The termination of employment must be
accordance with established rules, principles and in a manner as required by
law. The employer may only terminate an employee when there is a valid cause of
termination and in accordance with the due process.
Just Causes of Termination
Just causes of termination refer to valid
causes of termination arising from an employee’s fault and or negligence. In
such cases of termination, the employer bears the burden of proof that the
employee has committed an infraction of such grave that commensurate with the
sanction of termination.
1. Serious
Misconduct
Serious misconduct is a just cause for termination of
employment, however, not every act of misconducts is a valid cause for
dismissal. For misconduct to be a just cause for dismissal:
● The misconduct must be serious. Mere error
in judgment is not a misconduct;
● It
must relate to the performance of the employee’s duties;
● Must show that the employee has become unfit
to continue working for the employer;
(Examples)
The employee’s (an accounting manager) act
of willfully understating the company’s profits or financial position,
committed as it was in order to “save” costs, which to her warped mind, was
supposed to benefit her employer, partakes serious misconduct. It was not
merely a violation of company policy, but of the law itself, and put the
employer at risk of being made legally liable. The dismissal in this case is warranted.
An employer cannot be compelled to retain in its employ someone whose services are
inimical to its interests.
Two traffic operators who placed free long
distance calls were dismissed by PLDT. The dismissal was upheld as valid. The
dishonesty committed by the erring employee qualifies as serious misconduct
especially that it goes to the very heart and essence of the company. Long
distance call is the lifeblood of PLDT.
A ticket freight clerk was dismissed for
dishonesty for charging to his VISA credit card some plane tickets in spite of
the cash payment made by passengers. The dismissal was for a just cause.
2. Willful
Disobedience to
lawful orders
As part of the employment contract, it is understood that
employees are bound to follow reasonable and lawful orders of the employer
which are in connection with their work. Therefore, intentionally or willfully
disobeying such orders is a just cause of termination. Such disobedience need
not be habitual and the damage to the employer is not a consideration for the
termination. To uphold a dismissal due to willful disobedience;
● it
must be established that the given orders, regulations or instructions
were reasonable and lawful;
● sufficiently known to the employee; and,
● in
connection with the duties which the employee has been engaged to discharge.
In case that a violation of
company policy or breach of company rules and regulations was found to have
been tolerated by management, then the same could not serve as a basis for
termination.
At the same time, the motives of a
company’s policy are not an excuse for the employee not to obey said policy.
3. Gross and Habitual Neglect of Duties
Gross and habitual neglect of duties is a just cause of
termination. Gross negligence has been defined
as the want or absence of or failure to exercise slight care or diligence, or
the entire absence of care. In order to constitute a just cause for the
employee’s dismissal, the neglect of duties must not only be gross but also
habitual. Habitual neglect implies repeated failure to perform one’s duties for
a period of time, depending upon the circumstances. Single isolated acts of
negligence do not constitute a just cause for the dismissal of the employee.
However, in many cases, the SC (Supreme Court) upheld the validity of dismissal on the ground of
gross negligence even if the act complained of was not habitual. It may
become a valid cause of termination when the continued employment of the
employee is inimical to the interest of the employer.
Habitual absenteeism and tardiness
constitute gross and habitual neglect of duty. Repeated acts of absences
without leave and frequent tardiness reflect indifferent attitude to and lack
of motivation in his work
4. Fraud or willful breach of trust / Loss of Confidence
Loss of confidence refers to a condition arising from fraud
or willful breach of trust by employee of the trust reposed in him by his
employer. Fraud is any act, omission, or concealment
which involves a breach of legal duty, trust, or confidence justly reposed and
is injurious to another.
To be a valid termination based on loss of
confidence;
● the employee must hold position of Trust
and Confidence. Ex) managerial employees, cashiers, auditors, property
custodians, etc. However, title is not a conclusive indicator. It will be
decided by the authority actually possessed by the employee;
● must be committed in connection with the
employee’s work or related to the performance of the employee’s functions;
● Breach of Trust must be willful;
5. Commission
of a crime or offense.
Commission of a crime or offense by the
employee against his employer or any immediate member of his family or his duly
authorized representative, is a just cause for termination of employment.
6. Analogous
causes.
Other causes analogous to the above
grounds may also be a just cause for termination of employment.
Examples of Analogous Causes
● Abandonment
Abandonment
of job is a form of neglect of duty. There is abandonment when the employee
leaves his job or position with a clear and deliberate intent to discontinue
his employment without any intention of returning back.
● Gross
inefficiency
Gross
inefficiency is analogous to and closely related to gross neglect for both
involve acts or omissions on the part of the employee resulting in damage to
the employer or to his business.
● Disloyalty/conflict
of interest
Disloyalty
exists when one asserts an interest, or performs acts adverse to one’s
employer, such as secretly engaging in a business which renders him a
competitor and rival of his employer. It constitutes a breach of an implied
condition of the contract of employment.
● Dishonesty
Acts
of dishonesty deemed to be patently inimical to the employer is analogous to
breach of trust and is a valid cause for termination of employment.
Notes:
Each case has different
situation, so you should consult with an attorney before proceed.