Termination of Employment by reason of ILLNESS

2 CONDITIONS:
1. The continued employment of the Ee is prohibited by law
or prejudicial to his health or health of other Ees
2. There should be a medical certificate from a public
authority the illness cannot be cured within a period of 6
months even if with medical treatment
If can be cured within 6 months no
termination but allow the Ee to go on leave of
absence or sick leave
+ If no more sick leaves sick leave
without pay
+ illness was not cured within 6
months Er can already terminate
the employment

Separation Pay month for every year of service
Fraction of 6 months = 1 year

VOLUNTARY RESIGNATION
There must be an INTENTION to relinquish the job
it must be unconditional
accompanied by actual act of relinquishment

Indications of Voluntariness of Resignation
1. Resignation Letter (indicating gratitude for being
employed)
wordings of Resignation to severe employment
relationship

+ A salesman misappropriated the funds
threat of termination from Er and to file a criminal
action
resignation is still voluntary

+ Er adopted a redundancy program Ees affected told to submit
their resignation and to give higher separation benefits and Ee
chose to resign
resignation is voluntary

+ Er threatens Ee for dismissal for cause if he does not resign Ee
resigned
resignation is voluntary
a way of giving a graceful exit to the Ee

+ Voluntariness is not negated by the fact that the Er prepared and
resignation letter and the Ee signed the same

>> Law requires the Ee to give ONE MONTH NOTICE to the Er
+ in order to give the Er time to find a replacement
+ the Er cannot compel the Ee to work within the one
month period =
involuntary servitude (Er action for damages)
+ Er can waive the 30-day period and allow the Ee to quit
outright

>> If the Ee resigns, he would NOT BE ENTITLED TO separation
pay

CONSTRUCTIVE DISMISSAL
Involuntary Resignation
It is the Ee who quits from his employment or stops
working or relinquishes his job
harsh or unbearable treatment against the Ee
a dismissal in disguise Er wants to get rid of the Ee

GROUNDS for Involuntary Resignation
1. Serious Insult by the Er on the honor or person of the Ee
2. Inhuman or unbearable treatment
3. Commission of a crime against the
Ee/Family/Representative
4. Analogous Causes

+ Demotion of Rank and forces him to give up his Employment
Involuntary Resignation (Without a valid reason)
unless the same is a punishment for the commission
of an offense
no offense demotion is motivated by the desire of
the Er to get rid of
the Ee

+ Ee transferred to another place to cause inconvenience
no claim for CD
mere inconvenience will not amount to CD
Er has the prerogative to transfer and Ee from one
place to another

>> One-month notice is not required anymore for involuntary
resignation

ABANDONMENT OF EMPLOYMENT
Constructive Resignation
Initiative to cut-off the employment relationship comes from the
Ee
Ee absents himself without justifiable reason
Mere absence is not enough to constitute AoE there should be
an intent to abandon or not to return to work anymore

Elements:
1. Absence for a substantial period of time without a
justifiable reason
2. Intent to abandon
How to ascertain send the Ee a notice to report to
work
Ee does not report to work despite the notice will
indicate intent to abandon
If Ee complied Ee can be charged with absence
from work an impose the corresponding penalty
TERMINATION PROLONGED LAY-OFF

ART. 291 Suspension of Business
Not longer than 6 months does not terminate employment

1. Bona fide suspension of operations
suspension of operations in Good Faith
temporary lay-off of the Ees
does not exceed 6 months employment is merely
suspend and not terminated
exceeds 6 months employment automatically
terminates
+ Ees affected will be entitled to separation pay
Er resumes operations Ee must signify his intention
to return to work within ONE MONTH from resumption of
operations of the company

If suspension was NOT done in good faith the effect is the Er will
be held liable for back wages for the duration of the suspension of
operations


Lay-off will go beyond 6 months automatic termination of
employment
Ees affected = Separation Pay

2. Fulfillment of a civic or military duty
6-month period will NOT apply
employment is merely suspended and not terminated
upon discharge from duty Ee concerned must
signify his intention to return within a period of ONE
MONTH from discharge from duty

RETIRMENT OF EMPLOYEES
Determine whether Ee is retireable or not
+ CBA, company policy or retirement contract will
determine the same
+ Absence provisions of the LC will apply

2 types of retirement under the LC
1. Optional
it is based on age optional retirement age is 60
for ordinary Ees
50 years old for UNDERGROUND mining Ees

