labor ii finals reviewer with doctrines

8/9/2019 Labor II Finals Reviewer With Doctrines

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BOOKSIX:POST-EMPLOYMENT

Art.279SECURITYOFTENURE

- Securityof Tenure=rightnottoberemovedfromonesjobexceptfora validreasonandthroughproperprocedureasauthorizedbytheLC

- Regularemployment,cannotterminateEXCEPTforjustcauseorcausesenumeratedinthelaw- If not,reinstatement w/o loss of seniority rights andother privileges;full backwages (w/allowances); other benefitso

monetaryequivalentcomputedfromtimecompensationwaswithheldtoactualreinstatement

- Non-regularemploymentorprobationaryemployment,cannotlawfullyterminatebeforetheendoftheagreedperiodw/ojustcause

- GuaranteedbyConsti,Art.XIII3,punishedbyCCArt.1710- Managerialemployeescovered- Anactingappointmentismerelytemporary,oronewhichisgooduntilanotherappointmentismadetotakeitsplace.Andi

another person is appointed, the temporary appointee should step out and cannot even dispute the validity of his

successorsappointment.Theundisturbedunanimityofcasesisthatonewhoholdsatemporaryappointmenthasnofixed

tenureofoffice;hisemploymentcanbeterminatedanytimeatthepleasureoftheappointingpowerwithoutneedtoshow

thatitisforcause.

AstoTHErighttoproceduraldueprocess,thereisnoneedofanoticetotheactingappointeeoranyformofhearing.Such

proceduralrequirementsapplywheretheofficerisremovableonlyforcause.Therulethatabonafideappointmentinan

actingcapacityis essentiallytemporaryandrevocable incharacterandthe holderof suchappointmentmaybe removed

anytimeevenwithouthearingorcause.Aklanv.Guarino(2007)

Art.280REGULARORCASUALEMPLOYMENT

- RegularEmployment=o Natureofwork- Eehasbeen engaged toperformactivitiesw/careusually necessary ordesirable in theusua

businessoftradeofer

o Durationofemployment-Eehasrenderedatleastoneyearofservice(continuousorbroken)regularastothatactivityonlyandsolongasitsubsists.

- Writtenandoralagreementscannotchangestatussolongastherequisitesaremet.- Primary standard/ Determining factor: reasonable connection between the particular activity performed by the ee in

relationtotheusualbusinessNATUREofworkperformedinrelationtoschemeoftheparticularbusinessinitsentirety;

oneyearperiodissufficientevidenceofthenecessityoftheworkperformed.DeLeonv.NLRC(1989)

- Although the work to be performed is only for a specific project or seasonal, where a person thus engaged has beenperformingthejobforatleastoneyear,eveniftheperformanceisnotcontinuousorismerelyintermittent,thelawdeemtherepeated andcontinuingneed forits performanceas being sufficientto indicate thenecessityor desirabilityof tha

activitytothebusinessortradeoftheemployer.

Thenatureoftheworkperformedmustbeviewedfromaperspectiveofthebusinessortradeinitsentiretyandnotona

confinedscope.

Therepeatedrehiringofrespondentworkersand thecontinuingneedfortheirservicesclearlyattest tothe necessityor

desirabilityoftheirservicesin theregularconductof thebusinessor tradeof petitionercompany. Magsalinv.Nationa

OrganizationofWorkingMen(2003)

- ThetwoguidelinesbywhichfixedcontractsofemploymentcanbesaidNOTtocircumventsecurityoftenureareeither:1. Thefixedperiodofemploymentwasknowinglyandvoluntarilyagreeduponbytheparties,withoutanyforce,duresso

improperpressurebeingbroughttobearupontheemployeeandabsentanyothercircumstancesvitiatinghisconsent;

2. Itsatisfactorilyappearsthattheemployerandemployeedealtwitheachotheronmoreorlessequaltermswithnomoraldominancewhateverbeingexercisedbytheformeronthelatter.PNOCv.NLRC(1993)

- Theterm specificprojector undertakingunderArt.280 contemplatesan activitywhich isnot commonlyor habituallyperformedorsuchtypeofworkwhichisnotdoneonadailybasisbutonlyforspecificdurationoftimeoruntilcompletion

PureFoodsv.NLRC(1997)

- Evenifpetitionerswererepeatedlyandsuccessivelyre-hired,stillitdidnotqualifythemasregularemployees,aslengthofserviceisnotthecontrollingdeterminantoftheemploymenttenureofaprojectemployee,butwhethertheemployment

hasbeenfixedforaspecificprojectorundertaking,itscompletionhasbeendeterminedatthetimeoftheengagementof

theemployee.Caseresv.UniversalRobina(2007)


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- ProjectEmployee= employmenthasbeenfixedfor a specificprojectorundertaking,thecompletionorterminationowhichhasbeendeterminedatthetimeoftheengagementoftheee.

- Employmentiscoterminouswiththeprojectforwhichtheeewashired.Mayevenbeterminatedifaparticularphaseforwhichhewasemployedhasended.

- Basicrequisite:StatusiseffectedandimplementedinGOODFAITH- Noneedtopayseparationpay.- ContractworkersareNOTregularworkers,unjusttorequiretheertomaintaintheminthepayrollwhiletheyaredoing

absolutelynothingexceptwaitingforanotherproject.

-

Ifpartofaworkpool,thentheendofthatprojectoranyphasethereofwillnotmeanaseveranceoftheee-errelp.- TheybecomeREGULAREEswhen:o There iscontinuous rehiring ofprojectemployees evenafterthe cessation ofaproject[NOT controlling justas

BADGEofregularemployment);and

o Thetasksperformedbytheallegedprojectemployeearevital,necessary,andindispensibletotheusualbusinesortradeoftheer.

- Toqualifyasmemberofaworkpool,theworkermuststillbeconsideredanemployeeoftheconstructioncompanywhileintheworkpool. Inotherwords, theremustbeproof totheeffectthat petitionerwasunderanobligation tobealways

availableoncallofprivaterespondentandthathewasnotfreetoofferhisservicestootheremployers.Fernandezv.NLRC

(1994)

- Projectemployeesareentitledtoseparationpayiftheprojectstheyareworkingonhavenotyetbeencompletedwhentheirservicesareterminated.Andthisshouldbetrueeveniftheircontractshaveexpired,onthetheorythatsuchcontract

wouldhavebeenrenewedanywaybecausetheirserviceswerestillneeded.DeOcampov.NLRC(1990)

- Wheretheemploymentofprojectemployeesisextendedlongafterthesupposedprojecthasbeenfinished,theemployeeareremovedfromthescopeofprojectemployeesandconsideredregularemployees.

