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Notre Dame of Marbel University

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termination of employment labor laws HR management employee rights

Summary

This document is a micro-teaching presentation about termination of employment in the Philippines, focusing on just and authorized causes and due process. It details the differences between just and authorized causes of termination and describes the role due process plays. It offers specific scenarios and considerations for various termination circumstances.

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GOOD MORNING! What can you say about the photo? Learning Outcomes: cite the diff erence between just causes and authorized causes of termination through a venn diagram; describe due process in the context of termination of employment through a short play; and discuss and exp...

GOOD MORNING! What can you say about the photo? Learning Outcomes: cite the diff erence between just causes and authorized causes of termination through a venn diagram; describe due process in the context of termination of employment through a short play; and discuss and explain the provision of the Labor Code of the Philippines on Termination of Employment and Retirement from Service through an argumentative essay. CHAPTER XII SEPARATION AND TERMINATION OF EMPLOYMENT INTRODUCTION Terminating an employee in the Philippines is taken VERY seriously and can be a complex process, especially after the employee is regularized. The Philippine constitution says, no involuntary servitude in any form shall exist, except as punishment for a crime whereof the party shall have been duly convicted. Artcile 285 of the Labor Code gave the employee the right to resign. 2 kinds of Without cause— the employee is required to give a 30-day advance written notice to the employer, to enable the employer to look for replacement to prevent work disruption. If the employee fails to give a written notice, he or she runs the risk of incurring liability for damages. With cause— Resignation with cause, also known as "constructive dismissal" or "forced resignation," occurs when an employee is compelled to resign due to unbearable or intolerable working conditions, often resulting from: 1. Hostile work environment 2. Harassment or bullying 3. Unreasonable demands or expectations 4. Unsustainable workload or stress 5. Unfair treatment or discrimination 6. Breach of employment contract Dismissal of an Employee in the Philippines — In the Philippines, dismissal of an employee refers to the termination of employment due to various reasons, governed by the Labor Code of the Philippines (Presidential Decree No. 442) and related laws. Grounds for Dismissal: 3. Health Reasons (Article 1. Just Causes (Article 282): 284): - Serious misconduct - Incurable disease - Willful disobedience - Disability or illness - Gross and habitual neglect of duty - Fraud or dishonesty - Commission of a crime - Analogous causes 2. Authorized Causes (Article 283): - Business closure or reduction - Redundancy - Retrenchment Severance Pay with Termination — Severance pay is a payment or benefit given to an employee when they are terminated or laid off from their job, usually due to circumstances beyond their control, such as: a. Installation of saving devices or Redundancy— the separation pay is one month's pay for every year of service or one month pay, whichever is higher (Article 283 Labor Code). b. Retrenchment or Closure or Cessation of operations— the separation pay is one-half month's pay for every year of service or one month pay, whichever is higher (Arts. 283 and 284, Labor Code). Take note: No requirement for separation pay if the closure is due to serious business losses. Severance pay aims to provide financial support during the transition period, helping employees to: - Offset loss of income - Maintain financial stability - Seek new employment opportunities te Difference between a Just and Authorized Cause of Termination Just cause— refers to wrongdoing committed by the employer or employee on the basis of which the aggrieved party must terminate the employer-employee relationship. Authorized cause— refers to a cause brought about by changing economic or business conditions of the employer. Causes for Termination by the EMPLOYER a. Serious misconduct b. Willful disobedience of employer's lawful orders connected with work c. Gross and habitual neglect of duty d. Fraud or breach of trust e. Commission of a crime or offense against the employer, employer's family or representative f. Other analogous causes ACTIVITY: Directions: a. The class will be grouped into two b. Write the answers on Venn Diagram and explain. Question: What are the differences between just causes and authorized causes of termination. DUE PROCESS IN THE CONTEXT OF TERMINATION OF EMPLOYMENT For just causes (like Due process in misconduct), the employee must job termination be told why they're being fired means employees and allowed to defend should be informed themselves. and given a For authorized causes (like chance to explain business closure), the employer themselves before must give at least 30 