Dear Atty. Kathy,

Our Company accepted X as an employee. X signed the job offer and employment contract but could not start right away as he still had to process his resignation and clearance requirements with his current employer. In the meantime, before the effective date of X’s employment, I conducted the background check of X and discovered that he made untruthful statements in his employment history with previous employers. I asked X about this but he merely stated that the information in his job application is all correct. In the job offer signed by X, it is clearly stated that X’s employment is conditional on his passing the background check, and that the Company has the option not to proceed with X’s employment immediately, especially if there is any false information in his job application. Will X have a ground for illegal dismissal if the Company withdraws the job offer?

Asa

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Dear Asa,

In your case, it appears that there is a perfected contract of employment since X signed the job offer and employment contract, thus, expressing his agreement to the terms and conditions in the said documents. However, based on your narration, it also appears that there is a condition for the employment, that is, X should pass the background check, otherwise the Company has the option not to proceed with the employment, especially if there is false information in the job application. Therefore, X’s employment with your Company still depends on the background check, which is a suspensive condition, which makes the obligation of your Company conditional.

Article 1181 of the Civil Code provides:

Art. 1181. In conditional obligations, the acquisition of rights, as well as the extinguishment or loss of those already acquired, shall depend upon the happening of the event which constitutes the condition.

As ruled by the Supreme Court, a condition is defined as “every future and uncertain event upon which an obligation or provision is made to depend. It is a future and uncertain event upon which the acquisition or resolution of rights is made to depend by those who execute the juridical act.” Jurisprudence states that when a contract is subject to a suspensive condition, its effectivity shall take place only if and when the event which constitutes the condition happens or is fulfilled. In other words, a perfected contract may exist, although the obligations arising therefrom — if premised upon a suspensive condition — would yet to be put into effect.

Based on the above, the employment contract required that X pass the background check before he can become an employee of the Company. However, it appears that X was not able to explain the alleged untruthful statements in his employment history, thus, he did not pass the background check. Consequently, your Company’s obligations as a prospective employer had yet to acquire obligatory force. No employer-employee relationship was formed between your Company and X, thus, there is no ground for illegal dismissal even if you withdraw the job offer.

(ENRIQUE Y. SAGUN vs ANZ GLOBAL SERVICES AND OPERATIONS [MANILA] INC., et al., G.R. No. 220399, 22 August 2016.)

Atty. Kathy Larios