Thiscourthasconsistentlyheldthatfailureoftheemployertofileterminationreportsaftereveryprojectcompletionwith

thenearestpublicemploymentofficeisanindicationthatprivaterespondentwasnotandisnotaprojectemployee.Audion

Electricev.NLRC(1999)

- Whiletheabsenceofawrittencontractdoesnotautomaticallyconferregularstatus,ithasbeenconstruedbythisCourtasaredflagincasesinvolvingthequestionofwhethertheworkersconcernedareregularorprojectemployees.Hanjinv

Ibanez(2008)

- While this Court hasrecognizedthe validityof fixed-termemployment contracts, ithas consistentlyheld thatthis istheexception rather than the general rule. More importantly, a fixed-term employment is valid only under certain

circumstances.

In PhilexMining Corp.v.National LaborRelationsCommission, theCourt defined"project employees" as thoseworkers

hired (1)for a specific projector undertaking,andwherein (2)the completion or termination of such projecthasbeendeterminedatthetimeoftheengagementoftheemployee.

Scrutinizingpetitionersemploymentcontracts,however,failedtorevealanymentionthereinofwhatspecificprojector

undertakingpetitionerswerehired for. Althoughthe contractsmadegeneral references toa "project,"suchprojectwas

neithernamednordescribedatalltherein.

Theemploymentstatusofapersonisdefinedandprescribedbylawandnotbywhatthepartiessayitshouldbe.Equally

importanttoconsideristhatacontractofemploymentisimpressedwithpublicinterestsuchthatlaborcontractsmustyield

tothecommongood.Thus,provisionsofapplicablestatutesaredeemedwrittenintothecontract,andthepartiesarenota

libertytoinsulatethemselvesand theirrelationshipsfromthe impactof laborlawsandregulationsbysimplycontracting

witheachother.Pricev.Innodata(2008)

- SeasonalEmployment=regularees;calledtoworkfromtimetotime;temporarilylaidoffduringoffseason;notstrictlyspeakingseparatedfromservicebutmerelyonleaveofabsencewithoutpayuntiltheyarereemployed;employmentjust

suspended- Entitledtoseparationpay,onemonthspay=averagemonthlypayduringseasonworked- UNLESSonlyemployedforONEseason- CasualEmployment=

o Fixed for a specific project or undertaking (completion or termination determined from the beginning oengagement)

o Workorservicesisseasonalinnatureandonlyforthedurationofthatseason


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o Notcompliantwithrequisitesofregularemployment- Iftheactivityforwhichhewashiredwhenhewasacasualrecurs,heistheonetobehiredandacquiressecurityoftenure

Erneedsjustcausenottorehirehim.

- CasualwhenIRREGULAR,UNPREDICTABLE,SPORADIC,andBRIEFINNATURE,andoutsideusualbusiness- StillcouldbegovernedbyaCBAandmayhaveallrightsandprivilegesaswellasdutiesofaregulareeduringtheperiodof

actualemployment

- FixedPeriodEmployment=onlyadefiniteperiodasagreedbytheparties,maybejustifiedundertheCC- Requisitesforvalidity:

oMustbeshownthatperiodwasKNOWINGLYandVOLUNTARILYagreeduponbytheparties.

o Noforce,duress,orimproperpressureoneesor anyothercircumstancethatvitiatesconsent;nodominancebytheerovertheee(dealtwitheachotheronequalterms)

- Seafarers are the exception, not entitled to separation pay when term of contract ends, governed by POEA StandardEmploymentContract.

Art.281PROBATIONARYEMPLOYMENT

- Probationaryemployee = onewho ison tentative employment duringwhich theemployerdetermineswhether he iqualifiedforpermanentemployment

- Shouldnotexceedsixmonthsfromdateeestartedworking- UNLESScoveredbyapprenticeshipagreemntstipulatinglongerperiod- Maybeterminatediffailstoqualifyasregularee

o Standardsmustbereasonableo Musthavebeenmadeknownbytheertoeeattimeofhisengagement

- IfallowedtoworkafterprobationaryperiodREGULAR- Requirestheexistenceofdocumentaryevidencetoshowprobationarystatus- Limitedtenurebutstillhassecurityoftenure,sojustcausemuststillbeshown.Andifforcauseerdoesnothavetowaitti

probationaryperiodisover.

- Limitationstoterminations:o Mustaccordwiththereqtsofthecontract;o ThedissatisfactionoftheerisrealandinGF,notfeignedtocircumventtheorcontract;o Nounlawfuldiscrimination

- Natureofworkmaycreateacircumstancethata probationaryperiodlongerthansixmonthsisvalidandbinding.Itmayevenbeextendedattheeesrequesttogivetheeeasecondchancetopassthestandardsoftheer.

- Double(ormultipl)probationisNOTallowedeeon-the-jobtrainingfirstthenhiredonprobationforsixmonths- Sixmonths=180days- Privateschoolteacherstoberegular:

o Full-timeteachero Renderedthreeconsecutiveyearsofserviceo Satisfactoryservice

- Withinthelimitedlegalsix-monthprobationaryperiod,probationaryemployeesarestillentitledtosecurityoftenure.Itisexpresslyprovidedintheafore-quotedArticle281thataprobationaryemployeemaybeterminatedonlyontwogrounds:

(a)forjustcause,or(b)whenhefailstoqualifyasaregularemployeeinaccordancewithreasonablestandardsmadeknown

bytheemployertotheemployeeatthetimeofhisengagement.

ItisundisputedthatPDIapprisedMagtibayofthegroundofhistermination,i.e.,hefailedtoqualifyasaregularemployee

inaccordancewithreasonablestandardsmadeknowntohimatthetimeofengagement,onlyaweekbeforetheexpiratio

ofthesix-monthprobationaryperiod.

