Understanding Illegal Termination
Losing your job can be one of the toughest experiences in life, and it’s even more frustrating if you feel you were unfairly dismissed. In the Philippines, workers have the right to security of tenure, meaning you can’t just be fired without a valid reason. If you believe you’ve been dismissed unjustly, your termination may be considered illegal under the law, and there are ways to challenge it. Let’s go through what illegal termination means, your rights, and what you can do if you find yourself in this situation.
What is Illegal Termination?
Illegal termination happens when your employer fires you without a valid reason or fails to follow the correct procedure in ending your employment. The law protects you from being dismissed unfairly and ensures employers follow the right steps when terminating employees.
Sometimes, even if an employer doesn’t directly fire you, their actions may push you to leave. If the employer makes your working conditions unbearable, it may still be considered constructive dismissal. Whether it's through wrongful dismissal or being forced to quit, the law is there to protect you.
What Are the Legal Grounds for Termination?
In the Philippines, employers can only fire employees for certain reasons. These reasons fall into two categories: just causes and authorized causes.
Just Causes for Termination (Article 297 of the Labor Code):
Serious misconduct or willful disobedience: This is when an employee engages in serious misbehavior or refuses to follow lawful orders related to their job. Examples include stealing from the company, using drugs at work, or ignoring company rules.
Gross and habitual neglect of duties: If an employee repeatedly neglects their duties or performs them carelessly, this can be grounds for termination.
Fraud or breach of trust: Employees who deceive their employer or break the trust placed in them (e.g., falsifying documents or stealing) can be dismissed for this reason.
Committing a crime against the employer: If an employee commits a criminal act against their employer, such as theft or assault, it is a valid reason for firing them.
Other causes: If an employee’s health becomes a threat to themselves or others at work, the employer may be allowed to terminate employment.
Authorized Causes for Termination (Article 298-299 of the Labor Code):
Redundancy: This happens when an employee’s position is no longer necessary due to changes in the company’s structure. For example, if certain roles become repetitive or no longer serve a purpose, the employer can eliminate those positions.
Retrenchment: When a company is facing financial difficulties or needs to reduce costs, it may lay off employees. This is a legitimate reason for termination when a business is trying to survive or improve efficiency.
Closure of business: If the company shuts down, whether temporarily or permanently, they are allowed to terminate employees under this cause.
What is Due Process in Termination?
Due process means that employers must follow proper procedures before firing an employee. There are two types of due process: substantive and procedural.
Substantive due process requires that the employer has a valid reason to terminate you, such as one of the just or authorized causes listed above.
Procedural due process involves following the correct steps when dismissing an employee. These steps include:
First Notice: The employer must inform you in writing why they want to terminate you and give you the chance to explain your side.
Second Notice: After hearing your explanation, the employer must send another notice confirming their decision to fire you.
If the employer fails to follow these steps properly, your dismissal may be considered illegal, even if they had a valid reason.
Who Has to Prove That the Termination Was Legal?
In cases of illegal termination, the employer has the responsibility to prove that the dismissal was legal and justified. They need to provide evidence showing that they followed the law.
However, before the employer is asked to prove anything, you, as the employee, must first prove that you were indeed fired. If you can’t show that you were dismissed, the case of illegal termination won’t be able to proceed.
What is Constructive Dismissal?
Constructive dismissal happens when an employer’s actions make it impossible for you to continue working, even if they don’t directly fire you. For example, if your employer demotes you, reduces your salary, or creates a hostile work environment, these actions may force you to resign.
In such cases, the law may treat it as illegal termination, even if you technically quit. It’s important to understand that constructive dismissal is about being forced out through unfair treatment, not about choosing to leave voluntarily.
What Are the Remedies for Illegal Termination?
If you’ve been illegally dismissed, you’re entitled to certain remedies under the law. These include:
Reinstatement: If you’ve been unfairly terminated, you may be entitled to return to your previous position with no loss of seniority rights or benefits.
Backwages: You are entitled to the wages you would have earned from the time you were dismissed until you are reinstated, or until the case is resolved. This is money you should have received if your termination had been lawful.
Separation Pay: If reinstatement isn’t possible due to a strained relationship with your employer or other reasons, you may receive separation pay as a substitute.
Damages: If your employer acted in bad faith or mistreated you during the termination process, you might also be entitled to moral damages, exemplary damages, and even attorney’s fees if you needed legal representation.
Can Employees Be Reinstated If They Are Illegally Dismissed?
Yes! If it is found that you were illegally dismissed, the employer must reinstate you to your previous position. However, if it’s no longer possible to continue working due to a breakdown in your relationship with the employer, or other valid reasons, the employer may have to pay separation pay instead of reinstatement.
What Happens If the Employer Doesn’t Follow Due Process?
If an employer fails to follow due process, such as not giving you proper notice or not allowing you to defend yourself, your termination may still be considered illegal. Even if the employer had a valid reason for firing you, failing to follow the required procedures could result in consequences like having to pay damages or being ordered to reinstate you with back wages.
What Should I Do If I Think I’ve Been Illegally Dismissed?
If you believe you’ve been unfairly dismissed, here are the steps you can take:
File a Complaint with the NLRC: The National Labor Relations Commission (NLRC) handles labor disputes and can help you resolve your case.
Gather Evidence: Collect any documents, emails, or other proof showing that you were dismissed and that it was unlawful. This can include termination letters, written communications from your employer, or witness statements.
Consult a Lawyer: A labor lawyer can guide you through the process and ensure that you receive the proper compensation and justice. They can help you understand your rights and the steps you need to take.
What Are the Key Things to Remember About Illegal Termination?
It’s important to know that in the Philippines, if you are dismissed without a valid reason or if your employer fails to follow the correct procedures, you may be entitled to remedies such as reinstatement, backwages, and damages. Always be aware of your rights and take action if you feel your termination was unfair.
If you are facing termination or believe you’ve been wrongfully dismissed, take the time to understand your rights and the legal process. You don’t have to face it alone—there are legal protections in place to ensure that you are treated fairly.
*This blog post is intended for informational and academic purposes only and does not constitute legal advice. Readers are encouraged to consult a qualified lawyer for advice specific to their individual circumstances.
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