days' notice being fired. in writing and send it to the Department of Labor and Employment (DOLE) in the Due Process in the Context of Termination of Employment. —Due process in employment termination ensures that employees are treated fairly and legally when facing potential dismissal. It requires employers to follow a structured procedure, providing the employee with notice, a clear explanation of the reasons for termination, and an opportunity to respond or rectify issues if applicable. This process upholds the employee’s rights, promotes transparency, and protects both parties from legal disputes, ensuring that any termination is justified and handled with respect Your task is to act out the scenarios that will be given to you and demonstrate how due process should be applied in the termination of employment. Instructions for Group Presentations: After completing your role plays, one representative from your group will be asked to explain your group’s process and how due process was applied in the termination scenarios. ACTIVITY 02 Context: Mr. Santos has been repeatedly absent without valid reasons, despite multiple verbal warnings. The employer needs to apply due process to terminate his employment while ensuring fairness and legality Scenario 2: Employee Termination Due to Poor Performance Characters: Employer: Mr. Gomez (Department Head) Employee: Ms. Tan (Employee) Context: Ms. Tan's performance has been consistently below expectations for the past 6 months, despite multiple coaching sessions. The employer needs to ensure due process is followed to protect both the company and the employee's rights. TITLE I TERMINATION OF EMPLOYMENT In c ase o f retirement, the emplo yee shall be entitled to receive su ch retiremen t ben efi ts as he may have earned under existing law s and any c o llec tive bargaining agreements: Pro vided, ho w ever, That an emplo yees retirement benefi ts under any c o llec tiv e bargaining and o ther agreements shall no t be less than tho se pro vided therein. TITLE I TERMINATION OF EMPLOYMENT ARTICLE 278. Coverage The provisions of this Title shall apply to all establishments or undertakings, whether for profi t or not. Article 279. guarantees Security of tenure for regular employees, preventing termination without just cause or legal authorization. If unjustly dismissed, employees are entitled to reinstatement with no loss of seniority or benefi ts, plus full back wages and allowances from the time pay was withheld until reinstatement. This was reinforced by Republic Act No. 6715 in 1989. Article 280. Regular and casual employment - It states that employment is considered regular if the employee is engaged in activities that are necessary or desirable in the usual business of the employer, even if there is a written or oral agreement suggesting otherwise. However, an exception exists for employment set for a specifi c project with a predetermined end or for seasonal work, where employment lasts only for Article 280. Regular and casual employment- Employment is considered casual if it does not meet the criteria for regular employment. However, an employee who has served for at least one year, whether continuously or intermittently, is deemed regular in relation to the activity they are involved in, and their employment continues as long as that activity exists. Article 281. Probationary Employment - Probationary employment lasts up to six (6) months, unless a longer period is specifi ed in an apprenticeship agreement. An employee can be terminated during this time for just cause or if they fail to meet the employer's performance standards. If an employee continues working after the probationary period, they are deemed a regular employee. ARTICLE 282. Termination by employer. - An employer may terminate an for any of the following causes: (a)Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in connection with his work; (b) Gross and habitual neglect by the employee of his duties; (c) Fraud or willful breach by the employee of the trust reposed in him by his employer or duly authorized representative; (d) Commission of a crime or off ense by the employee against the person of his employer or any immediate member of his family or his duly authorized representatives; and (e) Other causes analogous to the foregoing. Article 283: Closure of Establishment and Reduction of Personnel - allows employers to terminate employees due to labor-saving device installations, redundancy, retrenchment to prevent losses, or closure of the establishment. Employers must provide written notice to employees and the Ministry of Labor and Employment at least one month before the intended termination date. Em ployees term inated due to redun dancy o r labor-saving devices are entitled to separatio n pay o f at least o ne (1) mo nth’s pay or on e (1) m on th ’s pay for each year o f service, wh ichever is h igher. Fo r retrench ment o r clo su res not caused by serio us fi nancial issues, separatio n pay is eith er on e (1) m onth’s pay o r (1/2) h alf a month’s pay fo r each year of service, which ever is higher. (6) Six m onths o f service co unts as o ne (1) full year for pay calculation s. Article 