Unlikeunder the first ground forthe valid terminationof probationaryemploymentwhich is for justcause,the secondgrounddoesnotrequirenoticeandhearing.Dueprocessoflawforthissecondgroundconsistsofmakingthereasonable

standards expected of the employee during his probationary period known to him at the time of his probationary

employment.Itisinapprisinghimofthestandardsagainstwhichhisperformanceshallbecontinuouslyassessedwheredue

processregardingthesecondgroundlies,andnotinnoticeandhearingasinthecaseofthefirstground. PDIv.Magtibay

(2007)

Art.282JUSTCAUSESFORTERMINATION


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JUSTCAUSE(Art.282) AUTHORIZEDCAUSE(Arts.283-284)

CAUSE Faultsandmisdeedsofee Business or economic reasons; measures taken by

businessexigencies

SEPARATIONPAY Er not liable (except for compassion/financial assistance to

deservingee)

Required (unless closure or cessation of operati

seriousbusinesslossesdulyproved)

DUEPROCESS Notice(2noticesa.chargingeeofparticularactsoromissions

that may cause his dimissal; b. informs ee of ers decision) and

hearing/invesitigation (noformal investigation isnecessarywhere

eeexpresslyadmittedinfractions,justnoticeofersfindings)

NoticetoeeandDOLE30daysbefore

EFFECTIVITYDATE Determinedbyer 30daysafternotice

- Justcauses:

(a) Seriousmisconduct/willfuldisobedience(lawfulorders,connectedtohiswork)(b) Grossorhabitualneglectofduties(c) Fraudorwillfulbreachoftrust(d) Commissionofcrimeoroffensegaiansterorimmediatememberoffamilyorrep(e) Analogouscauses

- Seriousmisconduct=improperorwrongconduct;transgressionofsomeestablishedanddefiniteruleofaction;forbiddenact;derelictionofduty;willfulincharacter;wrongfulintent;notmereerrorinjudgment;ofgraveandaggravatedcharacte

notmerelytrivialandunimportantButmustbeconnectedtowork

- Sexualharassmentandfalsificationofatimecardareincluded- Willfuldisobedience

o orders,regulations,orinstructionsarereasonableandlawful;[dependsoncircumstances]o sufficientlyknowntotheee;o inconnectiontodutiesofee.

- Mustrelatetosubstantialmatters.- Resortedtowithoutregardtoitsconsequences- Prohibitingrelpsbet.eescouldbevalidifnecessarytoprotecttradesecrets,natureofindustry,etc.Enforcingthepolicyi

notdismissalorconstructivedismissal

- Iftransferisnotmotivatedbydiscriminationorbadfaithorisdoneaspunishmentordoesnotresultindemotioninrankodiminutionispay,benefits,orotherprivilegeswithoutsufficientcausethenitshouldbeobeyedotherwiseitisconstructiv

dismissal.

o Ermustshowthatitwasnotunreasonable,inconvenient,orprejudicialtotheee;o Nodemotionetc.

- Cannotpromoteaneewithoutconsentevenifitsmereyaresultofatransfer(sheesh)- Neglectofduties=absenceofthatdiligencethatanordinarilyprudentmanwoulduseinhisownaffairs- Notnecessary that actual loss, damage,orprejudice hasbeen sufferedby eroneesaccount; sufficientthat it tends to

prejudiceersinterest(unreasonabletoforceertowaitforthatevil)

- Canimposeproductivitystandardsthatmayserveasabasisforthejustcauseofdismissal- Abandonmentofjobisaformofneglect

o Failuretoreportforworkorabsencewithoutvalidorjustifiablereasono Clearintentiontoseverer-eerelp[determinativefactormanifestedbyovertacts]o Abseceisinsufficientbasiso Erhastheburdentoproveit

- Fraud,lossofconfidence=anyact,omission,orconcealmentwhichinvolvesabreachof legalduty,trust&confidencejustlyreposed,andisinjurioustoanother.

- Mustbecommittedagainsterorinconnectionofeeswork- Innocentnondisclosureoffactsisnotincluded- Lossofconfidenceonlyappliestoeeswhooccupypositionsoftrust&confidence,eemustberoutinelychargedwiththe

careandcustodyofersmoneyorproperty.Mustbebasedonwillfulbreachclearlyestablishedbyprovenfacts.


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- Cashiers, managers, supervisors, salesmen, assitant cook in a hotel in-charge of foodpreparation/custody & release osupplies,orothersimilarpersonnel fallunderthisclassification. Ifanyother r&femployee,likeanelectricianor janitors

theremustbeproofofactualloss.

- Proofbeyondreasonabledoubtnotrequired,mustbebasisbutnotabsolute.Mustbesubstantialandnotarbitrary.

- Commissionofacrimeoroffensespouse,ascendants,descendantslegitorillegit,adopted,relatedbyaffinityinthsamedegrees,byconsanguinitywithinthefourthcivildegree

- Analogouscauses=dependentoncircumstances-

Shouldbeduetovoluntary/willfulactoromissionofee- BeingfoundpositiveofuseofdangerousdrugsisananalogouscircumstancebutnotbeingfoundpositiveofHIV/AIDS.

- Procedure:Chargedvalidityofchargeestablishedinamannerconsistentwithdueprocess[Musthavealegalgroundandfollowlegalprocedure/mannerofdismissalmustbelegal]

- Ifdueprocessnotobservedbutdismissalwasforavalidcause,theseparationisstilllegal,eeremainsdismissed.Dismissawasmerelydefective/ineffectualtllthecourtaffirmedit.Buttheermaybeheldliablefordamages.

o WenphiDoctrine:Payindemnity,awarddependsonfactsofthecaseandgravityoftheomissionoftheer.(1989)o SerranoDoctrine:Payfullbackwagesfromthetimeofdismissaltothefinalityofthecourtsdecision,ifunderArt.

282thenjustthatbutifunderArts.283-284thismustbeaidinadditiontoseparationpay.[todeterdismissals

withoutdueprocess](2000)

o AgabonDoctrine:Payindemnityintheformofnominaldamages(lighterthanSerranobackwagesbutheavierthanWenphilindemnity);dependsonthedegreeofgravityofersdiregardforproceduraldueprocess;separationpay

underArts.283-284stillapplies(2004)o JAKADoctrine:

Art.282Sanctiontoertemperedbecthedismissalprocesswas,ineffect,initiatedbyanactimputabletotheee

Arts.283Stiffersanctionsinceinitiatedbyersexerciseofthemanagementprerogative.(2005)o DOLEDoctrine:PreviousnoticetoDOLEisnotnecessaryifeeconsentedtohisretrenchmentorappliedforit.o IfunderArts.283-284,canbepaidforthe30daysandexcusedfromworkbuttheterminationcannotbesaidto

takeeffecttillafterthe30days.

