TERMINATION OF EMPLOYMENT

Art. 282. Termination by employer. An employer may terminate an employment for any of the following causes:
1. Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in
connection with his work;
2. Gross and habitual neglect by the employee of his duties;
3. Fraud or willful breach by the employee of the trust reposed in him by his employer or duly authorized
representative;
4. 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
5. Other causes analogous to the foregoing.

I. Management Rights
- In law and management practice the wisdom in labor management relations lies in the Aristotelian Golden
Mean.
1. RIGHT TO MANAGE PEOPLE IN GENERAL
- Employer is free to regulate, according to his own discretion and judgment and all aspects of
employment as long as it is not defeating or circumventing the rights of the employees under special
laws or under valid agreements.
- The Employer and Employee have an equality of right guaranteed by the constitution.
- If the employer can compel the employee to work against the latters will this is Servitude.
- If the employee can compel the employer to give him work against the employers will this is
Oppression.
2. RIGHT TO DISCIPLINE
- The Employer has the prerogative to instill discipline in his employees and to impose reasonable
penalties, dismissal on erring employees pursuant to company rules and regulations.
- It will demoralize the rank-and-file if the undeserving, if not desireable, remains in the service.
3. RIGHT TO TRANSFER EMPLOYEES
- Prerogative by of Management to transfer an employee from one office to another within the business
establishment, provided, that there is no demotion of rank, diminution of his salary, benefits and other
privileges.
4. THE RIGHT TO DEMOTE
- It is management prerogative to transfer, demote, discipline and even to dismiss an employee to
protect its business, provided it is not tainted with unfair labor practice.
5. THE RIGHT TO DISMISS
- The right of the company to dismiss its employees is a measure of self-protection.
5.1 THE POWER TO DISMISS IS NOT ABSOLUTE
- Dismissals must not be arbitrary and capricious.
- Due process must be observed in dismissing aan employee because it affects not only
his position but also his means of livelihood.

II. JUST CAUSES OF DISMISSAL

1. CAUSES OF DISMISSAL IN GENERAL
- A company has the right to dismiss its erring employees if only as a measure of Self-Protection against
acts inimical to its interest.
- Removal of employee under Art. 282 is called Dismissal or Discharge.
- Removal of employee under Art. 283 or 284 is called Separation.

2. JUST CAUSE: SERIOUS MISCONDUCT

- Misconduct is improper or wrong conduct.
- It is transgression of some established and definite rule of action, forbidden act, a dereliction of duty,
willful in character, and implies wrongful intent and not mere error in judgment.
- Must be grave and aggravated in character and not merely trivial or unimportant.
- Such Misconduct must nevertheless be in connection with the employees work to constitute just
cause for his separation.
2.1 EXAMPLES OF MISCONDUCT
- Employee who utters obscene, insulting or offensive words against a superior may be
dismissed.
- As a general rule, Immorality on the part of an employee does not justify a discharge
therefor unless such conduct is prejudicial or in some way detrimental to the employers
interest.
2.1a SEXUAL HARASSMENT
- Valid cause for dismissal.
2.2 CAUSE FOUND INADEQUATE
- Fisticuffs are plainly a private matter between two employees.
- Hot-tempered is not a ground for dismissal/
- Borrowing money is neither dishonest nor immoral nor illegal, much less criminal.
2.2a TEACHER IN LOVE WITH STUDENT: THE HEART HAS REASONS WHICH REASON
DOES NOT KNOW
- Chua-Qua vs. Jacobo C. Clave Ruling: Teacher falling in love with student, not
immoral. There was no direct evidence to show that immoral acts were
committed.
2.3 EXTRA-MARITAL RELATIONSHIP IS IMMORALITY
- When a teacher engages in extra-marital relationship especially when both are
married, such behavior amounts to immorality, justifying his dismissal from
employment.
2.3a IMMORAL CONDUCT DEFINED
- A conduct which is so willful, flagrant or shameless as to show indifference to
the opinion of good and respectable members of the community.
- Such conduct must not only be immoral but grossly immoral.
2.4 BEING A SPOUSE OF A CO-EMPLOYEE
- The failure of the employer to prove a legitimate business concern in imposing the
questioned policy cannot prejudice the employees right to be free from arbitrary
discrimination based upon stereotypes of married persons working together in one
company.

