Illegal Dismissal Remedies & Regulatory Agencies PDF

Labor Relations And Negotiations QUESTION: Do you recall the meaning of “Management Prerogative”? CONCEPT OF ILLEGAL DISMISSAL In general, management has the prerogative to discipline its employees and to impose appropriate penalties on erring workers pursuant to company rules and regulations. H...

Labor Relations And Negotiations QUESTION: Do you recall the meaning of “Management Prerogative”? CONCEPT OF ILLEGAL DISMISSAL In general, management has the prerogative to discipline its employees and to impose appropriate penalties on erring workers pursuant to company rules and regulations. However, in order to validly fire/terminate an employee, the employer must have a cause for the employee’s dismissal and must observe due process. When is the dismissal of an employee, illegal? “Illegal dismissal” – is a dismissal of an employee without just or authorized cause. It is not only a violation of the contractual relations between the employer and the employee but is, in fact, a violation of the Labor Code and its implementing rules and regulations. Just Causes (Art. 282 of the Labor Code) Authorized Causes (Arts. 283 and 284 of the Labor Code) (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 offense by the employee against the person of his employer or any immediate member of his family or his duly authorized representative; and   (e) Other causes analogous to the foregoing. (a) installation of labor saving devices;   (b) redundancy:   (c) retrenchment to prevent losses;   (d) closure or cessation of the establishment or undertaking unless the closure or cessation is for the purpose of circumventing the provisions of the law; and,   (e) disease   Just Causes (Art. 282 of the Labor Code) Authorized Causes (Arts. 283 and 284 of the Labor Code) Here, the employee commits an infraction. Here, employer is constrained to dismiss the employee usually because of outside factors such as the general decline in the economy or merely part of its long range plan for business profitability. In termination for a just cause, the employee is not entitled to separation pay. In termination for an authorized cause, the employee is entitled to separation pay. “TWO-NOTICE RULE” The employer must furnish the employee with two (2) written notices before the termination of employment can be effected. (1) the first notice – apprises the employee of the particular acts or omissions for which his dismissal is sought; and (2) the second notice – informs the employee of the employer's decision to dismiss him.  1st Notice The first written notice to be served on the employees should contain the specific causes or grounds for termination against them. Employees are also given the opportunity to submit their written explanation within a reasonable period.  Hearing or Conference After serving the first notice, the employers should schedule and conduct a hearing or conference wherein the employees are given the chance to defend themselves personally. Employee has an option to avail assistance of a representative or counsel of their choice 2nd Notice After determining that termination of employment is justified, the employers shall serve the employees a written notice of termination indicating that: (1) all circumstances involving the charge against the employees have been considered; and (2) grounds have been established to justify the severance of their employment. REMEDIES What are the remedies of an illegally dismissed employee? An illegally dismissed employee is entitled to either: Reinstatement; If reinstatement is no longer viable, separation pay; Backwages; and In some cases, moral and exemplary damages. Reinstatement This means restoration to a state or condition from which one had been removed or separated. The person reinstated assumes the position he had occupied prior to his dismissal. Separation Pay In cases where reinstatement is no longer feasible, separation pay equivalent to one (1) month salary for every year of service should be awarded as an alternative. Backwages Restored lost income of an employee computed from the time compensation was withheld up to actual reinstatement. The base figure in the determination of full backwages is fixed at the salary rate received by the employee at the time he was illegally dismissed. Moral Damages Moral damages may also be awarded when, as in this case, the employer acted: in bad faith or fraud; in a manner oppressive to labor; or in a manner contrary to morals, good customs, or public policy. Exemplary Damages Damages awarded by way of example or correction for the public good. QUESTION: Does a probationary employee enjoy security of tenure? If so, can the said probationary employee be dismissed for failure to qualify as a regular employee? CASE STUDY MYRA M. MORAL vs. MOMENTUM PROPERTIES MANAGEMENT CORPORATION (G.R. No. 226240, March 06, 2019) Facts of the Case: Myra Moral filed a complaint for illegal dismissal against her employer, Momentum Properties Management Corporation and its CEO, before the NLRC. On 26 June 2013, she was hired as a probationary employee, with the position of being a Leasing Assistant. She worked eight hours a day from 9:00 a.m. to 6:00 p.m. Six months after her employment, she was informed of her dismissal and was advised to no longer report for work. Facts of the Case: According to her, Momentum Properties Management Corporation failed to provide any notice or justifiable cause as to why her employment was being severed. Because of the company’s failure to comply with both substantive and procedural due process requirements, she alleged that she was illegally dismissed. Facts of the Case: In its defense, the company denied the illegal dismissal allegation of Myra Moral. According to the company, in line with the provisions of their Employment Agreement, Myra Moral was subjected to an evaluation procedure on the fifth month of her employment. Based on the set criteria for quantitative and qualitative performance and developmental assessment, findings indicated that she failed to satisfactorily meet the level of performance expected from her position. Issue: Was Myla Moral illegally dismissed by Momentum Properties Management Corporation? Ruling: No, Myla Moral was not illegally dismissed by her employer company. A probationary employee is one who is placed on trial by an employer, during which the latter determines whether or not the former is qualified for permanent employment. By virtue of a probationary employment, an employer is given an opportunity to observe the fitness and competency of a probationary employee while at work. Ruling: A probationary employee enjoys security of tenure, although it is not on the same plane as that of a permanent employee. Other than being terminated for a just or authorized cause, a probationary employee may also be dismissed due to his or her failure to qualify in