- Burden of proof: on employer to affirmatively show rationally adequate evidence that it was for a justifiable causesubstantialproofmorethanamerescintilla,relevantevidenceasareasonablemindmightacceptasadequatetosuppor

aconclusion.

- Appropriatepenalty=dependsonlightnessorgravityoftheoffense;erstolerationoforlaxityinpastofsimilaroffenses;eesyearsofserviceandcleanrecord;amountofmoneyorvalueinvolved;notnecessarilydismissal;ifit canbeavoided

withoutoppressingtheerthenitshouldbe;canbeforfeitureofbenefits,demotionwithdueprocesssinceitslikedismissal

- Dismissalisstillvalidevenifeeacquittedbecauseonlysubstantialevidenceisrequiredindismissal.- Constructive dismissal = involuntary resignation resorted towhenemployment becomes impossible, unreasonable,o

unlikelywhenthereisdemotionin rankordiminutioninpay; cleardiscrimination; insensibilityor disdainbyerbecome

unbearable;statuschangedfromregulartocasual;unexplainedreductionofworkdays;floatingstatus

- Withthe findingthatprivate respondentwasillegallydismissed, heis entitled toreinstatementwithoutlossofseniorityrights and other privileges and to his full backwages inclusive of allowances, and to other benefits or theirmonetary

equivalentcomputedfromthetimehiscompensationwaswithheldfromhimuptohetimeofhisactualreinstatement.

Publicrespondentlimitedprivaterespondentsbackwagesfromthedateofhisdismissalanduptothetimewhenpetitioneallegedlyofferedtoreinstateprivaterespondent.CondoSuiteClubTravelv.NLRC(2000)

- Itis theobligationof theemployertopayanillegallydismissedemployeeorworkerthewholeamountof thesalariesowages,plusallotherbenefitsandbonusesandgeneralincreases,towhichhewouldhavebeennormallyentitledhadheno

beendismissedandhadnotstoppedworking.

Thesalarybaseproperlyusedincomputingseparationpayandthebackwagesduetopetitionershouldincludenotjustthe

basicsalarybutalsotheregularallowancesthatpetitionerhadbeenreceiving.


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- Atthetimeoftheirdismissalin1979,AveraandSimanganwerealready71and73yearsoldandcouldnotbeexpectedtocontinuemuchlongerinthepetitionersemploy.Itisonlyfair,therefore,thattheybeallowedbackpayonlyfortheperio

of3yearsasinthecaseofotherillegallydismissedemployees.StLouisCollegeofTuguegaraov.NLRC(1989)

- While it is true that the essence of due process is simply an opportunity to be heard or, as applied in administrativeproceedings,anopportunitytoexplainonesside,meetingsinthenatureofconsultationandconferencesassuchthecase

here,however,maynotbevalidsubstitutesfor theproperobservanceof noticeandhearing.EquitableBankingv.NLRC

(1997)

- Backwagestobeawardedtoanillegallydismissedemployee,shouldnot,asageneralrule,bediminishedorreducedbytheearningsderivedbyhimelsewhereduringtheperiodofhisillegaldismissal.Theunderlyingreasonforthisrulingisthatth

employee, while litigating the legality or his dismissal, must still earn a living to support himself and family,while fubackwageshavetobepaidbytheemployeraspartofthepriceorpenaltyhehastopayforillegallydismissinghisemployee

Bustamantev.NLRC(1996)

- Clearly, thelaw intendedreinstatement tobe thegeneralrule. It isonlywhenreinstatement isno longer feasiblethapaymentofseparationpayisawardedtoanillegallydismissedemployee,suchasintheffcircumstances:

1. employerhasceased operations, implemented retrenchmentor abolished theposition due to installation of laborsavingdevices;

2. illegallydismissedemployeehascontractedadiseaseandreinstatementwillendangerthesafetyofhisco-employees3. wherestrainedrelationshipexistsbetweentheemployerandthedismissedemployee.PheschemIndustrialv.Moldez

- Strained relationshipmay be invokedonly against employees whose positionsdemand trust and confidence,or whosedifferenceswiththeiremployerareofsuchnatureordegreeastoprecludereinstatement.DimabayaovNLRC(1999)

- EveniftheorderorreinstatementoftheLAisreversedonappeal,itisobligatoryonthepartoftheemployertoreinstateandpaythewagesofthedismissedemployeeduringtheperiodofappealuntilreversalbythehighercourt.Ontheother

hand,iftheemployeehasbeenreinstatedduringtheappealperiodandsuchreinstatementorderisreversedwithfinality,theemployeeisnotrequiredto reimbursewhateversalaryhereceived forheis entitled tosuch,moreso ifIheactually

renderedservicesduringtheperiod.Roquerov.PAL(2003)

- Separationpay shallbe allowedasameasureof socialjusticein thosecaseswheretheemployeeisvalidlydismissedfocausesotherthanseriousmisconductorthosereflectingonhismoralcharacter,butonlywhenheillegallydismissed.JPL

Marketingv.CA(2005)

- Thebackwagestobeawardedshouldnotbediminishedorreducedbyearningsderivedbytheillegallydismissedemployeelsewhereduringthetermofhisillegaldismissal.

In labor cases, particularly, corporate directors andofficers are solidarily liablewith corporation for the termination o

employmentofcorporateemployeesdonewithmaliceorinbadfaith.KayProductsv.CA(2005)

- Article282(e)oftheLaborCodetalksofotheranalogouscausesorthosewhicharesusceptibleofcomparisontoanotheringeneralorinspecificdetail.

