Dear Atty. Joji,

One of our employees has been negligent in performing her tasks and often commits mistakes to the prejudice of the company. She was also unwilling to undertake additional duties that is being assigned to her even though it is stipulated on her employment contract. The management has reached a decision to terminate her employment due to the negative impact of her actions to our business operations. Can we terminate an employee without violating labor laws?

Anthony

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Dear Anthony,

There are two types of employment termination. First is termination by employer and the second is voluntary resignation or termination by employee. Employers can dismiss an employee based on just and authorized causes. Just causes are based on acts attributable to an employee’s own wrongful actions or negligence while authorized causes refer to lawful grounds for termination which do not arise from fault or negligence of the employee.

According to Article 282 of the Labor Code, an employer can terminate an employee for just causes, which could be any of the following: 1) serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in connection with his work; 2) gross and habitual neglect by the employee of his duties; 3) fraud or willful breach by the employee of the trust reposed in him by his employer or duly authorized representatives; 4) 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 representatives; and other similar causes.

However, in cases wherein there is just cause for termination, employers must still comply with the requirements of substantive and procedural due process. Procedural due process consists of the twin requirements of notice and hearing. The employers must furnish the employees with two written notices or the “Two Notice Rule” before the termination of employment can be effected.

As held in the case of Pepsi-Cola Bottling Co. Inc. v. NLRC: “The law requires that the employer must furnish the worker sought to be dismissed with two written notices before termination of employee can be legally effected: (1) notice which apprises the employee of the particular acts or omissions for which his dismissal is sought, and (2) the subsequent notice which informs the employee of the employer’s decision to dismiss him (Sec. 13, BP130, Sec. 2-6 Rule XIV, Book V, Rules and Regulations Implementing the Labor Code as amended). Failure to comply with the requirements taints the dismissal with illegality. This procedure is mandatory; in the absence of which, any judgment reached by management is void and inexistent.

Hope this helps.

Atty. Joji Alonso