Retrenchment is the termination of employment effected by management during periods of business recession, industrial depression, seasonal fluctuations, lack of work or considerable reduction in the volume of the employer’s business. Resorted to by an employer to avoid or minimize business losses. It is a reduction in manpower, a measure utilized by an employer to […]

Just cause is a legal terminology used in Article 297 of the Labor Code which provides the grounds or reasons for dismissal arising from the conduct of an employee. It presupposes that the employee has committed an offense against the company, person of the employer or his representative. It also covers gross and habitual neglect […]

Temporary displacement or temporary off-detail of security guard is, generally, allowed in a situation where a security agency’s client decided not to renew their service contract with the agency and no post is available for the relieved security guard. Such situation does not normally result in a constructive dismissal. Nonetheless, when the floating status lasts […]

In evaluating evidence available in a dismissal case, must the guilt of an employee be proved beyond reason-able doubt just like in criminal cases? The answer is no. Proceeding in labor is administrative in nature. All administrative determinations require only substantial proof and not clear and convincing evidence. (Segismundo vs. NLRC, G.R. No. 112203, December […]

Sample templates are provided, with discussion of the rules to guide employers, HR Managers, and business owners of the right procedure in terminating employees who committed dismissible offense against the company. “Dismissible offense” means violation of company rules where the penalty is dismissal from service. Under the law and rules, this requires observance of procedural […]

Hearing or conference is mandatory if the employee requests for it in writing or when so provided in the company policy based on the ruling of the Supreme Court (SC) in the case of Perez vs. PT&T (G.R. No. 152048, April 7, 2009). Although the law and jurisprudence have been very emphatic in mandating the […]

After serving the first notice, the employers should schedule and conduct a hearing or conference wherein the employees will be given the opportunity to: (1) explain and clarify their defenses to the charge against them; (2) present evidence in support of their defenses; and (3) rebut the evidence presented against them by the management. During […]

A Notice to Explain (NTE) is required to be sent to the employee as part of the two-notice rule. This is an important component of employee dismissal as mandated by law. Basically, an NTE apprises the employee about the offense being charged. In case of termination, the notices shall be served on the employee’s last […]

Twin requirements, as a concept, in illegal dismissal cases, refers to the procedural due process of employee dismissal. The twin requirements of notice and hearing constitute the essential elements of procedural due process, and neither of these elements can be eliminated without running afoul of the constitutional guarantee. In dismissing employees, the employer must furnish […]

Procedural due process is also required for termination of employees with limited security of tenure. While security of tenure is not exclusive to regular employees, the other forms of employment are accorded limited scope. Project employees, generally, cannot be dismissed, prior to the completion of the project or a phase thereof. Fixed- term employee cannot […]