ForanemployeetobevalidlydismissedforacauseanalogoustothoseenumeratedinArticle282,thecausemustinvolveavoluntaryand/orwillfulactoromissionoftheemployee.Theftcommittedbyanemployeeagainstapersonotherthanhis

employer,ifprovenbysubstantialevidence,isacauseanalogoustoseriousmisconduct.JohnHancockv.Davis(2008)

- Respondent'snegligence,althoughgross,wasnothabitual.Inviewoftheconsiderableresultantdamage,however,weareinagreementthatthecauseissufficient todismissrespondent.Thisisnotthe firsttimethatwehavedepartedfromthe

requirementslaiddownbythelawthatneglectofdutiesmustbebothgrossandhabitual.

InPhilippineAirlines,Inc.v.NLRC,weruledthatPhilippineAirlines(PAL)cannotbelegallycompelledtocontinuewiththe

employment of a personadmittedly guiltyof gross negligence in theperformanceofhisdutiesalthoughit washisfirs

offense.Inthatcase,wenotedthatameredelayonPAL'sflightscheduleduetoaircraftdamageentailsproblemslikehote

accommodations for itspassengers, re-booking, thepossibility of lawsuits, andpaymentof special landing feesnot to

mentionthesoaringcostsofreplacingaircraftparts.

Inanothercase,Fuentesv.NationalLaborRelationsCommission,[21]

weheldthatitwouldbeunfairtocompelPhilippine

BankingCorporation tocontinueemployingitsbank teller.Inthatcase,weobservedthatalthoughtheteller'sinfraction

wasnothabitual,asubstantialamountofmoneywaslost.SchoolofHolySpiritv.Taguiam(2008) - TotalityofConductDoctrine

Anemployeespastmisconductandpresentbehaviormustbetakentogetherindeterminingtheproperimposablepenalty.

Thetotalityof infractionsorthenumberof violationscommittedduring theperiodofemploymentshallbeconsideredin

determining thepenalty tobe imposeduponan erringemployee. Theoffensescommittedbyhimshouldnot be taken

singlyandseparatelybutintheirtotality.Fitnessforcontinuedemploymentcannotbecompartmentalizedintotightlittle

cubicles ofaspectsofcharacter, conduct, andability separateand independentofeach other. It is thetotality,notthe

compartmentalization,ofsuchcompanyinfractionsthatBuguathadconsistentlycommittedwhichjustifiedherdismissal.


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- InAgabonv.NationalLaborRelationsCommission ,weupheldasvalidthedismissalforjustcausealthoughitdidnotcomplywiththerequirementsofproceduraldueprocess.Weruledthatwhiletheproceduralinfirmitycannotbecured,itshould

not invalidate the dismissal. However, the employer should be held liable for non-compliance with the procedura

requirements of due process. The violation of Buguats right to statutory due process by the petitionerwarrants the

payment of indemnity in the form of nominal damages in the amount of P30,000, which is appropriate under the

circumstances.ChallengeSocksv.CA(2005)

- AboitizsrelianceonthepastoffensesofSalasforhiseventualdismissalislikewiseunavailing.Thecorrectrulehasalwaysbeenthatsuchpreviousoffensesmaybeusedasvalidjustificationfordismissalfromworkonlyiftheinfractionsarerelated

tothesubsequentoffenseuponwhichthebasisofterminationisdecreed.WhileitistruethatSalashadbeensuspendedon

June1,2000forfailuretomeetthesecurityrequirementsofthecompany,andthenonJuly20,2001forhisfailuretoassistintheloadingatthefueldepot,theseoffensesarenotrelatedto Salaslatestinfraction,hence,cannotbeusedasadded

justificationforthedismissal.Salasv.AboitizOne

- Letit bestressedthat insofaras theapplicationof thedoctrineof trust andconfidenceis concerned, jurisprudence hadistinguishedthetreatmentofmanagerialemployeesoremployeesoccupyingpositionsoftrustandconfidencefromthato

rank-and-filepersonnel.Withrespecttothelatter,lossoftrustandconfidenceasagroundfordismissalrequiresproofof

involvement in theallegedevents in question, but as regardsmanagerial employees, themere existenceof a basis fo

believingthatsuchemployeehasbreachedthetrustofhisemployerwouldsufficeforhisorherdismissal.Forthispurpose

thereisnoneedtopresentproofbeyondreasonabledoubt.Itissufficientthatthereissomebasisforthelossoftrustor

thattheemployerhasreasonablegroundtobelievethattheemployeeisresponsibleforthemisconductwhichrendershim

unworthyofthetrustandconfidencedemandedbyhisposition.EPacificGlobalv.Cabansay(2007)

- TheCourtfindsthatMorenohasindeedcommittedmisconductagainstrespondentSSC-R.Heradmittedfailuretoobtaintherequiredpermissionfromtheschoolbeforesheengagedinexternalteachingengagementsisa cleartransgressiono

SSC-Rspolicy.However,saidmisconductfallsbelowtherequiredlevelofgravitythatwouldwarrantdismissalasapenalty.The Court holds thatMoreno should be reinstated to her formerposition,without loss of seniority rights andothe

privileges,but withoutpaymentofbackwages. InaccordancewithDurabuiltRecappingPlant&Co. v.National Labo

Relations Commission, theCourtmaynotonlymitigate,but also absolveentirely, theliabilityof theemployerto pay

backwageswheregoodfaithisevident.TheCourtcannotlikewiseawardattorneysfeestoMorenoinviewoftheabove-

mentionedfindingofgoodfaithonthepartofSSC-R.Morenov.SanSebastian(2008)

- Managerialemployeesaretaskedtoperformkeyandsensitivefunctions,andthusareboundbymoreexactingworkethicsAsaconsequence,managerialemployeesarecoveredbythetrustandconfidencerule.Thesameholdstrueforsupervisor

employeesoccupyingpositionsofresponsibility.

Thereisnodoubtthatthepositionofpetitioneraschiefcookissupervisoryinnature.