- Failure of the Employer to present undisputed proof of a reasonable business necessity

is tantamount to an invalid exercise of management prerogative.
3. JUST CAUSE: WILLFUL DISOBEDIENCE
- The orders, regulations, or instructions of the employer must be; (1) Reasonable and lawful, (2)
Sufficiently known, (3) In connection with the duties which the employee has been engaged to
discharge.
- The Employees disobedience, in order to justify his dismissal under this provision, must relate to
substantial matters, not merely to trivial or unimportant matters.
3.1 VALID TERMINATION: EMPLOYERS POLICY DESPITE UNIONS OBJECTION
3.2 ELEMENTS OF DISOBEDIENCE
- We believe that not every case of insubordination or willful disobedience by an
employee of a lawful work-connected order of the employer or its representative is
reasonably penalized with dismissal.
- There must be a reasonable proportionality between the offense and the penalty
imposed therefor.
3.3 DISOBEYING AN ORDER TO TRANSFER
- Gold City Case enumerated (2) Requisites that must concur so that willful disobedience
may serve as an adequate and valid reason to dismiss an employee; (1) Employees
attitude wrong and perverse, (2) The qualities of the order lawful, reasonable, made
known to the employee.
3.3a VALID TRANSFER
- Management has the right to transfer or reassign an employee.
- It should not be contrary to law, morals or public policy.
- The only limitation on the discretion of management in this regard is its Mala
Fides.
- The demotion of an employee and his transfer to another place of work
because of his failure to observe proper diligence in his work, and of his
indolence, habitual tardiness and absences do not constitute dismissal.
3.3b INVALID TRANSFER
- Used as a subterfuge by the employer to rid himself of an undesirable worker
constitutes an invalid transfer.
- The employees right to unionize appears to be superior to the managements
right to transfer employees.
3.3c MAY AN EMPLOYEE DISOBEY AN INCONVENIENT TRANSFER
- Inconvenience to the employee does not necessarily invalidate a transfer
order, as shown in the Homeowners savings. But inconvenience caused by
unreasonableness of the transfer order makes the order itself invalid and
disobedience thereof is not a reason to dismiss the worker.
- Reasonableness according to the Escobin Case, pertains to the kind of
character f directives and commands and to the manner in which they are
made.

3.3d CHANGE OF POSITION AND WORK

3.3e TEST OF VALIDITY OF TRANSFER

- Blue Diary Corp Case, Before the right to transfer or re-assign employee can be
deemed to have been waived or contracted away, the stipulation to that effect
must be clearly stated so as to leave no room to doubt the intentions of the
parties.
3.3f INVALID CHANGE OF POSITION
3.3g TRANSFER WITH PROMOTION OF A MANAGER
- A transfer becomes unenforceable of the transfer is coupled with or is in the
nature of a promotion, where the promotion is rejected by the employee.
- There is no law that compels an employee to accept a promotion. Promotion is
in a nature of gift or reward, which a person has a right to refuse.
- Qui jure suo utitur neminem laedit He who uses his own legal right injures
no one.
3.3h TRANSFER DISTINGUISHED FROM PROMOTION
- Transfer is a movement from one position to another of equivalent rank, level
of salary, without break in the service.
- Promotion is the advancement from one position to another with an increase
in duties and responsibilities as authorized by law and usually accompanied by
an increase in salary.
4. JUST CAUSE: NEGLECT OF DUTIES
- In order to constitute a just cause for the employees dismissal, the neglect of duties must not only be
gross but also habitual. Thus a single or isolated acts of negligence do not constitute a just cause for the
dismissal of the employee.
- An Employee may be dismissed because of inefficiency, neglect or carelessness.
- Unsatisfactory performance is one of the just causes for dismissal under the labor code.
4.1 GROSS NEGLIGENCE DEFINED
- Defined as the want or absence of or failure to exercise slight care or
diligence, or the entire absence of care.
4.2 ABANDONMENT
- Abandonment of job is a form of neglect of duty.
- To constitute abandonment, there must be a clear and deliberate intent to
discontinue ones employment without any intention of returning back.
4.2a ELEMENTS OF ABANDONMENT; IMMEDIATE FILING OF DISMISSAL
COMPLAINT
- To constitute abandonment, (2) Elements must concur: (1) The failure
to report for work or absence without valid or justifiable reason, (2)
Clear intention to sever the employee-employer relationship, with the
second element as the more determinative factor and being manifested
by some overt acts.
- Mere absence is not sufficient.