accordance with the standards of the employer made known to him or her at the time of his or her engagement. Ruling: Hence, the services of a probationary employee may be terminated for any of the following: a just cause; an authorized cause; and when he or she fails to qualify as a regular employee in accordance with the reasonable standards prescribed by the employer. Ruling: In this case, the evidence is clear that Myla Moral is a probationary employee of the company. As per their Employment Agreement, Myla Moral was made well-aware that her regularization would depend on her ability and capacity to fulfill the requirements of her position as a Leasing Assistant and that her failure to perform such would give the company a valid cause to terminate her probationary employment Ruling: Records show that Myla Moral failed to comply with the regularization standards of the Company which was made known to her at the time of her engagement. Myla Moral’s employee performance evaluation was substandard, as evinced by her dismal scores in a series of aptitude tests she took before the end of her six-month probationary period. As such, there was a valid cause to terminate her employment with the company. Labor Dispute Resolution Governing Agencies DOLE Secretary of Labor Undersecretaries Asst. Secretaries Bureaus Bureau of Labor Relations Bureau of Working Conditions Bureau of Local Employment Bureau of Workers with Special Concerns Regional Offices Attached Agencies National Labor Relations Commission National Conciliation and Mediation Board National Wages and Productivity Board TESDA Employees' Compensation Commission Institute for Labor Studies Occupational Safety and Health Center Professional Regulations Commission NLRC AND LABOR ARBITERS Jurisdiction of the Labor Arbiters: Except as otherwise provided under this Code, the Labor Arbiters shall have original and exclusive jurisdiction to hear and decide the following cases: Unfair labor practice cases Termination disputes; If accompanied with a claim for reinstatement, those cases that workers may file involving wages, rates of pay, hours of work and other terms and conditions of employment; NLRC AND LABOR ARBITERS Jurisdiction of the Labor Arbiters: Except as otherwise provided under this Code, the Labor Arbiters shall have original and exclusive jurisdiction to hear and decide the following cases: Claims for actual, moral, exemplary and other forms of damages arising from the employer-employee relations; Cases arising from prohibited acts and questions involving the legality of strikes and lockouts; and NLRC AND LABOR ARBITERS Jurisdiction of the Labor Arbiters: Except as otherwise provided under this Code, the Labor Arbiters shall have original and exclusive jurisdiction to hear and decide the following cases: Claims arising from employer-employee relations involving an amount exceeding five thousand pesos (P5,000.00) regardless of whether accompanied with a claim for reinstatement Question: Suppose the decision is not favorable to you. Where would you appeal the decision of the Labor Arbiter? National Labor Relations Commission (NLRC) The National Labor Relations Commission (NLRC) shall have exclusive appellate jurisdiction over all cases decided by Labor Arbiters. Decisions, awards, or orders of the Labor Arbiter are final and executory unless appealed to the NLRC by any or both parties within ten (10) calendar days from receipt of such decisions, awards, or orders. Grounds for the Appeal Such appeal may be entertained only on any of the following grounds: If there is prima facie evidence of abuse of discretion on the part of the Labor Arbiter; If the decision, order or award was secured through fraud or coercion, including graft and corruption; Grounds for the Appeal Such appeal may be entertained only on any of the following grounds: If made purely on questions of law; and If serious errors in the findings of facts are raised which would cause grave or irreparable damage or injury to the appellant. POWERS OF THE NLRC To promulgate rules and regulations To administer oaths, summon the parties to a controversy, issue subpoenas as may be material to an investigation; To conduct investigation for the determination of a question, matter or controversy within its jurisdiction To hold any person in contempt directly or indirectly and impose appropriate penalties therefor in accordance with law When shall the decision of NLRC be final? The NLRC shall decide all cases within twenty (20) calendar days from receipt of the answer of the appellee. The decision of the Commission shall be final and executory after ten (10) calendar days from receipt thereof by the parties. QUESTION: Suppose the decision of the NLRC is unfavorable again. Where do you now appeal your case? Court of Appeals (CA) Under the Rules of Court, appealed labor cases are filed with the Court of Appeals (CA), assailing the adverse decision or final order of the NLRC on the ground that the labor tribunal acted with grave abuse of discretion amounting to excess or lack of jurisdiction. QUESTION: Suppose the decision of the CA is unfavorable once more. Where do you now appeal your case? Supreme Court (SC) Under the Rules of Court, the labor case may now be appealed to the Supreme Court (SC) based on pure questions of law. The Bureau of Labor Relations (BLR) The Bureau of Labor Relations shall have original and exclusive authority to act on: all inter-union and intra-union conflicts; and all disputes, grievances or problems arising from or affecting labor-management relations in all workplaces, except those arising from the implementation or interpretation of collective bargaining agreements which shall be the subject of grievance procedure and/or voluntary arbitration. The National Conciliation and Mediation Board (NCMB) The National Conciliation and Mediation Board (NCMB) absorbed the conciliation, mediation and voluntary arbitration functions of the Bureau of Labor Relations. It is now an attached agency under the Department of Labor and Employment. Question: Does the right to file a labor case also expire? Prescriptive Periods Monetary Claims All money claims arising from employer – employee relations accruing during the effectivity of this Code shall be filed within three (3) years from the time the cause of action accrued; otherwise they shall be forever barred. Prescriptive Periods Illegal Dismissal Cases (eg., actions for reinstatement and claims for backwages) Illegal dismissal has a 4-year prescription from accrual of cause of action. Prescriptive Periods Unfair Labor Practices Unfair labor practice cases have a 1-year prescription from accrual of cause of action Prescriptive Periods Illegal recruitment cases Illegal recruitment has a 3-year prescription from accrual of cause of action. However, illegal recruitment involving economic sabotage has a 20-year prescription from accrual of cause of action.