Itissufficientthattheremustonlybesomebasisforthelossoftrustandconfidenceorthatthereisreasonablegroundto

believe,ifnottoentertainthemoralconviction,thattheemployeeconcernedisresponsibleforthemisconductandthathis

participationinthemisconductrenderedhimabsolutelyunworthyoftrustandconfidence.Itisahornbookdoctrinethatinfractionscommittedbyanemployeeshouldmeritonlythecorrespondingpenaltydemanded

bythecircumstance.Thepenaltymustbecommensuratewiththeact,conductoromissionimputedtotheemployeeand

mustbeimposedinconnectionwiththedisciplinaryauthorityoftheemployer.Sagalesv.Rustans(2008)

- PursuanttothecaseofAgabonv.NLRC,theprevailingdoctrineisthatwherethedismissalisforjustcause,thelackofstatutory due process doesnot nullify the dismissal or render it illegal. The employer, however, should indemnify the

employeein theform ofnominaldamagesto vindicateor recognize theemployeesright thatwasviolated.Corneliov

Coca-cola(2005)

- Preventivesuspensionisjustifiedwheretheemployeescontinuedemploymentposesaseriousandimminentthreattothelifeorpropertyoftheemployeroroftheemployeesco-workers.

TheCourtruledthatpreventivesuspensionwhichlastsbeyondthemaxperiodof30daysamountstoconstructivedismissal

Not a penalty for the offense, can be considered as such after offense is proved & appropriate penalty determined

MaricalumMiningv.Decorion(2006)

- Theruleisthatthetransferofanemployeeordinarilylieswithintheambitof theemployersprerogatives.Theemployeexercises the prerogative to transfer an employee for valid reasons and according to the requirement of its business

provided the transfer does not result in demotion in rank or diminution of the employees salary, benefits and othe

privileges.

InAlliedBankingCorporationv.CourtofAppeals,theCourtruledthatanemployeecannotvalidlyrefuseatransferorderon

thegroundofparentalobligations,additionalexpenses,andtheanguishhewouldsufferifassignedawayfromhisfamily.

GenuinoIcev.Magpantay(2006)

- AlthoughMateosinfractionwasnothabitual,wemusttakeintoaccountthesubstantialamountlost.Inthiscase,LBClosta


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motorcyclewiththebookvalueofP46,000whichbyanymeanscouldnotbeconsideredatrivialamount.Validdismissal.

LBCv.Mateo(2009)

- Anemployeewhocannotgetalongwithhisco-employeesisdetrimentalto thecompanyforhecanupsetandstraintheworking environment. Without the necessary teamwork and synergy, the organization cannot function well. Thus

managementhastheprerogativetotakethenecessaryactiontocorrectthesituationandprotectitsorganization.When

personaldifferences between employees andmanagement affect theworkenvironment, the peace of the company is

affected.Thus,anemployeesattitudeproblemisavalidgroundforhistermination.Itisa situationanalogoustolosso

trustandconfidencethatmustbedulyprovedbytheemployer.

- Theburdenofproofisnotontheemployeebutontheemployerwhomustaffirmativelyshowadequateevidencethatthedismissalwasforjustifiablecause.HeavyliftManilav.CA(2005)- Respondentwasnotissuedawrittennoticecharginghimof committingan infraction.Thelawisclearon thematter.Averbalappraisalofthechargesagainstanemployeedoesnotcomplywiththefirstnoticerequirement.

Also, in Loadstar Shipping Co., Inc. v. Mesano, the Court, sanctioning the employer for disregarding the due process

requirements,heldthattheemployeeswrittenexplanationdidnotexcusethefactthattherewasacompleteabsenceof

thefirstnotice.

- However,thedoctrineinSerranohadalreadybeenabandonedinAgabonv.NLRCbyrulingthatifthedismissalisdonewithout due process, the employer should indemnify the employeewith nominaldamages.King of Kings Transport v

Mamac(2007)

Art.283CLOSUREOFESTABLISHMENTANDREDUCTIONOFPERSONNEL

- Allowablemeasuresto preventlossesor theclosingor cessationofoperationof theestablishmentor undertakingis theinstallationof:o LaborsavingdevicesorRedundancy

Eeisentitledtoseparationpay=atleastonemonthspayoratleastonemonthpayforeveryyearofservice,whicheverishigher

o Retrenchment IfnotduetoitisNOTduetoseriousbusinesslossesorfinancialreversesseparationpay=onemonthspay

oratleastone-halfmonthpayforeveryyearofservice,whicheverishigher

o Atleast6months=1years- MustservewrittennoticetoeeandDOLE30daysbefore- Noquestionthatautomationisallowedtoeffectmoreeconomyandefficiency.

- Redundancy = services of an ee are in excess of what is reasonably demanded by the actual requirements of theenterprise;superfluousposition

- Couldbearesultfromoverhiring,decreasedbusiness,stoppingofaproductlineorservice,mergingofjobfunctionstostreamlinebutmustshowadequateproofthatabolishedpositionswereunnecessary.

- Retrenchment = For a valid retrenchment, the following requisites must be complied with: (a) the retrenchment inecessarytopreventlossesandsuchlossesareproven;(b)writtennoticeto theemployeesandtotheDOLEatleastone

monthpriorto theintendeddateofretrenchment;and(c)paymentof separationpayequivalentto one-monthpayora

leastone-halfmonthpayforeveryyearofservice,whicheverishigher.

Wecannotfavorthebareassertionsandemptyfiguressubmittedbythepetitioneroverthefinancialstatementsauditedby

independentauditorspresentedbyrespondentwithouttransgressingthebasicruleinassessingbusinesslosses,entrenched

injurisprudence.Manatadv.PT&T(2008)

- Dateofnoticetoworkersiscontrolling.- ItispossibleforaCBAtoprohibittheerfromemployingacontractortoperformthefunctionsoftheabolishedpositions- Standardsofretrenchment:

o Firstly,thelossesexpectedshouldbesubstantialandnotmerelydeminimisinextent.o Secondly, thesubstantial lossapprehendedmustbereasonably imminent, as such imminence canbe perceived

objectivelyandingoodfaithbytheemployer.

o Thirdly,bereasonablynecessaryandlikelyto effectivelypreventtheexpectedlosses.Theemployershouldhavetakenothermeasurespriororparalleltoretrenchmenttoforestalllosses,i.e.,cutothercoststhanlaborcosts.

o Lastly,butcertainlynotthe leastimportant,allegedlossesif alreadyrealized, andtheexpected imminentlosse


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sought to be forestalled,must be proved by sufficient and convincing evidence. The reason for requiring this

quantumofproofisreadilyapparent:anylessexactingstandardofproofwouldrendertooeasytheabuseofthis

groundforterminationofservicesofemployees.PhilippineTuberculosisv.NLRC(1998)

- Shouldbeprovenbyfinancialstatementsdulyauditedbyanindependentexternalauditororitsillegal,butCourtmaystilldeclareitillegalifdocumentswarrantit.Itwouldthenbeofnoeffect.Anyquitclaimssignedwouldbeinvalid.Maystil

contestseparationandisentitledtoreinstatementorbackwagesandseparationpayment.

