Article 297 of the Labor Code considers any of the following acts or omission on the part of the employee as just cause or ground for terminating employment:

(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 representatives; and

(e) Other causes analogous to the foregoing.

In Lim vs. National Labor Relations Commission, the Supreme Court (SC) considered inefficiency as an analogous just cause for termination of employment under Article 297 of the Labor Code. The SC held that gross inefficiency falls within the purview of other causes analogous to the foregoing, this constitutes, therefore, just cause to terminate an employee under Article 297 of the Labor Code.

One is analogous to another if it is susceptible of comparison with the latter either in general or in some specific detail; or has a close relationship with the latter. Gross inefficiency is closely related to “gross neglect, for both involve specific acts of omission on the part of the employee resulting in damage to the employer or to his business.

In Buiser vs. Leogardo, this SC ruled that failure to observe prescribed standards to inefficiency may constitute just cause for dismissal. Also, in Leonardo vs. National Labor Relations Commission the SC held that an employer is entitled to impose productivity standards for its workers, and in fact, non-compliance may be visited with a penalty even more severe than demotion.

The practice of a company in laying off workers because they failed to make the work quota has been recognized in this jurisdiction. (Philippine American Embroideries vs. Embroidery and Garment Workers, 26 SCRA 634, 639). Employees’ failure to meet the sales quota assigned to each of them constitute a just cause of their dismissal, regardless of the permanent or probationary status of their employment.

Failure to observe prescribed standards of work, or to fulfill reasonable work assignments due to inefficiency may constitute just cause for dismissal. Such inefficiency is understood to mean failure to

attain work goals or work quotas, either by failing to complete the same within the allotted reasonable period, or by producing unsatisfactory results.

This management prerogative of requiring standards may be availed of so long as they are exercised in good faith for the advancement of the employer’s interest.

In fine, an employee’s failure to meet sales or work quotas falls under the concept of gross inefficiency, which in turn is analogous to gross neglect of duty that is a just cause for dismissal under Article 297 of the Code.

However, in order for the quota imposed to be considered a valid productivity standard and thereby validate a dismissal, management’s prerogative of fixing the quota must be exercised in good faith for the advancement of its interest.

The duty to prove good faith, however, rests with employer as part of its burden to show that the dismissal was for a just cause. The company must show that such quota was imposed in good faith.

Employers must be reminded that while probationary employees do not enjoy permanent status, they enjoy the constitutional protection of security of tenure. They can only be terminated for cause or when they otherwise fail to meet the reasonable standards made known to them by the employer at the time of their engagement.

Where the employer miserably failed to prove the termination of employee was for a just cause nor was there substantial evidence to demonstrate the standards were made known to the latter at the time of his engagement, the employee’s right to security of tenure was breached.

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Such other causes must be analogous to 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 representative; and
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;

For an employee to be validly dismissed for a cause analogous to those enumerated in Article 297, the cause must involve a voluntary and/or willful act or omission of the employee.

In the old case of Nadura vs. Benguet Consolidated the employer claims that asthma is an illness that is analogous to causes of dismissal in the then governing law RA 1787 which carries almost the same

enumeration as the current Article 297 of the Labor Code.

In denying the claim, the Supreme Court ruled that it is clear that, except the just cause mentioned in subparagraph 1(a) all the others expressly enumerated in the law are due to the voluntary and/or willful act of the employee. How Nadura’s illness could be considered as “analogous” to any one of them is beyond the Court’s understanding, there being no claim or pretense that the same was contracted through his own voluntary act.

There is no exact parameter that will determine that a particular act falls under analogous causes. However, one must be guided by jurisprudence like the following: (See citations from Atty. Elvin’s book Guide to Valid Dismissal of Employees 2^nd Edition)

1. Stealing of co-employee’s credit cards;
2. Theft committed by an employee against a per- son other than his employer, if proven by substantial evidence, is a cause analogous to serious misconduct
3. Violation of company rules and regulations;
4. Attitude problem of an employee who cannot get along with co-employees, if proven, may be cause for dismissal. It affects the work environment and peace of the company;
5. The harassment of an employee by a co- employee within the company premises even after office hours is a work-related matter considering that the peace of the company is thereby affected. In this case a male employee embraced and kissed a female co-worker causing pains in the foot and shoulder of the latter.
6. Incompetence or inefficiency;
7. Failure to make work quota; and
8. Obesity of a flight attendant. This constitutes his failure to meet the employer’s qualifying standards.

Under Department of Labor and Employment’s (DOLE) Department Order (DO) No. 147-15, for analogous cause to be valid ground for termination, the following must be present:

1. There must be act or omission similar to those specified just causes; and
2. The act or omission must be voluntary and/or willful on the part of the employees.

Further, the DO states that no act or omission shall be considered as analogous cause unless expressly specified in the company rules and regulations or policies.

Learn how to Validly Terminate Employee in the Philippines with this Tutorial Video of Atty. Elvin

Read more on procedural due process discussion by Atty. Elvin:

Read more on procedural due process by Atty. Villanueva:

Twin Requirements of Notice and Hearing

Procedural Due Process for Other Types of Employment

Notice to Explain: Contents and Requirements