WHO can exercise optional retirement:
ONLY the Ee can exercise the option to retire
If Er retires the Ee Er can be held liable for illegal dismissal
the choice whether to retire upon reaching the age of 60
belongs to the Ee

2. Complusory
65 for ordinary
60 for UNDERGROUND mining Ees
Not all Ees who have reached the retirement age are entitled to
retirement pay
Condition: Ee must have rendered at least FIVE YEARS of
service

NOT entitled:
1. Domestice Helpers
2. Personal service of another
3. Establishments employing less than 10 Ees

Retirement Pay (p. 631)
a) 15 days salary
b) cash equivalent of 5 days of service incentive leave
c) 1/12 of 13
th
month pay

Retirement Fund if less than what is provided under the LC
Er will pay the difference

Contributions to Retirement Fund
Total contributions of Er should not be less than the amount of
the retirement benefits under the LC
If less difference to be shouldered by the Er


NLRC PROVISIONS

Labor Arbiters
Orignal and Exclusive Jurisdiction
a) labor disputes
b) termination disputes
c) money claims if accompanied with a prayer for
reinstatement
d) actual/moral/exemplary damages arising for Er-Ee
relationship
e) violations of Art. 269 including the legality of strikes and
lockouts
f) all of ther cases arising for Er-Ee except claims for ECC,
SSS, PhilHealth and Maternity Benefits

>> Unifying Element Er-Ee Relationship

Reasonable Causal Connection Doctrine
LA to acquire jurisdiction over a dispute, the same must have a
reasonable causal connection with Er-EE relationship
if the principal relief sought can be resolved by
the LC or other reference of other labor laws
and not by the general civil law
no jurisdiction arising from damages due to
negligence of the Ee based on quasi-delict
no jurisdiction for damages arising from tort and
no reasonable causal connection with Er-Ee
relationship
not all claims arising from Er-Ee relationship will not fall within
the jurisdiction of LA:
a) ECC benefits
b) SSS benefits
c) PhilHealth benefits
d) Art. 129 of the LC pure money claims of Ees not
exceeding FIVE THOUSAND pesos without a claim
for reinstatement

Other agencies to share with the LA its jurisdiction
a) Art. 267 VA vested with authority to decide
complaints for ULPs and other Labor Disputes
provided there is an agreement between the parties
b) Art. 268-G SOLE to assume jurisdiction over a
labor dispute to cause a strike or lockout in a
industry of national interest. SOLE can decide all
disputes between the parties including those falling
within the jurisdiction of the LA

TERMINATION DISPUTES
GR: Jurisdiction of the LA
Exceptions:
a) termination disputes involving corporate officers
intra-coporate dispute (RTC jurisdiction)
b) termination disputes involving the interpretation and
implementation fo the CBA or company personnel
policies Voluntary Arbitrator

Jurisdiction of LA vs. VA Termination Disputes
interpretation or implementation of CBA/CPP Voluntary
Arbitrator
actual termination Labor Arbiter

+ Sanyo vs. NLRC
- union recommended the dismissal of one
of its members who failed to maintain his
membership in good standing
- union security agreement in the CBA
- the company acceded to the request Ee
dismissed
- ISSUE: Jurisdiction VA or LA?
- SC: LA has jurisdiction
- There is no dispute to interpretation of
union security agreement
- Dispute is between dismissed union
member, the union and the company

MONEY CLAIMS OF EMPLOYEES
Jurisdiction of the LA will depend whether or not there is a
prayer for reinstatement
with reinstatement LA has jurisdiction regardless of the
amount involved
no reinstatement
a) if the aggregate amount is 5,000 and below
Regional Director
b) if the amount is more than 5,000 LA
>>> money claim must have a reasonable causal
connection with Er-Ee relationship
Example: Illegal deduction of benefits

Recovery of Attorneys Fees (In-house lawyer) has a reasonable
causal connection to Er-Ee relationship; the lawyer is considered
an employee.