- Whoshouldberetrenched?Basedon:o Lesspreferredstatus(temporaryees)o Efficiencyratingo

Seniority(althoughmayconsiderotherfactors,cannottotallyignorethis)Asufrinv.SanMigeual(2004) o LIFOrulenotstatutorydutyoferunlessCBAprovidesotherwise,(if2tobeconsidered,lastin,firstout)

- Cantforceacompanytokeepoperatingifitfacesseriouslossesorbusinessdecline.AlsoifinGFjustwantstostop.BuseparationpaymustbeaidwhenclosureisNOTduetolosses.

- Anemployermay close or cease hisbusiness operations even ifhewere notsuffering frombusiness lossesor financiareverses.ThisissoforArticle283oftheLaborCode,asamended,categoricallygrantsanemployertheauthoritytodoso:

byservingawrittennoticeontheworkerandtheMinistryofLaborandEmploymentatleastone(1)monthbeforethe

intendeddatethereof.Paymentofseparationpay.

Aslongasthecompanysexerciseofthesameisingoodfaithtoadvanceitsinterestandnotforthepurposeofdefeatingo

circumventingtherightsofemployeesunderthelawsorvalidagreements,suchexercisewillbeupheld.AISFBv.CA(2005)

- Proofof lossesmustbepresented athearingbefore Labor Arbiters, cannotbeentertained before CAor SCin ordertoexcuseerfrompaymentofeparationpay.

- Alsonotreuirewhenforcedtoceasebusinessbecgovtacquireslandforagrarianlandreform;relocationisNOTcessation.- PurchaserofacompanyisNOTrequiredtoabsorbeesofsellingcorp;canjustgivepreferencetothembutevenifdonein

goodfaith&reasonablesellingcorpstillhastopayseparationpay!Ifdoneinbadfaiththenliable.

- Merger:MUSTabsorbtheemployeesandcounttheyearsofserviceinthepreviouscompanysincethetransfereeisNOTaentirelynewcorporation.

- Webelievethatredundancy,forpurposesofourLaborCode,existswheretheservicesofanemployeeareinexcessofwhais reasonably demandedby theactualrequirementof theenterprise.Succinctlyput, a position is redundantwhere it i

superfluous,andsuperfluityof apositionorpositionsmaybetheoutcomeofa numberof factors,suchasoverhiringo

workers,decreasedvolumeofbusiness,ordroppingofaparticularproductlineorserviceactivitypreviouslymanufactured

orundertakenby theenterprise.The employerhad no legalobligation to keepin itspayrollmoreemployees, thanare

necessaryfortheoperationofitsbusiness.

IncontractingtheservicesofGemacMachineries,aspartofthecompany'scost-savingprogram,theservicesrenderedby

themechanicsbecameredundantand superfluous,andthereforeproperlyterminable.Thecompanymerelyexerciseditsbusinessjudgmentormanagementprerogative.Andintheabsenceofanyproofthatthemanagementabuseditsdiscretion

oractedinamaliciousorarbitrarymanner,thecourtwillnotinterferewiththeexerciseofsuchprerogative.DeOcampov

NLRC(1992)

- Foravalidimplementationofaredundancyprogramtheemployermustcomplywiththeffrequisites:1. writtennoticeservedonboththeemployeeandtheDOLEatleastonemonthpriortotheintendeddateoftermination;2. paymentofseparationpayequivalenttoatleastonemonthpayoratleastonemonthpayforeveryyearofservice

whicheverishigher;

3. goodfaithinabolishingtheredundantposition;4. fairandreasonablecriteriainascertainingwhatpositionaretobedeclaredredundantLowev.CA(2009)

- AStatementofProfitandLosssubmittedtoproveallegedlosses,withouttheaccompanyingsignatureofacertifiedpublicaccountantor auditedbyanindependentauditor,isnothingbuta self-servingdocumentwhichoughttobetreatedasa

merescrapofpaperdevoidofanyprobativevalue.Wehaveruledthatthehiringofnewemployeesandsubsequentre-hiringofretrenchedemployeesconstitutebadfaith.

FlightAttendantsv.PAL(2008)

- Wherethereisnothingthatwouldindicatethatanemployee'spositionwasabolishedtoeasehimoutofemployment,thedeletionofthatpositionshouldbe acceptedasa validexerciseofmanagementprerogative. Itis awell-settledrule tha

labor laws discourage interference with anemployer's judgment in the conduct of his business. Absent any unfair o

oppressiveactagainstprivaterespondent,theCourtcannotand shouldnotinterferewithmanagementdecisionsvalidly

undertakenbypetitioner.


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- Privaterespondent'scontentionsthathispreviousbenefitswerestrippeduponhisreappointmentarewithoutmerit.Plainlywhenanofficeorapositionisabolished,allbenefitsaccompanyingthepositionalsoareremoved.Pantrancov.NLRC(1999)

- Asalreadystated,Art.283oftheLaborCodedoesnotobligateanemployertopayseparationbenefitswhentheclosureisduetolossesNorthDavaov.NLRC(1996)

- Relocating the business to a place to which the employees cannot or do not want to transfer (principally because odistance)maybe considered cessation ofbusiness. It isnotclosureor cessation onaccountof seriousbusinesslosses

Consequently,theemployermustpaytheemployeestheseparationpayrequiredunderArt.283attherateofonemonth

orone-halfmonthspayperyearofservicewhicheverishigher.CheniverDeco(2000)

Art.284DISEASEASGROUNDFORTERMINATION

- Onlywheno continuedemploymentisprohibitedbylawo prejudicialtohishealthaswellashealthofco-employees

- Butmustpayo Separationpay=atleastonemonthsalryormonthsalaryforeveryyear,whicheverishighero Atleast6months=1year

- Theremustbeacertificationbyacompetenthealthauthoritythatthediseaseisofsuchnatureoratsuchstagethatitcannot be cured within a period of six months even with proper medical treatments. Cannot be from the company

physician.

