must follow, and what steps you should take to protect your interests.

Just Causes for Termination (Article 297)

Article 297 (formerly Article 282) of the Labor Code lists the just causes that allow an employer to terminate an employee. These are grounds that relate to the employee's own conduct or capacity:

• Serious Misconduct. The employee committed a serious wrongful act connected to their work that makes their continued employment untenable.
• Willful Disobedience. The employee deliberately refused to follow a lawful and reasonable order of the employer related to their duties.
• Gross and Habitual Neglect of Duties. The employee repeatedly failed to perform their work responsibilities despite being given the opportunity to do so.
• Fraud or Willful Breach of Trust. The employee committed dishonesty or a deliberate violation of the trust reposed in them by the employer, particularly those in positions of trust and confidence.
• Commission of a Crime or Offense. The employee committed a crime or offense against the employer, their family, or their authorized representative.

Authorized Causes for Termination (Articles 298-299)

Authorized causes are grounds for termination that do not arise from the fault of the employee but from legitimate business reasons or circumstances beyond the employee's control:

• Redundancy. The employee's position is no longer necessary because the function has become superfluous due to restructuring, technological changes, or other business reasons.
• Retrenchment. The employer is experiencing financial losses or a decline in revenue and must reduce its workforce to prevent further losses.
• Closure or Cessation of Business Operations. The employer decides to close the business entirely or cease operations in a particular area.
• Disease. The employee is found to be suffering from a disease that is prejudicial to their health or to the health of their co-workers, and continued employment is prohibited by law or is prejudicial to the employee's or their co-workers' health. A competent public health authority must certify that the disease is incurable within six months even with proper medical treatment.

The Due Process Requirement: The Twin Notice Rule

Even when a valid cause for termination exists, the employer must comply with procedural due process. For just causes, the Supreme Court has established the twin notice rule, which requires:

1. First Notice (Notice to Explain). The employer must serve a written notice to the employee specifying the particular acts or omissions constituting the grounds for termination. The employee must be given a reasonable period (at least five calendar days) to submit a written explanation or defense.
2. Hearing or Conference. The employer must give the employee an opportunity to be heard, either through a formal hearing or a conference where the employee can present their side, present evidence, and rebut the evidence against them.
3. Second Notice (Notice of Decision). After evaluating the employee's explanation and evidence, the employer must serve a written notice of termination stating the specific grounds and the facts supporting the decision to terminate.

For authorized causes, the employer must provide at least 30 days' written notice to both the employee and the Department of Labor and Employment (DOLE) before the intended date of termination. The employee is also entitled to separation pay as prescribed by law.

Steps to Take If You Are Illegally Dismissed

If you believe that your termination was illegal, here are the steps you should take to protect your rights:

1. Gather and Preserve Evidence. Collect all documents related to your employment and termination, including your employment contract, payslips, company memoranda, the notice of termination (if any), and any communications with your employer. If you were verbally terminated, write down the details of the conversation as soon as possible, including the date, time, place, and the words used.
2. File a Request for Assistance at DOLE (SEnA). Before filing a formal complaint, you may avail of the Single Entry Approach (SEnA) at the nearest DOLE field office. SEnA is a mandatory 30-day conciliation-mediation process designed to help settle labor disputes without the need for litigation. If a settlement is reached, both parties sign an agreement. If not, you receive a referral to the appropriate office.
3. File a Complaint with the NLRC. If SEnA does not result in a settlement, you may file a complaint for illegal dismissal with the National Labor Relations Commission (NLRC). The complaint should include the details of your employment, the circumstances of your dismissal, and the relief you are seeking. You do not need a lawyer to file a complaint, but having legal representation is highly recommended.
4. Attend Mandatory Conferences. Once the complaint is filed, the Labor Arbiter will schedule mandatory conferences where both parties can present their positions and explore the possibility of settlement.
5. Submit Your Position Paper. If no settlement is reached during the mandatory conferences, both parties will be required to submit position papers with supporting evidence. The Labor Arbiter will then decide the case based on the evidence presented.

Remedies for Illegal Dismissal

If the Labor Arbiter or the NLRC finds that you were illegally dismissed, the law provides the following remedies:

• Reinstatement. You have the right to be restored to your former position without loss of seniority rights and other privileges. The employer is required to reinstate you immediately, even while the case is on appeal.
• Full Back Wages. You are entitled to the payment of your full back wages, inclusive of allowances and other benefits, computed from the date of your dismissal until the date of your actual reinstatement.
• Separation Pay (in lieu of reinstatement). If reinstatement is no longer feasible due to strained relations between you and the employer or because the position no longer exists, the court may award separation pay instead. This is typically computed at one month's salary for every year of service.
• Damages and Attorney's Fees. In some cases, the court may also award moral damages, exemplary damages, and attorney's fees if the dismissal was done in bad faith or in a manner that was oppressive to the employee.

Prescriptive Period

It is critical to act promptly. Under the Labor Code, the prescriptive period for filing an illegal dismissal case is four (4) years from the date of dismissal. However, it is always advisable to file your complaint as soon as possible to preserve evidence and strengthen your case. Money claims arising from employer-employee relations prescribe within three (3) years from the time the cause of action accrued.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice. The application of law depends on the specific facts and circumstances of each case. Consult a qualified attorney for advice regarding your particular situation.

Consult with Edang Law

If you have been dismissed from your job and believe your termination was unjust or procedurally defective, Edang Law can help you understand your rights and pursue the remedies available to you under the law. Atty. Rommel John G. Edang provides legal assistance in labor disputes for workers in Guimaras and the Western Visayas region.

Do not let an illegal dismissal go unchallenged. Contact us to schedule a consultation and take the first step toward protecting your livelihood.

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