Claim filed a security agency against a principal NO reasonable
causal connection to Er-Ee relationship

+ Smart Communications Case
Ee dismissed with a car plan
benefit
Payable balance to be paid to the
company
Company filed a complaint for
replevin for the recovery of the car
with the RTC
ISSUE: RTC jurisdiction?
RTC has jurisdiction

Corporate Officers Money claims
2 situations:
1) money claims pertains to the perks of the corporate
position LA has no jurisdiction
2) money claims pertains to corporation compensation and
benefits as an Ee of the corporation LA has jurisdiction

Money claims of Er with LA as long as it has a reasonable causal
connection with Er-Ee relationship

Money claims of Migrant Workers LA has jurisdiction under the
Migrant Workers Act

Claims for Damages LA jurisdiction
damages must have reasonable causal connection
with Er-Ee
relationship

Damages arising from Malicious Prosecution LA have no
jurisdiction since the same arises from Tort
regular courts will have jurisdiction

To declare a strike illegal LA has jurisdiction

Writ of Injunction to remove the obstructions placed by strikers
NLRC has jurisdiction

Wage Distortion Disputes
a) unorganized establishment LA has jurisdiction
b) organized establishment VA has jurisdiction

COMPULSORY ARBITRATION PROCESS
NLRC has its own rules
rules of court supplemental manner
case is decided merely on position papers and documentary
evidence submitted by the parties

Mandatory Conciliation Conference before filing a complaint
with the LA
SENA single entry approach
If not decided at that level then complaint may be filed
with the LA

Non-lawyers may appear before the LA
a) if they represent themselves
b) they represent the organizations in which they
belong proof is required

submission of the case to the Lupon Tagamapaya is not
required

Pleadings that cannot be filed with the LA:
a) motion for bill of particulars
b) motion for new trial
c) motion to dismiss except for lack of jurisdiction,
improper venue, res judicata, prescription and forum
shopping
d) motion to declare the defendant in default (no
default in labor proceedings)

LA exercises FULL control over the proceedings
necessity for hearing determined by LA then LA will conduct a
hearing
degeree of proof substantial evidence

Adverse Decision from the LA
motion for reconsideration is not allowed
Remedy: appeal to the NLRC 10 calendar days; non-
extendable
notice of appeal will not interrupt the 10 day period
prepare memorandum of appeal state the facts of the case,
the arguments, and the reliefs being asked for
pay the appeal fee
Lawyer for Er appeal bond must be filed equivalent to the
monetary award excluding the award of damages and attorneys
fees
+ limited to the award of backwages
+ cash bond or surety bond
+ required only if the appellant is the Er who is appealing
a monetary award
+ decision with no monetary award appeal bond is no
necessary
+ award to pay damages appeal bond is not necessary
(damages are
excluded)

Decision contains an order for reinstatement
Immediately executory even pending appeal
Compliance of the Er of the order of reinstatement:
1) physically reinstating the employee in his position
2) reinstate the Ee in the payroll

>> only the Er can exercise the option cannot be
compelled by the LA to choose either of the 2 modes
of reinstatement

Er CANNOT post a bond in lieu of reinstatement, the 2 ways for
the reinstatement of an Ee must be followed

NLRC reversed the LA decision Valid Dismissal
Reinstatement
a) if the Ee was reinstated physically the Er can put
an end to the reinstatement as soon as the decision
becomes final and executor
b) if reinstated in the payroll Er can stop paying the
salaries of the Ee as soon as the decision becomes
final and executor

Reinstatement was not imposed pending appeal
a) not implemented because the Er refused to comply
liable for backwages
b) not implemented because the Ee did not vigorously
claim his right no liability for backwages

+ Supervening Events payroll reinstatement = stop
payment

MR for NLRC decisions are allowed
required before appeal to CA is allowed (by certiorari)
special civil action Rule 65

CA renders a decision elevate to SC by appeal by certiorari (Rule
45)

INJUNCTION IN LABOR DISPUTES
is not favored and is discouraged

>> a labor dispute must be involved!

regular courts DO NOT have jurisdiction to issue injunctions in
labor disputes

Substantive Requirements:
1) prohibited or unlawful acts have threatened to be
committed or are committed unless restrained
2) substantial or irreparable injury to complainant
3) greater injury on the part of the complainant unless the
relief is granted
4) there is no adequate remedy
5) public officers charged with the protection of
complainants property do not act to protect the same

>> petition under oath
>> there has to be a hearing cannot be issued ex parte
>> TRO from NLRC effective for 20 days after posting of a
bond

PRESCRIPTION
3 years money claims
prescriptive periods for illegal dismissal cases 4 years from
the date of dismissal
illegal dismissal is not a criminal offense under the LC
only those which are declared as UNLAWFUL as considered as
criminal offenses