4.2b IMMEDIATE FILING OF COMPLAINT NEGATES ABANDONMENT;

EXCEPTION
4.3 TARDINESS AND ABSENTEEISM
-Generally, tardiness and absenteeism like abandonment are form of neglect of
duty.
- An employee who consistently receives promotions in rank and salary must be
a highly efficient worker and therefore should be retained despite occasional
lapse in punctuality and attendance. Perfection cannot after all be demanded.
4.4 IS ATTITUDE PROBLEM A JUST CAUSE TO DISMISS AN EMPLOYEE
- An Employees attitude problem is a valid ground for his termination. It is a
situation analogous to loss of trust and confidence that must be duly proved by
the employer.
- Though they are correct in saying that in this case, proof beyond reasonable
doubt is not required, still there must be substantial evidence to support the
termination on the ground of attitude.
- Technical rules of procedure are not binding in labor cases. Besides the burden
of proof is not on the employee but on the employer who must affirmatively
show adequate evidence that the dismissal was for justifiable cause.
5. JUST CAUSE: DISHONESTY, LOSS OF CONFIDENCE
- Thus, the fraud committed by an employee against third persons not in connection with his work and
which does not in any way involve his employer is not a ground for the dismissal of the employee.
5.1 FALSIFICATION OF TIME CARDS
5.1a THEFT OF COMPANY PROPERTY
5.2 LOSS OF CONFIDENCE
- To be a valid reason of dismissal, loss of confidence must be genuine, not a
mere after thought to justify an earlier action taken in bad faith.
5.2a TO WHOM APPLICABLE; POSITION OF TRUST
- Loss of confidence should ideally apply only, (1) To cases involving
employees occupying positions of trust and confidence or, (2) To those
situations where the employee is routinely charged with the care and
custody of the employers money or property.
5.2b CONFLICT OF INTEREST; EMPLOYMENT WITH COMPETITOR
- Freedom to contract must not be unreasonably abridged.
5.3 PROOF REQUIRED
- It is sufficient if there is some basis for such loss of confidence or if the
employer has reasonable ground to believe or to entertain the moral conviction
that the employee concerned is responsible for the misconduct and that the
nature if his participation therein rendered him unworthy of the trust and
confidence demanded by his position.
-For loss of trust and confidence to be a valid ground for an employees
dismissal, it must be substantial and not arbitrary and must be founded on
clearly established facts sufficient to warrant the employees separation from
work.

5.4 GUIDELINES SUMMARIZED

- Guidelines for applying the doctrine of loss of confidence are;
1. Loss of confidence should not be simulated.
2. It should not be used as a subterfuge for causes which are improper,
illegal or unjustified.
3. It may not be arbitrarily asserted in the face of overwhelming
evidence to the contrary.
4. It must be genuine, not a mere afterthought to justify earlier action
taken in bad faith.
5. The employee involved holds a position of trust and confidence.

6. JUST CAUSE: COMMISSION OF A CRIME OR OFFENSE

- Another just cause of terminating an employment is the employees commission of a crime or offense
against the person of his employer or against any immediate member of the employers family.
6.1 CONVICTION OR PROSECUTION NOT REQUIRED
7. ANALOGOUS CAUSES
- To be considered analogous to the just causes enumerated, however a cause must be due to the
voluntary and/ or willful act or omission of the employee.