284. Disease as Ground for Termination -allows employers to terminate an employee suff ering from a disease that either legally prohibits their continued employment or poses health risks to themselves or co - workers. The employee must receive separation pay of at least one (1) month’s salary or (1/2) half a month’s salary for each year of service, whichever is higher, with six(6) months of service counting as one (1) full year. ARTICLE 285. Termination by employee. - (a) An employee may terminate without just cause the employee-employer relationship by serving a written notice on the employer at least one (1) month in advance. The employer upon whom no such notice was served may hold the employee liable for damages. (b) An employee may put an end to the relationship without serving any notice on the employer for any of the following just causes: 1. Serious insult by the employer or his representative on the honor and person of the employee; 2. Inhuman and unbearable treatment accorded the employee by the employer or his representative; 3. Commission of a crime or off ense by the employer or his representative against the person of the employee or any of the immediate members of his family; and 4. Other causes analogous to any of the foregoing. ARTICLE 286. When employment not deemed terminated - The bona-fi de suspension of the operation of a business or undertaking for a period not exceeding six (6) months, or the fulfi llment by the employee of a military or civic duty shall not terminate employment. In all such cases, the employer shall reinstate the employee to his former position without loss of seniority rights if he indicates his desire to resume his work not later than one (1) month from the resumption of operations of his employer or from his relief from the military or civic duty. Any employee may TITLE II be retired upon RETIREMENT FROM reaching the THE SERVICE retirement age established in the collective bargaining Retiremen agreement or other t applicable ARTICLE employment 287 contract TITLE II RETIREMENT FROM THE SERVICE In c ase o f retirement, the emplo yee shall be entitled to receive su ch retiremen t ben efi ts as he may have earned under existing law s and any c o llec tive bargaining agreements: Pro vided, ho w ever, That an emplo yees retirement benefi ts under any c o llec tiv e bargaining and o ther agreements shall no t be less than tho se pro vided therein. In the absenc e o f a retirement plan o r agreement pro viding fo r retirement benefi ts o f emplo yees in the establishment, an emplo yee upon reac hing the age o f six ty (60) years o r mo re, but no t beyo nd sixty- fi ve (65) years w hic h is hereby dec lared the c ompulso ry retirement age, w ho has served at least fi v e (5) years in the said establishment, may retire and shall be entitled to retirement pay equivalent to at least o ne-half (1.2) mo nthly salary fo r ev ery year o f servic e, a frac tio n o f at least six (6) mo nths being c o nsidered as one w ho le year. Unless the parties provide for broader inclusion, the term one-half (1/2) month salary shall mean fi fteen (15) days plus one-twelfth (1/12) of the 13th moth pay and the cash equivalent of not more than fi ve (5) days of service incentive leaves. Retail, service and agricultural establishments or operations employing not more than ten (10) employees or workers are exempted from the coverage of this provision. Violation of this provision is hereby declared unlawful and subject to the penalty provision under article 288 of this code. Article 288 of the Labor Code of the Philippines, also known as Presidential Decree No. 442, covers retirement and penalties for violations of the code: Reti rement An employee can be retired when they reach the retirement age in their employment contract or collective bargaining agreement. P enal ties Violations of the code are punishable by a fi ne of at least 10,000 pesos and up to 30,000 pesos, or imprisonment of at least one year and up to six years, or both. ACTIVITY 03 Question... As a future educator, how can you ensure that your rights are upheld in the event of termination or separation from your employer? Question... What did you learn today? Share your insights. Assessment 1 1/2 CW Question: Imagine you are an HR manager in a company in the Philippines, and you need to terminate a regularized employee due to poor performance despite multiple warnings and performance improvement plans. The employee has expressed dissatisfaction with the termination decision and threatens to file a wrongful dismissal claim. How would you handle this situation to ensure the termination process is legally compliant and fair to both the employee and the company? What steps would you take to avoid any legal issues? Assignment Case Study Find a real-life or hypothetical case of employee termination in the Philippines (this can be from news sources, legal cases, or a made-up scenario). Analyze the case in light of Philippine labor laws. Evaluate whether the termination followed proper legal procedures. If not, suggest what should have been done differently. BORCELLE THANK'S FOR LISTENING

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