- Ifillegal,reinstatement[immediatelyexecutorynoneedofWritofExecution,canjustplaceonpayrollifthereisapendingappeal](orseparationpaybeccantreinstate,strainedrelationsprovenbeforeLAORiferhadtoresorttoretrenchmen

whilecasewaspending)withbackwages.Ifappealdenied,noneedopaybackslaryhereceivedduringpendency.- Article277(b)oftheLaborCodeputstheburdenofprovingthatthedismissalofanemployeewasforavalidorauthorized

causeontheemployer.Itshouldbenotedthatthesaidprovisionoflawdoesnotdistinguishwhethertheemployeradmits

ordoesnotadmitthedismissal.

- For a disease to bea valid ground for the dismissal of the employee, the continued employmentof such employee iprohibitedbylaworprejudicialtohishealthorthehealthofhisco-employees,theremustbeacertificationbyacompetent

publichealthauthoritythatthediseaseisofsuchnatureoratsuchastagethatitcannotbecuredwithinaperiodofsix(6

months,evenwithpropermedicaltreatment.

- Althoughpetitionerisanon-stockandnon-profitorganization,retrenchmentasameasureadoptedtostaveoffthreatstoitsexistenceisavailabletoit.Article278oftheLaborCodestatesthatthefiscalmeasuresrecognizedthereinwhichan

employermayvalidlyadoptapplyto"allestablishmentsorundertakings,whetherforprofitornot."Sevillav.IT(2001)

- Backwages includes allowances and other benefits such as bonuses and other increases he wouldve earned with NOdeductions.

- CAmayawardbackwageseveniftheabsenceofsuchwasnotpreviouslyappealed.- Ifnotbecauseofseriousmisconductoranythinginvolvingeesmoralscourtmayorderthepaymentoffinancialassistance

consideringthecircumstancesoftheee.ItisNTthesameasseparationpayorseverancepayasrequiredunderArts.282-

284

- Transportationandemergencylivingallowancesmustalsobeconsideredincomputingtheamounttobeawardedunlessuchwerenotregularlyreceived.

- MORALdamages=badfaithormalice- EXEMPLARYdamages=Wanton,oppressive,ormalevolentmanner

- GR:Officersofthecompanyarenotpersonallyliable- Exception:Officersdeliberatelyormaliciouslydesignedto evade thefinancialobligationsof thecorp;used thecorpas a

vehicletoevadeobligations;theyindiscriminatelystoppedbusinesstoperpetrateanillegalact

Art.285TERMINATIONBYANEMPLOYEE

- Resignation=anactbyaneewhofinshimselfinasituationwherehebelieveshatpersonalreasonscannotbesacrificedinfavoroftheexigencyoftheserviceandhehasnootherchoicebuttodisassociatehimselffromhisemployment.

- Eemayserveresignationwithoutjustcauseifservesonemonthnotice,withoutwhichmaybeheldliablefordamages


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- Nonoticerequiredwhen:o Seriousinsultonhonorandpersonbyero Inhumanandunbearabletreatmento Commissionofcrimeoroffenseagainsteeorimmediatefamilyofeeo Analogouscauses

- Maybewithdrawableevenifeecalleditirrevocable

Art.286WHENEMPLOYMENTNOTDEEMEDTERMINATED

- Temporaryretrenchmentorlay-off/floatingstatus:o Bona fide suspension or the operation of a business or undertaking for less than 6 months (so no notice

requirement)

o Fulfillmentofaneeofamilitaryorcivicdutywouldbeentitledtosalaryduringthisperiodofservicetaxdeductible(applicabletocompanieswithannualincomeofmorethanP250kandaworkforceof20ormore)

- Effect:ermustreinstateifeedeclareshisintenttoresumeworkwithinonemonthfromresumptionofoperationsofeeorreliefofdutyofee

Art.287RETIREMENT(AMENDEDBYRA7641,EFFECTIVE1993)

- RetirementAge=statedinCBAoremploymentcontract- BenefitsdictatedbylawandCBA(CBAnotlessthanthatinlaw)- Nonestatedthen:

o 60yearsormorebutnotbeyond65(65=compulsoryretirementage)o Servedatleast5yearsinestablishmento Retirementpay=monthsalaryforeveryyearofservice(6mos.atleast=1year)

- Undergroundminingemployee:o 50years60yearso served5yearsatleasto entitledtoabove

- Ifnobroaderprovision,thenmonthsalary=15dayssalary+1/12ofthe13thmonthoay+cashequivalentofnotmorethan5daysofserviceincentiveleaves.

- Notrequiredofretail,service,andagriculturalerswithnomorethan10ees- ThisdoesnotincludewhatyoucangetfromtheSocialSecuritySystem- AyoungerretirementagecanbeintheCBAisfreelyagreedonandratified.- CBAcanvalidlystipulatethatercanretireaneeuponreachingacertainageorcriterionwithoutconsultingtheee- Aretirementplaninacompanypartakesthenatureofacontract,withtheemployerandtheemployeeasthe

contracting parties. It creates a contractual obligation in which the promise to pay retirement benefits is made in

considerationofthecontinuedfaithfulserviceoftheemployeefortherequisiteperiod.

RA7641(RetirementPayLaw)onlyappliesinasituationwhere:

1. thereisnoCBAorotherapplicableemploymentcontractprovidingforretirementbenefitsforanemployee;2. there is a CBAorother applicableemployment contract but it isbelow the requirements set for bylaw.Oxalesv

UNILAB(2008)

Art.290OFFENSES

- Prescribein3years- ULPsshouldbefiledwithin1yearfromaccrualorforeverbarred

Art.291MONEYCLAIMS

- Illegaldismissal= prescribesinFOURyearsunderArt.1146ofCC;moneyclaimsinstitutedindependentlyofcrimaxn.Nocivilactionmaybeinstitutedbeforeitisfinallydeterminedunlessitinvolvesemployeescompensation

- Thethree-yearprescriptiveperiodcanbeinterruptedbyaclaimfiledattheproperjudicialorquasi-judicialforum,anextrajudicialdemandontheemployerortheemployersacknowledgmentofitsdebtorobligation.Riverav.UNILAB(2009)

labor ii finals reviewer with doctrines

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